[shmatt]

if i put in $50k, gained 10%, then payed rent with $2k. Is that $2k taxed as the profit? as someone not very knowledgable in the investment world, this seems pretty complicated, and also weird that i'd be taxed for every "faux checking" use if my portfolio is in the green

[rmah]

It depends on how much of your assets are invested in the market. And on how you're handling cost basis. And if you are carrying forward any previous losses. And how long you've held the asset. And... well, you get the idea.

[shmatt]

well I'm not handling cost basis, Financial Choice is. and they're not sharing any of that AFAIK. which makes this confusing. Especially with the comparison here and on their home page, to a checking account.

Sounds like if the market is green I'm paying a hefty free for every single checking transaction

[jklein11]

I think the tax filer max the ultimate decision on cost basis, not the financial institution.

[konne88]

If you put in $50K, and it gained 10% your account would now have $55K. If you withdraw $2K, you could be taxed on the 10% profit on that $2K, so $200. So if your tax rate is 25%, you'd pay $50 in taxes because of that 2K withdraw.

[zie]

You are correct, but assuming the holding was < 1yr and STCG applied. If >1yr holding period, LTCG would apply. chances are it would only be a 15% tax rate in a LTCG applied tax. given current 2021 tax brackets.

Even this is incomplete, because we don't know the other tax situations, was there a tax loss carryover that would/could be applied, etc, etc, etc.

Taxes are complicated.