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Old 06-28-2020, 05:24 PM   Nav to Top  #1
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Default Capital gains question

Question on the short term capital gains tax. For example, If you sell stock XYZ at a profit of $100,000 and reinvest all profit into another stock, ABC, you are still charged the short term capital gains tax rate? Short term capital gains is charged instantly upon sale, correct?
So in my above example, you’d be expected to pay 15-20,000 in taxes on $100,000 profit regardless if all of the proceeds are straightaway invested in another stock?

I was reading that there were some provisions, if reinvesting profit into other like capital properties, but I dont think stock trading is afforded the same luxury

I was considering moving profit from one stock to buy large volumes of shares of another lower priced stock, but if the above is true, its either hold off or allocate the tax $ from any profitting sale, thus affected total amount of new shares that can be purchased.

Appreciate any insights.
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