[andrewlgood]

Not correct. Capital Gains taxes depend on the holding period. Short term capital gains (stock held less than a year) are taxed at the same rate as salaries (ordinary income rate). Long term capital gains (stock held at least a year), are taxed on a reduced level that peaks out at 20% (depends on total taxable income) with a possible additional 3.8% Obama Net Investment Tax.

[labcomputer]

Cool. You covered short term gains and long term gains. Could you answer the question, which was unrealized gains?

[sidewndr46]

So I buy a stock on Jan 1 for $1 and by June 15 it is worth $100. I'm going to pay $99 of short term capital gains at that point?