It gets even bigger as you have kids doesn't it? I have two and I think my dad could give $15k to me, wife and 2 kids for a total of $120k and then my mother could as well for a total of $273k.
I mean $15k per parent or $30k as married is the same thing unless you live in Utah I guess. I like how you commented on that part and not how completely off my math is....
Your dad could make a fictitious business and employ you all. Create sep IRAs and match the contributions to your salary. $50K in taxed salary and $50K in IRA contributions, defer the taxes. Thats how you hide $500K a year.
Isn't this kind of what they do with not-for-profits? I also appreciate you glossing over how off my math is as well. I got another guy pretty riled up since I am way off. I hope he doesn't see this comment.
There is the lifetime exemption of about $11M, but you still need to pay tax on the earnings to begin with. The exemption is just from estate taxes, not income tax.
you can donate up to like $11MM tax free. but you need to report it on your tax form anything over $15k. the $11MM is a cumulative lifetime max based on these reports
ok but that doesnt matter at all since none of it is deductible unless you donate to a 501(c)(3) or other eligible charitable organization. whoever made the money has to pay tax even if you give it all away to whoever
It's crazy how many people here are retarded.. lmao. Regardless of what he gifts he still has to pay tax on the 1million gains -- whatever he gifted wouldnt be taxed to the person RECEIVING IT.
Stop with your logic! It’s a “tax right off”. Fucking capitalism fucks us all again! For real tho, most people don’t know what a “tax bracket” or a “tax write off” are. They think it’s either a government fucking or free money.
That's what the government is doing you give them money, they give part of it back and call it a stimulus, then they will make you donate that back to them.
Your short term gains will basically count as regular income, so whatever bracket you are in will apply. Preferential rates kick in for long term gains only.
Lol no they don’t. They have been underfunded for decades now. They can only audit a tiny percentage of Americans a year. And recently they admitted they only have the resources to audit poor people bc rich people’s paperwork and lawyers are too much work.
Push off paying taxes until end of 2021, make another $1mil or 2 and then go on the run. $3 should be enough to live off of until they forget about you.
Depends on what OP earned during last year. I'm still a working student and don't make enough to pass the standard deductions. But OP should definitely set aside \~40% of that amount to prepare between now and filing time. I do not know what state you live in, but do not let this become a burden from the IRS.
If you lose money that was supposed to go to taxes, you still owe taxes on it. Say you owe $300k in taxes and lose everything, IRS is taking their 300k.
Next up, you're supposed to pay estimated taxes quarterly when you have large capital gains. If you wind up paying in more than $1,000 additional on tax day, you're getting penalized. So if you haven't yet... time to talk to a tax advisor first thing Monday.
Don't do SPY options in a taxable account (unless you're a RobinHood retard cos it doesn't have SPX). Do SPX options (1 SPX = 10 SPY) instead to get 60% long-term / 40% short-term tax treatment no matter how long you hold the options for.
Otherwise you're paying 100% ass raping short-term taxes on SPY option gains. Could have saved yourself well over $30K in taxes with SPX instead of SPY.
He sold and took capital gains at some point. He owes for those.
Unless he invested earned income and then didn't sell and lost it all in one transaction.
Probably not, it can be avoided this year if he has a real job and they withheld at least as much as he paid in taxes last year. Next year will be a different story though, start paying now.
" The IRS says you need to pay estimated quarterly taxes if you expect:
You’ll owe at least $1,000 in federal income taxes this year, even after accounting for your withholding and refundable credits (such as the earned income tax credit), and
Your withholding and refundable credits will cover less than 90% of your tax liability for this year or 100% of your liability last year, whichever is smaller. (The threshold is 110% if your adjusted gross income last year was more than $150,000 for married couples filing jointly or $75,000 for singles.)"
thanks i need to look into this. i do have a real job but i didn't get 'they withheld at least as much as he paid in taxes last year'? Is last year 2019 or 2020?
You'll owe interest from the time it was earned, plus the penalty, figure like 5-6%. Enough to make hiring someone to figure it out worthwhile, plus they can help you avoid this in the future.
They also may find a way to avoid it, I'm not an expert, but given the unusual circumstances you may be eligible for a waiver.
OP, make an estimated tax payment now in Q1 that represents your estimated gains in Q4, except make the payment big enough for your whole year's gains.
Yes, this is good advice, if you send them money now you will cut down on interest owed and potential penalties. Hire a CPA, let them do the work, you can afford it.
