I sold a stock and realized a large profit. If I ...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

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?

 
4 Replies
Level 15

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?

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

Anonymous
Not applicable

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?

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

 

Level 15

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?

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.

Level 15

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?

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.

Dynamic Ads
v
Privacy Settings