Update 2021-05-31

post by jefftk (jkaufman) · 2021-05-31T13:30:02.564Z · LW · GW · 5 comments

Update 2021-05-31: AGI already includes net realized capital gains: 

5 comments

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comment by Alex Hollow · 2021-05-31T13:58:57.001Z · LW(p) · GW(p)

Hi - looks like you did a relative link (https://www.lesswrong.com/capital-gains-in-agi-big.png) but you want this absolute link instead: https://www.jefftk.com/capital-gains-in-agi-big.png

Replies from: mingyuan
comment by mingyuan · 2021-05-31T15:44:16.843Z · LW(p) · GW(p)

Fixed! Thanks :)

comment by philh · 2021-06-03T16:44:48.266Z · LW(p) · GW(p)

For others confused like me: this is an update to a longer post. AGI in context is Adjusted Gross Income.

comment by Dagon · 2021-05-31T23:51:18.079Z · LW(p) · GW(p)

Realized gains only (that is, only gains on things you sell or convert to another form), and short-term only (generally, things held less than a year).  You have to read schedule D to figure out that long-term gains are reported and taxed separately (at a lower rate, and not increasing your bracket for other income).   

Replies from: jkaufman
comment by jefftk (jkaufman) · 2021-06-01T00:28:28.176Z · LW(p) · GW(p)

If you read schedule D you will see that long-term capital plans are included in AGI, even though they are taxed at a separate and lower rate