3 ms·
When you own stocks, you don't pay taxes every time the value of your portfolio changes. You only pay capital gains when you sell those stocks. Your example is
by LargeWu 5y ago
When you own stocks, you don't pay taxes every time the value of your portfolio changes. You only pay capital gains when you sell those stocks.
Your example isn't really that much different. You would only really need to pay taxes on that diamond when you sell it, in which case you would just use the proceeds of the sale to cover that.
- jvanderbot 5y agoRight. But the article (and I think the general consensus around the movement) states that the net worth (wealth) is a missed tax opportunity, regardless of whether it is liquidated. Is that correct?