Jmdodgesrt4 Posted February 12, 2013 Share Posted February 12, 2013 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? Quote Link to comment Share on other sites More sharing options...
Bertmega Posted February 12, 2013 Share Posted February 12, 2013 @Jmdodgesrt4Hi 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. Quote Link to comment Share on other sites More sharing options...
Jmdodgesrt4 Posted February 12, 2013 Author Share Posted February 12, 2013 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. Quote Link to comment Share on other sites More sharing options...
bullies Posted February 13, 2013 Share Posted February 13, 2013 (edited) 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 February 13, 2013 by bullies Quote Link to comment Share on other sites More sharing options...
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