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Subject:  Another Capitol Gains question Date:  7/14/1999  10:59 PM
Author:  portolano Number:  17336 of 127616

Hello all.

I am wondering about how capitol gains taxes work on stock trades, as this is my first year investing, and I think I may end up having to pay some.

Here's the scenario: I made a stock pick earlier this year that did very well. Since I only had two stocks to start out with, I decided to sell the one I had a majority stake in, since it is relatively volatile (and accounts for 90% of my holdings). I've held on to a small amount, and then plan on turning around and investing the earnings in other stocks (I'm after some of the RuleMakers). Anyway, if I put all the money from the sale back into the market, do I have to pay capitol gains on the original sale, or not? Or just on any of the cash I don't put back into the market?

Boy, I feel like a 5th grader.

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