Effective capital gains tax rate

[b2thef]

The effective capital gains tax rate formula and modified version of the standard deferred capital gains are not understandable.

The effective capital gains tax rate expressed by

T*= tcg [P deferred cg / (1- WARTR)]

What does the effective capital gains tax rate means?

Why this tax rate using deferred cg and return after realized tax? (I mean numerator links with deferred CG, but denominator links with realized return)

I saw this issue several times, but I cannot understand the concept. please help me~~~!

[VWJETTY]

it takes into account the deferred capital capital gains (which you are not paying tax on this year).

[Flashback]

@b2thef

Why this tax rate using deferred cg and return after realized tax? (I mean numerator links with deferred CG, but denominator links with realized return)

I saw this issue several times, but I cannot understand the concept. please help me~~~!

1-WARTR = 1-(p_it_i+p_dt_d+p_cgt_cg) what is a weight of the tax allocated to deferred capital gains, thus deferred tax in denominator. In nominator is a weight of non realized capital gains, 1-(p_i+p_d+p_cg). This ratio is multiplied with actual capital gains tax to reach blended tax rate. Logical conjunction.