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How does taxing a unrealised sale help? What if it loses value the next year - will they get a refund?
by tshanmu 8y ago
How does taxing a unrealised sale help? What if it loses value the next year - will they get a refund?
- jdavis703 8y agoSeems like you could write it off as a business loss. It would tank government revenue in a recession, but perhaps it would also provide an automatic stimulus effect.
- microcolonel 8y agoIt would also make it pointless for a private individual or trust to invest. This is a terrible idea.
- jdavis703 8y agoWhy would it be pointless? I’m not an economist but it seems like it would make investments generally less profitable, but I don’t see it eliminating profits. Further where would billionaires put their money instead? Is the idea that they are just going to buy art and yachts instead?
- microcolonel 8y agoThey'll put their money in New Zealand or Canada or Taiwan, maybe. I know I wouldn't stand for this personally.
- jdavis703 8y agoIn the U.S. you’re required to pay taxes on income made both domestically and internationally. Failure to declare those earnings outside the U.S. would probably be tax fraud.
- microcolonel 8y ago> In the U.S. you’re required to pay taxes on income made both domestically and internationally. As a dual filer, I know this is not true. As a U.S. citizen, you are required to file taxes on all income, foreign source or U.S. source, but you are not required to pay taxes on all of it. And why remain a U.S. citizen anyway if you can't afford it?
- betterunix2 8y agoThat is basically how gains/losses from futures, futures options, and index options work: https://en.wikipedia.org/wiki/1256_Contract https://en.wikipedia.org/wiki/1256_Contract