“Taxing Unrealized Capital Gains: What You Need to Know” Current Taxation System: Under the current system, taxpayers pay taxes on the growth in the value of their assets when they are sold (realized gains). Short-term gains (assets held for less than one year) are subject to ordinary income tax rates. Long-term gains (assets held for over a year) are taxed at a top rate of 23.8%. Kamala Harris’ Proposal: Harris has proposed taxing unrealized capital gains for individuals. These taxpayers would report unrealized gains annually, including basis (original purchase price) and market value as of December 31. The tax applies if the individual does not pay at least a 25% tax rate on their income (including unrealized gains). Payments can be spread out over subsequent years. Implications and Controversies: The proposal aims to address wealth inequality and capture gains from appreciating assets. Critics argue that it could be complex to implement and may have unintended consequences. Supporters believe it could generate revenue for social programs and reduce tax avoidance.   Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact [email protected] visit www.redbarnfinancial.com or call 615-619-6919

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