When you sell shares from your IRA, you won't owe income taxes or capital gains taxes on investment gains, as long as they remain in the account. Since earnings are not taxable, you won't be required to include them as income when you file your annual tax return. You also pay taxes when you sell an investment at a profit. Investment gains held for more than one year generally qualify for more favorable long-term capital gains tax rates.
Investment gains held in less than a year are generally taxed at the ordinary income tax rate. Investment losses can offset investment gains, which can reduce your tax burden. Transactions within an IRA account are not taxable, but withdrawals from an IRA are usually taxable, depending on the investor's specific circumstances. Distributions that are not qualified from an IRA or Roth IRA may be subject to taxes and a 10% early withdrawal penalty, and apply to those who withdraw money from their IRA or Roth IRA before turning 59 and a half years old.