Capital Gains Exposure - CGE

  

Capital gains exposure is the value an investment fund has gained or lost, and what that might expose the investor to, tax-wise, when they sell or convert that investment into cash. A positive gains exposure means the fund has gained, and the investor might have to pay capital tax on that gain. A negative gains exposure means the fund has lost money. That loss can get carried forward to offset future positive gains exposure.

Capital gains tax will be assessed on the total gain at the time the asset is sold. Example: Bob invested in Somnolent Spinning Inc. at $7. He promptly went to sleep and woke up 10 years later after a Princess Aurora-like slumber. Now, the stock is at $300. Bob wants to sell, but he lives in a state with high capital gains taxes. So he'd pay 40% tax on the gain of $293 per share. Bob thinks maybe it's better to go back to sleep for awhile.

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to work seven years ago in buying Heinz ketchup stock at 50 bucks a share

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confirm what a brilliant investor you were and they buy for all cash the

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company Heinz ketchup for $200 a share you've made four times your money in

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gonna fully realize like you'll realize that capital gain in the form of

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receiving cash like oh I realize I have cash in my bank account yay me!

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so all this was so good such a nice day until you realize that you live in a [Woman frollocking in a meadow]

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blue state with massive taxes and that you'll now give back about a third or

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more of your investment gains that is you invested 10 grand it became 40 grand

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the old-fashioned way you had 30 grand of profits and now uncle sam says i want [Uncle Sam demanding I want your cash]

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your cash and you now pay about 10 grand roughly a third of it in taxes of

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your gains of that 30 grand back to Uncle S, sadly you are paying back in

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taxes about the same amount you invested in the first place yep lots of hard work

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lots of taxes how's that feel?

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