Well this is gonna be more of a rant than a real post but today I have finally realized why so many people HATE capital gains taxes. I just finished filling and had my refund shaved by $700 due to capital gains taxes. I've been investing for only two years and up till now most of my reportings were small dividend payments which made a negligable tax difference. I'm in the military and currently deployed so I didnt have to file until I returned but since I knew they would I me money (Pre-deployment tax bracket half-way through the year then no taxeable income for the last 5 months of the year). The taxes resulted from a less than 12 month hold where the company was bought out by another company. Normally I break even on taxes as I don't like letting the government hold my money interest free for a year, but this year I was looking forward to joining my friends who always celebrate (however foolishly) their refund. 1300 sounds much less impressive than 2K. Ahh oh well to all who read this apologize for the neophyte anger.Will
Why are you angry?If you had given the stock to me before the acquisition, you wouldn't have had to pay any capital gains tax (although you wouldn't have had the cash either).Paying capital gains tax should be celebrated, because it means you MADE MONEY.
As they say, you need to focus on the donut, not the hole. If you have capital gains taxes, then you have capital gains. Except in rare circumstances, this is a good thing -- successful investing!Randy
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