# Capital Gains Tax or Income Tax



## Drewsers (Sep 27, 2009)

Hi There,

I bought stock 6 months ago and just sold it with a nice profit.

A friend told me that it was a mistake to not hold the stock for one year bc my profit will be treated as income and taxed as such rather than taxed as a capital gain.

Is this true?


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## stardancer (Apr 26, 2009)

No, the proceeds will be subject to the capital gains calculation on schedule 3, then 50% of the total gain will be taxed along with your other income.

Your friend may be getting mixed up with the 30-day rule. If you sell then re-buy a stock within 30 days, and have a loss, you cannot claim the loss at that time.


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## billiam (Aug 24, 2009)

If your an American its true. Google "short term gains" for more info.

If your Canadian, stardancer's comments are correct.


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## Drewsers (Sep 27, 2009)

Thanks for the info.


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