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A question about Capitol Gains taxes

Lithium381

Lithium381

Lifer
I looked on wikipedia and didn't see the answer here, so i figure the resident geniuses here could tell me.

(LT)Capitol gains taxes are based on investements. Right? So you're paying only 15% of the gains you made on a lucky stock. If you pick an unlucky stock, do you get to deduct losses at the end of the year on bad investments?
 
RocksteadyDotNet said:
Ok, carry on. 🙂

Yes, you get to subtract the losses from your gains.

So if you made 70k on one stock but lost 30k on another, you'd pay tax on 40k.

Does that answer you question?
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It does, and in a very clear and concise manner. Thanks!

If that's the case then i don't think i should be a problem to put the LTCGT @ 25% or so. 15% is too low. But then again we're having that discussion in three different threads right now.....
 
Lithium381 said:
It does, and in a very clear and concise manner. Thanks!

If that's the case then i don't think i should be a problem to put the LTCGT @ 25% or so. 15% is too low. But then again we're having that discussion in three different threads right now.....
Click to expand...

If you did that all the rich people would go live somewhere else.

Oh wait, there are already many countrys with lower cgt rates and the rich havn't left yet.
 
RocksteadyDotNet said:
Ok, carry on. 🙂

Yes, you get to subtract the losses from your gains.

So if you made 70k on one stock but lost 30k on another, you'd pay tax on 40k.

Does that answer you question?
Click to expand...

You can write off up to $3,000 per year whether you have gains or not and you can carry over your "remaining" losses until they are completely written off (I know this first hand! 😳 )
 
Lithium381 said:
It does, and in a very clear and concise manner. Thanks!

If that's the case then i don't think i should be a problem to put the LTCGT @ 25% or so. 15% is too low. But then again we're having that discussion in three different threads right now.....
Click to expand...

So you want to discourage long-term investment? Why?
 
RocksteadyDotNet said:
Ok, carry on. 🙂

Yes, you get to subtract the losses from your gains.

So if you made 70k on one stock but lost 30k on another, you'd pay tax on 40k.

Does that answer you question?
Click to expand...

Not really, if you make 70k on year 1, you pay tax on 70k on year 1. If you lost 30k on year 2, you only get to deduct a cool 3k (max, even if you lost $1mil) as deductible on year 2 and the years after until you reach the 30k losses.

Capital gain tax is extremely unfair towards losses.

edit: I see it's been posted. Already. Anyway, all these idiots think capital gain tax is unfair never consider about the losses and the limitation on deductible.
 
I'd like to see it where there is zero tax on Capital Gains until the point it becomes 40 percent or more of your income. Then its taxed as income tax.
 
You can just setup a 401K or ROTH IRA if you want to invest your money differently and not pay taxes on the gains each year.
 
Capital gains are a reward for investment risk. Taxing them the same as 'regular' (ie, no risk) income doesn't make sense unless you want to create a disincentive for taking risk by investing in companies.
 
PokerGuy said:
Capital gains are a reward for investment risk. Taxing them the same as 'regular' (ie, no risk) income doesn't make sense unless you want to create a disincentive for taking risk by investing in companies.
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The bank bail outs proved that we pay for the risks, so let them pay for part of the rewards.
 
PokerGuy said:
Capital gains are a reward for investment risk. Taxing them the same as 'regular' (ie, no risk) income doesn't make sense unless you want to create a disincentive for taking risk by investing in companies.
Click to expand...

My incentive for investing is doing my homework and investing in strong companies who not only grow but pay large dividends. After the stock market bottomed out some of these stocks I have invested have gained 50% in stock price and are still paying out 6-8% dividends now if I had this cash sitting in a bank gaining .00000001% interest well you do the math this is my incentive.
 
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Ausm said:
TBTF was created by the party you so embrace....
Click to expand...

Did you see me point to one party or another as the culprit? Are you really that naive to think it's one party or the other that does it?

Oh, and I don't embrace either party, they both suck.
 
I'm not sure I buy the argument of not paying taxes on the gains since we're risking our money. I'd love to not have to give up some of my capital each year since it would compound a lot faster but income is income. Then again I'm all for the banks to fail. If you risk and you win you get the reward. If you lose, you should lose.

I can invest my money in a bank account with zero risk and make 0.5%. I can risk it and make more money. As long as you are making intelligent decisions then you are INVESTING and not GAMBLING. That's what's important to me.
 
randomrogue said:
Income?

You have $10,000 after taxes that you invest and make $500 on. You pay taxes on that $500. Why the confusion?

Oh nvm. I see who the poster is now.
Click to expand...

No confusion. Unlike the majority that are stuck in their thinking, I think that all income, from any and all sources ought not be taxed in any way. Taxing income and/or profits is counter productive in a free capitalistic economy.

I like manner so is taxing private real property.
 
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