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Capital gains realizations

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  • Hines, James R.
  • Schaffa, Daniel

Abstract

If there are important nondeductible costs to long-term investing, then higher capital gains tax rates may encourage or discourage investors from realizing accumulated gains. This ambiguity suggests that the sizeable observed effects of capital gains taxes on realizations may partly reflect factors other than the time value of money, such as investor anticipations of future tax rate changes.

Suggested Citation

  • Hines, James R. & Schaffa, Daniel, 2024. "Capital gains realizations," Economics Letters, Elsevier, vol. 244(C).
    • Handle: RePEc:eee:ecolet:v:244:y:2024:i:c:s0165176524004749
    DOI: 10.1016/j.econlet.2024.111990
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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