A.I.M. Users Bulletin Board

[Toofuzzy]

Hi Conrad

>>>So, you mean that the gain distribution (dividend as I understand it) does not constitute an Investment Gain. . .Equity Yield remains constant at 50+50 = 100, but you pay taxes on the $50 pay-out and then when the investment returns to $ 100 you will be taxed again if the $ 50 gain is paid out. That was the scenario that I understood from the Experience of Dr. X in the Reference Link. <<<

Read a little further. If it doesn't make sense get back to me. No it is not unfair and there is no double taxation.

PS You need to separate reconition of income and the taxation of that income. Having a fairly low income, I do not pay long term capital gains tax even though I may have long term capital gains income.

Toofuzzy