Do stock reduce AGI?

Forum|Forum|4 years ago
August 28, 2021
2 replies
15 views

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?

TurboTax Live Self Employed

Best answer by DanPaul02

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

DanPaul02Answer

Level 8

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

VolvoGirl

Level 15

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.