We all know that the government has proposed taxing unrealized crypto gains.
…as in taxing our crypto portfolios that we haven’t profited on. This almost sounds like a mafia scam. But apparently it’s already done on some other assets.
I have a friend who works at a software company and he works full time. The company is private so he is allowed options buying in the company.
That means he can by shares of the company at a lower value then the company is worth now and when it goes public he can sell them at incredible sometimes 10x gain. Like buying options at $1.50, the company was revalued, now they are worth like $9.50. And by the time they go public I am sure it will be more.
He is ALREADY TAXED on those gains, he hasn’t sold, the company isnt public, he literally can’t sell them yet. But he is taxed on the $1.50 to $9.50 unrealized gains.
I don’t really understand why but I know it’s common practice and would be illegal if he didn’t.
If this is already happening to other sectors I see no reason why it can’t happen again and again but this time with crypto.
We need to be way more vigilant about stopping something like this. Not only is it stealing from us but it will really hurt the growth of the market in general. I think it could do some damage.
Let me hear your thoughts.
I’m not paying unrealized taxes on SHIT
This sub is cryptocurrency around the world so I am not sure what you mean by government. Which government?
Next, Biden’s fiscal 2023 budget request would impose a 20% minimum tax on the unrealized capital gains for households worth at least $100 million – aka it’s only for Ultra Rich class.
Those probably aren’t options, they are warrants. When you exercise the warrant you are taxed the difference between the strike price and the share price.
That is why when warrants are exercised the holder usually sells some of the stock to cover the tax
I ain’t paying no shit for unrealized shit
If it is possible to tax you even before you buy the crypto, they ll do it
By government you mean that 1 crazy Senator that was laughed at for trying to introduce this, and the bill she wanted to put together was quickly killed off.
Yeah that’s not gonna happen Biden
I don’t mind billionaires paying this tax.
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Maybe I’m just dumb. But i don’t even understand unrealized gains. What happens if i can never realize these gains?
I haven’t read this tax to be on unrealized gains
It is a tool used by the government to stifle independence and solidify their power and control. Of course most things the government does is with these intentions. This tax policy is just more obvious.
Having a private stock option before a company is listed is different than crypto where there have already been ICOs/seed investors/private sales/etc. imo. Is your friend paying taxes out of their earnings, post-tax or are they getting some sort of pre-tax deal by working with the company or something?
Also this is only for people making over $100 million. According to this sub, the average investment is $500 or less so this doesn’t apply to 99.99% of people here lol
That’s a nightmare. Taxation is theft.
You are missing one important point: you can’t stop new laws from being created, even if you want to stop them, there is nothing you can do to stop them !
“That could change, for if the president has his way, there would be a new 20% minimum tax rate on U.S. households worth more than $100 million.
One goal is fairness, so “the wealthiest Americans no longer pay a tax rate lower than teachers and firefighters.” Another goal is deficit reduction, hoping to slim the deficit by $360 billion in the next decade.”
If you ain’t got $100 million don’t worry about this.
It’s also unlikely to pass, & if it does pass it may be unconstitutional.
Double speak propagandizing it’s way into your bank account. One day they will convince you racism is the only way to stop racism. Gullible and stupid, just how they like you.