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"What's stopping the average citizen from exploiting this tax avoidance strategy?" Probably that the average citizen doesn't have capital gains.
by ajb 5y ago
"What's stopping the average citizen from exploiting this tax avoidance strategy?"
Probably that the average citizen doesn't have capital gains.
- twinge 5y agoOnly 55% of Americans own stock: https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx https://news.gallup.com/poll/266807/percentage-americans-own...
- iso1631 5y agomost of those will be in retirement plans which I assume aren't taxed?
- MR4D 5y ago> which I assume aren't taxed? It depends on which kind of retirement account. Might be in Roths and Roths-401Ks which are taxed when the money goes in (treated as regular income), or IRAs and regular 401Ks which are taxed as regular income when the money comes out.
- repiret 5y agoBut neither Roth nor Traditional 401k/403b/457/IRA are subject to capital gains tax.
- Nbox9 5y agoIf you are in the US you should brush up on your personal finances.
- iso1631 5y agoI'm not, maybe you should brush up on the rest of the world existing
- notahacker 5y agoCertainly not capital gains of the order of "all the spending money I need, without any worry about repaying it on time even if the asset goes back down in price."