Hi, this is a complete newbie question, but if I can't ask it here then where can I?
I see a lot of posts where members state "I sold X, and bought Y with the profits" or "I sold X and put it into Y".
Now for the dumb question...are there any taxation rules which allow you to put all the money you received from a sale straight into another purchase?
i.e. you buy $1000 of shares in X, sell for $1500..can you buy $1500 of stock with this cash, or do you pay tax on the $500, and buy e.g. $1300?
I'm 99.9% you pay the tax, though a friend asked me this the other day, and I thought I would clarify.