I just made $20,000 today.. now what do I do.?

Blog Category: cfzr.com — Blogged by: webmaster on March 9, 2010 at 5:26 pm
  • Last week I bought $40,000 worth or 833 shares of Goldman Sachs stock at $48.00 per share. This morning I sold it at $72.00 per share and I made $20,000. Now what the hell do I do? I'm not a trader or anything and this was my first stock purchase. Do I have to report this to the IRS? How much tax will I have to pay on this thing? I'm single, and make about $24,000 a year.


  • party


  • File a Sch D with your tax return.

    Whatever taxes are paid are what your tax bracket is as you held the stock for less than a year. You can use 15% as the federal tax. State taxes vary.

    Helen, EA in PA


  • Well actually, it would be time to file estimated taxes unless your brokerage can do some tax witholding. I think you have until Jan.15th for the 4th quarter which this is. Otherwise, you will be subjected to a penalty for not paying enough taxes throughout the year. The penalties typically aren't exorbitant, I typically get them, though they might be higher in proportion to the amount owed... I'm not sure.
    $3000.00 should be an adequate amount to send. If you overpay, you will get reimbursed.
    The estimated tax form is just a little slip. When you do your 2008 taxes, you will add what you sent/withheld to what your employer withheld on the appropriate line. You will also do a Schedule D to show your short term capital gain.


  • You can use that money the same as it were from a paycheck and you will take care of the IRS when you make your tax report.


  • Do whatever you want. Yes you will report it to the IRS on Schedule D as a short term capital gain. Tax will be about $3000.


  • Let me give you some advice. If you are going to lie about buying a stock, don't claim you bought it at the absolute low point. Very few people do. You don't have to pay tax on pretend gains, so you owe no money.


  • Yes, you have to report it to the IRS. You would probably pay around $3,000, because you're in the 15% tax bracket.


  • Nice work, consider this a rare situation of perfect timing.

    This is what will happen. The short term gains will be taxed at ordinary income levels.

    So if you made $24,000 from your job, add $20,000 from stocks held under 12 months thus this year, for reporting purposes (1040 Schedule D) you will have made $44,000 and be taxed at that level less deductions you may have.

    You may want to talk to a CPA now for pre- tax planning.


  • take ten grand out and do it again buddy


  • Sit tight on it :) You don't have to report anything. the online trading agency that you used to buy & sell will report it to IRS & your taxes will be around 15% (based on your tax bracket) since this is considered as short term capital gain.







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