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Technology Stocks : America On-Line (AOL)
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To: DepyDog who wrote (7545)3/23/1999 10:16:00 AM
From: MaryinRed  Read Replies (1) of 41369
 
Oversimplification and From a layman: so check with your CPA or IRS site

Tax liability is based on the PROFIT you make which is the price you sold it at minus what you paid for it (including commissions, etc) the basis. The IRS will want to know the date you acquired the stock and the date you sold it, total paid, total received. If you make a profit, it is taxable, if you have a loss, it is deductible.

There are timing issues: short term gains are if you held it less than a year, long term gains are if you hold an equity for over a year.

IRA's are treated differently taxwise, in particular Roth IRA's. go to www.rothira.com for more info on that. Bottom line is with a regular IRA you get to defer the taxes and therefore have the total amount to reinvest within the account: with a Roth you pay the taxes before the money goes into the account, but later you draw it out tax free..

these are gross oversimplifications....but this is the essence of what you need to know to start asking questions based on your situation.
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