Getting taxed after selling assets that “appreciated” in value but due to inflation leave you with less buying power.

This is a hypothetical for any asset — a house, crypto, gold, art, etc.

Say you buy an asset for $100 years many ago. Today, it is “worth” $150, and you sell it. You get taxed on the $50 capital gain.

However, let’s say that due to inflation, that total $150 you got for selling the asset actually has only HALF the buying power of the original $100 investment you made, so, the asset did not keep up with inflation.

You’ve lost buying power, AND you have to pay taxes on the capital “gains” leaving you quite worse off.

I know this is just the way it works, but wanted to share the thought.

submitted by /u/Peacewise
[link] [comments]