Quote:
Originally Posted by GregWeld
What I can't answer for you - is - say you bought 10 shares at $100 ($1000) and it's now worth $3000 -- and you just want to take your original $1000 out and leave the "Gain" ------- and that is what I think you're asking...... and I have to tell you I honestly do not know the answer.
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Not quite. So I still have 10 shares that are now worth $300/share. I want to leave the original $1000 in place and move the $2000 in "gain" to some other stock because I want to rebalance my portfolio. So I sell $2000 of the stock and buy $2000 of stock in some other company ... all within my brokerage account .... I don't receive any of this in actual cash payout. (And let's assume that it's a straightforward brokerage account .... not a regular or Roth IRA account. So I already paid tax on the original $1000.)
Let's assume that I had that original stock for a couple of years, so that $2000 gain is a long term capital gain - correct? And I immediately re-invested the gain into another stock. I guess that my question is: given this scenerio, when do I pay tax on my capital gains .... in the tax year that I make the capital gains, or when I actually take the payout from the account?