topic Long Term Capital Gain in Get your taxes done using TurboTax

Long Term Capital Gain

Jchad0012 — Mon, 22 Mar 2021 02:44:01 GMT

We have inputed stock sales that are long term capital gain and they were taxed at 34% versus the 15%. Why would this occur? Thanks

Re: Long Term Capital Gain

NCperson — Mon, 22 Mar 2021 03:04:14 GMT

can you please explain more why they are "imputed" - where these stock options that were exercised????

Re: Long Term Capital Gain

Jchad0012 — Mon, 22 Mar 2021 03:11:58 GMT

These were stock sales that we had for nine plus years not stock options. Thanks

Re: Long Term Capital Gain

Jchad0012 — Mon, 22 Mar 2021 03:16:09 GMT

These were stocks not stock options. Thanks

Re: Long Term Capital Gain

NCperson — Mon, 22 Mar 2021 11:35:18 GMT

how do you know they were taxed at 34%? there is no 34% tax bracket.

what makes the sale 'imputed'? (that would suggest you did not receive cash).

can you explain more; what you have provided so far is quite cryptic.

Re: Long Term Capital Gain

Jchad0012 — Mon, 22 Mar 2021 15:28:12 GMT

When I put the proceeds for the gain in to turbo tax the amount returned changed by a difference of 34%. So for instance say I was getting back $5000 and I put a long term gain of say $30,000 my return went from receiving $5000 to owing about $5200. That is definitely more than the 15% that I was expecting it to change. I was expecting it to return to close to zero. Does this make sense?

Re: Long Term Capital Gain

NCperson — Mon, 22 Mar 2021 17:29:13 GMT

what are you using for the date you purchased the stock and the date you sold the stock?

also, you did enter the amount you received for the sale of the stock and the amount you paid; for your example, the net of these two numbers is $30,000.

and unless you state otherwise, I will assume your income is between $40,000 and $440,000

Re: Long Term Capital Gain

Jchad0012 — Mon, 22 Mar 2021 19:55:37 GMT

Yes, the income is an accurate assumption.

Yes, I did enter the amount I received and what I paid.

The dates were bought at 1/15/09 and sold at 7/18/20

Re: Long Term Capital Gain

NCperson — Mon, 22 Mar 2021 22:11:23 GMT

are you losing certain tax credits (EIC?) that is driving this because I agree it doesn't other wise make sense. do you receive social security that is now taxable because of the long term gain?

there is a document that is available in the desktop version called "QualDiv/ Cap Gn" that will show you all the gory calculations of how income tax is calculated at both the ordinary and capital gains tax rate. Check that out and it'll will explain what is occurring.