There are a few related questions about taxation of stocks in the US. I've never sold stocks yet, so the question may seem silly.
- Do I pay taxes only for the stocks which were sold for a price that is higher than their acquisition price?
- E.g. I buy 1 stock unit for $100.00 and sell it later for $150.00 => income taxes arise.
- I buy 1 stock unit for $150.00 and sell it later for $100.00 => no income taxes here.
What is the value which is a subject of taxation? Do I pay taxes based on the $50.00 difference only? How much would I pay in taxes? Does tax amount vary based on initial stock price itself (penny-stocks vs blue chips)?