Can I avoid capital gains tax if I sell only the amount I put in and leave the rest?

Question

I haven't found a definite written answer, probably because it is implied. However, I'd really love confirmation if anyone can verify my assumption, before I make a decision.
Say I bought 10 shares of a stock at $10/share, for a total cost of $100. Now the stock is worth $20/share. Can I sell 5 shares, effectively pulling out the original $100 I put in and leave the other 5 shares to continue to grow in value without having to pay ANY capital gains tax at all?

D Stanley · Accepted Answer

No - stocks are bought and sold in shares, not dollar amounts, so the 5 shares you sold would have a cost basis of $50 and a sold value of $100 for a capital gain of $50.

Can I avoid capital gains tax if I sell only the amount I put in and leave the rest?

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