How do I get taxed for selling direct company stock or sold through broker?

4 Comments

1. LisaFlorida says:

   July 6, 2009 at 2:15 am

   You will receive a 1099 from the brokerage that states the number of shares sold, the sales price, and the date. You will have to determine your cost basis for the stock. This might be the original purchase price [if you only bought stock once]. If you have bought shares of the same company’s stocks at different times and different prices, you’ll need to decide which method to use: dollar-averaging, FIFO, etc…
   You will only pay taxes on the excess of sale price over the cost [your profits].
2. Frank H says:

   July 6, 2009 at 2:15 am

   If you sell through a broker, they will typically take the tax out for you and send you a tax form at tax time.
3. Darby says:

   July 6, 2009 at 2:15 am

   The company will send you a 1099 that also goes to the IRS. You report that 1099 figure on your 1040 income tax return.
4. vegas_iwish says:

   July 6, 2009 at 2:15 am

   Whatever the gain is will be taxed. report on sched d of 1040.