RetireJapan

Sorry, another n00b question:

For investing, I understand that capital gains tax will be applied to the growth-portion of an investment.

However, I am wondering: if I withdraw my principal amount, will that have tax applied to it, as well?

Example:

Principal invested in a mutual fund: 1,000,000円

Over time, it grows to 1,250,000円

The 250,000円 has capital gains tax applied upon withdrawal.

If I then withdraw part, or the full amount of the principal (1,000,000円), what happens?

I am thinking that no tax will be applied, but just making sure here.

Thanks!

No. And note that you need to use average cost for all shares when calculating any gains--on some portion of the total # of shares sold. No LIFO, FILO, nor selling of specific lots that may be higher/lower cost per share.

captainspoke wrote: ↑Mon Jun 10, 2024 11:13 am No. And note that you need to use average cost for all shares when calculating any gains--on some portion of the total # of shares sold. No LIFO, FILO, nor selling of specific lots that may be higher/lower cost per share.

Good to have confirmation that withdrawing the principal won't be affected by taxation.

Monex shows the average cost-per-share when viewing the portfolio, so that would make it easy to make calculations.

Thanks for the advice!