Quote:
Originally Posted by ijusluvit
Nope. Capital gains are ADDITIONAL income to any previous taxed income. Let's say I earned $1000 taxable dollars in 2012. I invest the remaining $700 in Bain Capital in 2012, which earns, as expected, $7,000,000. My capital gains are $6,999,300. I pay 15% on that figure only, not on the original $700 when I cash out in 2013.
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What she meant is that she's spending money that was already taxed to buy the investment initially.
Let me make it simple for you. I earned $1000. It's taxed and I'm left with $850. I take that $850 an invest it. What it earns now is subject to capital gains taxes. OK?; do you get it?
That's all that was meant by the post in question. You are agreeing with me and arguing with me at the same time. You and my wife would get along.