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President Trump: The NEW one and only politics thread

Discussion in 'Sports and News' started by Moderator1, Nov 12, 2016.

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  1. daemon

    daemon Well-Known Member

    I'm not talking about stock options. I'm talking about selling the stock after it is already in your portfolio.

    Say you, an individual investor, purchase $10,000 worth of gold in Year 1, and sell it for $20,000 in Year 3. The $10,000 profit you earned is classified as a capital gain. You have yet to pay any tax on that $10,000 capital gain. It is income that has not been taxed. That's just one example of a situation in which the capital gains tax is not a form of double taxation.

    You said, "Capital gains are not income. As such, they are a form of double taxation."

    That simply isn't correct. Not in all instances. Not in the majority of instances, I suspect. If you buy a house for $500,000, and, 10 years later, sell it for $1 million, you pay a capital gains tax on that $500,000 you earned. None of those 500,000 dollars you earned by investing in that house have been taxed before you pay your capital gains tax on them.

    Your focus on dividends is a narrow slice of the capital gains pie:

    Tax Analysts -- Are Capital Gains Double Taxed?

    I'm not suggesting that there aren't problems with the capital gains tax structure, but it is incorrect to suggest that capital gains taxes are inherently unfair because all capital gains have already been taxed. Most capital gains have not been taxed.
     
    daemon, Nov 2, 2017
    #60073
  2. heyabbott

    heyabbott Well-Known Member

    Dividends are unearned income, not capital gains. They are taxed at the rate which the recipient pays. Stocks, once issued, and sold on the market represent no revenue to the company that issued them after the initial sale.

    companies which are taxed on pre-dividend should be taxed on Post dividend income to encourage companies to reward the owners of the companies with profits, which will be taxed as income to the recipients.
     
    heyabbott, Nov 2, 2017
    #60074
  3. Inky_Wretch

    Inky_Wretch Well-Known Member

    Inky_Wretch, Nov 2, 2017
    #60075
  4. Michael_ Gee

    Michael_ Gee Well-Known Member

    Jared Kushner turns over documents requested by Mueller and Co. Reportedly related to his role in Comey firing.
     
    Michael_ Gee, Nov 2, 2017
    #60076
  5. heyabbott

    heyabbott Well-Known Member

    heyabbott, Nov 2, 2017
    #60077
  6. Inky_Wretch

    Inky_Wretch Well-Known Member

    Texas Republican Rep. Lamar Smith reportedly retiring.
     
    Inky_Wretch, Nov 2, 2017
    #60078
    BurnsWhenIPee likes this.
  7. Vombatus

    Vombatus Well-Known Member

    I know we've got some of the tribe.
     
    Vombatus, Nov 2, 2017
    #60079
  8. QYFW

    QYFW Well-Known Member

    Working on editorial pages, I get a picture of the devil as art for an editorial roundup with this cutline:

    "Satan, current and eternal leader of the political party that you don’t belong to."

    Made me laugh.
     
    QYFW, Nov 2, 2017
    #60080
    SpeedTchr and service_gamer like this.
  9. Double Down

    Double Down Well-Known Member

    Double Down, Nov 2, 2017
    #60081
  10. The Big Ragu

    The Big Ragu Moderator Staff Member

    You just said that if you buy $10K of gold and you sell it later for $20K, it is "income that is not taxed."

    No, that is NOT income. That is capital appreciation. You could just as easily have seen a loss on it. Income is guaranteed. It is something earned on a regular basis, usually for work, but it can be in the form of a regular dividend from a business you own.

    Capital gains are not income -- what I said.

    As an aside, the way you framed that is where we have gone wrong, in my opinion. I understand that a lot of people consider their home an "investment." But that is only because decades of asset price inflation have sent home prices soaring. Traditionally, though, a house isn't something you "invest" in -- unless you are a landlord or a real estate developer. It's something you buy to live in or consume. And even if you can sell your house for more than you paid for it, there is also the possibility it can depreciate in value. If you do sell your home for more than you paid for it, it isn't income. It's a capital gain.
     
    The Big Ragu, Nov 2, 2017
    #60082
  11. QYFW

    QYFW Well-Known Member

    QYFW, Nov 2, 2017
    #60083
  12. poindexter

    poindexter Well-Known Member

    Come on dude. I am looking at a Form 1065 right now. Page 4, lines 8 and 9 - short and long term capital gains. And lines 1-11 are all considered "Income (Loss)".
     
    poindexter, Nov 2, 2017
    #60084
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