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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: Affinity4Investing who wrote (610)	12/9/2021 2:09:03 PM
From: PJinny	Respond to of 22034

Not all ROC means you are getting your own capital back. ROC can be from pass-through (from master limited partnership investments, primarily), constructive (from unrealized capital gains), and destructive (investors are literally receiving their own capital, minus expenses). Said another way, it's complicated. From an accounting point of view, it lowers your cost basis regardless of the source of ROC so in a taxable account one day you will have a zero cost basis and from then on pay capital gains taxes.