Question in the title.
Example:
I put $1,000 in Stock A
Stock A goes up 15%
I take $1,000 out of stock A
I leave the gains in Stock A forever.
Am I taxed doing this? Or am I just pulling out my initial investment without gain?
EDIT:
Thanks friends! I now understand that it is taxed via Current cost of share – Initial cost of share.
I was thinking of it like a bank account where if i put $10 in and take $10, than it is the same $10, and I would be taxed if I take out any more (gain).
This is false, and there is an increase in value determined by current – initial, and looking at it this way has made me not confused ๐
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