taxation

[classicman]

Now, when you sell it, if you make a profit, that profit & principal is taxed.
How about the estate tax.

If you make your living buying and selling, the profit you make from those sales is your income. that income is taxed. Where the money came from to make the purchase is irrelevant.

...and should be taxed at the income rate, not the capital gains rate?

[BigV]

Originally Posted by classicman

Now, when you sell it, if you make a profit, that profit & principle is taxed.
How about the estate tax.


...and should be taxed at the income rate, not the capital gains rate?

when you sell an asset, you are taxed on the profit. the principAl is not taxed. I don't know where you got that notion.

[BigV]

Originally Posted by classicman

Now, when you sell it, if you make a profit, that profit & principle is taxed.
How about the estate tax.


...and should be taxed at the income rate, not the capital gains rate?

You'd think so, wouldn't you? But, it is not. If you buy and sell widgets, your profit (sales in excess of expenses) is ordinary income. If you buy and sell shares of stock, the profit (sales revenue in excess of expenses) is considered capital gains, and taxed accordingly, max 15%.

Look, I'm getting tired. My language is becoming imprecise. This is the bullshitting over beers portion of the sermon. /end disclaimer