In 2010 you purchased a share of stock for $125 and you sold it this year for $250.Legally,you don't need to pay any taxes on this transaction.

Question

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When you sell a stock for a profit, it is considered a capital gain and is subject to capital gains tax. The exact amount of tax depends on various factors such as the holding period and tax bracket. Therefore, you would need to pay taxes on the sale of the stock in this scenario.

In 2010 You Purchased a Share of Stock for $125