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RE: Oct 15 final 2017 tax deadline: Share your tax horror story with BlockTrades

in #blocktrades6 years ago (edited)

If you have 100K holdings you pay : capital gain tax 30% * (100K *4%) = 1200 ; a threshold applies.

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Ok, so if I understand you correctly, they are taxing you based on the assumption that you will have future capital gains regardless of whether you actually have them yet. If so, can you deduct the taxes paid already from later capital gains tax?

The actual gain or loss does not matter here. You are always charged with tax on the assumed 4%, the 4% itself is based on the historic return on a basket of investments and will change next years.