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It’s the difference between the value of the stock and dividend payout before and after corporate taxes are paid. If you bought stock in January 1, 2019 and th
by hurricanetc 7y ago
It’s the difference between the value of the stock and dividend payout before and after corporate taxes are paid.
If you bought stock in January 1, 2019 and then sold the stock before the end of 2019 then you were double taxed. Your effective rate is still low in the history of the US but you were technically double taxed.
Where it gets tricky and fundamentally alters the equation is when you defer and don’t sell in the same year you bought. You’re still technically double taxed but the effective rate can become comically low.
I’m also just outright ignoring inflation but inflation is a huge aspect in this calculation.
- drcode 7y agoNot a single comment in this thread, nor the OP document, contained the word "dividend", so I am completely lost as to why you are now referencing something that applies only to dividends, when the discussion clearly is about "investment income" in the general sense, not to mention that dividends don't exist with cryptocurrencies.
- hurricanetc 7y agoYou say you don’t understand the double taxation argument then get uppity and annoyed with an explanation. You can’t talk investment income without dividend payments. Google in particular doesn’t pay a dividend but many companies do. If you sign up for a brokerage account you’ll be asked what you want to do with dividend payments. If you own any index funds at all you are getting dividend payments. It’s just as much a part of investment income as inflation. I said “stock and dividends” so I don’t know why you got so hung up on that single aspect.