Tax Scenarios
(assuming 50% tax bracket)
$250
$125
$300
Capital
Gains Tax
$1000
$500
$1200
Selling Price
$250
(25%)
$500
$1000
Shares
stay the
same
-$125
(-12.5%)
$500
$1000
Shares
lose
50%
$400
(40%)
$500
$1000
Shares
gain
20%
Net After
Tax Gain
Tax
saving
Original
Investment