Tax deductible loss Puns

Definitely Not Legal or Financial Advice.

The weekend shills are posting about the tax implications of DRS vs TFSA/RRSP, so I wanted to make Canadapes aware that there is a simple way to virtually guarantee that you do not owe any tax at all on your GME holdings during or after MOASS, no matter whether you hold them in a TFSA, RRSP, cash account, or margin account at your Canadian brokerage. In fact, if you play this right, during and after MOASS your brokerage shares will almost certainly become eligible as a capital loss for tax purposes. LFG!!! 🚀🚀🚀

Firstly, let's take a peek at the tax nightmare that Canadape DRS retards face so you can see why we are talking about this.

Imagine that you are a Canadape DRS retard that eventually paperhands at $69,420,741.69. For ease of math let's say you have a 50% marginal tax rate (it will actually be a bit lower depending on province) That means that you will pay 50% tax on 50% of your total gain which is ~$17,355,185 in capital gain tax. Why the fuck would anyone be so retarded that they would willingly pay $17 million in tax when they could just avoid owing tax altogether?

Can you imagine post-MOASS how every hoser is going to be mocking these DRS retards who will barely be able to afford a hundred Lambos with their paltry post-tax windfall? LMFAO! The worst part is that all that beautiful tax money is just completely wasted on things * that almost no one ever needs or benefits from. Sadly, conflating DRS retards with communists will be commonplace post-MOASS. No offence to communists intended.

Why would you seriously want to be a tax paying DRS retard when you can roll tax free the easy way?

I believe that avoiding all capital gains taxes on your GME during and after MOASS is as simple as continuing to hold your GME shares in your Canadian brokerage. It really is that easy! You most likely do not have to do a single thing other than this to avoid owing all Canadian taxes on your tendies. I don't think it makes any difference whether your GME shares are in a TFSA, RRSP, or in a cash or margin account. Let's take a look at exactly why this is so. Details vary a little by brokerage, but my opinion is during MOASS it will most likely be the same outcome regardless of which Canadian broker you are using.

For example, let's randomly use QuesTrade as our broker in this purely hypothetical example and say that we are currently hodling XXX bananas worth US$XX,XXX.69

Can we agree that during MOASS the price

I believe these stocks will rebound, but not likely before the next month given this period of uncertainty surrounding omicron (which I think will end in a few weeks).

So the strategy is to sell at a loss now and collect tax deduction and then buyback in 31 days to avoid wash sale rule.

Risk is that stocks could go up and would lose out on those gains, but the stocks in question seem more like long term hold and have been static lately.

Does this seem reasonable?

Apologies new to Crypto and investing. If I say sell something at a loss what is the benefit (does it depend on how long I've had that asset)? If I sell that asset how long do I have to wait before buying back? Can I use the money I got from selling at a loss to purchase a different token (will the tax benefit still apply)?

Due to Covid-19, I have got an abundant loss while trading forex in Japan during the last two months which doesn't seem to be recoverable. I am wondering if I can get a deduction on my tax for these losses. Has anyone information about this situation?

Hi,
I was just wondering if I can deduct for my 2019 taxes my account fees at Interactive Broker and an FX Income Loss ?
For the story, I was donated some money in EUR and transfered it to IB.
I did not exchanged it directly and incurred a loss as per their FX statement.
Also, I incurred inactivity/account minimum fees.
Are all those deductible ?
Thanks !

Hey retards,

so ending normal funnies and jokes- here’s something that you all will need to understand and hopefully help you on your tax understanding.

Now it won’t be much fun to read it but knowing it may be helpful to you at some point.

1. what is wash sale rule?

>A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar.

Now the actual way to understanding this is kind of complex and even out of the scope of this post. You can be held at a tax higher than your gain (some retard got a 800k tax bill in a 40k gain because of wash sale rule since he was trading same stocks 10+ times a day).

But do know that this rule, is made to stop shady things. It usually won’t effect you because brokerages are smart enough to realize it and do mathematical calculation to your second buy to fix the wash sale rule instantly. But there can be mistakes.

NOTE: you should only be paying taxes on your actual gain and deducting from your all losses (total after net year). If anything is wrong, see tax accountant instantly.

2. tax-loss harvesting

This is like algebra math where you try to add and subtract to get the best number. Say you have 2 positions, one in AMD and one in GME. You realized a gain (so you closed your position) on AMD but still have your GME options chugging along. Your GME options don’t expire until next year but they are in loss. It’s December- so you say “wait, rather than pay full tax on my gains from AMD, why don’t I close my GME positions for a loss and now I can subtract that loss from my AMD gain and pay less tax”.

This also hopefully makes it clear why the wash sale rule is there. Because someone could be this at dec 31, and buy the same position at same rate in jan 1, and theoretically from tax point, essentially mitigated all loss on that GME position.

