Thank you. please bear with me if the following is a dumb question.
Suppose a person purchases shares in a balanced mutual fund and holds them for 10 years. Each year that person will pay some amount in dividend income, and some in capital gains tax.
Now that person is selling those shares. If for example that person purchased the shares at $10 and sold at $15, is the 'gain' on each share $5 for the purpose of paying capital gains tax in the year of sale? Or is it more nuanced than that, where the capital gains they paid each year somehow has to come into the calculation?
Thank you again
