capital gain question IF I were to make a profit last year on my stocks and lets say I have some capital gains(10K)..I was under the assumption that as long as that profit stays in the investment account and doesnt get transfered anywhere else or gets reinvested(bought stocks with the profit) that I wouldnt have to claim it on my 2011 income tax and therefore not pay capital gain tax...is this correct?
I was told that if you had made money you pay capital gain no matter where the money(the gain) is sitting and also if I were to make 10K of capital gain, 5K is mine and the other 5k i gotta pay capital gain(tax) on it...this 5K basically gets added onto my anual income.
Can someone pleas confirm this or expain how it all works.
Thanks in advance