In a taxable account, the cost basis of investments increases over time as the net-of-tax amount of income distributions is reinvested, and gains relative to this cost basis are taxed at long-term capital gains rates upon withdrawal, provided the investment was held for at least one year.

Authors

• Person: Not available Organization: Wealthfront
  Wealthfront Classic Portfolio Investment Methodology White Paper

Sources

• Wealthfront Classic Portfolio Investment Methodology White Paper research.wealthfront.com Wealthfront via serper

Referenced by nodes (3)

• long-term capital gains concept
• taxable account concept
• cost basis concept