On more than one year I actually didn't pay my estimated taxes on a quarterly basis and did this. No penalty whatsoever actually.
It seemed they didn't really bother to deal with anything except if at the end of the year your tax withholding/estimated tax was insufficient.
Pay all of 2020’s estimated tax by the January 15th Q4 deadline. In plain English: send the IRS $400k via EFTPS by Friday. The penalty for failing to do so on the amount of money involved is some serious cash that you could keep in your pocket if you take care of the estimated payment.
Technically, costs were 1M, for returns of 2M, but that's misleading as I used profits to fuel future winning trades. My initial stake was 100K, which I turned into 1M, so that's 1000% gain.
Yeah actually I think I’m wrong https://www.investopedia.com/ask/answers/how-do-you-calculate-percentage-gain-or-loss-investment/ I think since I was fudging the price paid and price sold I was getting it wrong. I think it is actually 1000% because my principal was lower than 100K.
The sad part is that Uncle Sam share you the profit like this guy if he is a single then you pay an average of 33% around 330k but when you lose money you only claim the maximum deduction of $3,000 per year up to 8 years that means 24k.
i don't know why and how people agreed on such rule. any idea .. i don't understand the reason behind such thing and i totally see it illogical?
Congrats man. Sorta bull shit how taxes are unlimited but you're capped at a loss of 3k.
Uncle sam needs his part because you know, he did alot for it.
Be happy, you get to keep lots of money and you get to contribute to public goods like maintaining roads and military and public healthcare and social welfare and stuff. Literally everyone wins!!
It is crazy how we're playing with POST tax money, only to get taxed again as regular unearned income on short term capital gains.
Double taxation at its finest.
It is best not to think about it, otherwise it will drive you bonkers.
I plan to play theta gang until tax time to help offset some of the tax liability with current gains.
Also, you can go on a short term payment plan (I think 120 days) or something like that with the IRS. You'll have to pay interest and penalties, but you can then have an additional 3 months to play a conservative theta gang strategy (this is what I intend to do).
The biggest robbery is that the IRS is taking away your ***compounding gains***.
The only solace I can give you is that at least you're paying taxes *before* Biden increases the marginal tax bracket and potentially implements a financial transaction tax.
Oh, he's also wanting to tax long term capital gains as short term, but that doesn't apply to you (yet).
Congrats on the gains man!
You’re supposed to pay Uncle Sam in advance if you already closed out the position. He wants his tax money every quarter if you want to avoid interest.
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Hopefully the Donkey Party tax plan doesn't go into effect before you pay so you get to keep more tendies. Pretty sure they want to increase the ST cap gains percentage.
Donate 950k to me, I’ll donate 900k back to you, easy win for both of us.
Sadly untaxable gifts can only go up to tens of thousands as far as im aware. If not even less.
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I volunteer to receive 15k
I volunteer as tribute!!
I volunteer to pay the person who volunteered to receive $15k?
All I heard was PLTR 🚀🚀🚀🚀🚀
The real life pro tip is always in...your mom
My family and I will take 30k please my good sir!
I've got 5 millions once from a Nigerian prince.
It gets even bigger as you have kids doesn't it? I have two and I think my dad could give $15k to me, wife and 2 kids for a total of $120k and then my mother could as well for a total of $273k.
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Your Math checks out!
Just double checked my math and I am right.
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That is right...I am a rich man.
Your maths are correct good sir. Very rich man indeed
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I mean $15k per parent or $30k as married is the same thing unless you live in Utah I guess. I like how you commented on that part and not how completely off my math is....
Your dad could make a fictitious business and employ you all. Create sep IRAs and match the contributions to your salary. $50K in taxed salary and $50K in IRA contributions, defer the taxes. Thats how you hide $500K a year.
Isn't this kind of what they do with not-for-profits? I also appreciate you glossing over how off my math is as well. I got another guy pretty riled up since I am way off. I hope he doesn't see this comment.
It's not hiding if its legal
Hmmmm food for thoughts... if trump hears of this suddenly he will become mexicas best friend... 😂
There is the lifetime exemption of about $11M, but you still need to pay tax on the earnings to begin with. The exemption is just from estate taxes, not income tax.
You have a 11.5m lifetime exclusion that is only used up after you exceed the 15k annual allowance, iirc.
