this post was submitted on 14 Jun 2024
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Don't forget that the $25k wouldn't all be gains in the first place. If the investment had increased in value by 25%, it would be 20k base and only 5k gains; if it had increased by 100% it would be an even split. We're talking about taxing a part of a part of the sale value.
Once you get this far down the thread you realize how complicated it actually is and why most people have no sweet clue how it works.