Just to let you all know, Trump's tax bill will make bank's earning look like shit next quarter. It would be a time to buy the dip if most investors don't know about the accounting entries.
The bill would make the corporate rate 21% instead of the 35%. This would make the deferred tax asset that banks use from provision expense decrease. When you impair an asset, you have to pass that impairment through expense.
Banks like Bank of America and Wells Fargo will get a huge deferred tax impairment next quarter, and some investors may not understand it.
Buy up any banks that dip next earnings season.
Sorry for the non-crypto post and typing an actual business post.
Gavin Reyes
Please God give me an accountant or someone on biz that's not retarded
Chase Adams
thank you for this tip
Nicholas King
Come back OP I want to learn real things instead of pink wojacks
Nathan Kelly
I don't understand all that bizness mumbo-jumbo. What coin should I buy?
Christian Thomas
Explain how this is wrong?
David Gray
How much does 1 BANK cost? Is it on Binance?
Hunter Sanders
...
Nathaniel Murphy
He's right.
Luke Sullivan
I am here. Ask me anything about this impairment
Joshua Cook
How does this affect poor people? Should we even care?
Christopher Price
>tfw you don't know what an earnings season is gotta go Google it.. thanks for the tip tho gonna look into it.
Eli Martin
How will this affect my shitcoins?
Gabriel Roberts
nice just bought 100k
Logan Garcia
i think he's trying to tell us to buy LINK?
Elijah Lopez
>caring
Austin Wood
More normies will have jobs and/or have higher paychecks or at least feel more comfortable spending money since their jobs aren't going to be dangling from a thread anymore, so they'll buy bitcoin on normiebase and drive up the fiat value of your shitcoin
Carson Price
Poor people will most likely make more money after tax. The new standard deduction is great if you are living at home or living in an apartment. You should save about $1,700 on taxes.
We need to get back to Veeky Forums basics.
Investors may drop shitcoins in favor of securities since the tax bill will make most corporations more net income long term.
Less risk and more returns = why invest in shitcoins
Connor Foster
To expand on this in case anyone is unsure:
A DTA is a future tax benefit. Firms record DTAs through the following entry:
DTA Income tax benefit
A firm is required to calculated DTAs based on the enacted (not speculated) tax rate for the year in question. Since the tax rate is going down, the calculation of a DTA would go down.
However, Deferred Tax Liabilities (DTLs) will also be calculated based on the new, enacted tax rate. A reduced tax rate applicable to a DTL will result in a reduction in "deferred" income tax expense. Before you put anything into action, look at the Notes to the Financial Statements of whatever company is in question, and see what the net DTL/DTA is composed of (most firms have a net DTL).
Essentially, OP is right, since changes in tax laws are recognized in the period of enactment. However, I would not refer to this as an "impairment"; it's just not something I've ever heard in reference to DTAs.
I am not giving you any ADVICE or making any guarantees; look into these things yourselves.
Elijah Martinez
I want to learn about stocks but my fragile mind can only understand crypto. Keep saying words that I don’t understand
Josiah Baker
What do the banks recognise Deferred tax asset on? They recognise them on provision or hedging instruments or what?
Ethan Brown
Temporary differences that exist between GAAP and tax law.
Ethan Bennett
this.
James Hall
Whoever is not buying BZC right now is wasting money.
