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> It does not matter that the taxes are being paid in inflated dollars in the example I gave.

> There was no real gain. Being forced to pay CG taxes in the example I gave is simply capturing part of the original capital (there was no real gain) and this fact is unchanged even if CG taxes are paid in inflated dollars.

"No real gain? Hey, sometimes investments don't work out."

So then there should be no CG taxes due.

"But you owned the asset the whole time."

And paid income tax on the annual rent.

"Next time factor in that the investment should be gaining at a rate to account for the fact that you will be taxed on inflation."

How would you propose to do that? What is your analytical model? Inflation is not within the control of the individual investor. It is a function of the federal government and central bank (Federal Reserve in the USA) and its monetary policy.

"There are too many people sitting on real estate or other assets, because they know that they can just hold and make money when the rest of the community makes things better and they sell their POS property for much more."

And if there is a real gain, then CG taxes should be due. This argument is simply a tangent.

"I say do everything we can to force owners to make their assets work. If they are concerned the asset is not keeping up with inflation, and the taxes associated with them, then they should sell and let someone one who is going to increase the value of the asset significantly.

As conservatives were saying just a short time ago. Reality doesn't care about your feelings."

Why are you even talking about feelings? Another tangent. I was discussing real gains versus inflationary gains that are not real. No feelings involved.

What conservatives said "reality doesn't care about your feelings"? Certainly nobody who believed the election was stolen.

Why are you bringing politics into a non-political tax policy discussion?

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