I sold shares of a mutual fund & other stocks in order to pay a down payment on a first time home purchase. Do I still have to pay capital gains tax on those investments even though the $$$ was invested straight into a home?
Yes. If the funds were sold in a taxable account you will still pay tax on the capital gains. If that money was in a IRA then it will be taxed at the regular income rate but you will not have to pay the 10% penalty. In this case you can pull out a maximum of $10,000. If it was in a Roth IRA and you have held it for 5 years then you can pull out the principal tax free.
"The stock market is filled with individuals who know the price of everything, but the value of nothing." -... http://t.co/aTWv0QRVrV
- Friday Jan 30 - 2:00pm
ASA/ExpressJet pilots. It is that time of year again. Seating is limited, sign up soon! http://t.co/tUurLbdzNq
- Thursday Jan 29 - 1:02am