Is a stock sale taxed as ordinary income or capital gains?

Answer by  Kurt (4579)

Sale of stock will be a capital gain and the type of gain will depend on how long the stock was held before being sold. More than one year equals long term capital gain. Less than one year equals short term capital gain. Make sure to report any dividends received on the returns also.

Answer by  Chaneygirl (1755)

It depends if it is short term or long term. Short term is taxed as ordinary and long term is taxed as capital gains.

Answer by  cgroverla (516)

If you own the stock for one year or less, ordinary income rates apply. If you own the stock for more than one year, capital gains rates apply.

Answer by  Caenaise (165)

If you owned the stock less than a year, the gain is a short-term capital gain which is taxed at ordinary income tax rates. If you owned the stock more than a year, the gain is long-term which is taxed at capital gains tax rates of 15% for federal taxes.