Your gains are taxable, either as ordinary income or capital gains, depending on how long you've held the stock.
Yes, your gain is taxable, says CPA Michael Goodman of Wealthstream Advisors in New York City.
Assuming the shares are in a taxable account, your tax bill will be based on the profit you made on each share you sell.
Say, for example, that you purchased 10 shares at $10 each for $100. If the stock price rises to $12.50, and you then sell $100 worth of your stock, you're actually selling eight shares that you originally bought for a total of $80. Thus, you'll owe taxes on a $20 gain.
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