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Here in Denmark, both realized and unrealized gains are taxed at the year end. The losses are transferred to next years and deducted from the gains. This might

Here in Denmark, both realized and unrealized gains are taxed at the year end. The losses are transferred to next years and deducted from the gains. This might be an advantage if paying 27% lower-tier tax over the years, rather than being taxed once on cash out and hitting a higher-tier of 42%. However, given the compounding effect, it seems more preferable to accumulate gains and pay higher tax at the very end.

sytelus 3y ago
This sounds terrible. The whole idea is that you don't realize gains unless you have to. That is, don't sell your long investments! If gains are unrealized, how do you even pay? You must sell your assets to feed hugry monster called government.
- kipari 3y ago
  GP is not fully correct. Under Danish tax rules unrealized gains are not taxed for standard stock investments. Taxation only happens when realizing gains or losses, except for special investment accounts like retirement savings or other account types that have well-defined special rules and clear limits on the amounts that you can put in them. For these special accounts, unrealized gains are taxed at their value at the end of every year.
- verall 3y ago
  > You must sell [some of] your assets to feed hugry monster called government [which runs the courts, police, and military which all exist to protect the rest of your assets].
  - throwawa14223 3y ago
    Some assets are only sellable atomically such as art or a house. A government demanding more money because the thing I purchased with taxed money has become more valuable (or not become worthless) is a form of financial gluttony bordering on demonic.
  - fxd123 3y ago
    And yet, countries without unrealized gains taxes still have courts, police, and military.
    - verall 3y ago
      And yet, they all have taxes which feed hugry monster called government
      - fxd123 3y ago
        The point was we don't need to invent new taxes
        verall 3y ago
        Why not? Fiat currency is a tool created by governments to accomplish goals. Massive income inequality generally conflicts with most liberal democracy's goals. Taking loans against unrealized gains lets people much richer than me pay a much lower effective tax rate. Why not invent a new tax to address this?
3abiton 3y ago
If losses are transferred, doesn't that encourage higher risk taking?

sytelus 3y ago

This sounds terrible. The whole idea is that you don't realize gains unless you have to. That is, don't sell your long investments! If gains are unrealized, how do you even pay? You must sell your assets to feed hugry monster called government.

kipari 3y ago
GP is not fully correct. Under Danish tax rules unrealized gains are not taxed for standard stock investments. Taxation only happens when realizing gains or losses, except for special investment accounts like retirement savings or other account types that have well-defined special rules and clear limits on the amounts that you can put in them. For these special accounts, unrealized gains are taxed at their value at the end of every year.
verall 3y ago
> You must sell [some of] your assets to feed hugry monster called government [which runs the courts, police, and military which all exist to protect the rest of your assets].
- throwawa14223 3y ago
  Some assets are only sellable atomically such as art or a house. A government demanding more money because the thing I purchased with taxed money has become more valuable (or not become worthless) is a form of financial gluttony bordering on demonic.
- fxd123 3y ago
  And yet, countries without unrealized gains taxes still have courts, police, and military.
  - verall 3y ago
    And yet, they all have taxes which feed hugry monster called government
    - fxd123 3y ago
      The point was we don't need to invent new taxes
      - verall 3y ago
        Why not? Fiat currency is a tool created by governments to accomplish goals. Massive income inequality generally conflicts with most liberal democracy's goals. Taking loans against unrealized gains lets people much richer than me pay a much lower effective tax rate. Why not invent a new tax to address this?

3abiton 3y ago

If losses are transferred, doesn't that encourage higher risk taking?