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I have recently dabbled in the stock market for the first time.
Here's a hypothetical question: Assume one invests $1,000 in stock X, and then sells after one earns a total of $10,000 from the stock shares from stock X.
From a tax perspective, does a person get taxed for the money they originally put into the stock (i.e. $1,000 in above example), or do they get taxed for the money they made off the stock (i.e. $10,000 in the above example)?
Also, is there a formula or a percentage of how much money is taken out in taxes from stock investments?
any insight would be appreciated for this stock market beginner. thanks in advance!
Here's a hypothetical question: Assume one invests $1,000 in stock X, and then sells after one earns a total of $10,000 from the stock shares from stock X.
From a tax perspective, does a person get taxed for the money they originally put into the stock (i.e. $1,000 in above example), or do they get taxed for the money they made off the stock (i.e. $10,000 in the above example)?
Also, is there a formula or a percentage of how much money is taken out in taxes from stock investments?
any insight would be appreciated for this stock market beginner. thanks in advance!