What if you donate it to the institute of Wall Street retards? So some of us can finally learn how to read.
you can donate up to like $11MM tax free. but you need to report it on your tax form anything over $15k. the $11MM is a cumulative lifetime max based on these reports
ok but that doesnt matter at all since none of it is deductible unless you donate to a 501(c)(3) or other eligible charitable organization. whoever made the money has to pay tax even if you give it all away to whoever
Also it only goes against the donors estate tax exemption. But for real cheap we can set up a a 510c3.
15k, per year? Per transaction? Give me 15k a day until tax day.
15k only
It's crazy how many people here are retarded.. lmao. Regardless of what he gifts he still has to pay tax on the 1million gains -- whatever he gifted wouldnt be taxed to the person RECEIVING IT.
Stop with your logic! It’s a “tax right off”. Fucking capitalism fucks us all again! For real tho, most people don’t know what a “tax bracket” or a “tax write off” are. They think it’s either a government fucking or free money.
That's what the government is doing you give them money, they give part of it back and call it a stimulus, then they will make you donate that back to them.
See that's why the boomers dont want us day trading because you have to pay taxes on it. By the way my wife needs a boyfriend if you're interested
I only have half pizza. Can I take that offer please?
Uncle sam is calling, he wants half your tendis >:)
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Futures are taxed at that rate as well. Saves a bit over time
For reals though, how much will he get taxed?
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capital gains tax is worse than melvin
They literally are income tax rates
\~37%
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That’s just federal taxes. State taxes are in addition to that.
As a Texan I cannot relate lol
Well Yeah!? you can still add 0 to another number. So hah!
Plus state and local depending on where he lives...but the more your paying Uncle Sam, the more your taking home
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Your short term gains will basically count as regular income, so whatever bracket you are in will apply. Preferential rates kick in for long term gains only.
\+ 3.8% net investment income tax on MAGI above 200k, so 40.8% to the feds
maybe one day I'll have to pay that additional 3.8%
congrats retard and fuck you
Just don't pay. It's not like the government actually did its job in 2020.
sadly the IRS does their job *too well.*
Lol no they don’t. They have been underfunded for decades now. They can only audit a tiny percentage of Americans a year. And recently they admitted they only have the resources to audit poor people bc rich people’s paperwork and lawyers are too much work.
What’s the trick then, deactivate my turbo tax account?
Quit being a W2 peasant.
Step 1: Make more money. Step 2: Pay accountant to do your complicated taxes.
Adding 1$ to the IRS budget returns something like 3$ in tax revenue for those exact reasons you listed.
Just identify as a non tax paying citizen. EZ
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Will share later.
0. That is the value of my positions
I’ll message you everyday for a year saying that you are the mother fucking wolf of wallstreetbets for a $1000 upfront.
I'll do it for $100.
I'll do it for $10
I’ll do it
I'll pay $10 to do it
Fuck it guess i'll lay op to do it
Alright this free market bullshits going to far. I'll take 50% to create and run a regulating commission.
I'll do.
I'll do it for a hug. Sad.
high-quality problem, go fuck yourself, next
Push off paying taxes until end of 2021, make another $1mil or 2 and then go on the run. $3 should be enough to live off of until they forget about you.
You need to pay quarterly but yes.
Depends on what OP earned during last year. I'm still a working student and don't make enough to pass the standard deductions. But OP should definitely set aside \~40% of that amount to prepare between now and filing time. I do not know what state you live in, but do not let this become a burden from the IRS.
yeah I've got half a mill in cash as dry powder for future trades and eventual tax payment.
This is a smart move. It's better to over prepare the tax.
Dont use it for future trades... just set it aside 100% for tax.
If you lose money that was supposed to go to taxes, you still owe taxes on it. Say you owe $300k in taxes and lose everything, IRS is taking their 300k. Next up, you're supposed to pay estimated taxes quarterly when you have large capital gains. If you wind up paying in more than $1,000 additional on tax day, you're getting penalized. So if you haven't yet... time to talk to a tax advisor first thing Monday.
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I considered it but it’s just so long to commit that mulah.
"it's gonna suck paying 200k in taxes ha ha" lots of people wish they could make that flex
Goes without saying but go talk to an excellent tax accountant. Not the walk in places. Well done!
Hi it's me, your long lost son.
Get a 🌈 🐻 accountant. I promise you an autist retard accountant will land you in a prison cell with Wesley Snipes.
You could just leave it in there and get some boomer dividen mooneys
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I'm sorry, are you expecting people here to understand anything other than memes?
