If a person’s assets rise in value enough that they would fall under the scope of the tax, they would be allowed to pay the tax over five years.
A group of 16 Democratic senators introduced a new bill on Thursday that would compel wealthy Americans to pay taxes on the unrealized gains of their capital assets every year.
Current tax laws provide no means for taxing an unrealized capital gain, which occurs when an asset’s estimated market value appreciates above its original purchase price but its owner has not yet sold off the asset and thus has not yet obtained its appreciated cash value.
Mr. Wyden’s bill proposes a marked-to-market accounting approach, whereby qualifying capital asset owners must annually report the current market value of tradeable assets like stocks, bonds, and other securities, and pay taxes on those…
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