Analyst here, just started investing. If I invest $4000 and by next week it's worth $6000, and I decide to pull out my initial investment of $4000 is that a short term capital gain? And if I cont

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If you buy a stock then sell it within a year it is short term gain no matter what (unless you sell it for a loss). It doesn't matter if you reinvest it

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You're not pulling out your original $4k, you're pulling out 2/3rd of your original investment that is now worth more. Gains are fully taxable

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Short term capital gain = regular income last I checked

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Any gains you make on a trade that you hold for less than a year is considered short term and is subject to the corresponding capital gains rate.

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Right^. You're selling a specific number of shares. Each of those shares has appreciated, so each share you sell has a component of original investment and a portion of capital gains. The capital gains will get taxed as ordinary income before you reinvest them.

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Pull out,... don't pull out... 🤔

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Decide to reinvest my profit into other stocks/crypto, that doesn't make it short term capital gain, correct?

You'd have to prorate the gain for short-term tax purposes

Exiting a position and reinvesting the gains in another investment still makes the gains short term if they were made on a trade you held for less than one year. Your total taxes will be a percentage of the sum of all gains and losses from short term gains made through the year

Damn that sucks to hear, ok thanks!

ETH?

BTC

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