I may be purchasing some stock and selling after a few days. The money will go into brokerage account that I have set up correct? When do we pay tax on the profit? Anything else I need to be alert for? I am going to be using scotttrade which has a low transaction cost for all transactions of $7.50. Thanks in advance.
You pay tax on the profits when you fill out your 1040 tax form at the beginning of next year. Make sure you keep enough money set aside to cover the taxes you will owe. If you make high profits, you may want to send in quarterly estimated tax payments so you don't get hit with on underpayment penalty.
Ask a question or leave a reply