Can someone tell me if I'm being retard or not? I looked up information about capital gains and it seems like the following would be very profitable with almost no downside besides wasted time.
>take out loan for x dollars
>go all in on bitcoin
>wait one year
>if profit pay small tax, write off interest from loan
>if loss write off loss and interest from loan from taxes
Am I being retarded? If I am correct there is literally no downside to this.
you are fucking retarded
Please tell me why.
You are retarted. Go for it and you'll figure out why
You still have to pay back the loan
^
That's bullshit and you know it. Everyone knows that loans are literally just free money. I took out a loan for one million dollars, and now I'm a millionaire!
OP that image is one of the most disgusting things I've ever seen.
Get it off your hard drive immediately and retract your post.
No shit you have to pay back the loan, but if your losses are given back in the form of tax credits then you break even
Write off against what? The tax on your usual porfit? That isn't retarded and is basically what you're supposed to be doing. Don't fuck it up and lose more than you can write off - not uncommon to be able to offset CGT against previous years capital loss though.
Consider the following:
>10k loan
>buy bitcoin at 2.5k
>price doubles
>sell
>pay off loan in full
>pocket the difference
Or
>price falls
>sell
>write off the depreciation
>pay off loan
>walk away just as you started
this
Write off against the taxes I already pay.
Yeah you can
newfags detected
By the way OP who in fuck is going to give you a loan to purchase scamcoins?
...
I think any bank would. If it's within my ability to pay back they shouldn't have a problem with it anyways. I won't get a loan for 100 grand because I couldn't afford the monthly payments but 10ish is well within my means.
I figure worst case scenario if I'm correct I cant get a loan and have to tie up my own money, which is just very inconvenient.
Report back how you go, I think the problems with this scam will be getting the loan and getting it with a reasonable interest rate. Maybe you can take the loan for something else and use the freed up capital from that for the BTC. Make sure you bulletproof this.
This is exactly what loans are for
I think I'll avoid committing fraud, but I'll have to talk to an accountant first.
Alright, let's assume you have to pay taxes on a 30k income. Tax rate = 20%
Income*(1-20%)=24k after tax
Now let's invest!!!
>10k loan
>buy 4 btc at 2.5k
>??
>btc is now 1k
>sell for 4k
>pay back loan, resulting in negative 6k from the investment
income is now previous 30k-6k=24k
24k*(1-Tax rate)= 19,2k after tax
Long story short, you're a retard
You can take as many loans as high as posible, from as many sources as you can, and then go away while purchasing a new identity.
The rough idea is
>Sell for 4k
>Claim 6k tax
>30k after tax
Okay so if I understand this right, the losses count as a negative income instead of being taken out of my tax obligation? That's a bit of a bummer but it would make my tax burden go from 6k to ~4k with the example you gave at 20% tax rate? So it's not magic money but there's less of a hit if you go negative but the upside I mentioned is correct if you go positive? Do you know if it would change anything if I started an llc and took out a loan in the company's name?
What country are you in?
6k to 5,2k
If you make a profit, you have to pay taxes on that profit (the profit being what you call "difference" in the original post)
For a 20% tax rate,
your after tax gain = 80%*profit
your after tax loss =80%*loss IF you have other income>loss
US
Tyvm
This is exactly what I did to purchase both short and long position assets. The reason was liquidity, most of my cash was tied up. Even if they all burn up during take off I can still have the loan paid off by the end of the summer. Worst case it all burns, I write off whatever amount is possible and I lose my job at the same time forcing me to sell other assets nbd.
To secure this I added insurance which I'll remove in a few months allowing the loan to be discharged if I die or delayed 6 months if I lose my job. I don't recommend anyone do this unless they are mentally prepared to handle the stress if your strategy fails and have a good paying job to pay it off.
I've been here since 2007 when guro and dead animals like the severed cat's head tied to CD were commonly posted and I watched videos of cartel executions that have also been posted here.
A massive jar of boiled cum is still disgusting af, even after all I've seen. The pony shit somehow makes it so much worse.
So what, you shorted company x and long company y in the same or similar industry or different?
Stop being a melodramatic bitch
Couldn't user start a "software company" and write off the 1k drop in price as depreciation of the hardware that the company uses?
"^" is redundant
Yes, with one opportunity in stock and one in crypto. Short made a couple thousand and the long we'll see in a month. Still potential for it to turn on me.
>if your losses are given back in the form of tax credits then you break even
That's not how tax credits work.
Assume you make $100,000, and the last $50,000 of that is taxed at 50%.
If you write off $25,000 in losses, that just means you get a refund for the taxes you paid on the last $25,000 of income.
The last $50,000 in this case is all taxed at 50%, so the refund will be based on the 50% tax you paid on the last $25,000
So you get back $12,500 in tax refund based on the marginal tax bracket (50%) that loss fell in.
You'll actually be even more in the hole as a non-wagecuck since any income you have would already be in the lowest marginal tax bracket, meaning your refund based on loss-writeoff would be small compared to someone with a lot more money who lost the same amount of money.