Pretty much title.
He works at Shopify and has a ton of Shopify stock as part of his compensation over the years.
The other day he went on a 20 minute diatribe about how the liberal government is going to just yoink 50% of his capital gains. When I gave a puzzled look and said "no... 50% of your capital gains are taxable, not taken from you" he insisted he was right in his particular case.
I'm almost positive this is a WILD misunderstanding on his end, but just in case, before I berate him for his idiocy, is there any possible situation where long-term capital gains would be taxed at a rate of 50%?
My goodness apes and apettes.
I reached 83% some months ago as I got in super early as an XXXX holder.
I've added to my position 3 times since then. The last time was exactly one year ago today.
99% DRSd.
I want to thank crime and a completely fraudulent system for allowing me to get to this point. There was a time I thought the US government would step in and put and end to the nonsense so they could cash out with us apes.
Instead they chose to support the financial terrorists at every level. I couldn't be more pleased as I will have more cash on hand to support my community directly.
Many of you will have you long positions eligible for long term capital gains and I will be here waiting to celebrate with you.
DRS. BUY. HOLD. HODL. REPEAT.
You've already won.
I’ve been seeing the argument going around that the government should tax assets, instead of realized capital gains, in order to fairly extract taxes from billionaires, and thus, all investors. How can this actually to be implemented though? The value of an asset is speculative and volatile. If I was to be taxed on my stock portfolio, which fluctuates in value every second, would the tax man just tax it at an arbitrary point in time? This just doesn’t seem to make any sense. I could be taxed at my portfolio’s highest valuation and it could drop significantly the next moment…then I’d be screwed, and punished for investing in the economy, which is the opposite goal of any governments’ monetary policy, as the government wants to ENCOURAGE investment.
Anyway, my stance on this is that it doesn’t make sense, but maybe I’m missing something? Change my view!
Edit: Thank you to everyone who responded. What a lively and informative discussion! I’m not sure if I’ve completely changed my mind about the subject, but I am definitely not against it anymore. It seems like it COULD work.
"The Huge Tax Bills That Came Out of Nowhere at Vanguard", an article written by Jason Zweig for his Intelligent Investor column in the Wall Street Journal, contains this excerpt referencing a recent post in this subreddit:
>In the Bogleheads area on Reddit, another online forum, an investor posting as “Sitting-Hawk” said he received about $550,000 in distributions in Vanguard’s Target Retirement 2035 fund. So he owes 23.8% in federal tax and 4.95% in Illinois state tax—all told, more than $150,000. “HOW,” he asked in capital letters, “COULD VANGUARD LET THIS HAPPEN??”
>
>“Sitting-Hawk,” who asked me not to disclose his real name, says he put about $1.9 million into the fund in a taxable account in 2015 after he maxed out contributions to his tax-deferred funds. He added more savings; by last year, he had about $3.6 million in taxable money in the fund.
>
>“I didn’t want to be that guy who’s constantly trading,” he says. “I just wanted to set it and forget it and have some peace of mind instead of messing around with it every couple of days.”
>
>“It sucks that this had to happen,” he says.
Today I spent hours and hours optimizing my taxes. I generated statements from Coinbase and Kraken then transferred the info to Excel. I sorted the purchases by cost basis, and sold every Satoshi that I had purchased after June 2021 above the current price. Then I instantly rebought, and at a slightly lower price even.
The result was 42.5% lower net gains, so 42.5% lower taxes on the gains.
Now, what am I going to do with the $20 I saved? Probably buy more BTC.
I'd like to take a moment to thank all those who supported me in this journey:
- Uncle Gary for doing nothing
- Uncle Kenny for doubling down
- Auntie Janet for your unyielding love for Uncle Kenny
- Uncle Davey for being a paper-handed bitch
- Uncle Stevie for never visiting since January
- Uncle Charlie for being a constant source of laughter
Peace, love and chicken tendies for all.
***EDIT 1***
Didn't expect this to blow up like it did.
DRS > Buy > Hold > Hodl
You've already won.
***EDIT 2***
Some are asking what convinced me to go in early on GME. I lurked on the bets sub for the longest time. DFV and some other members made it fairly convincing. I was looking to get out of Apple and said fuck it why not. The rest is history.
Empire Capital Token on BSC has taken Empire Dex, a multi-chain DEX ecosystem that provides a full suite of integration and development services to projects, into Defi 3.0. Holding ECC gives the benefit of diversifying into many different assets without having to create and hold many LP tokens, or stake and claim yield on many different platforms. They do this by creating an actively managed and diversified treasury fund of yield generating tokens within the DeFi sector, while also being able to invest into CeFi startups and deploy capital into IPOs via their incorporated company in New Zealand. The profits from the fund are used to market buy ECC, thereby returning the fund profits back to ECC holders. The treasury is supported by 4% of the sell tax.
