Will I need to pay taxes if I buy or sell stocks? Where can I find my tax documents or statements?

 

Who will need to file taxes related to investments made through Greenlight?

All Greenlight investing portfolios, child and parent, are brokerage accounts held under the Primary Accountholder’s name. This Primary Accountholder is therefore the record owner of all securities purchased  in all accounts and will be the person responsible for filing any associated taxes.

What types of taxes would result from selling my investments? 

You should always consult with a tax professional about your specific situation, but in general there are two main types of taxes if you sell your stocks for a gain, which means selling them for more than the price you purchased them.

  • Long term capital gains: This happens when you sell your securities for a profit after you’ve held them for at least 1 year. Under U.S. tax law, long term capital gains receive preferential tax treatment and an individual’s long term capital gains are taxed at a rate that is typically lower than an individual’s ordinary income tax rate. This tax policy encourages individuals who buy securities to hold them for at least one year before selling them.  
  • Short term capital gains: This happens when you sell your securities for a profit after you’ve held them for less than a year. Under U.S. tax law, an individual’s short term capital gains are taxed at a rate that is equal to their ordinary income tax rate. 

Do I qualify for a Form 1099-B?

If you sold a stock or ETF during the previous tax year, you will likely qualify to receive a 1099-B.

Where can I locate my tax documents (Form 1099-B)?

Each investing profile will have Form 1099-B tax documents associated with their specific portfolio in the “Tax Documents” section at the bottom of their investing dashboards.

 

Note: This article is not intended to serve as tax or legal advice. We encourage you to consult with your legal and/or tax advisors for advice specific to your individual legal and/or tax situation.

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