DO I HAVE TO PAY TAXES ON CAPITAL GAINS EVEN IF I REINVEST ALL PRINICIPAL + GAINS BACK INTO MARKET?

e.g. I sell shares in mixed companies for the sum of $20,000 — $15,000 in strange investment, $5,000 profit. I additionally have $20,000 in mixed batch purchases in the same taxation year. Do I still have to compensate taxes upon the gains even yet I have no some-more money in palm than when I proposed the year?

{ 3 comments… read them below or add one }

FLOSS September 17, 2010 at 11:42 pm

Yes it is a taxable event even if you take the funds & reinvest it into something else… the mere action of a Sale creates a taxable event… hope this helps pal

emucompboy September 17, 2010 at 11:52 pm

Yes.

It’s even worse when you’re invested in mutual funds and get a “capital gains distribution.” Then, you never even get to see the money you’re taxed on!

Frank Castle September 18, 2010 at 12:17 am

Yes.

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