Hi, can I avoid taxes on short term stock gains if I took those profits and put it straight into an IRA? i think short term capital gains from stocks is 28%
Tue Jan 18, 2011 7:07 pm
oldguy Senior Member
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No - sorry.
Tue Jan 18, 2011 10:56 pm
coaster Senior Advisor
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If those holdings had already been in the IRA, then the taxes could have been avoided. I'm thinking it might also be possible, if you had known in advance you'd be selling those during the year, that they might have been transferred to your IRA as your IRA contribution before the sale. But not after the fact, no. And don't quote me on the above; I haven't done it myself nor done the research whether it can be done; but I don't see why it couldn't if a cost basis for the transfer can be set that makes the IRS happy.
Wed Jan 19, 2011 4:43 am
karinabartram New Member
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Without providing the IRS a cost basis along with your income tax return, the government will assume the stock was purchased by you for $0 and consider it a short-term gain. The best way is to hold the shares for more than one year which makes it long term gain which doest attract income tax.
Sat May 28, 2011 5:33 am
coaster Senior Advisor
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quote:Originally posted by karinabartram Without providing the IRS a cost basis along with your income tax return, the government will assume the stock was purchased by you for $0 and consider it a short-term gain.
No, the IRS will send you a letter telling you that your Schedule D was incomplete and would you please resubmit it with the correct information.
