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If you buy $1000 in stock and 11 months later you sell it for $1000 you have no gain so there's nothing to tax Assuming 35% tax rate If you buy $1000 worth of stock and you sell it after a year for $1001 you'd owe $0.35 in federal taxes, some states like California will take another $0.09 to $0.11 on top of that If you buy $1000 and sell it for $2000 you have a profit of $1000 so your tax is $350 If you sell for $999 you get to deduct $1 from your annual taxable income If you hold it for more than a year your tax rate goes down quite a bit and it gets slightly more complicated but that's the gist of it
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Sep 14, 2021 23:26
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Martman posted:You are taxed on gains, i.e. profits. Not to be a dick because I'm no expert at all, but this is a kind of extremely basic starting-point kind of consideration that means you may want to invest some time reading about the fundamentals. Pretty much. I knew there was something fundamental that I was brainfarting about, ie: tax on gains not on total/every sale. Just having a day of seeing a stock I stupidly bought and now want to get rid of inch towards my break even point only to fall back away again made me itching to just divest of it and be done with it. The brainfart on taxes thing that I was forgetting is what was keeping me from doing so. So thanks, even with the obligatory insult tax for posting in this thread!
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Sep 15, 2021 00:00
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jeeves posted:Pretty much. Here, the part of this Peter Lynch speech starting at 8:25 (fast forward to it) was made for your situation: https://www.youtube.com/watch?v=oMmocnLnVgQ&t=505s The whole longer speech is great (you can find full 47m versions out there)
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Sep 15, 2021 00:23
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Exactly what I needed to hear, thanks!
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Sep 15, 2021 01:05
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So how does the IRS know if I made a long term gain selling MSFT after holding it ten years and a short term gain on GME after holding it for two months? Part of me hopes that whoever you do your transactions through would provide an annual statement breaking down short term and long term gains/losses.
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Sep 15, 2021 02:22
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Your brokerage literally tells the IRS that information. On rare occasions, they might not have the cost basis though, in which case you are supposed to provide that yourself. And yes, you should get annual statements
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Sep 15, 2021 02:38
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nwin posted:So how does the IRS know if I made a long term gain selling MSFT after holding it ten years and a short term gain on GME after holding it for two months? Part of you is going to be very happy!
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Sep 15, 2021 02:44
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Hadlock posted:If you buy $1000 in stock and 11 months later you sell it for $1000 you have no gain so there's nothing to tax Any losses in excess of $3k/yr can be carried to following years Edit: not sure what I was thinking when I said the trader tax status thing… see my post lower down this page clarifying how dumb I am Uranium 235 fucked around with this message at 13:31 on Sep 15, 2021 |
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Sep 15, 2021 04:16
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Zephyris posted:Yeah was hoping for a decent IV crush and planned for a moderate dump because unless they had beat earnings like nuts it would. I was lucky enough that Pastrami on the goon discord was talking up a put credit spread so I did two of those and profited off the bounce to reduce my losses. First time I've been burned by trying to run out the clock on a blown out IC wing. what the gently caress do any of these words mean do you make money from knowing what these words mean? how much money?
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Sep 15, 2021 05:12
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DELETE CASCADE posted:what the gently caress do any of these words mean knowing what those words mean just helps you lose money faster.
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Sep 15, 2021 05:14
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Uranium 235 posted:Also noteworthy is that your tax deduction for losses is capped at $3000/yr, barring very special circumstances that don't apply to you if you're not trading every day for a living Do you guys have any rules quarantining capital losses where they can only be offset against capital gains?
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Sep 15, 2021 09:21
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The bar for daytrader tax status is pretty low though, right? Like, you just check a box, there's not even a strict definition you need to follow IIRC. I dunno, I'm not a tax person, I just play one in the investing threads
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Sep 15, 2021 09:25
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gay picnic defence posted:Do you guys have any rules quarantining capital losses where they can only be offset against capital gains? It could make sense to realize a gain to offset a loss so you’re not carrying too much loss forward but I can’t think of a reason you’d want to avoid realizing a loss until you have a gain to offset it.
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Sep 15, 2021 10:24
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DELETE CASCADE posted:what the gently caress do any of these words mean Sir, this is the gambling thread. These are option trading terms, which are appropriate for this thread. Investopedia can help you out.
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Sep 15, 2021 12:29
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You too can buy an Iron Condor or sell a Naked Strangle. Maybe open a Big Lizard, or Broken Wing Butterfly.
