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/biz/ - Business & Finance

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57683496 No.57683496 [Reply] [Original]

>buy something
>it goes up a lot too fast
>wow shit I lucked out, I will take some profits
>takes profits
>you now owe 20% or whatever the fuck to the taxman
>you have to save 20% of the amount you sold rotting in your bank account to inflation
>decide this is stupid so you use this to get back into the market
>the stuff you buy pumps
>"I won"
>it goes lower again
>it goes even lower than your previous entry point meaning that you now owe taxes of your previous sale and in order to pay it you have to sell because you don't have an income or your income is not high enough to pay for that amount
>sell
>oh wait I owe a 20% on this again
>oh no wait I just owe again
>sell again owe again
>loop and loop of owing taxes
>your account is divided by 0
>you are financially decimated

>> No.57683531
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57683531

>> No.57683543

>>57683496
this is precisely what im saying man! FUCK

>buy 1000 BTC at $1 each
>sell 1000 BTC at $50K each
>have to reserve 200 BTC worth of dollars in bank account for tax man
>say screw that and market going up so buy back in 1000 BTC
>BTC tanks to zero
>owe tax man 200 x $50000 despite BTC now being worth zero

aint no sunshine when shes gone

>> No.57683569

>>57683543
wait nm. youll owe $0 tax because the loss you got on buying back in will negate your capital gains from your first sale.

>> No.57683570
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57683570

>>57683531
lol what a retarded normie i hope they enjoy staying poor this is what normie retail looks like they buy high and sell low and never buy what they've been shilled the perfect target for our exit liquidity just watch i'm going to turn your $anon buying boomer dads portfolio into my own personal piggy bank by dumping my $anon bags on top of his good luck and go back to playing your video games loser

>> No.57683575

When you sell at a loss that's a capital loss not a capital gain, you don't owe tax on that, no?

>> No.57683591

>>57683575
capital losses are deductible from capital gains

>> No.57683632

>>57683591
So in this instance if you made 2000 on a trade, then reinvested, lost the entire 2000, your capital gains would be 0, thus you wouldn't owe?

I think you're only truly fucked if you made the profit in 2023, lost it all in 2024 before tax season rolls around

>> No.57683639

>>57683632
>So in this instance if you made 2000 on a trade, then reinvested, lost the entire 2000, your capital gains would be 0, thus you wouldn't owe?
correct

>> No.57683645

This is why I just buy BTC and will never sell.

>> No.57683661

>>57683639
Okay makes sense. Never claimed anything in crypto because I just buy and hold. I've been profit taking this year and that's how I understood it so just double checking.

Basically don't be a retard and lose it all in 2025 before you have to do taxes because you won't be able to deduct those capital losses until 2026.

>> No.57685369
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57685369

>>57683661
>Basically don't be a retard and lose it all in 2025 before you have to do taxes because you won't be able to deduct those capital losses until 2026.
if this happens you are on a loop forever owintg taxes

>> No.57685650

>>57683661
I was like tank holding shit and assets doing almost nothing, but I made a few changes following truflation data, and actually made a few bumps to my networth

>> No.57685660

>>57683496
do people actually think this is how taxes work or are you 12?

>> No.57687116

>>57683496
>don't pay em
>the fuck timmy gon do?