Zion Oil & Gas Inc (ZNOG)

[Spifster]

I am an accountant by profession and do seasonal tax work. If shares are in a regular investment account the tax liability is created at the time of sale regardless of when the cash is actually moved out of the account and there should not be any penalties coming from a regular account as all dollars used are after tax. Your broker will send out a 1099 at the end of the year reporting all sales from the account. The holding period is when the shares were first purchased. If less than 1 year, then any gains are taxed at your regular income tax rate. If the sold securities were purchased 1 year or longer, than the gain is taxed as a capital gain. Keep in mind that if you have been trading a security for a while, you may have sold off your long term shares and may be dealing with shorter term ones depending on whether you choose lot identification or FIFO (First in first out) for previous sales. I believe the default is FIFO, when you sell, you sell your oldest shares first.


NOTE: This is intended as general information. Consult your personal tax accountant as everyone's situation is unique.