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