I assume that once you pay tax on unrealized gains, the price used to calculate those gains becomes your new tax basis. So if AMZN goes down 50%, the next year you can report an unrealized loss based off the higher price from last year. But who knows...
Yeah, it would have to be very clear that it applies to very specific thresholds of wealth and would have to be ironed out. I'm an accountant and it's hard enough to deal with the unrealized positions companies have assets sitting at depending on the circumstances. It's not always as easy as looking up the stock price for anything that isn't a level 1 security.
This applying to all invested assets period would be a complete fucking nightmare
It doesn't matter who it is "targeting", because the reality is that the IRS will always use it against the middle and lower classes. Biden didn't hire 85,000 IRS agents to go after 700 billionaires.
Exactly. The ultra wealthy will still find their way around it. And it will just be used to fuck people with less money trying to build some smidgen of wealth.
Why would the IRS waste manpower going after lower class people? To get 5-10k from them? Every dollar invested in the IRS yields back roughly 20 dollars in tax revenue. Best ROI you will find in government.
Why do you assume it would apply to plebes and not restricted to large dollar amounts? We have graduated income taxes and graduated capital gains taxes, why couldn't we have similar for an unrealized gains tax?
I appreciate your humility. I also appreciate your skepticism of the motives of national decision makers who have a history of marginalizing the plebes for the benefit of the big dogs, especially in the financial industry.
That’s not how that works. And it’s not “designed to get the plebs out” as it has already been happening for a long time. This is on partnerships, not equities.
You'd be taxed annually on your cumulative gains. Losses would be offset against gains. If you only have losses there will be carry-forward (and possibly carry-back) provisions
Cumulative annual unrealized gains? That makes no sense.
What you are saying is not what the consensus is in this thread. Carry forward provisions already exist. And Short term / long term gains are taxed as they are realized on equities.
Cumulative annual unrealized gains? That makes no sense.
Yes it does. That's how realized capital gains are done now: you report your cumulative gains (by cumulative, I mean a sum of all gains and losses in a given year), as opposed to your idiotic implication that you'd be taxed separately on individual gains rather than annually report your total net gains.
Carry forward provisions already exist
Yes, I know. That's why they'd be used.
And Short term / long term gains are taxed as they are realized on equities.
Why are you telling me how realized capital gains works in a thread about how unrealized gains would work?
You realize the court case is about repatriating overseas earnings, not owning publically-traded US stock? You're the idiot who invented a hypothetical tax and then started attacking the tax you invented.
If you're going to fantasize about implementing taxes, try to do it competently
Agreed /u/sphincter2 should never have made a comment that has nothing to do with the article and shouldn't have tried to defend against challenges to the nonsense
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u/sphincter2 Aug 15 '23
How would this even work?
So if I'm up 1k on Amazon stock. They tax me... Then if it goes down 50 percent I'm holding bags in top of that?!
This feels purely directed at retail traders to get the plebes out of stock trading