How much taxes do you pay on stocks? Husbands company is selling to another company. When do you pay taxes?

shookme6869: How much taxes do you pay on stocks? Husbands company is selling to another company. When do you pay taxes?
Suppose to be getting around 135,000. Do I have to wait until the end of the year to pay taxes on this?

Answers and Views:

Answer by Barkley Hound
You don’t say if your are receiving or selling stock. Tax is due of the value of stock received. Tax on a sale is more complicated due to long and short term capital gains.

Normally estimated taxes are paid quarterly. You would have to pay the tax in the last quarterly estimate which is due around 1/15 (double check the date).You may be able to wait until you file your taxes. There is an underpayment exception when there is a large change in income.

Here is the rule. What it is saying is that there is no penalty if the tax you have withheld this year is at least equal to the tax withheld last year.

If you do not pay enough tax through withholding or estimated tax payments, you may have to pay a penalty for underpayment of estimated tax. Generally, most taxpayers will have paid enough tax to avoid this penalty if they have paid at least 90% of the tax shown on the return for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller.
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Answer by StephenWeinstein
You can send in the money at any time. Use the vouchers attached to Form 1040-ES so that they credit it to the correct account.

Profits on selling stock are a capital gain. Depending on how long you held them, you may be taxed at ordinary income tax rates or at long-term capital gain rates (5%-15%). Use Schedule D to report the income.

Answer by William H
The long term capital gains rate when you hold an asset over a year is 15%. The short term rate is your ordinary income tax rate.

Answer by mstrobert
Well actually it depends on how the stock is aquired. Was it a gift, was it equity he had in the company, was it from a stock option?

For example in the case of stock options, you pay a tax on the net gain when you receive the stock. It’s considered compensation. When you sell the stock you would pay tax on any increase in value from when you aquired it.