Fairly simple question that I wasn’t able to get a clear answer to online: How is the short term capital gains actually taxed? Say I buy a stock at 450 and sell at 900, that’s $450 that would normally be taxed at the normal rate. Say that’s 10 percent so I leave with 900 – 45 = $855. However, what if before filing taxes, I buy the stock back at 850 (keeping $50) and hold it indefinitely (past the tax filing date). Is only the $50 left over taxed or do i still have to pay $45 in taxes on the money that I reinvested?
