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Any tax people here?


Jmdodgesrt4
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Off topic. I have a question. I removed 22k from my brokerage to purchase a rental property. Does that count as income? Or is the money made from selling the stocks/bonds to get that 22k taxed only. Also removed some here and there for bs stuff. Is that taxed as income or just the selling of the stocks/bonds with the profits?

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@Jmdodgesrt4

Hi JM:

I would need a little more on the specifics. Did you remove the 22k from the sale of investments? If so, did you have a gain? Was the the sale in 2012 or current year. Lastly, if you sold assets (stocks, bonds, etf, mutual funds, etc) if you held longer then a year, it would be taxed differently than short term holdings.

EX: say you sold 22k of mutual funds in 2012 to purchase this property, the sale spun off a hypothetical gain of 6k, and you hold the mutual fund longer then a year, you would be taxed at 15% on your gain. Going forward 2013 and beyond you will be taxed differently (most likely at the ordinary income rate). In any case, your brokerage house will send you a 1099 div that shows what they report to the federal government.

Hope this helps.

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Yes I was just confused on how it works. My wife gets a income from her trust monthy and that's taxed at I think 20 percent because its considered income. So I thought I was missing something since I pulled money out and it wasn't determined income. Was taxed on gains of the sale. Held over a year. So I believe that clears up my question.

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If it comes out of a (non roth) retirement acct it's taxed as income. If it comes out of a retail acct typically if the securities were owned < 1 year it's short term cap gains which I think are taxed as income, > 1 year it's long term cap gains which should be 15% max

Edited by bullies
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