Each ECC Token represents a share in the profits of Empire Capital. As profits accumulate in the Empire Capital Treasury, they are bridged and invested in yield farms, auto-compounding vaults, yield aggregators and other reflationary and yield generating assets.
ECC holders will be able to make and vote on proposals on strategies, with 1 ECC equaling 1 voting point.
Holders of the token receive 9% reflections on buys while the other 1% of the 10% buy tax goes to true burn, creating a truly deflationary asset.
ECC is the ONLY FAAS / DeFi 3.0 protocol that would survive a regulatory audit. This is a huge advantage in the current climate. Most projects cannot claim this and would not survive the type of regulations decentralized finance are bound to see seeing in the future.
What Else Sets ECC Apart?
- · Their director is Deloitte alumni and ex Deloitte partner
- · The third party banking app that allows people to connect their debit cards and conduct every day FIAT transactions while rounding up into ECC. Your $2.80 coffee can be rounded up to $3.00, buying you 20c of ECC.
- · True cross chain bridge with cross-chain reflections incoming. It won’t matter what chain you’re on, everyone gets reflections from all chains.
- · Exciting partnership announcements coming one by one. The most recent waiting to be presented is a deep infrastructure partnership with Metis DAO (~500m mcap, co-founded by Vitalik Buterin's mother Natalia).
- · ECC removes the need for active management by the user by creating an opportunity to diversify holdings in projects focused on obtaining maximized staking/farming yields. Users gain the advantage of wider exposure to the yield farming sector while only needing to own one
It seems like a no-brainer to take the potential profits out of house flipping.
We do want the housing market to become affordable right ?
We have so many people in the housing market that are not looking for a house to live in because theres easy profit to be made yes ?
We cannot have such easy profit to be made, & have a house market that young people can join. This countrys economy doesnt pay the wages that makes current prices workable. Our housing prices are being determined by the wealthiest amongst us.
So if the prices are untenable, & there are too many people in the market simply to make money, why is it so unthinkable to bring in a tax on this aspect of New Zealands culture ?
Australia has done it, why are our politicians so against it ?
Give me a good reason why its better that we never have one, because it seems like a no-brainer.
Keep hodlin this up G.G cuz i can hodl longer!! And ill keep buying the dip!! 👊👊👊 I AINT GOIN NO WHERE!!!
The 29th of this month my first xxx shares hit a year. Happy Ape Day to me! Happy Ape Day to me! Happy Ape Day Diamond Hands…Happy Ape Day to Me! Buy and hodl some morrrrre!!
End of February and the rest are in the clear too!
Edit: Even if MOASS started tomorrow, it will take weeks to get anywhere near the floor. Looks like Uncle Sam is gonna see a whole lot less in tax dollars and a whoooole lotta apes are gonna keep a lot more of their tendies!
And hats off to you retarded, crayon eating, potato up your ass diamond handed mutha fuckas! It’s been a pleasure doing battle with you all! See you on the moon!
I know someone who owns 3 houses and rents 2 of them. They don’t claim the rental income or pay taxes because they “never issued rent receipts” so the government can’t prove it is being rented.
Now, they are looking to sell one of their properties ($600k+ gain) and said they will claim it as principal residence and get the exemption and won’t have to pay any taxes.
Next, they plan on selling their other house ($500k+ gain)in 2023 and say they will claim principal residence exemption again next year and won’t have to pay any taxes.
This seems crazy to me and looks like tax fraud. However I can’t see how the government would monitor / prove these things?
Does the cra have safeguards in place for things like this aside from random audits ?
If you live in a house for 2 out of the last 5 years, you can exclude $250k($500k for married couples) of the capital gain when you sell. So if you buy a house for $200k, and are married and live there for 2 years and sell the house for $700k, you will pay no taxes on the gain.
This increasing your home value tax free, which makes the return like 20% better. So it encourages live in house flipping where you renovate a barely livable house and it encourages gentrification by home owners
We should treat it the same as other currencies
Bought my first 2,600 shares on January 28th/29th of 2021.
Thanks Uncle Sam!!
If you buy $40 bucks worth of Bitcoin or some other coin and it doubles, I know it’s more likely to go down, how much paper work is there? I’d like to buy a little just to learn a bit, but I don’t want to make my taxes any more complicated for a small amounts.
I see many people talking about paying capital gains tax and there is a lot of people who do not have the information quite right.
I am a tax paralegal for a national tax firm and I want to share some general information with regard to capital gains on the sale of stock. This is meant as education and not tax advice. Each situation is different and if you have specific questions, you should hire a tax professional to guide you through your situation. I am only addressing capital gains on the sale of stock held in a brokerage account and not held in a retirement account, and not on the sale of any other type of asset that is subject to capital gains.
