You will have to pay taxes if you have gain when you sell the stock. Lived in the home as your main home for at least 2 years the use test. Since we mentioned a very large capital gain, we need to also mention Alternative Minimum Tax AMT. It also distributes dividends and other income it receives. However, if they divorce and marry again, they do not have to pay a penny in taxes when selling their holding within two years. Refer to Publication 564,Mutual Fund Distributions. Many other capital investment home, buildings, real estate, bank deposits are considered long term if the holding period is 3 or more years. After 2010, dividends will be taxed at the taxpayer's ordinary income tax rate, regardless of his or her tax bracket. The fund is managed so the share price is constant.

Divide that result by the total number of shares you own. This is done to encourage entrepreneurship and investment in the economy. Basis is your investment in property for tax purposes. You did not meet either or both of the holding period requirement. Those held for one year or less are considered short-term and receive no preferred tax treatment.