4 ms·
Don’t forget about taxes. Most of it is getting taxed at least 37%
by stepanhruda 5y ago
Don’t forget about taxes. Most of it is getting taxed at least 37%
- flatiron 5y agoNot on capital gains. At least in the US that’s only taxed at 15% with no tiering. The deck is stacked for the investment class
- mentat 5y agoI don't think big bounties are capital gains.
- NovemberWhiskey 5y agoCapital gains for higher earners are taxed at 20%, and also subject to the Net Investment Income Tax at 3.8%.
- harikb 5y agoEven long term capital gain for “the investment class” is more like 20%. This is not even a capital gain - this is straight income at 35+
- SilasX 5y agoLTCG tax for the rich is more like 23.8%, when you include the net investment income tax of 3.8% (which I had two financial advisors miss). Plus state income taxes. https://www.schwab.com/taxes/net-investment-income-taxes https://www.schwab.com/taxes/net-investment-income-taxes
- TomVDB 5y agoYou’re wrong in many different ways: - Long term vs short term - different rates - state capital gains taxes In this case, with the receiver being a CA resident, he pays almost certainly more than 50% in taxes on this bounty.
- offmycloud 5y agoIf this is a reward or payment for services, it is taxed as regular income, not as an investment. The FICA tax (SS/Medicare) will either be payed by the payer (shown on W-2) or the payee as self-employment tax when filing a Schedule C.
- paulpauper 5y agohave it paid to a corp he sets up, and the the corp pays it as dividends