Why aren't capital losses going to be indexed as well?
If the goal is to tax "real gains", why aren't losses indexed as well?
For example, if I make 2 investments:
Investment A is $100000 that breaks even nominally
Investment B $10000 that makes 10% over 2 years
Assuming 2.5% inflation / indexation rate, then:
Investment A has made a loss of $5062.50 in real terms
Investment B has made a gain of $493.75 in real terms
I've made a real loss of $4568.75, yet I pay 30% tax on the $493.75 as though I'm earning $205k per year?
u/Gumlass — 1 day ago