Not exact matches
Berkshire is likely sitting on more than $ 10 billion in
capital gains from the Wells Fargoinvestment, and could owe
big taxes on
gains it
realizes, analysts said.
Remember what Irving Fisher told us in The Debt - Deflation Theory of Great Depressions: The public psychology of going into debt for
gain passes through several more or less distinct phases: (a) the lure of
big prospective dividends or
gains in income in the remote future; (b) the hope of selling at a profit, and
realizing a
capital gain in the immediate future; (c) the vogue of reckless promotions, taking advantage of the habituation of the public to great expectations; (d) the development of downright fraud, imposing on a public which had grown credulous and gullible.
Uncle Sam and the Fund: Beginning investors often do not
realize that funds themselves incur
capital gains taxes, the cost of which is borne (
big shocker) by you, the fund holder, even if you don't sell a single share.
These days one of the
biggest obstacles is a reluctance to
realize capital gains: after several years of outstanding equity returns, even mutual funds charging 3 % have seen
big gains, and selling them now is likely to come with a tax bill.
The single
biggest asset many people have is their home, and depending on the real estate market, a homeowner might
realize a huge
capital gain on a sale.
It's used most often to take advantage of
realized losses that can be offset by large
gains or to harvest
gains now in order to prevent a
bigger capital gains hit in the future.