I want to invest in etf...i have invested in stocks...could someone give me american tax perspective?

Question:

etf - could you please explain how taxes work in america and the difference with stock...also if someone uses an online broker like etrade or sharebuilder please explain if there are additional costs involved with etf that are not included with stocks

Answer:
ETF's are treated as stocks for the Gov't as well as a broker charging a commission.

If a stock (or an ETF) is held for one year or more, the max Federal tax is 20%.

If held less than one year. it's taxed as your earnings would be (usually higher than 20%).

ETFs are stocks - no diff. Tax rate depends on income & holding period if a US Citizen. if not - have to ck with local authorities. There are small management fees inisde etfs like mutual funds but smaller than MFs. IAU & EWA 2 solid 1s for now.

I suggest you to ask those questions to your accountant.

Go to www.basetrader.com excellent advice

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I want to invest in etf...i have invested in stocks...could someone give me american tax perspective?

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