Investment and Finance
The most frequently asked tax questions related to Investment and Finance
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Answer Tax QuestionsIRA - Due date of contribution
Asked Sunday, September 03, 2000 by an anonymous user
You must make your contribution by the filing due date of the return (usually April 15), or the date you file the return, whichever is earlier. An extension to file your return does not extend your time to contribute to your IRA.
IRA - Transfer stock and get an IRA contribution
Asked Sunday, September 03, 2000 by an anonymous user
Contributions to IRAs must be made by cash. Checks and wired funds are considered to be cash.
You may be eligible to borrow the money from the brokerage house against your stock. This is called margin.
In this way you do not have to sell the stock and you can still fund your IRA.
You may be eligible to borrow the money from the brokerage house against your stock. This is called margin.
In this way you do not have to sell the stock and you can still fund your IRA.
IRA - Stock Trader contribution
Asked Sunday, September 03, 2000 by an anonymous user
IRA and pension deductions are based on earnings.
Earnings are subject to payroll taxes, specifically social security, also referred to as self-employment tax for sole proprietors.
If you are not paying payroll taxes on your trading profits, you are not eligible for an IRA deduction or pension plan.
However, you may qualify for a spousal IRA if you income falls within certain limits.
Earnings are subject to payroll taxes, specifically social security, also referred to as self-employment tax for sole proprietors.
If you are not paying payroll taxes on your trading profits, you are not eligible for an IRA deduction or pension plan.
However, you may qualify for a spousal IRA if you income falls within certain limits.
I've been told I need a financial statement prepared by a CPA . What type of financial statement services are there and how much will it cost ?
Asked Sunday, August 27, 2000 by an anonymous user
There are basically three levels of financial statement services a CPA can provide. They are a Compilation, a Review and an Audit(sometimes referred to as an examination). The least expensive service is the Compilation and is generally accepted by banks for small personal loans, mortgages and small business loans, where an individual is required to guarantee the loan personally.
What is a securities Short Sale?
Asked Sunday, August 27, 2000 by an anonymous user
A Short Sale, or selling short, refers to when a person sells a stock before he or she owns it.
The person wants the stock price to go down, so it can be bought back at a cheaper price.
When you sell short you must borrow money to cover the sale. Usually, the seller's brokerage firm arranges to borrow stock to make delivery to the buyer until the seller "closes" the position by purchasing stock and turning it over to the brokerage firm.
The person wants the stock price to go down, so it can be bought back at a cheaper price.
When you sell short you must borrow money to cover the sale. Usually, the seller's brokerage firm arranges to borrow stock to make delivery to the buyer until the seller "closes" the position by purchasing stock and turning it over to the brokerage firm.
What is a long term capital gain ?
Asked Friday, August 18, 2000 by an anonymous user
A long-term capital gain is any gain that you receive from the sale of stocks or other investment property which is held for more than one year. If you hold something for 365 days that is still considered short term. It has to be more than one year.
How do I determine the taxable capital gains on my mutual funds that are included in my IRA?
Asked Thursday, August 03, 2000 by an anonymous user
The good news is that you don't need to compute your gains or losses on mutual funds that are held in an IRA. The bad news is all distributions from deductible IRAs are taxable- as ordinary income - in the year of the distribution. There is no capital gain treatment for gains on investments in an IRA.
