taxes, buying with credit card?

maxtax101

Newbie
5 0
I have cash and funds in paypal, but I don't have a savings account. I guess I can set one up real quick but I'd rather pay my credit card bill with cash to pay for stocks that I buy with a credit card. ok?

I want to buy about $600 of aliBABA's 1st day IPO in a couple weeks and I want $600 of QQQ.
I don't plan on trading anything else for at least a year except maybe 5 entries and 5 exists that I just might not to be able to resist because I still have a lot to learn. Please don't turn this into an anti BABA/QQQ lecture. But, in other words, I'm looking for which broker (Scottrade, etrade, thinkorswim etc) would give me the best deal on commissions etc if I only place these two buys for $600 each and then two more exit orders on thems in a year or so. And then maybe 5 other entries and 5 exits. BABA is NYSE QQQ is nasdaq, the 5 entries and exists might be OTC penny stocks, but if I should get another broker like suretrader to find shares for some of these OTCs/pennies, then I'll just go with whatever's best for just the BABA and QQQ long term entries.

So, about this tax thing, I think if I hold these for more than a year, I'm eligible to pay less % tax if I profit. But forgive me for asking such a seemingly simply question, but how do I go about paying taxes on these in plain English? Will they deduct them when I cash out and it's all done for me? I've never had to file taxes before. I know I can not write off tax deductible expenses like my computer etc because I'm not 'trading for a living...', but if I have to figure out the taxes all on my own or get a CPA, I imagine it would be simple for only two transactions, no? Will they send me a form asking me to do my taxes or do they not give me any notice and I have to do this I tax season or a certain time frame or something?

Thing is I'm unemployed right now off the books but I'm getting a 1099 job sometime this year. I'm off the obomacare radar until I file taxes (which will be required for the 1099 job within a year), then obomacare will fine me like $50 a year if I don't pay for obomacare.

If I buy stocks now and not sell them for a year, do I have to file taxes on them before I sell them? If I do sell them within this year, I guess it doesn't matter about the obomacare fine because I'll be filing my 1099 taxes anyway. Anyone get what I'm getting at and can help with that?
thanks.
 

NVP

Legendary member
37,586 2,008
are you sure you want to take the risk ?.........to play in this game a little spare and losable cash is needed really ....perhaps tuck some more away first ?

N
 

Hate2Lose

Active member
155 3
I have cash and funds in paypal, but I don't have a savings account. I guess I can set one up real quick but I'd rather pay my credit card bill with cash to pay for stocks that I buy with a credit card. ok?

I want to buy about $600 of aliBABA's 1st day IPO in a couple weeks and I want $600 of QQQ.
I don't plan on trading anything else for at least a year except maybe 5 entries and 5 exists that I just might not to be able to resist because I still have a lot to learn. Please don't turn this into an anti BABA/QQQ lecture. But, in other words, I'm looking for which broker (Scottrade, etrade, thinkorswim etc) would give me the best deal on commissions etc if I only place these two buys for $600 each and then two more exit orders on thems in a year or so. And then maybe 5 other entries and 5 exits. BABA is NYSE QQQ is nasdaq, the 5 entries and exists might be OTC penny stocks, but if I should get another broker like suretrader to find shares for some of these OTCs/pennies, then I'll just go with whatever's best for just the BABA and QQQ long term entries.

So, about this tax thing, I think if I hold these for more than a year, I'm eligible to pay less % tax if I profit. But forgive me for asking such a seemingly simply question, but how do I go about paying taxes on these in plain English? Will they deduct them when I cash out and it's all done for me? I've never had to file taxes before. I know I can not write off tax deductible expenses like my computer etc because I'm not 'trading for a living...', but if I have to figure out the taxes all on my own or get a CPA, I imagine it would be simple for only two transactions, no? Will they send me a form asking me to do my taxes or do they not give me any notice and I have to do this I tax season or a certain time frame or something?

Thing is I'm unemployed right now off the books but I'm getting a 1099 job sometime this year. I'm off the obomacare radar until I file taxes (which will be required for the 1099 job within a year), then obomacare will fine me like $50 a year if I don't pay for obomacare.

If I buy stocks now and not sell them for a year, do I have to file taxes on them before I sell them? If I do sell them within this year, I guess it doesn't matter about the obomacare fine because I'll be filing my 1099 taxes anyway. Anyone get what I'm getting at and can help with that?
thanks.

Unemployed and buying on a credit card? Sounds risky. Could saddle you with loads if debt if they go south.

Are you sure you can afford the risk?!
 

gerryg

Established member
900 6
Depends on the payment processors you gonna use. White ones like Paypal will autmatically deduct the tax as long as you define it's value in the settings. Moreover, brokers you are going to use to invest in stocks will also provide you with this kind of information. You are not first in that cause
 

maxtax101

Newbie
5 0
Depends on the payment processors you gonna use. White ones like Paypal will autmatically deduct the tax as long as you define it's value in the settings. Moreover, brokers you are going to use to invest in stocks will also provide you with this kind of information. You are not first in that cause

yes, as noted I want to invest, it' snot like it seems with the "unemployment and buying stocks with credit card" lol


thing is, the paypal isn't under my name but that might be better for the obomacare fine bypass since who it's under already has health ins. But maybe I can still use that account to fund the stocks and have paypal auto deduct the tax? I don't really know what to do, I just want alibaba and QQQ asap. I guess I'll email a bunch of online brokers like etrade and ask them?
 

gerryg

Established member
900 6
Guess if you invest through broker it will sort it out as soon as you make withdrawal. Just keep aloof from US brokers that cooperates directly with IRS and use offshore ones and you will probably solve tax problem easily, just not pay them off.
 

maxtax101

Newbie
5 0
Elsewhere said that I can set up some broker platforms and use credit, I'll email a bunch to find out. One person suggested "Just keep aloof from US brokers that cooperates directly with IRS and use offshore ones and you will probably solve tax problem easily, just not pay them off." not really sure what that means but will take broker suggestions for that if matches the ability to pay a bill with credit card.
I made this same thread on 3 forums, two replied that I won't have to pay tax until I sell positions, one here said that I will have to pay if I'm still holding if the stock pays quarterly dividends or if the broker pays interest on the account funds. Anyone know if QQQ pays dividends or if alibaba BABA will, or which brokers don't pay interest?
 
 
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