Replies to post #13577 on China Yibai United Guarantee International Holding (CBGH)

[retireat40]

An individual in the 35.0% tax bracket invests $100,000 in a stock and sells it six months later for $160,000 (a 60% return). He owes $21,000 in taxes on the $60,000 capital gain, leaving him with a $39,000 profit.

The same individual invests $100,000 in a stock and sells it one year later for $150,000 (a 50% return). He owes capital gains taxes of $7,500, leaving him with a net profit of $42,500.

A difference of only $3,500 if you are in the 35% tax bracket. Most folks don't fall into that bracket so the penalty is actually less.

[WhisperingEye]

Yeah taxed at the normal rate. But after a year it could be 0% , which would mean holding long tearm is better for some.