The specific requirements for licensing depend on the state where you live, so be sure to check state law's in the area where you plan to practice. In many cases, you will be required to complete a specific period of supervised residency work (often one to two years) after earning your graduate degree. Finally, you will then need to pass the required exams, which may include both oral and written components.
Capital Gains Tax. Any profit you enjoy from the sale of a stock held for at least a full year is taxed at the long-term capital gains rate, which is lower than the rate applied to your other taxable income. Itâs 15% if you are in a 25% or higher tax bracket and only 5% if you are in the 15% or lower tax bracket.
Any additional profit is considered capital gain (short-term or long-term depending on how long you held the shares) and should be reported on Schedule D. Qualifying Disposition: You sold the stock at least two years after the offering (grant date) and at least one year after the exercise (purchase date). If so, a portion of the profit (the âbargain elementâ) is considered compensation income (taxed at regular rates) on your Form 1040.