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us: basics of taxation of stocks
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e.g. i buy 1 stock unit for $100.00 and sell it later for $150.00 => income taxes arise. correct. you pay tax on your gains, i.e.: the different between net proceeds and gross costs (proceeds sans fees, acquisition costs including fees). i buy 1 stock unit for $150.00 and sell it later for $100.00 => no income taxes here. not correct. the loss is deductible from other capital gains, and if no other capital gains - from your income (up to $3000 a year, until exhausted). also, there are two different tax rate sets for capital gains: short term (holding up to 1 year) and long term (more than that). short term capital gains tax matches ordinary income brackets, whereas long term capital gains tax brackets are much lower.
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