Hi, I am pretty new to investing into stocks. Recently I have been investing into stocks and removing my initial investments to keep my finances safer than risking it for higher gains. My question is for example: if I invested $100 in xyz stock and the stock rallied to $150. Can I remove my initial investment of $100 and not have to pay any taxes as capital gains are still in the stocks? Or does it work differently.
That is a taxable action. The price you bought shares at vs what you sold them at is where you get taxed. That $100 is taxed as income.
But my initial investment was $100, why do I have to pay taxes on my initial investment if I still hold $50 of the same stock?
