Stock Doubles - Sell Half - What about Tax?

Good day,

I was wondering about the following scenario and would like some input on the following scenario:

Using the FIFO method

Buy 10 stocks in ABC @ $100 and the stocks grow to $200.
Sell 5 stocks after 2 years in ABC @ $200.

Do I pay Capital Gains Tax on the 5 stocks sold?

Thanks for the help

 

Yes.

 

How is that? after the sell I would get back what I have put in and let the profits ride thus I am not making a realized profit or am I missing something?

 

Let it happen.

 

Dude every time you close a position in a cash account, no matter how small, there's a tax consequence. Period. If it's less than 1 year it's short term cap gain, if it's > 1 year it's long term cap gain.

The only way to avoid this is to trade in an IRA.

 

or trade in your buddy's account and then you don't owe any taxes

 

And if you have an argument, no money either? ROFLMAO

 

It's based on the cost basis of your assets, not the profit basis.

 

let's not forget, the more taxes you pay, the more you make [at least in theory]

so,
let's hope you have to pay Lots of taxes

marc

 

Ha ha yeah true!

So as long as I sell stocks to the total amount equal to or less then the cost basis I should be fine.