My port went through the roof this year but I haven't sold anything (being in the buy and hold mode). I don't have to pay taxes on what my stocks appreciated, do I?
You answered your own question in your title -- the gains are unrealized. Until such time as you sell, you really have no gain or loss. These are what are referred to as "paper gains" or "paper losses". If you have no trade slip, you have nothing to report.
[[My port went through the roof this year but I haven't sold anything (being in the buy and hold mode).]]Good for you...a very Foolish portfolio.[[ I don't have to pay taxes on what my stocks appreciated, do I?]]Nope...only when you sell 'em. Which is why stocks are much preferable to mutual funds. Your mutual fund company (if you had any...thank your stars that you don't) would be required to issue you your portion of the gains made by the fund during the year. That would be taxable income to you....and that stinks when YOU didn't really sell anything.But with your stocks, YOU can control when you sell 'em, which means that you can more closely control the tax outcome. Beautiful, eh??TMF TaxesRoyWant to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. It'll help you with your 1998 taxes, and it's never to early to start planning for your 1999 taxes. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Pay special attention to the "archives" section. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.