Can stocks affect taxes/income if not sold?


Hello, I just recently invested in stocks for the first time and have questions about how stock shares affect taxes

Say I buy a share for $1 and then the share becomes worth $1,000,000.

If I don’t sell it/don’t touch it will it not affect taxable income?

Because I haven’t sold it, which means I haven’t made any money, it won’t count as me making $999,999 until I actually trade the share right?

And when traded will the $1 I originally invested be taxed? I made $999,999 and got my dollar I originally invested. Does that dollar get taxed?


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *