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- Aug 18, 2009
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Lol, I can explain it a million times and it won't matter. You don't understand how the tax code works.WAT
that's not how it works. by default, (ie: cap gains vs "traders" filing as ordinary income) stocks are taxed by their realized gains (after sale), on the individual lots/shares.
and... you completely missed the point regarding small cap. the "price" is just an average of the bid and ask. the "price" of low volume stocks will fluctuate rapidly and often is not an accurate representation of the actual prices.
You're trying to tell me how the gains are taxed now, I'm talking about how they should be taxed. Repeating how it's done now completely misses the point of changing it. But you can't discuss the change I'm discussing because you don't understand the tax code. You don't know the difference between a tax basis and a book basis - you seem to think that they're the same thing. And so you remain stuck in "book basis" mode because you can't actually discuss the "tax basis" side of things.
This is also why you can't discuss unrealized gains. You're only familiar with realized gains and so discussing a subject in the context of unrealized gains leaves you without a response hence the default.
For your edification. Partnership partners frequently pay tax on unrealized gains (there is a method for handling it). Businesses often take tax deductions on unrealized losses. Your unfamiliarity with those areas of the tax environment doesn't mean that they've never been addressed.
Anyway - do you know what a "step up in basis" is? I'd asked before and you never answered.