Did I say mandatory? I meant optional! You’re “free” to die in a cardboard box under a freeway as a market capitalist scarecrow warning to the other ants so they keep showing up to make us more!
Did I say mandatory? I meant optional! You’re “free” to die in a cardboard box under a freeway as a market capitalist scarecrow warning to the other ants so they keep showing up to make us more!
Taxes on unrealized stock gains are fine as long as I can get my money back from the government when the stock market goes down.
Property tax is already an unrealized gain tax.
You would! Unrealized losses could be used to offset gains. If one stock goes down and another goes up, you would pay tax on the net gain, and you could take a deduction on the net loss.
The tax could also be structured so that it only applies when borrowing against the gains, so it could be rolled into the cost of the loan.
Yeah, treat tax on collateral as advance on capital gains tax
The entire market can go down. There’s no offsetting when your total value is down.
That’s fine and completely different from paying a tax on something when it has gone up but not getting the money back when it goes down.
If your total value is down, you aren’t going to be able to borrow against the gains, anyway. So no taxable event.
Let’s be clear, this is a loophole that rich people take advantage of to avoid paying taxes on income. By borrowing instead of selling, they get the profit without incurring a taxable event. It’s one of many ways capitalists siphon profit from the system while providing nothing in return.
This isn’t about borrowing against assets. I’m fine if that’s taxable.
This is about holding a stock and paying tax just for owning it despite it might be worthless when you go to sell it.
But you can already deduct losses from your taxes, up to $3,000 per year and if you have more than that, you can carry it forward. If it’s worthless when you sell, you can deduct all of the loss from your taxes.
It certainly is. Now, note how the only thing akin to stocks that non-rich people can play games with the worth of is taxed. That’s because non-rich people need property as well. If property was only owned by rich people, you’d get a credit on your taxes for owning it.
Property tax is a wealth tax, not an unrealized gain tax. You still pay if your property value goes down, you just pay less.
Unrealized stock gains are companies that have been shorted into bankruptcy, so the value doesn’t change.
Could you explain what you mean? This isn’t about shorting into bankruptcy.
This is about you buying a stock in a company and it goes up like crazy (Game Stop). You now owe thousands in taxes that year. The next year it goes down to less than you paid and you need to sell the stock. You paid taxes for losing money
Investors short a company. As the value drops, the value of the short increases. When the company goes bankrupt, the short play reaches full value, since it costs 0 to buy the shares. It also means that gain is unrealized and has permanent value until the short is exercised, which they never do because it’s a taxable event.
That has absolutely nothing to do with buying a stock, it goes up crazy for a year. Then you owe a huge tax bill despite the stock being worthless the next year when you need to sell it.
Thousands of companies go up one year and go down the next. They aren’t bankrupt.
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