Replies to post #36359 on Tesla Inc (TSLA)

[RV-8 Pilot]

Sure you do and at a higher rate than long term gains. Only way to not pay on gains is to offset the gains with losses

[RobotDroid]

After 12 months you avoid the personal gains tax, but still have to pay the rest. My gains on tsla I certainly cannot complain about, just hate paying six figures worth of taxes I will owe. Cant sell anymore this year for sure. CVM paying off now, so despite the Covid having a good year financially.

[TechWhiz]

scottyb - here is some info. for you.

If you buy and sell at a gain < 6 months holding period you get whacked with a Short Term Capital Gain which is taxed at a higher tax rate.

If you buy and sell at a gain > 6 months holding period you get whacked with a Long Term Capital Gain which is taxed at a lower tax rate.

If you sell for a loss and had bought back within 30 days (before or after selling at a loss) you get whacked with a Wash Sale and part of your loss is disallowed if you bought back at a higher price.

If at all possible, you should trade via a Retirement Account (IRA, 401(k), etc,.). All of your trades would not be taxable and would grow tax free.

The best investment vehicle is a Roth IRA because once you reach age 59.5 years old, you can withdraw all money tax free, whereas, withdrawing money from an IRA, 401(k), etc, would be taxed.

Hope this helped.