3. deduction of capital loss

You say you have -20k realized loss in 2020. You can deduct 3000$ from your earned income every year until that 20k is used up. This means you lost 20k in stocks but made 60k in your job- you can automatically deduct 3000 from your income so now you effectively have a 57,000$ income for tax.

Now some people are confused but this is only for EARNED INCOME. The 3000 deduction limit is so it’s not abused. But say you have 2021 capital gain from GME of 15k.

Here if you still had -20k loss of 2020, you can deduct the full 15k gain from 2021 so that -2

Hello All,

Here is my crappy situation in a nutshell: I had a long marriage (12 years), I live in California, my soon to be ex-wife could potentially get lifelong alimony. (She shows no remorse _whatsoever_ about how she screwed up the marriage morally (in fact she turned to be super greedy), but that is a different story, and state of California is a no fault state anyway (crap).)

Another fact because of the government's tax changes alimony will not be tax deductible from next year on.

So here my options:

Option A: Rush through the divorce and agree to her terms, which is lifelong alimony (by law she can totally get it), although all my senses are against it. On the positive side (if at all) at least I can get 35% tax back after my alimony payments to her. (The only possible ways to escape lifelong alimony if she remarries or finds a much better job, both of them are highly unlikely.)

Option B: Fight to death to set end date for alimony, which means litigation in court next year (already have appointment). However it is not guaranteed at all I can set an end date in court, it is basically just a bet. Plus I loose my tax benefits after the alimony payments if I wait until next year. (If you think my alimony payments will be lower, because there is no tax benefit anymore, it is very likely it will not be.)

What would you choose if you were me?

Thanks.

Partly sarcastic, but hear me out:

Without tips, the restaurant would have to pay the difference wages (to at least minimum wage) and this increase in expense reduces their taxable income.

A customer paying the waiter a tip should therefore reduce the taxable income of the customer, just as it would reduce the restaurant’s taxable income.

I thought that it was important for you new investors to know this. Some of you have immense losses, and it may help you to know that you can write these losses off your taxes.

Can someone please explain this concept to me? I can’t quite grasp it. Example problem, if there is a 12,000 loss and the partner has a tax basis of 10,000 and an at risk basis of 8,000 why can they only deduct 8,000? What’s the point of the tax basis if we can’t deduct losses against that? TIA!

Some of us have jobs that make it difficult to forego paying [red] taxes [red]. That being said, let me ask:

Why isn’t emergency preparedness tax deductible? Why aren’t emergency supplies and food storage a consideration?

Put it another way. Many of us are prepared for plenty of natural disaster and/or downed grid scenarios. I’m the which case our resources can help rally our communities and help us through disaster. So that being the case, shouldn’t these supplies which supplement a much ignored, supposed “government” service be tax deductible?

If we’re making it so it makes the government’s response job is a lot easier, and reduce a casualty count, then why not? If anything, it may even encourage emergency preparedness across the board.

Don’t forget - For taxable accounts if you sell at a loss, Capital Losses are Tax deductible and can be carried-over to next year’s tax return if your reach the limit (at least in the US).

Just a reminder - There are no losers, only learners. It’s part of the game. When you play basketball and your shots are being blocked, you learn something and you change your strategy. Same thing.

Others might already be in the moon. Your journey is just delayed. Chin up!

So how I understand it when it comes to capital gains tax, in Sweden your losses are only 70% deductible from your gains. So assuming all my winning trades for the year would be 100,000eur, and all my losing trades would add up to 100,000eur, my net gain would be 0. But I would still need to pay capital gains tax on 30,000eur?

It seems a bit unfair, one would think it makes more sense you get taxed on your net gains. So I'm wondering if this is a normal common tax concept outside Sweden as well?

I've been trying to find out how it works in Belgium, my home country, but can't seem to find info.

Most training/courses I take, lawyers I hire, gear I buy etc is a straight up deduction. Why not student loans?

College of any kind is literally paying to learn skills to help navigate the workforce. I majored in performance art, and believe me doing an interpretive dance during a meeting moves things along quite nicely

Filing single, have good cash flow, good liquid NW, and even bigger retirement accounts. Main interest is in minimizing this year's tax bill since I just moved to a high tax state. Future years matter too but might matter less.

Last year was great logistically. I was making well under the Roth IRA limits and getting a 401k match, so I maxed out those two before leaving my job for the one with no match. Trad 401k and Roth IRA.

The trad 401k was rolled into a trad IRA when I left.

Now I get paid more but with no match and seem to be above the Roth limits. 401k contributions will lower my AGI, right? But not enough to get under the limits if I report even a few $k of freelance/capital gains/dividends/crypto mining, which I definitely will. Is it worth it to do tax loss harvesting to try to get under $129k or does the thing just phase out anyway? And backdooring is not an option since I have a traditional IRA balance?

From my preliminary research it seems like things will be significantly less trivial to optimize this year so I wanted to get some feedback and see if I'm missing anything.

