You should always check with a tax professional for your situation specifically, but in general there are two main types of taxes if you sell your stocks for a gain which means selling them for more than the price you purchased them.
- Long term capital gains: This happens if you sell your stocks after you’ve held them for at least 1 year. This gets some special tax treatment from the US government and you pay a lower tax rate on these investments which is a positive to holding investments for the long term.
- Short term capital gains: This happens if you sell your stocks after you’ve held them for less than a year. Selling after holding less than a year will usually have this counted as income and will be taxed at your current income tax rate.
If you happen to sell stocks for less than you bought them for you can actually deduct that amount from any of your gains and it may help you pay less taxes.
Do I qualify for a Form 1099-B?
If you sold a stock or ETF during the previous tax year, you will likely qualify to receive a 1099-B.
Where can I locate my Form 1099-B?
Form 1099-B will be available in the Tax Documents section of the Invest dashboard.