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Do Americans have to pay income tax whenever value of stock appreciates (even if he does not sell in the market)? I doubt it. Since valuation of stock would var
by aniket_ray 16y ago
Do Americans have to pay income tax whenever value of stock appreciates (even if he does not sell in the market)? I doubt it. Since valuation of stock would vary.
Here in India, the only tax Mankiw would have to pay is when he sells the stock after 30 years and gets a capital gain. So, he would still have an effective 8% compound rate. So he would end up paying tax on $10000. Assuming 30%, he would still keep $7000.
- CoreDumpling 16y agoNot when stock appreciates, but you get taxed each year on dividends and interest paid out by investments. That is how I end up paying taxes on my investments every year, which still have unrealized losses of 35% or so.