Do I have to pay taxes on capital gains even if I reinvest all prinicipal + gains back into market?

e.g. I sell shares in multiple companies for a total of $20,000 -- $15,000 in original investment, $5,000 profit. I also make $20,000 in multiple stock purchases in the same tax year. Do I still have to pay taxes on the gains even though I have no more cash in hand than when I started the year?

Yes it is a taxable event even if you take the funds & reinvest it into something else... the mere action of a Sale creates a taxable event... hope this helps pal

Yes.

It's even worse when you're invested in mutual funds and get a "capital gains distribution." Then, you never even get to see the money you're taxed on!

Yes.

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