3 ms·

Why don't they pay taxes on realized gains?

• ceejayoz 5y ago
  Because they're largely managing tax-advantaged accounts.
• deleted 5y ago
  [deleted]
• s1artibartfast 5y ago
  Because they are taxed on annual profit, not capital gains. If they sell a stock and buy a different one, there is no profit. The private analogy is a professional gambler. You don't pay taxes for winnings on each bet. You pay taxes on what you have cashed out at the end of the year. Tax on individual sales is only a thing for individuals.