Thanks, Champ.
Does that sound we pay tax twice on the gain now and later?
Ex:
We paid tax on the reinvested amount of
1st year gain: $100
2nd year gain: $400
3rd year gain: $500
Sub total: $1,000
on a $10,000 investment.
Then we decide to sell it now, the additional gain is $100, do we just pay tax on the additional gain of $100, or they will tax us on the total gain of $1,100?
I'm new to investment, the Pub 550-Investmentment & Expenses is pretty complicated to undertand.
