馃攳
Tax Information for Stock Market Investors | Stocks, Options, and Dividends - YouTube
Channel: Financial Information
[0]
[Music]
[4]
hello everyone welcome to the financial
[7]
information channel my name is Marvin in
[9]
this video I'm going to give you that
[11]
information about taxes and the stock
[13]
market I'm gonna give you that
[15]
information about taxes and stocks
[17]
options and dealings 9 my opinion
[20]
knowing information about taxes is very
[23]
important we all have to file taxes
[25]
every year so in this video I'm gonna
[27]
clear some confusion and I'm gonna give
[30]
you some suggestions about taxes and at
[32]
the end of the video I'm gonna give you
[34]
some tips sugar in the stock market and
[36]
taxes so make sure that you stay until
[38]
the end now let's begin with the video
[40]
so the first thing that I'm going to
[42]
mention is to give you that suggestion
[44]
of getting the IRS free tax guy I'm
[47]
gonna leave the link in the video
[48]
description so you can go and get that
[51]
guide it is updated every year and one
[53]
of the things you don't have to buy the
[55]
tax for dummies book that is a waste of
[57]
money and the tax rate from the IRS you
[60]
can explain all the tax situations in
[62]
the United States now you have to keep
[64]
in mind that these tax information might
[66]
change under the new president he will
[69]
propose a new tax reform in the United
[71]
States if anything changes I'm not doing
[74]
update on this video and the number one
[76]
thing that you need to do first is find
[78]
out your tax bracket I'm gonna put on
[80]
the screen is 2017 tax income bracket it
[83]
is very important that you know where
[84]
you are in terms of your tax bracket now
[87]
let's take a look at the first example
[88]
if you are single and you made less than
[91]
nine thousand three hundred twenty-five
[93]
your tax bracket that you're going to
[95]
pay for that income is gonna be ten
[97]
percent for long-term capital gains and
[99]
qualified dividends it's gonna be zero
[101]
percent and I'm gonna go over that
[103]
information in a bit now in the second
[105]
example let's say that you're single and
[107]
you made more than four hundred and
[109]
eighteen thousand four hundred your tax
[111]
bracket will be thirty nine point six
[113]
percent and the qualified dividend and
[115]
long-term capital gain it's gonna be
[117]
twenty percent
[118]
and once you find out your tax bracket
[120]
the next step is find out what is
[122]
taxable as an income I'm gonna talk
[124]
about copyright tax the first thing I
[126]
need to know is we have long term and
[128]
short term and the long term capital
[131]
gain or capital losses means when you
[133]
own a
[133]
for more than one year and the short
[135]
term capital gain and losses it when you
[138]
own and stock less than one year now one
[141]
thing that you need to keep in mind is
[143]
that when you own a stock does not mean
[145]
when you buy their stock so let me give
[147]
you a quick example let's do the date of
[150]
January 1st 2017 so if I buy one watcher
[154]
in January 1st 2017 for the price of 950
[158]
and I sell that same chair in December
[161]
31st 2017 for $1000 I'm gonna get $50
[166]
capital gain and that will be considered
[168]
short-term capital gain now if I buy the
[171]
same Google chair in general first for
[175]
the price of 950 and I sell it on
[178]
January 1st 2018 for $1000 that will
[182]
still be considered short-term capital
[185]
gain so the question that you might ask
[187]
yourself is why if I buy the stock in
[190]
January 1st 2017 and I sell it on
[193]
general 1st 2018 why short-term capital
[196]
gain or loss and the recently simple you
[198]
begin the holding period the stock that
[200]
you have under your account the day
[202]
after you buy the start so if I want to
[204]
receive the treatment of long-term
[205]
capital gain or loss I need to keep that
[208]
stock for one year and a day after you
[210]
buy the stock and in example number
[212]
three if I buy the Google chair of 950
[216]
dollars on January 1st 2017 and I sell
[219]
it on January 2nd 2018 there is gonna be
[223]
long-term capital gain or loss now keep
[225]
in mind if you're on the 10 or 15
[227]
percent tax bracket you might qualify to
[229]
pay zero tax on those long-term capital
[232]
gains and now that I have covered what
[234]
is short and long term I'm gonna cover
[236]
capital losses which is very important
[239]
and for this case I'm gonna give an
[241]
example let's say that you have $1,000
[243]
of short-term capital loss and you have
[246]
$500
[247]
of long-term capital gain and when that
[250]
happens the first thing you need to do
[252]
is match your short-term capital losses
[254]
with your short-term capital gains and
[257]
then your long-term capital losses with
[260]
your long-term capital gains
[261]
once you have subtracted your short-term
[263]
capital gain with your short-term
[265]
capital losses and
[266]
you still have a negative which means
[268]
that you have a shortened capital loss
[270]
you can have that number work against
[273]
your long-term capital gain and
[274]
long-term capital losses so in that
[276]
example if you have a thousand dollar
[278]
short-term capital loss and a
[280]
five-hundred long-term capital gain
[282]
after everything you will have the sum
[284]
of 500 of capital loss and you can match
[287]
that number of 500 to your regular
[289]
income then good thing with the bad
[291]
thing depending on how you see it is
[293]
that you can carry your capital loss
[294]
through multiple years so let's say in
[296]
2015 you lost 50 thousand for the year
[300]
and that fifty thousand is capital
[302]
losses you don't carry that fifty
[304]
thousand and match it against your
[306]
capital gain in addition you can match
[308]
up to three thousand of the capital loss
[310]
to your regular income and you can match
[312]
the three thousand for the next year the
[314]
following year and so on and if in 2017
[317]
you had a forty thousand capital gain
