topic I sold a stock and realized a large profit. If I take all of the proceeds from the sale and purchase an annuity, will I owe federal taxes on the stock proceeds? in Deductions & credits

I sold a stock and realized a large profit. If I take all of the proceeds from the sale and purchase an annuity, will I owe federal taxes on the stock proceeds?

Gianiboy — Sat, 21 Sep 2019 21:18:02 GMT

Re: I sold a stock and realized a large profit. If I take all of the proceeds from the sale and purchase an annuity, will I owe federal taxes on the stock proceeds?

Critter — Sat, 21 Sep 2019 21:21:45 GMT

What you do with the proceeds will not negate the taxable gain on the stock sale.

Re: I sold a stock and realized a large profit. If I take all of the proceeds from the sale and purchase an annuity, will I owe federal taxes on the stock proceeds?

Anonymous — Sat, 21 Sep 2019 22:46:20 GMT

NO. but there may be a way to defer and reduce the capital gains tax by investing proceeds in opportunity zone funds - talk to your broker. there may be extreme risk. your broker may not offer them.

here's more info

https://eig.org/wp-content/uploads/2018/02/Opportunity-Zones-Fact-Sheet.pdf

Re: I sold a stock and realized a large profit. If I take all of the proceeds from the sale and purchase an annuity, will I owe federal taxes on the stock proceeds?

dmertz — Sun, 22 Sep 2019 08:25:29 GMT

The gains will be includible in income no matter what you do with the gains. What that does to your taxable income and the tax rate applied to a long-term capital gain depends on your overall taxable income. Purchasing an annuity has no effect on that. Even if you invest the capital gain in opportunity zone property, the gain will eventually be includible in income.

Re: I sold a stock and realized a large profit. If I take all of the proceeds from the sale and purchase an annuity, will I owe federal taxes on the stock proceeds?

VolvoGirl — Sun, 22 Sep 2019 15:49:00 GMT

Was the stock in a personal account? It doesn't matter what you do with the proceeds from sales, it will be taxable income to you.

If it was in a IRA you might be able to do a rollover.