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I diversified my stock holdings by selling half of my stock

 

Customer Question

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?

Submitted: 370 days and 12 hours ago.
Category: Capital Gains and Losses
Value: $30
Status: CLOSED

Accepted Answer

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Expert:  gregmey replied 370 days and 11 hours ago.


gregmey :

Hi, my name is XXXX XXX I'm happy to help you with your question today.

gregmey :

Your gain from selling half of your stock holdings is taxable in the year in which you made the sale.

gregmey :

If you held the stock longer than 1 year the capital gain is considered long term and taxed at a lower rate.

gregmey :

If you held the stock less than 1 year the capital gain is taxed as ordinary income.

gregmey :

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.

gregmey :

Please let me know if you have any additional questions or need further clarification.

gregmey :

If you are satisfied with my answer please click accept at the bottom of the page.

gregmey :

Thanks, Greg

Expert TypeCPA
Category: Capital Gains and Losses
Pos. Feedback: 100.0 %
Accepts: 13
Answered: 4/16/2012

Experience: Certified Public Accountant & Certified Financial Planner

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