I’m really not good with taxes so help would be greatly appreciated.
I have just bought some stocks and want to know the situation with taxes.
For example, I bought $4000 of stocks and made $300.
I then put in another $5500.
I then put $9200 (i have to buy even number of stock so I don’t pay premium which explains 9200 and not 9800)
I made about $550 after commission.
I sold the stock and now have 10350 in my stock account in cash and not in holdings.
Do I get taxed if I take this cash out of the account or is it taxed even if it’s in the account?
How about if the 10350 is put into another stock, do I still get taxed?
How do I report this and what is the rate of tax in Ontario Canada?
You incur capital gains (or losses) on the sales, no matter what you do with the proceeds. Think about it - they ain’t gonna let somebody rack up huge profits without tax consequences just because the money is staying in an account. The gains are the amount you sold for minus the amount you paid minus brokerage fees. If you held for less than a year, it is short term capital gains, essentially taxed as income. Otherwise, it is long term capital gains, taxed at a lower rate. Details:
DUH. Excuse me, I didn’t notice the “Ontario”. I was summarizing US tax code. I suspect somewhat similar rules will apply in Canada, but I don’t know them off the top of my head.