Wife sold and repurchased stock she has had for a while, what percent is it taxed?

Greg G: Wife sold and repurchased stock she has had for a while, what percent is it taxed?
I got married last year. Earlier that year, my wife had sold stock that she has had for quite a few years, 5+, and repurchased different stock. Basically, she shifted her portfolio around, is this taxable and if so, at which rate? Thanks.

Answers and Views:

Answer by SuperCactus
Any gain that resulted from the sale is taxable. You are not able to move to one stock from another and avoid tax.

Answer by terriyaki247
Yes, it is taxable. The excess of what she sold the stocks for and what she bought them for is long-term (1+ year) capital gain subject to 15% tax rate. She can offset the gain using capital loss, if any. If not, it’s taxable.

Answer by Bob W
You didn’t say what kind of account the stock was in. If it was in a tax-advantaged (really should be called “tax-deferred) account like an IRA or 401(k), the gain from the stock is not taxable now. Withdrawals will be taxed when she makes them.

If the stock she sold was in a regular brokerage account, then the sale has already been reported to the IRS by the brokerage and needs to be reported on your wife’s tax return as well.