topic Capital investment gain taxes in Investors & landlords

Capital investment gain taxes

ekilada — Mon, 29 Mar 2021 04:58:45 GMT

I sold some stocks in 2020 and made capital gain. However, a few days later I reinvested the sale/all the same amount of money (including the gain) but in other stocks. Is that capital gain taxable? (I think if it were the same stock; it would be considered a wash and thus non-taxable, but how about if the money is "still in the market" but in different stock? I guess it's not clear to me why I would be taxed here even if I was just diversifying my portfolio. Please note that this is not a retirement account; instead just a personal investment.

Thank you so much!!

Re: Capital investment gain taxes

ee-ea — Mon, 29 Mar 2021 05:09:28 GMT

I guess it's not clear to me why I would be taxed here even if I was just diversifying my portfolio.

It is a taxable gain because you made money when you sold the stock. What you did with the money does not matter.

Re: Capital investment gain taxes

ekilada — Mon, 29 Mar 2021 05:33:15 GMT

I see. Thank you so much. I also have a follow-up question here if you would want to take a look - (https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/wash-investment-after-the-year-ended/00/2146700).

Thanks again.