I diversified my stock holdings by selling half of my stock at a gain and reinvesting in three other stocks is my gain taxable at this time?
Hi, my name is XXXX XXX I'm happy to help you with your question today.
Your gain from selling half of your stock holdings is taxable in the year in which you made the sale.
If you held the stock longer than 1 year the capital gain is considered long term and taxed at a lower rate.
If you held the stock less than 1 year the capital gain is taxed as ordinary income.
The fact that you reinvested the proceeds into three other stocks does not exempt you from paying tax on the gain that was generated from the sale.
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