Skip to content
The DonkeyThe Donkey
  • Home
  • Account Payable
  • Account Number
  • Account Recovery
  • Account Riot
  • -
  • -
Account Recovery

Paying taxes in 2022: what you need to know

Posted on March 26, 2022March 26, 2022 by Amy A. Stuart
26
Mar

I was lured into the meme stock craze. What should I know?

The federal government comes to collect its share of your winnings. If you trade in a regular brokerage account (not a tax-advantaged individual retirement account, for example) and make a profit, you may owe capital gains taxes.

Short-term gains – those realized after selling stocks held for a year or less – are taxed at your ordinary income rate. The more favorable long-term rate comes into play when the shares are held for more than a year. (High-income investors will often owe an additional 3.8% “net investment income tax” on gains, regardless of how long they hold the stock.)

The losses offset the gains and up to $3,000 of net capital losses can be deducted from your ordinary income. Any remaining losses are carried forward to future years.

There’s a trap that might surprise many enthusiasts, known as wash sales. If, for example, you sold shares at a loss and then quickly bought them back, the initial loss cannot be used to offset other gains. Your brokerage should have sent you a Form 1099-B showing your gains, losses, and unauthorized wash sales.

If you quit your job to trade full-time, you could potentially qualify for what is known as trader tax status. Robert A. Green, managing director of Green Trader Tax, which specializes in tax planning for traders, said status could allow you to deduct some important expenses and enjoy other benefits. (You can also get more flexibility on wash sales, but now it’s too late to get it for 2021).

I continued to work from home. Can I write off certain expenses?

Probably not, unless you were self-employed, gig worker, or independent contractor.

Not even part of the phone bill? An office chair? “It’s always going to be a no, unless you have your own business,” said Cherie Mason, president of Cornerstone Tax and Financial Solutions in Denver.

Related posts:

  1. Nearly 2.5 million people have now signed a petition for a fourth stimulus check
  2. When and why to use Windows Advanced Startup
  3. How can local businesses work together to recover from Covid?
  4. ANZ Bank Charged with Discrimination for Closing Iranian’s Accounts After Sanctions Policy “Violated”
This entry was posted in Account Recovery. Bookmark the permalink.
Amy A. Stuart

A letter from the STFC ticket office – News
Bragar Eagel & Squire, PC reminds investors that class action lawsuits have been filed… | Your money
Categories
  • Account Number
  • Account Payable
  • Account Recovery
  • Account Riot
  • Uncategorized

account number accounts payable bank accounts capitol hill donald trump email address income tax joe biden law enforcement phone number president donald social security states capitol united states washington dc

Recent Posts
  • How to Get a Wells Fargo Credit Limit Increase – Forbes Advisor

  • Payoneer Global Inc. (NASDAQ:PAYO) Chief Financial Officer Michael G. Levine sells 7,536 shares

  • News from Trump today: Tax returns to be seen by Congress after Supreme Court rules against him

  • Drex heart attack: The Vancouver radio host will be on the air until 2023

  • Why Bank Customers Should Sign Their ATM Cards – Banker – The Whistler Newspaper

Archives
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • Privacy Policy
  • Terms and Conditions
  • Home
  • Account Payable
  • Account Number
  • Account Recovery
  • Account Riot
  • WooCommerce not Found
  • Newsletter