Quote:
Originally Posted by Azure
I only said that he added $3 billion to his net worth and he never paid taxes on a dime of that money.
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His net worth or change in it is absolutely irrelevant to any tax issues.
If you buy 100 stocks from $1million dollars each, then the stock price goes up to $1.50 then TA DA, your net worth has gone up $50 million dollars.
Should you pay tax on that? Because that is exactly what you seem to be proposing. Why should he pay a dime of tax on that money?
Now he sells that stock. His net worth doesn't change an iota when he sells, but he has now realized a capital gain and will need to pay tax on it.
You have a Papa Smurf trading card. One of only 2 in the world. You paid $1 million dollars. Then one day someone sells the other card for $2 million dollars. Look, your net worth just went up a million dollars! Should you pay tax on that? Your net worth went up $1 million, you better not have a loophole. Well, if you can't find a buyer for your card and end up selling it for $100K then you just realized a capital loss of $900K. It would have sucked if you had to pay tax on that mythical net worth.
Net worth and capital gains are not synonyms and your arguments are really poor.