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Thread: Stocks & Taxes

  1. #1
    SitePoint Evangelist sp0om's Avatar
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    Stocks & Taxes

    I bought and sold a lot of stock my first year and took a small net loss. Because I lost money, I figured I didn't have to include the loss in my taxes. I also didn't have a job then, and made almost no money that year.

    So anyway, 2 years later, I get a letter from the IRS stating I owe them several thousand dollars for the stock I sold that year. I never reported the cost basis of the stock so the IRS assumed all the stock I sold was pure profit. Not sure how that works, but that's how it did.

    What forms do I need to submit to clear this mess? Taxes are a big headache and mystery to me. I have a week before they just bill me the $5,xxx and I can't even begin to afford that.

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    SitePoint Wizard silver trophy
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    You need to speak to a CPA and potentially an attorney. Solving back taxes is not something you can do with a forum advice.
    - Ted S

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    I Love Licorice silver trophybronze trophy Datura's Avatar
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    This is very serious. Collect all your paperwork and make an appointment with the tax office. They are usually helpful but difficult to deal with, they often do not know the rules themselves and you might get stuck with something a professional could help you avoid.

    If you can clear up this problem that way it would not cost you any money. If you do not get anywhere with them, then it is time to go to a professional tax lawyer or tax preparer.

    Don't mess around with this and it should serve as a lesson to you. There is so much information on taxes and finances out there, you should stick your nose a little bit into this, in the long run it is very helpful to know something about this -- Datura
    Ulrike
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    In memoriam gold trophysilver trophybronze trophy Dan Schulz's Avatar
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    Not only that, but tax laws change every year. What is relevant this year may not save your fat from the fire next year should you find yourself in the frying pan.

    As the others have said, go talk to a professional about this. Preferably a CPA and/or an attorney who specializes in tax law.

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    SitePoint Evangelist sp0om's Avatar
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    Where/how can I get in contact with a local CPA?
    How much roughly is this going to cost also (time and money)?

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    In memoriam gold trophysilver trophybronze trophy Dan Schulz's Avatar
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    One idea would be to check the local phone book. You can also go online and look for CPAs that way that practice in your area. Your local chamber of commerce would be another valuable resource you can use. Also look for professional associations that they would belong to, and look for accountants that way.


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