Hold or sell short my stocks for 2009?
An Anonymous User asked:
For 2009 I will have no taxable income. So I’m in the lowest federal income tax bracket. I started to buy stocks in december 2008 and some in 2009. I’m thinking about shorting out and sell my stocks around august or september. Obviously, that’s not a long term hold. So my question is. Will I get taxed at 15% by selling short or higher?
In Indian perspective it will be considered as Long Term Capital Gain(LTCG) bcoz it span two financial year i.e 2008-09 to 2009-10.
Which is non taxable right now.
So you can do it.
In the US you are taxed on your profit. Whether you made that profit by going long or shorting doesn’t matter.
If you hold the position for one year or longer, that is a long term capital gain and the tax rate is lower. Hold less than a year and it is a short term gain and taxed at your normal tax rate.
You will only get taxed on the profit.
B—$1000
S—$1100
Taxable $100 This also depends on your income for the year.