Currently, my plan is to drop money in a traditional IRA as soon as last year's 0% APR offers are paid off (but I heard I get a reduced deduction for this?) and wait on the 401k contributions until the end of July to see if I get another job that has a match.

If I do, it will be pretty easy to fund it by end of year, and if not, I will eventually start paying into the current one to get the deduction only.

Been at my employer for a year and a half. About a year ago I was offered “health benefits”, by the cost of my health insurance being increased in my pay. I still pay for my health insurance. Is this tax deductible? Thank you

I get nervous keeping a lot of money with blockfi because it's not insured but if there was a complete loss of funds, could I write the loss off on my taxes? Thanks

Hello, I just read that I can deduct up to $3,000 off my taxes if my investments go belly-up. Does this mean I get $3,000 more on my tax return? Or is only a percentage of it returned? So farm, I'm down ~$2,300 this year, and I have some call options that will also lose me another ~$600. So, how does this work exactly? Thank you

I'm young(ish) and inexperienced with taxes.

Suppose I buy a painting for charity and it's tax deductible. The painting is $500 My tax bill at the end of the year is 10k Am I now only paying 9,500 in taxes and writing off 500? In essence, getting this painting with money I would have owed anyway? If so, that seems like a great deal. Why not buy a 5,000 raffle for charity and get something out of it instead of just writing a check to the government? I'm sure there are limits, otherwise everyone would do it. So, what am I missing here? What's the catch?

It may be but a minor issue, but I can't for the life of me find where this rule is (except, perhaps, that it is implied by §165(c)). Is there another section of the code that talks about losses on capital assets held for personal use?

To clarify, I want to sell it now and the best offers are at a substantial loss. Still considering it though.

This is all true for the entire year of 2021

Currently I'm outsourced to Romulus Michigan for work and work for a Union. My tax home is in Cleveland Ohio (currently paying Federal taxes and Ohio State tax). With per diem being 600$ a week, I spend about 630$ on Hotel expenses and food.

Question is what can I claim as tax deductible working out of home state?

Can I use living and food expenses as a deduction or not?

Occasionally I drive 3h to and from Ohio to Michigan, so can I put gas expenses aswell?

I'm new to understanding taxes, and how they work. Would appreciate all and any information you have thank you

I'm also in my early 20's

The site mentions that it is tax deductible, but I was wondering if that's the case in my scenario.

I am a Software Engineer, and there is a Product Manager course I would like to take (would potentially want to be promoted to this position).

It's a different role, but the skills are also related to SWE (even says on the page, System Design, Programming, Project Management).

If yes, would that cover the full cost of the course?

So the IRS calculator is down.

I'm trying to run the numbers on what I can expect to pay or get back in taxes this year. Every estimator I've used doesn't give a line for medical insurance or 401k. It'll say medical expenses and IRA but not insurance and 401k.

Most of them also say "taxes paid" for me to enter the taxes I paid for the year but I don't know if they want just income tax or add on SS and Medicare? These calculators seem to be very very vague.

Does anyone have a good estimator?

I like to bet $5-$10 on football games a week to make it a little more interesting to watch. I was thinking how I was doing pretty good but since I only made ~20% of what I spent and I get taxed ~25% I’m still losing money. Seems kind of unfair to me.

I've reported royalty income on my taxes before but this is the first time I've hired a developmental editor for my writing. So, of course, it occurred to me that I might be able to write the fee off as an expense even though writing is not my primary source of income.

Anyone out there know for sure, i.e. has done this before?

I want to start a small side business where I will be allowing the public to use my telescope, either by actively taking some people out for a night or just setting it up somewhere public. But before I take it out and make money, I'm wanting to upgrade the gear.

Am I right that the new gear I buy will be tax deductible (proportionately to how much is used for business vs personal), even before I start making money? What about the cost of everything I've already bought from previous years, can those costs somehow be made tax deductible?

Hello everyone, My wife had what would be considered cosmetic surgery. Something that was causing her discomfort, but with our medical system being overrun, it wasn’t something they would look at doing. Someone told me that cosmetic surgery could be tax deductible in BC. I do not think that it is, and could not find anything on it. However, it would be a large amount, so I figured I would throw it out there and see if anyone has any insight. Thank you all!

Let's say that in the last tax year, I purchased a domain name (www.example.com) for £10,000 and sold it this year for £2,000 - Would the £8,000 loss be tax deductible?

So how I understand it when it comes to capital gains tax, in Sweden your losses are only 70% deductible from your gains. So if all my winning trades for the year would be 100,000eur, and all my losing trades would add up to 100,000eur, my net gain would be 0. But I would still need to pay capital gains tax on 30,000eur.?

That seems awefully unfair, one would think it makes more sense you get taxed on your net gains. So I'm wondering if this is a normal common concept outside Sweden as well? I've been trying to find out how it works in Belgium, my home country, but it doesn't seem to be the case there.