The most frequently repeated myth I read is the tax is due on April 15th. I will dispel this myth.
There are two types of capital gains; short term and long term.
Short term capital gains arise from selling a stock you sell and purchased it less than a year ago.
Short term capital gains are taxed at the same rate as ordinary income. So in other words, it’s taxed just like the money you earn from a job. So whatever tax bracket you are in based on your total income for the year, it the tax rate you will pay for short term capital gains. You can find out your tax bracket on the IRS website.
Long term capital gains arise from the sale of stock you purchased over a year ago.
Long term capital gains may not be taxed at all or may be taxed at 15-20%. A single person who earns less than $40,400 in 2021 ($80,800 for married persons) will pay 0% long term capital gains. A single person who earns $40,401-$445,850 ($80,801-$501,600 for married persons) will pay 15% long term capital gains. If you earn more than the people in the 15% bracket above, you will pay 20% long term capital gains.
So now that we understand the two types of capital gains taxes and the amount of tax, let’s talk about when the tax is due. But before we do, keep in mind if you had a capital loss carry forward from a previous year, and if you have capital losses in the same year as your capital gains, you can offset your capital gains by these losses.
So capital gains tax is due when you realize the gain. The IRS makes it easier and has established quarterly dates to pay this tax by. So gains earned in the first quarter has tax due on 4/15; second quarter on 6/15; third quarter on 9/15; and fourth quarter on 1/15 of the following year. You can accomplish this online or by mailing in quarterly estimated tax payments. The IRS website
... keep reading on reddit ➡I'm seeing a lot of posts on CGT so thought I'd post this to save people some money / clarify CGT.
Just in case others arent aware. It's not a straight 20% tax on capital gains from sale of stocks. Don't give HMRC more than you need to!
Its based on YOUR own taxable income and the tax brackets.
Currently each tax yr runs from 6th April - 5th April. The brackets as of 2021/22 currently are:
Tax free: £0-12,570 Basic rate: £12,571-£50,270 Higher rate: £50,271+
Edit: forgot to add all stocks and shares sold from an ISA are ALL tax free. No need to pay any tax regardless even if you make £10,000,000 on 0.0001 shares (subject to rules changes). This assumes stocks sold in a general investment account, Computershare etc.
There is also a personal capital gains tax free allowance of £12,300 per tax year.
Captial gains = profits from sale of shares (sale price - cost price)
So a simple example with fictional numbers would be:
You have a job, it pays £30,270 per year (gross, before tax) and you have no other taxable income. This puts you in the basic rate bracket.
EXAMPLE 1 You paperhand and sell 0.0001 share for £22,301. That 0.0001 share cost £1. Your Capital Gain is £22,300 (£22,301 - £1).
£12,300 of this is tax free. Leaving you with £10,000 taxable gains.
As you are basic rate, add this to your taxable income and you get £40,270 (£10,000 + £30,270). £40,270 is still within the basic rate band so you only pay 10% CGT = £1,000 to HMRC (£10,000 x 10%) leaving you £9,000 after CGT + £12,300 tax free = grand total of £21,300 from a £22,300 gain.
EXAMPLE 2. You paperhand and sell 0.0001 share for £42,301. That 0.0001 share cost £1. Your Capital Gain is £42,300 (£42,301 - £1).
£12,300 of this is tax free. Leaving you with £30,000 taxable gains.
As you are basic rate, add this to your taxable income and you get £60,270 (£30,000 + £30,270). This is over the basic rate bracket of £50,270.
In this scenario you pay 10% on gains up to the higher bracket (so the basic tax bracket max minus your taxable income). This is £50,270 - £30,270 = £20,000. £20,000 of your £30,000 gain will be at 10% and the remaining £10,000 (£30,000 - £20,000) will be at the higher bracket CGT rate of 20%.
Total CGT: £20,000 x basic rate CGT 10% = £2,000 £10,000 x higher rate CGT 20% = £2,000 Total tax to pay = £4,000 (£2,000 + £2,000)
Leaving you with £26,000 (£30,000 gains - £4,000 CGT) + £12,300 tax free for a grand total of £38,300 from a gain of £42,300.
DISCLAIMER: All ra
... keep reading on reddit ➡Sorry for the click-baity title, but it's all true. I'm sure others have written about this, but I thought I'd bring it up again, as the MOASS grows closer. No one wants to lose 40% of their tendies, and this is an above board way of ensuring you not only pay ZERO capital gains tax, but you also set up an annuity from within the trust that pays you a minimum of 5% and a maximum of 50% of the value of the assets each year. And to top it all off, you get to deduct like 30-40% of your initial contribution over 5 years, I believe.
First, I am NOT a lawyer or accountant and this isn't legal or financial advise, but I read some things and watched some videos, so I'm pretty much there. But I'm not, so this isn't.
