Tax stuff

[Futuredoctr]

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I'm totally a newbee to investing, and currently only have money in an IRA through vangaurd. I was thinking about opening a sharebuilder account, and since I don't have an income this would be a regular account not an IRA. My question is what do I have to look forward to for tax stuff surrounding this account? This would be my first non-IRA account, and since I'm a first year, I'll have about 4 years of growth before I will be claiming an income. Thanks for anyone's help.

 

[UserNameNeeded]

I would think you'd be in the 0% tax bracket-- so you could accrue all the short and long term capital gains in the taxable brokerage account and not really pay anything (unless the gains are enough to be taxable-- greater than whatever the standard deduction is?). But I'm certainly no expert, so I would get better tax advice from someone who would know.

 

[AndyFromMDTAXES]

If you can be claimed as a dependent on your parent's tax return, the first $850 of income isn't taxed in 2007. If your parents can't claim you on their tax return, then the amount of investment income you can earn without being taxed jumps to $8,850 in 2007.

Please keep in mind that you are only taxed on "realized capital gains". So until such time that you sell one of your investments, there is no capital gains to report, except for capital gain distributions paid from your mutual funds held in a non-retirement account.