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So, now instead of paying 5% sales tax on your Starbuck purchase you can also pay 15% capital gains tax for realized gains. If you're going to pay it anyway it
by frogpelt 7y ago
So, now instead of paying 5% sales tax on your Starbuck purchase you can also pay 15% capital gains tax for realized gains.
If you're going to pay it anyway it won't matter but it would really stink to pay $1,000 worth of stock on a shopping spree, plus $150 capital gains tax and then that stock drop 25% in value the following month.
- toast0 7y agoIf I sell and then the stock drops in value, I'm going to feel good; I sold at a great time if i got 25% better than the next month.
- usefulcat 7y agoI thought you said capital gains was "for realized gains"? In which case $1000 of stock can't have $1000 of realized gains unless you paid $0 for it initially.. in which case, I'd say the resulting $150 tax bill falls into the category of "good problems to have". Edit: unless perhaps you're assuming that the $1000 you spent is considered to have come entirely from realized gains on what is actually a much larger position? If so then I can see your point.