Short term profits - Capital Gains Tax Help

[Ravi860]

Tax experts here...me help kavali

Trying to understand how capital gains taxes work!

Depends on amount of gains, there are diff %'s of taxes unnai ani chusa like, 9%, 15%, 22%....

I understand this will apply for each individual stocks you have pay taxes for all short term gains

Paina rule whole portfolio ki ela apply outhadi?

for example.. 2019 year starting lo portfolio 10k undi..made profits and went to 20k but year ending ki 5k unte. So overall 5k loss.

does capital gains taxes still apply??

[Ravi860]

@Spartan

[pandemkodi]

You have to realize the gains or losses .. if you are in loss better to sell and buy back so you will have tax advantage there 

[Ravi860]

5 minutes ago, pandemkodi said:

You have to realize the gains or losses .. if you are in loss better to sell and buy back so you will have tax advantage there 

so overall portfolio meedha 5k loss unte.. capital gains apply outhaya since my portfolio went to 20k at one point of year??

ex: Jan 1 2019 - 10k (deposited),

      June 1 2019 - 20k (profits of 10k),

       Dec 31 2019 - 5k (lost 15k) end of year 5k tho unte portfolio lo

[Maryadaramanna]

Shares Nee portfolio lo unnantha varaku tax pay cheyyakkaraledu. The problem comes when you pay out. The input amount is deducted from the payout and tax is paid on the gain , not on the final amount. 
if your payout is less than the input, you don’t have to pay anything on the loss. 

[coffeeabhi]

29 minutes ago, Ravi860 said:

so overall portfolio meedha 5k loss unte.. capital gains apply outhaya since my portfolio went to 20k at one point of year??

ex: Jan 1 2019 - 10k (deposited),

      June 1 2019 - 20k (profits of 10k),

       Dec 31 2019 - 5k (lost 15k) end of year 5k tho unte portfolio lo

every "sell" transaction ki profit and loss calculate chesko. Total profits and losses add cheyyi, last lo entha amount unte antha dhaani meedha capital gains tax.

Eg: Bought 10k worth shares in Jan
       Sold all those shares in Jun for 20k -> Profit 10k
       Bought shares worth 20k in Jul
Scenario A:
       Sold all those shares in Dec for 5k -> Loss 15k
       Net profit = 10k - 15k = -5k 
Scenario B:
        Did not sell those shares after buying
        Net profit = 10k

If you've just bought shares worth 10k in Jan and didnot sell them, then there is no profit or loss until you sell them. So, no taxes.

[Spartan]

13 hours ago, Ravi860 said:

Tax experts here...me help kavali

Trying to understand how capital gains taxes work!

Depends on amount of gains, there are diff %'s of taxes unnai ani chusa like, 9%, 15%, 22%....

I understand this will apply for each individual stocks you have pay taxes for all short term gains

Paina rule whole portfolio ki ela apply outhadi?

for example.. 2019 year starting lo portfolio 10k undi..made profits and went to 20k but year ending ki 5k unte. So overall 5k loss.

does capital gains taxes still apply??

at the end of the day it boils down to your net income from the sale of shares man.

Short Term gains = Shares which u sold within one year (profit or loss)

Long Term gains = shares which u held for more than year and sold.

Loss in both cases = will be deducted from your AGI

Gain in individual cases will be taxed at different rate.

if net shot term gain is +ve, it will be added to your AGI and taxed according to ur tax bracket.

if net long term gain is +ve, u will be taxed at 15% rate. irrespective of ur AGI bracket.