Yes, you will enter the date you ACTUALLY made the purchase and the price you ACTUALLY paid.
If you ended up selling all the stock for $10,000 and you only spent $120 total to purchase the stock, then you would have a gain on this sale of $9,880. The date is important because if it was less than one year it will be taxed as a short term gain and taxed as ordinary income as opposed to if you held it longer than one year, it would be taxed as a Capital Gains Sale. The rest of your income will play a part in the tax rate. However, your tax rate on the sale of the timeshare would be between 0% and 20%. The capital gains rates are as follows based on income
- Zero percent rate for the following income
- $47,025 for single or MFS
- $63,000 for HOH
- $94,050 for Married Filing Jointly
- Fifteen percent for income more than above but less than below
- $291,850 for MFS
- $518,900 for Single
- $551,350 for Head of Household
- $583,750 for Married Filing Jointly
- Twenty percent for the amount that your taxable income is over the 15% level.
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