Do I pay taxes on just the profits made from selling stocks.?

Question

Say I buy $1000.00 in stocks and they go up 10% to $1100.00

Do I only pay taxes on the 10% ($100) profit?

Answer 1

yes - generally speaking this is correct, however - there are factors which can alter this measure of profit such as the amount of time you held the stock (short term or long term as defined by the tax code), whether you sold the stock or traded it for other stocks, and did you pay any broker fees? If so, you can discount that from your profit as well.

Answer 2

In stocks there are 2kinds of profits1st is Long term capital gain & 2nd one is short term.
means when u bought some shares & hold them for more than an yr & then sell..its Long term & when u bought & sold within 1 year its short term.

In Long term cap.gain there is no tax but for short term there will be tax.

Answer 3

specific, till you would be certain a thank you to maintain the effective factors on paper. in case you may sell a inventory and purchase yet another devoid of bodily touching the money (additionally standard as unrealized capital effective factors), there has no longer yet been an unquestionably income, purely on paper. the only caveat is that quicker or later, uncle sam would be paid. communicate with the broking provider you acquire the inventory from, he/she will extra assist you.

Answer 4

Yes, just on the profits. You subtract your basis from the selling price to determine the profit or loss.