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