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He has a point. Imagine capital gains in a sustained high inflation period. Even if your investment exactly tracked inflation you’d end up with a very substanti
by foobiekr 6y ago
He has a point. Imagine capital gains in a sustained high inflation period. Even if your investment exactly tracked inflation you’d end up with a very substantial nominal gain, and LTCG uses the nominal value.
- syshum 6y agoWe will not have to image that, it coming sooner than most people think
- fighterpilot 6y agoI don't understand the point since he'd still be better off than if he just held cash. What am I missing?
- mrgordon 6y agoThink of it this way, they could have bought something for $10,000 at the beginning but now that $10,000 item would cost $15,700 and they only have about $13,810 or less depending on state tax. (That assumes a 23.8% tax rate on the $5000 in “gains”) So assuming whatever they bought doesn’t degrade, it would have been better to buy it in the beginning rather than invest and make less than inflation after tax