[320]
you can have that fifty thousand against
[322]
the forty thousand game and you will
[324]
still have ten thousand capital loss
[326]
that is just to give another example now
[328]
how does it work for options and four
[330]
options is the same situation when you
[333]
get a contract you need to have that
[335]
contract up to one year or more to be
[337]
qualified as a long-term investment and
[340]
also a short-term capital gain or loss
[342]
it will be the same even the option
[344]
contract is less than one year there is
[346]
going to be qualified
[347]
short-term capital investment now
[349]
there's one more thing and that is
[351]
dividends dividends is a little bit
[353]
simpler however it can become a little
[355]
bit more confusing in some cases now I'm
[358]
gonna give it any information about
[359]
qualified dividends like you saw in the
[361]
tax bracket
[362]
some people might pay up to 0% on
[364]
dividends and one of the things they
[366]
need to know about qualified dividends
[368]
either you need to own those share for
[371]
more than 60 qualified holding days now
[374]
the 60 day holding period is defined at
[377]
the 121 days that begins 60 days prior
[381]
to the ex-dividend date I made a video
[383]
about dealings here where I talked about
[386]
the Declaration and the ex-dividend
[388]
dates more in detail now you have to
[390]
keep in mind that some dealings might
[392]
not qualify now you will see the screen
[394]
the following criterias that the
[397]
Dominions might not qualify and those
[398]
dividends are made on
[400]
Fidel gained distribution dividends on
[402]
bank deposits dividends help a
[405]
corporation in an employee stock
[407]
ownership plan and the other option is
[409]
dividends by a tax-exempt corporations
[412]
there may be other options besides those
[414]
but those four are the only ones that I
[416]
know now you have to keep in mind if
[418]
that is not a qualified dividend that
[420]
amount is gonna be taxed at whatever tax
[423]
bracket you're in and one of the reasons
[426]
why I mention the qualified dividends
[427]
each that I see a lot of people buying
[429]
shares of his stocks just to get the
[431]
dividend and you will see that some
[433]
companies pay once in a while a special
[435]
dividend for example Costco actually
[437]
paid a special dividend and a lot of
[439]
people bought shares of Costco and then
[442]
they sold the chairs of Costco once
[444]
they've taken a dinning and when that
[446]
happened because you kept a stock for a
[448]
short term that is not that we are
[449]
qualified dividend usually the brokerage
[452]
is gonna give you a thing 99 I think
[454]
this section I believe 1b is gonna have
[457]
the qualified dividends so you will see
[459]
the screen the 1099 form and in the 1b
[462]
you will see the qualified dividend and
[464]
I'm gonna cover one important rule about
[466]
option and stocks and that is they watch
[469]
sale rule and what the rule is either
[471]
you cannot claim a loss when you sell a
[474]
stock and then within 30 days you buy
[476]
the same stock so let's say that I
[478]
bought the Google chairs on January 1st
[481]
2017 at the price of 950 and when I sell
[486]
the chair the price is around 900 so I
[489]
will have a $50 capital loss however if
[492]
I buy the Google chair at the 900 price
[496]
a week later the $50 capital loss is
[499]
gonna be disallowed and they are s
[501]
created a rule because a lot of people
[503]
were abusing that hole in the tax system
[505]
so keep that important rule in your mind
[508]
when you sell a stock you can all clear
[510]
my loss in that specific stock if you
[513]
buy the same stock within the 30 days
[515]
unlike a mention at the beginning I'm
[517]
gonna give you some tips right in the
[518]
stock market and taxes and the first
[521]
thing is you can add your brokerage fees
[523]
for example when you buy a stock the
[526]
brokerage might charge you either 999
[529]
799 499
[532]
two dollars 99 per transaction so you
[534]
can add those Commission fees I said the
[537]
deduction because those fees help you to
[539]
grow your money and make you money in
[541]
the stock market and the other thing is
[543]
you can open a taxi fare account for
[545]
example retirement account like an IRA
[547]
or a simplify employment plan which is
[550]
also known an SDP
[552]
and the basic idea that you don't get
[554]
taxed in those retirement accounts
[556]
however you will be taxed once you've
[559]
withdrawn those funds from your Thurman
[561]
account based on your tax bracket the
[563]
other thing that you can deduct for
[565]
example if you bought a computer used to
[567]
do some stock trading you can deduct
[569]
that amount in your taxes and the other
[572]
thing is if you have dividend money you
[574]
can have your brokerage reign based on
[576]
money into the same stock and what do I
[578]
do about my taxes I usually file my
[581]
taxes on my own however any capital gain
[584]
that I do I usually have that money
[586]
withdrawn and put it into a savings
[588]
account so by the end of the year I quit
[591]
run down money from my savings account
[593]
into my chickens account and in the new
[595]
year actually do my calculation to see
[598]
how much money I have to pay the IRS and
[600]
I already have the money into my account
[602]
now taxes don't have to be complicated
[604]
you can get that guide that I mentioned
[607]
before the link is gonna be in the video
[609]
description and that is gonna be
[611]
relative for the video please leave any
[613]
comments section below any tax question
[615]
that you may have about this video and
[616]
remember you can subscribe to the
[618]
financial information Channel
[619]
I'm gonna continue bringing videos about
[621]
the stock market personal finance and
[623]
how to make money online I'm gonna thank
[625]
you once again for watching the video
[626]
how an excellent day and take care my
[629]
friend
[632]
you
Most Recent Videos:
You can go back to the homepage right here: Homepage