Selling millions of dollars worth of stocks?
Let's say someone purchased a couple hundred thousand shares of a super low stock. The stock finally takes off and is worth say $10.00 a share. The almost worthless portfolio's stock is now valued at close to $3 million dollars. If this were on an account like E-trade or Sharebuilder, does the owner selling the shares get taxed by anybody? Is any money lost any where else once someone goes from crappy portfolio to millions of dollars? I am really just wondering how much of the profits of a rising stock minus fees and taxes is kept by the trader?
- rtfmLv 78 years agoFavorite Answer
When you sell stocks at a profit, you need to report that profit on your income taxes. It doesn't matter whether you have gone through an online broker or an in-person one. Profits are profits.
How much of the profit the owner of the stocks gets to keep depends on what tax bracket they're in.
Realistically, someone who had made a $3 million stock sale would probably re-invest most of those funds. You're acting as if they're just going to walk away with bags full of cash. It doesn't usually happen that way.
- Eddie WLv 78 years ago
Whenever you have profitted from stock trading, the government would tax it. Why, you think Obama works for free?
- Wayne ZLv 78 years ago
The government always gets a slice of the pie.
A US Citizen or resident alien would have to pay the IRS and their state, assuming that their state has an income tax.