topic Re: Do stock reduce AGI? in Get your taxes done using TurboTax

Do stock reduce AGI?

findjet — Sat, 28 Aug 2021 20:14:15 GMT

I bought stock this year since I dispensable AGI (adjusted gross income). Does this lower my AGI and thus lower my taxes? I know I am taxed on capital gains. But how to stock affect my AGI?

Re: Do stock reduce AGI?

DanPaul02 — Sat, 28 Aug 2021 20:23:01 GMT

Buying stock does not reduce your AGI and does not reduce your taxes. Only selling stock affects your income and AGI.

Re: Do stock reduce AGI?

VolvoGirl — Sat, 28 Aug 2021 21:07:43 GMT

And what do you mean "dispensable AGI"? No, buying stock doesn't affect your AGI or lower your taxes. Unless you made a deductible contribution to a Traditional IRA account.

When you sell the stock you will have a gain or loss which will affect your taxes. If you hold the stock for more than 1 year it will be a long term sale and get taxed at capital gains rate. If you sell it for a loss you can deduct the loss from your AGI with limitations.