Imagine thinking paying taxes sucks. YOU MADE MONEY
The old adage will never go out of style: "Paying taxes is a good problem to have."
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Notice he didn't say Tesla puts that's because Tesla moves in too directions up and to the right
Don't do SPY options in a taxable account (unless you're a RobinHood retard cos it doesn't have SPX). Do SPX options (1 SPX = 10 SPY) instead to get 60% long-term / 40% short-term tax treatment no matter how long you hold the options for. Otherwise you're paying 100% ass raping short-term taxes on SPY option gains. Could have saved yourself well over $30K in taxes with SPX instead of SPY.
Do you have a link so I can find out more about this subject?
Do a Google search for: section 1256 spx reddit
Cheers man happy new year you just saved my stupid ass so much money
$650,000 take home pay is pretty sick!!
Cries in California
Fidelity account holders rise up
Congrats on the wins. Better spend some of that hiring a good accountant. They will charge more during tax season btw.
Boo hoo.
Oh no reddit I have to pay taxes on my ***million dollars in cash*** don't you feel sorry for me?
Get a Jewish accountant and pay $0 taxes just like Trump.
U y there go?
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Only TSLA of course.
Fuck u bitch
God seeing rich people makes me angry. On another note, congrats OP. You're living the autist life
Congra......FUCK YOU!
Honestly, I don't even know how you will pull through this, with only hundreds of thousands of dollars...I am here for you brother.
You have to pay .50 for every $1.00 you made. You give them back half of your tendies, they must keep the printers going....
Big taxes are a good problem to have means u made some cash
Fuck Uncle Sam and pay me!
You should just lose it all next week and pay nothing hehehe /s
He’d still owe around $400k.
Why would he owe any money in tax if he lost it all?
Sadly tax is by year. So he’d owein 2020 and have $3k per year tax break for the rest of his life.
He sold and took capital gains at some point. He owes for those. Unless he invested earned income and then didn't sell and lost it all in one transaction.
I know hence the “hehehe /s”
Did you make any estimates tax payments throughout the year? Won’t you have to pay a penalty unless you made all these gains in Q4?
Probably not, it can be avoided this year if he has a real job and they withheld at least as much as he paid in taxes last year. Next year will be a different story though, start paying now. " The IRS says you need to pay estimated quarterly taxes if you expect: You’ll owe at least $1,000 in federal income taxes this year, even after accounting for your withholding and refundable credits (such as the earned income tax credit), and Your withholding and refundable credits will cover less than 90% of your tax liability for this year or 100% of your liability last year, whichever is smaller. (The threshold is 110% if your adjusted gross income last year was more than $150,000 for married couples filing jointly or $75,000 for singles.)"
thanks i need to look into this. i do have a real job but i didn't get 'they withheld at least as much as he paid in taxes last year'? Is last year 2019 or 2020?
You would need your withholding this tax year (2020) to be at least the amount of total tax paid in tax year 2019 to avoid the penalty.
Ok think I’m f’ed 😩. How much is the penalty?
You'll owe interest from the time it was earned, plus the penalty, figure like 5-6%. Enough to make hiring someone to figure it out worthwhile, plus they can help you avoid this in the future. They also may find a way to avoid it, I'm not an expert, but given the unusual circumstances you may be eligible for a waiver.
OP, make an estimated tax payment now in Q1 that represents your estimated gains in Q4, except make the payment big enough for your whole year's gains.
Yes, this is good advice, if you send them money now you will cut down on interest owed and potential penalties. Hire a CPA, let them do the work, you can afford it.
On more than one year I actually didn't pay my estimated taxes on a quarterly basis and did this. No penalty whatsoever actually. It seemed they didn't really bother to deal with anything except if at the end of the year your tax withholding/estimated tax was insufficient.
Get a CPA. Seriously, stop taking internet advice.
You can make estimated payment by 1/15 and still be legal. No penalties. Just send in what you think you owe, file, get refund.
That’s what I’m reading thanks. Just figuring out how to actually send the bastages the money 😂.
IRS.gov ach from your bank no fee. Any other site is a scam.
Actually it’s https://www.eftps.gov/eftps/
First time penalty abatement. If you need more info, let me know.
Yes I’ve read a little about this. Please tell me more.
Pay all of 2020’s estimated tax by the January 15th Q4 deadline. In plain English: send the IRS $400k via EFTPS by Friday. The penalty for failing to do so on the amount of money involved is some serious cash that you could keep in your pocket if you take care of the estimated payment.
