When you're taxed on invesment profits are they inflation asdjusted?

[mo42nyy]

Hypothetically you invest 1000 dollars in a company's stock in 2006. In 2036 it is worth 21,000 dollars and you sell it. Would you be taxed on 20,000 or is it adjusted for inflation some how?

[Brainwalter]

not adjusted. So if your investments only, exactly beat inflation, you will be taxed on your "gains" and will lose money to the government even though you didn't gain anything.

Enjoy!

[mo42nyy]

I thought so
What a joke
Im suprised that nobody has ever challenged this in tax court

[Brainwalter]

I'm sure they have challenged it and lost.

[Dazarath]

This is one of the reasons that high-yield savings accounts kind of suck. After taxes, you're barely beating inflation, if even.

[The4Aces]

all taxes suck.