question for wallstreet and others

Wallstreet

I sold a stock today(DEC 31) and had only held the stock for 3 months.  I know that if I had held it for a year and a day I limit the taxes I pay for my profits.  Do I need to reinvest today in order to not be hit with those taxes?

Thanks

pacificbb,

You can only match losses with profits, so it doesnt matter, unless you went out today and intentionally lost to offset the gain..haha

As for the holding time you are right..that only determines the percentage of tax on the sale.

Just one more question regarding this...

lets say I bought something with those profits today and held for a year and a day, would I still be hit with a higher % or would I be taxed a lower % because I kept those funds in something else. 

I appreciate the info.  Happy New Year Wallstreet

Each transaction is taxed separately, especially in a different year.

So in your scenario the sale number 1 is at the higher bracket, the sale number 2 if you held for a year is taxed in the year of the sale at the lower tax bracket.

Netting (grouping of sales) occurs each year..if that makes sense.

Thanks for the info Wallstreet