Q: if you sell a stock with a nice capital gain by mistake and correct your error by buying it back a few minutes latter with the intention to keep it long term ,is the capital gain taxable ?
My guess is yes
So why not sell all my gainers before the 25 th and buy them back few minutes latter ????
your insight please
My guess is yes
So why not sell all my gainers before the 25 th and buy them back few minutes latter ????
your insight please
5i Research Answer:
Yes; a one minute trade is still taxable if a gain is realized. If one sells everything because of the capital gains tax change, then one will have less capital to invest. At a high tax rate one can assume a 25% tax hit, rising to 33+% after June 25. But selling means after tax one will only have 5 75 cents on the dollar available to compound in the future. Even at a higher tax rate, stocks than compound over time should still result in higher net after tax returns than re-investing 75c on the dollar.