Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.
01-23-2018 01:22 PM
I opened a Vanguard brokerage Account in Feb 2017 and invested $50k in it, it has grown to $57k
Can I take out the gain of $7k?
How much taxes will I have to pay?
In two weeks or so, It will be a year since I invested
Solved! Go to Solution.
01-23-2018 07:03 PM
Welcome to the H&R Block community.
The tax on your income from the brokerage account depends on whether or not your transactions, usually stock trades, were short-term or long-term.
Any gain you have for 2017 will be a short-term gain because you could not have held an investment instrument for more than 1 year since you opened the account in 2017. This means that your gain will be taxed as normal income (it will be taxed the same way your wages are taxed). If you sell an investment instrument that you held for more than 1 year then you will be taxed at your capital gains rate, which is either 0%, 15%, or 20% depending on your income.
The tax on $7,000 is $700 if you have $10,350 or more worth of other income. But it will be a little bit more if you have a significant amount of other income. Note though that how much you actually have to pay depends on the overall outcome of your tax return.
If you have any other questions I'll be glad to help.
Senior Tax Advisor (Tampa, FL)