How much tax will I be charged when I sell these stocks?
Ryan asked:
I bought some stock a year ago ($450 worth), my dad is the custodian since I am a minor. Now I am going to sell them tomorrow, how much tax will I be charged? I live in Canada, but the stocks are for an American company, and are being sold in the United States.
I bought some stock a year ago ($450 worth), my dad is the custodian since I am a minor. Now I am going to sell them tomorrow, how much tax will I be charged? I live in Canada, but the stocks are for an American company, and are being sold in the United States.
As long as you don’t earn over 1800 in profit your taxes will be zero.
Great news to hear that you are getting active in investing for your future at such a young age. Stay the track and you will be a wealthy person when you are older.
You might start thinking about diversifing your money now, check out vanguards Total Stock Market Index. At such a young age if you put the money in and add to it when you can and never sell it you will return about 12-14% on your money over the long haul. That could turn your $450 into 84,0000 in 40 years. Think about what putting in an extra 450 now that would be double or 168,0000 another 450 now and that would be 252,000. Get the picture. It is the power of compounding and if you learn this a a young age you will be one rich person.
Good luck, keep learning investing by looking at finance.yahoo.com and read the “millionaire next door” don’t fall for get rich quick and you will do fine.