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So I had a thought. Is it worth buying shares of a failing company

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So I had a thought. Is it worth buying shares of a failing company with the intent of losing money just to stay within a lower tax bracket? Obviously you have to be at a specific amount to be able to do this.
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If you're in a country with progressive taxation, then no that's absolutely retarded.
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Why not just buy bitcoin or donate the money or something?
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>>984203
Why though, the way I see it you could borderline right under a higher tax bracket. Even though the income is lower, the actual tax amount would be lower by quite a bit.
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>>984205
How would buying Bitcoin help, your still spending money that you earned and have to mark as income
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>>984200
Losses on investments can't be used to deduct from your income tax I'm pretty sure.
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>>984207
>Even though the income is lower, the actual tax amount would be lower by quite a bit.
That's not how taxes work, dumbass.
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>>984214
Hmm if that's true, then how would this situation work:
-100k profit on on company
-100k loss on another company
Do you still have to pay the taxes on the 100k profit?
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>>984215
Do the math, if you are in a lower tax bracket you pay a smaller overall percentage. So if you $1 under a higher bracket, you pay less overall.
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>>984219
>Do the math, if you are in a lower tax bracket you pay a smaller overall percentage. So if you $1 under a higher bracket, you pay less overall.
That's not how taxes work, dumbass.
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>>984220
Explain it to me then, done a good bit of research on this and I'm fairly certain I know how they work
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>>984221
>done a good bit of research
Lies.
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>>984216
You pay taxes on profit realized form the sale of a stock. The 100k would be taxed. The loss wouldn't be taxed, because you can't sell at a loss.
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>>984228
That seems unfair, even though you equal at no loss or gain, you still have to pay taxes. I've read about being able to enter losses in tax reports to help out but I'm not too familiar with how that works
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>>984230
The business pays the tax, as corporate tax. You would have to pay income tax on whatever you took out as personal income. There's no unfairness going on.
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>>984200
You are dense
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in all honestly OP i feel that this could work but only on very slim margins.. you would have to be just slightly over the min limit of one tax bracket then take your minimal loss from the investment and claim it as a loss, expense, whatever terminology in a sense to knock your income down slightly into the near max of the lower tax bracket at the same time making sure the difference saved in the lower taxes is more than the initial loss you took from the "investment" not an expert but this would make sense to me

also there are plenty of other more legitimate and simpler ways to get tax credits without as much risk as having your failing company actually fail on you and lose far more than you anticipated you'd gain from the tax break.
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>>984221
>>984222
Taxes work differently in different countries.
Where I live, It's essentially 'breaking points' that increase tax at one point. If his taxation also uses the same retarded breaking point system, then he is right.
If it dosen't he is wrong.
Badabing badaboom.
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>>984215
>Implying all countries use tax systems that make logical sense...
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>>984200

I'd take another look at how taxes work, you don't seem to be understanding it. if you have a higher income you'll never get less after taxes.

you'll receive less money for more of the same effort, but you won't receive less money.
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>>984221
You've done a 'good bit of research' and yet you still don't know how marginal tax rates work?
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This only applies to USA

>>984214
Capital Losses cannot offset normal income.. So unless you are trying to lower your capital gains he is an idiot. Confirm : CPA/Accountant

>>984207
This is not how taxes work. Look up progressive tax and how to calculate.

>>984216
Is this normal income (Employment/Ownership) or investment. Investments are completely separate for tax rates, If these are capital gains (investment income) then the profit and loss would offset and you would not be subject to the capital gains tax rates. However, if you are sold these investments it all depends on timing. They must be sold under one year to effect normal income otherwise it is a long term investment. You will always pay tax on the sale of an investment if its a gain. However your capital gains income WILL offset your losses at the end of the year.

>>984228
You have no idea what you are talking about.
>you can't sell at a loss

>>984243
What? Progressive tax rate, he is an individual buying shares not an owner of a company.

>>984417
Correct.
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>>984399
That's not how taxes work, dumbass.
Thread posts: 23
Thread images: 1


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