Okay, so here's the skinny. Charitable Remainder Trust. Pretty sure there's some DD somewhere that talks about billionaires and their "Get rich and die" strategy. I don't recall the particulars, but there is definitely a strategy to it, and it's not even a secret!
Here's a link to Fidelity's CRT, and there's a pretty good explanation of how it works.
https://www.fidelitycharitable.org/guidance/philanthropy/charitable-remainder-trusts.html
But for a smooth brain like me, watching videos is more funner. Here's a good one. There are many videos out there, but Max does a great job of simplifying things, while others talk in circles.
I hope this is helpful information, and I will be consulting with my attorney on getting these set up. If you like your money, you may want to consider doing the same. It's a pretty common thing to set up and can make a HUGE difference in keeping your wealth once the rockets ignite.
That's all. Be awesome!
Edit 1: geezuz. I’m not suggesting you become a robber Barron. It’s called preventing Uncle Sam from stealing 40% of your gains on top of your income tax. I should have clarified, I’m not trying to emulate evil billionaires. I just prefer keeping more of my money and being in control of when/where/if it gets donated and deployed.
Edit 2: As I stated, I'm not an attorney or a financial advisor. This post is not meant to be a "How-to" article. It's a starting point to have a conversation with professional to see if this is an option for you and your situation. BUT to keep everyone's panties from getting in a wad, I'll repost one of the comments from a self-proclaimed
... keep reading on reddit ➡The government really done fucked up by propping up this Ponzi market for so long. I for one will not sell any of my shares for anything less than long term gains at this point. This means that I’ll only have 15-20% of my shares for sale this Feb through April, assuming that is wen MOASS.
The hedgies must remain patient like me if they wish to pry ANY of my precious from my diamond encrusted hot dog hans.
I’m trying to make sense of how much we will owe on our house when we sell, and would appreciate any help:
Location: California
House: was purchased in 2005 for $580k. We currently owe $285k
Selling: we expect the house to sell for around $850k; we're listing in 2 months
Us: married, filing jointly, make about $140k total
We're moving to a different state with a lower cost of living due to a desire to be near aging parents and other family. Our plan had been to rent for 6-18 months, depending on how quickly my husband attains a new job (he works in academia, and while we hope to have a full time position lined up by the time we move, that may not happen).
So - with that above info, how much are we going to be paying in capital gains? Is there anything we can do to offset how much we will have to pay? Does this 1031 thing I was reading about apply here, and if so, how quickly would we have to buy to avoid capital gains?
Seriously, any help in understanding this is greatly appreciated.
Never thought I’d celebrate a tax!
I’d like to thank shitadel and all the other shit hedge funds for being such greedy bastards that they allowed me and many of my fellow apes the opportunity to not only pick up tasty tendies at a tremendous discount, but also save an extra 25% on our taxes!!!!
I’d also like to thank our gloriously complicit sec for having the blindsight to allow corrupt institutions to kick the can for better than a year and help me keep more of my money from lining their pockets.
And last but not least, I’d like to thank all of you diamond handed, ape strong mother fuckers for hodling right along with me! See you all on the moon!
This is something so important I feel like should be pinned - but as we rapidly approach the 1-year anniversary of the squeeze it's vital for you to know: LONG-TERM CAPITAL GAINS TAX IS ABOUT TO KICK IN.
GME 1-year price graph (Notice the spike begins on January 27th)
What does this mean? If you live in the US, any investment bought and sold in under 1 year are subject to Short-Term Capital Gains tax. For profits over ~500k this equates to 37%. However, as soon as a year has passed, this investment is now treated as a long-term capital gain, meaning you only pay a maximum of 20%. So, if you bought $GME in January last year, congratulations because you'll soon increase your profits by a huge margin... (unless the squeeze were to happen very soon 🤔)
Why is this important?
-
When the squeeze begins MAKE SURE YOU ARE SELLING ON A FIFO (FIRST IN, FIRST OUT) BASIS. Many brokers will not do this by default, especially so in a MOASS scenario. So if you have shares purchased 1 year+ ago, MAKE SURE THESE ARE THE ONES BEING SOLD OR YOU COULD BE TAXED AT NEARLY DOUBLE THE RATE.
-
Speculation: We know the government is aware and has been letting these shorts go by unpunished for some time now. I've long theorized as the 1 year mark approaches, they will put the pressure on hedge funds to close their positions to guarantee they get to at least tax our gains as much as possible.
We are now in that stage of the game, and guess what? It sure as hell looks like they're using everything they've got in the tank to push the price down before they're forced to cover.
It'll be very interesting to see if this gets downvote botted, but this is essential information to know so please spread the word if you see this post. ^^Oh, ^^and ^^not ^^financial ^^advice... ^^yada ^^yada ^^yada
