Ha.. and the irony(or embarrassment) of calling out incorrect figures, with more incorrect figures! I shouldn't post at 7am on a Sunday.
That final tax figure for the first year of $400k did feel high - because it is. The correct number would be :
($7m - $5m) x 0.15 x ($7m - $3m)/ $7m = tax of just over $171k
Sorry for the slip up. Taxing unrealised gains is still a bad idea though.
Ha.. and the irony(or embarrassment) of calling out incorrect...
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