im fairly new to the stock market, i started dabbling a bit in december trying to learn a bit, seemed to break even for a bit with no luck. I'm mixing in a bit of day trading with some short term trading on some selected stocks.. it wasn't until i joined hotcopper that i started making gains in my profile and i thank you all for the information shared on this site, its quite a very handy tool indeed! better then that monthly subscription to VectorVest that i had!
My question is in regards to tax.. how does it all work? I've been told that if u sell a stock in under a year that u get taxed 49% of the profits and if you sell after owning the shares for 1 year that it drops down to 15%... someone else told me that lets say for example, you invested 50k and doubled it to 100k, that u can take your initial investment back into your bank account and put the profit of 50k back into shares without having to pay any tax, is this true??
i also heard that you dont get taxed till you pull the money out from your trading account. But how do they know what is profit and what is your own money your taking out??
