SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?


To: porcupine --''''> who wrote (1089)1/1/1999 10:59:00 PM
From: Sr K  Read Replies (1) | Respond to of 1722
 
<< if your capital gains tax would be 28% on the sale of a stock, your next purchase would have to gain 28% just to break even>>

Two errors! The gain would have to be 100/72 = 38.89% ... but only if your basis were zero!

OTOH if you are up 100% the tax would be 28% (or 20%) on the gain from the sale of a stock, your next purchase would have to gain 100/86 = 16.3% (or 100/90 = 11.1%).