Posted on 01/26/2021 9:35:30 AM PST by amorphous
Somebody should tell Mr. Wyden he forgot to put in the loophole for Gates, Bezos, Buffett and Zuckerberg.
Musk would probably move and buy his own country.
I caught some of it. I don’t trade stocks, anymore, but I do play in the crypto markets some.
Two Oregon radical left, antifa supporting, Congressmen propose radical tax system - So surprising!
Based on current Market Conditions, the Value of my Ammunition is much higher than it was when I purchased it.
Anyone know which Tax Form I report that unrealized Gain on?
I won’t be selling that Asset. Could be a 1040-.556 Form.
I am convinced that most Dems are economic illiterates. Those that aren’t that stupid are, instead, willfully trying to destroy the US economy.
Here is a simple, iron-clad, rule of Economics: If you tax something, you get less of it. Taxing capital, as this proposal would do, will significantly reduce the stock of capital in this country, leading to lots less innovation, less profits and less taxes. If the Dems’ goal is to raise more taxes, they would be far better served by lowering tax rates and reducing regulations, thereby giving economic growth a substantial boost. But then they’d be Republicans.
GME
Anything you would pay capital gains on. Yes, stocks, bonds, real estate, equipment, timber, ...
Well on Monday I purchased 1000 shares of Tesla, then on Tuesday I took out options on 10,000 shares of Tesla, Wednesday the stock went down, so I purchased another 2500 shares, but on a Thursday I gifted 500 shares to my university and 100 to my mom. Friday Tesla went up at the start of the market, but after the close Tesla got hammered in Asia trading. So Mr CPA what’s my tax?
If something like the above becomes law, there will necessarily be some threshold of when unrealized capital gains will need be reported/taxed. For the sake of argument, let's say it's $600 - which also must be determined. As someone upstream said, accounting will be a nightmare.
Likely this proposal is just a stalking horse to trade away for a higher cap gains rate.
Dang, I’ve got some ancient stock that has huge unrealized capital gains. That would force me to sell it off to move everything into cash.
The yacht tax was only on new yachts built in the United States. Yachts built in foreign countries and then registered in say the Cayman Islands were not subject to the tax. Also, I do not believe used yachts were subject to the tax either.
It should also be inflation indexed.
For instance say someone bought Coke for $20/share in the year 2000, it’s $25 now (I don’ know the actual price), getting taxed on $5/share gain doesn’t account for the 20 years of inflation. Probably no nominal gain at all yet you’d still get taxed on that.
So if you inherit a farm and the next year the tax assessment goes up would you pay tax on the difference between the assessed value of the farm at the time of inheritance and the new assessed value?
Not the way they plan on doing. If you have any money, send it. If not send some anyway.
It was a stupid idea
“I caught some of it. I don’t trade stocks, anymore, but I do play in the crypto markets some.”
Yeah. That should be fun for anyone who got in early and decided to hodl. Everyone who’s up will need to liquidate crypto to pay taxes on MTM appreciated value which will in turn drive down the value.
Next up unrealized income gains.
= = =
Like that $1400, after the $600.
Or like $15 per hour.
Meant for consumption by useful idiots. The folks at BlackRock will grease Biden palms as much as needed to make sure this doesn’t happen.
Yeah, they are in that deep.
Unrealized capital gains would be calculated at the end of a tax period, quarterly in many cases. Some market value would be assigned - left for you to do the calculations - don’t get it wrong, as you are the one ultimately responsible for the accuracy of your tax return and the one penalized if you do get it wrong. Severe penalties will be applied if intentional, and you’re guilty until you prove you’re innocent at the end of a long and expensive court proceeding. So, most plead guilty in return for a lesser penalty. Keep good records, be able to account for basis, etc.
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