How are stock profits calculated?

Multiply the sale price per share by the number of shares sold to find your total proceeds from the sale. Subtract the cost basis from the total proceeds to calculate your stock profit. Note that if the cost basis is greater than the total proceeds from selling the stock, your answer will be a negative number.

How are capital gains calculated on stocks?

The difference between the purchase price and the sale price represents the gain or loss per share. Multiplying this value by the number of shares yields the total dollar amount of the transaction.

How much tax do you pay when you sell a stock in less than a year?

Generally, any profit you make on the sale of a stock is taxable at either 0\%, 15\% or 20\% if you held the shares for more than a year or at your ordinary tax rate if you held the shares for less than a year.

What happens if you buy stock twice?

Buying stock at two different times doesn’t fundamentally change how you’ll account for your gains. Any time you calculate capital gains and losses, you match up your purchase price with your sales price. If you have multiple purchase prices, you’ll just have to treat your sales as if you made them individually, rather than all at once.

What is the total profit per share of a stock?

Therefore, total profit is rs 50. If you sell one stock then profit per share is rs 25 and hence total profit is rs 25. The above logic applies from normal Accounting standards point of view. When you buy a stock say at rs 100 and you re buy the same stock at rs 90, then the stock is valued at weighted average cost.

How do I account for multiple stock gains on taxes?

Accounting for multiple stock gains can get complicated at tax time. Buying stock at two different times doesn’t fundamentally change how you’ll account for your gains. Any time you calculate capital gains and losses, you match up your purchase price with your sales price.

How do I match up stock purchases & sales on taxes?

Match up the shares you bought and sold. To account for different purchase dates, you’ll have to break your purchases out into separate lots on your tax forms, even if you sell your stock all at once. For example, if you sell 1,000 shares that you bought in four different purchases, you must list four entries on your tax forms.