Submitted By: Frank
Answered: December 29, 2015 11:54 am

I sold one stock and used all of the proceeds to buy another. Are there any special rules to help me minimize the gains I have to report?

Unfortunately not, except for certain reinvestments in qualified small business stock or empowerment zone business stock (see the Schedule D instructions for these special rollover rules). Apart from these exceptions, all of the gain on the sale of one stock must be reported even if other stock is purchased. The like-kind exchange rules do not apply to securities (stocks, bonds, notes, etc.).

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Tax Glossary

Self-employment tax

Tax paid by self-employed persons to finance Social Security coverage. In 2007, there are two rates. A 12.4% rate applies to a taxable earnings base of $95,700 or less and a 2.9% rate applies to all net earnings.

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