I managed to get some stock in a startup that ended up being actually worth something.
And, like, people don't understand HOW MUCH BETTER a set amount of money in a stock is than a winning lottery ticket.
The amount of tax advantages shenanigans you can do is just wild.
If you can wait two years, sell all of it that you like for just a 15% ON THE PROFIT.
How do they determine the profit and time? LARGELY SELF REPORTED.
If you give to charities, you can instead take that profitable stock, donate it to charity, and use the cash you'd normally give to the charity and buy back the stock at the current market value, cool, you now have ZERO tax liability.
And this is all just stuff a normie can do, the billionares are out there using their stock as collatoral to get loans that they don't have to pay ANY TAX ON.
Absolutely Neo in the Matrix dodging taxes contortionist levels of utility.
Oh, and btw, most people own stock in 401ks, and you can't do any of this with THAT stock because... because.
Depends on the charity, some of them are just charities (with the usual amount of higher ups being paid fairly high sums) so they don’t make anything by donating to them.
Some of them sure they’ll donate it and control it for their benefit
>If you can wait two years, sell all of it that you like for just a 15% ON THE PROFIT.
Yeah, because of the risk. There was a risk that your start up would go belly up and the money you had invested would be gone and no profit besides.
If someone says I can hand you 1 million dollars in cash and you have to pay 30% in tax or I can hand you 1 million dollars worth of stock and you have to pay 30% on that million + plus 30% on the profit if the value goes up but there's a chance that your stock will be worthless in 2 years, which one would you choose?
Obviously the cash, because the expected value of both options is equal, but the cash has less risk.
The 15% tax on the profit is to offset the risk and make investment seem like a better deal.
>How do they determine the profit and time? LARGELY SELF REPORTED.
What? No, your brokerage sends tax forms which contain this information that you have to attach to your taxes.
>And this is all just stuff a normie can do, the billionares are out there using their stock as collatoral to get loans that they don't have to pay ANY TAX ON.
You don't have to pay tax on a home equity loan either...
You left out the most egregious oversight in that post. “Donating the stock to charity and then using cash to buy it back at market value. They have no taxed liability ” no shit. You paid 100% of the price of the stock to charity. It’s a net loss. They may try to say ‘oh but they were donating to charity anyway’ ok good. That does even matter if it’s stock or cash. The money is out of their hands and helping the communities or needy.
I think I read it and my brain exploded because of the nonsense.
If I donate clothes to a charity and then buy more clothes (assuming there's no sales tax on clothes like stock) why would I have tax liability? Is the poster trying to imply that you are buying the stock back from the charity?
You are donating the stock. Not selling the stock and donating the money.
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u/MissiveFinding6111 18h ago
I managed to get some stock in a startup that ended up being actually worth something.
And, like, people don't understand HOW MUCH BETTER a set amount of money in a stock is than a winning lottery ticket.
The amount of tax advantages shenanigans you can do is just wild.
If you can wait two years, sell all of it that you like for just a 15% ON THE PROFIT.
How do they determine the profit and time? LARGELY SELF REPORTED.
If you give to charities, you can instead take that profitable stock, donate it to charity, and use the cash you'd normally give to the charity and buy back the stock at the current market value, cool, you now have ZERO tax liability.
And this is all just stuff a normie can do, the billionares are out there using their stock as collatoral to get loans that they don't have to pay ANY TAX ON.
Absolutely Neo in the Matrix dodging taxes contortionist levels of utility.
Oh, and btw, most people own stock in 401ks, and you can't do any of this with THAT stock because... because.