yedid asked in Business & FinanceInvesting · 9 months ago

Can I take out my original investment in the stock market without paying taxes?

In stock market can I take out my original after taxes investment amount for cash without tax consequences?

6 Answers

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  • B
    Lv 7
    9 months ago

    it depends on the type of account. if this is a Roth IRA account there will be no taxes. If this is a taxable account, there will be taxes based on your original cost for the investment.

  • 9 months ago

    In a Roth IRA, yes.

    Otherwise, no. If what you take out is more than or less than what you invested in the shares you're selling (not your total investment), then that is a capital gain or loss and there are tax consequences. If the stock price has gone up, so you sell only some of the stock, and get back the same amount as you invested to get all of the stock, then it's a gain on the shares you sold, and you have to pay tax on it.

  • danxp2
    Lv 6
    9 months ago

    No.

    You are not allowed to buy 100 shares of Google at 100 per share and sell 50 shares of google for 200 per share and have no tax consequences. 

    10,000 in and 10,000 out but the IRS sees that as a realized gain and makes it a taxable even based on profit as if you had only bought 50 shares and sold 50 shares, so a 5,000 taxable profit.

    The only way there would be no realized gain/loss taxable even is if the price per share was exactly the same when you bought and sold it. Even then you would have to report the sale. The other time is if it is in a tax deferred or Roth retirement account. If it stays in the retirement account no reported tax event. Also with a Roth account under certain circumstances you can take out up to what you contributed without it being a taxable event. 

  • Judy
    Lv 7
    9 months ago

    no, not if you had any gain on it. Your investment if, for tax purposes, spread evenly accross all the shares.

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  • 9 months ago

    Nope, unless it's in a tax deferred account, you'll still have to pay taxes.  You'll get a 1099 for your returns in that stock/mutual fund, etc.

  • Eva
    Lv 7
    9 months ago

    It doesn't work that way. Whatever stock you sell to recoup your investment will probably have a gain or loss associated with it. That must be reported and the taxes (if any) paid.

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