November 16, 2008
Can you adjust basis of investment without selling it?
helpme asked:
kids currently get $850 investment income without taxes. If this year that make only 50 in dividends and cap gain distributions, but stock price went up equivalent to $1000, can I declare (850-50) or $800 in captital gains? Effectively increasing the basis. This of course would get me to 850 total investment income. The next question would be can I then not file a tax form since I’m below 850? Thanks
kids currently get $850 investment income without taxes. If this year that make only 50 in dividends and cap gain distributions, but stock price went up equivalent to $1000, can I declare (850-50) or $800 in captital gains? Effectively increasing the basis. This of course would get me to 850 total investment income. The next question would be can I then not file a tax form since I’m below 850? Thanks
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Comments on Can you adjust basis of investment without selling it?
there is NO gain OR loss until after you sell the stock.
Up until then - you’re just along for the ride. Stock value may go up this year, down the next, whatever - but there are no tax consequences until you sell it.
check the tax filing sites. here is one of it