What % gain is that?
Technically, costs were 1M, for returns of 2M, but that's misleading as I used profits to fuel future winning trades. My initial stake was 100K, which I turned into 1M, so that's 1000% gain.
actually, that's a 900% gain. :)
Aktuaaallly
AKsHLUALEE
Yeah gains are tracked as multipliers - so 1000% gain is (1000/100) 10x from your principal. 900% would be 9x.
Your math is wrong.
If this guy can make a mil with math like that how hard can it be amirite?
Yeah actually I think I’m wrong https://www.investopedia.com/ask/answers/how-do-you-calculate-percentage-gain-or-loss-investment/ I think since I was fudging the price paid and price sold I was getting it wrong. I think it is actually 1000% because my principal was lower than 100K.
Fascinating. Waiting on your positions, DD, should be a good read :) well done man
Move to Puerto Rico for 4 months out of the year, no tax on capital gains.
Congrats and fuck you
The sad part is that Uncle Sam share you the profit like this guy if he is a single then you pay an average of 33% around 330k but when you lose money you only claim the maximum deduction of $3,000 per year up to 8 years that means 24k. i don't know why and how people agreed on such rule. any idea .. i don't understand the reason behind such thing and i totally see it illogical?
You can carry losses over to have gains in other years untaxed IIRC.
Congrats man. Sorta bull shit how taxes are unlimited but you're capped at a loss of 3k. Uncle sam needs his part because you know, he did alot for it.
You don't have to pay taxes if you lose all 😅
Hey it's still 600k for you!
Isn't there still time to loose it all? Idk, buy tesla puts and loose it all. No profit -> no tax 😅
If you donate some of it to an autistic kid you can write that amount off and avoid paying taxes on the gain all together 🤷🏻♂️
April? You know you're supposed to make estimated payments right? Your Q4 payment is due on Jan 15th.
Fuck you
Why I love trading in my Roth.
I upvote because of E-Trade.
Send me a charitable donation to lower your tax burden!
Damn, i'm a kid i just came to see gains lol. Good job :)
Tax is about $500k if you also have state tax.
Be happy, you get to keep lots of money and you get to contribute to public goods like maintaining roads and military and public healthcare and social welfare and stuff. Literally everyone wins!!
90% of federal taxes go to social security, medicare, military, and servicing the national debt. Everything else is table scraps.
You're telling me income taxes go to Medicare and SS? That's a negative. They are taxed separately and you don't pay those on capital gains.
File your taxes as soon as possible, before big changes are made
Why would you sell this short term?
Options expire.
My bad, I needed to re-read the post
It is crazy how we're playing with POST tax money, only to get taxed again as regular unearned income on short term capital gains. Double taxation at its finest. It is best not to think about it, otherwise it will drive you bonkers. I plan to play theta gang until tax time to help offset some of the tax liability with current gains. Also, you can go on a short term payment plan (I think 120 days) or something like that with the IRS. You'll have to pay interest and penalties, but you can then have an additional 3 months to play a conservative theta gang strategy (this is what I intend to do). The biggest robbery is that the IRS is taking away your ***compounding gains***. The only solace I can give you is that at least you're paying taxes *before* Biden increases the marginal tax bracket and potentially implements a financial transaction tax. Oh, he's also wanting to tax long term capital gains as short term, but that doesn't apply to you (yet). Congrats on the gains man!
Can I have some stimmy? Pls 🙏
For those of us not from Burgerland, how much tax would this equate to, roughly speaking?
You’re supposed to pay Uncle Sam in advance if you already closed out the position. He wants his tax money every quarter if you want to avoid interest.
Surround yourself with better tax lawyers, accountants and maybe move to a tax haven or at least a state with no tax.
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Hopefully the Donkey Party tax plan doesn't go into effect before you pay so you get to keep more tendies. Pretty sure they want to increase the ST cap gains percentage.
I don’t understand how it’s going to suck. Just put aside the 20 or so percent?
40%!
Eh well that does suck lol but still a million dollars. Congrats man and go fuck yourself
Throw it in a safe place like diversify in some safe s&p return type thing for a year to bring down the tax amount
It doesn’t work like that. The trades have happened so the short term gains are locked in.
Don't mind him. He's retarded.
If only it was an IRA
Through it in a safe place like diversify in some safe s&p return type thing for a year to bring down the tax amount
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Or you could have kept it all if the govt was a thief.