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Sep 15, 2021 13:18
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Hadlock posted:The bar for daytrader tax status is pretty low though, right? Like, you just check a box, there's not even a strict definition you need to follow IIRC. I dunno, I'm not a tax person, I just play one in the investing threads There isn’t a strict definition but the IRS can and does go after people who claim it, meaning you shouldn’t claim it without being sure you’ll hold up in court. Generally the way to be safe is to trade every day (or at least the overwhelming majority, like 95%) and do so with enough capital that you could reasonably argue you’re doing it to earn a living. This is my fourth year of trading, and only my first that I’m having my accountant claim it.
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Sep 15, 2021 13:22
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gay picnic defence posted:Do you guys have any rules quarantining capital losses where they can only be offset against capital gains? Oh I forgot to mention that the $3000/yr cap on capital loss deductions only applies to counting the losses against earned income. You can use capital losses to offset capital gains without any limit. So if you have a $10k capital loss one year and no gains, you could only deduct $3k from earned income. Next year you would have a remaining $7k of capital losses. If you made $20k in capital gains that following year, you could offset $7k of that with your carried over losses. Also I don’t know wtf I was smoking, people with trader tax status can’t offset more than $3k of earned income with capital losses. Seriously I think I had a stroke before I posted that
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Sep 15, 2021 13:30
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Watching IVC, heavily shorted with a recent gap down but options have been crazy last two days was 4500% typical options volume yesterday (95% calls) and already 800% today (99% calls).
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Sep 15, 2021 15:54
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Watching those $445 SPY calls I bought yesterday print enough to cover the $450 calls I bought last week is making me think I dont need this kind of stress in my life. On the other hand, it is kind of fun when the number is going up.
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Sep 15, 2021 17:47
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Tokyo Sex Whale posted:
Covered my /NQ short during the morning bounce at 15350. Still think the trend is down but I’m less sure of things now. There’s still no volume to the rally today, might short smaller for a bit or just play swings.
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Sep 15, 2021 18:00
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Re: gambling, I bought a single SOFI 1/2024 $15c today before the stock price ticked back north above $14.99. Pretty sure I'm just bag holding at this point but the internet assures me that SOFI is going to get their national bank charter any day now. The previous (resigned! Totally not fired) President of USAA just announced he's working at SOFI now, so we'll see. (The very few) Stock analysts keep giving this stock a buy rating with $28 price target, so, we'll see if I need to buy some clown makeup or not. I've been averaging down my investment since July, cost basis ~$15.99 (stock price tanked, hard on first quarterly earnings report due to one time expenses related to paying out stock to employees going public + federal student loan moratorium). At least there seems to be strong price support around $14.50 so uh, can't lose much more money. SOFI feels like the big brother to NDRA, just waiting for that federal approval to make the stock pop
Hadlock fucked around with this message at 18:04 on Sep 15, 2021 |
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Sep 15, 2021 18:00
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https://www.reddit.com/r/thetagang/comments/poqd8v/ok_let_me_explain_my_situation_for_someone_who/ Oh my
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Sep 15, 2021 18:17
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Wow, a whole lot of people in that thread made the same big mistake.
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Sep 15, 2021 18:26
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DELETE CASCADE posted:what the gently caress do any of these words mean The idea is that you take money from people making dumb gambles. But, once in awhile, you lose a lot of money when their dumb gamble pays off.
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Sep 15, 2021 19:38
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BlackMK4 posted:https://www.reddit.com/r/thetagang/comments/poqd8v/ok_let_me_explain_my_situation_for_someone_who/ Every so often one gets away from you, heh. However Greenidge is printing money right now, their cost to mine is something like 2.5-3k/coin. I don't think that's gonna scale well though. They are expanding to South Carolina and I believe gonna be paying market rates for electricity there. And people are getting grumpy about them killing all the fish in the lake their NY power plant is on. It's not that green in reality. So might run into permitting issues. However, I think they had to have made a decent chunk of cash this last half year. I don't see when they are supposed to do earnings, but hopefully soon. On the other hand, it looks like their plan might be to issue a loving ton of shares.
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Sep 15, 2021 19:43
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I don't trust this green poo poo. Another day of doing nothing
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Sep 15, 2021 20:19
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What was the cause of the afternoon rip? Just animal spirits? I was away, and scrolling through my fintwit list I can't see anything in particular other than nice BTC ETF memes. https://twitter.com/EricBalchunas/status/1438170489126629376
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Sep 15, 2021 20:31
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why do you need a BTC ETF when there are futures? /BTC /ETH /MBT
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Sep 15, 2021 20:39
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FasterThanLight posted:The idea is that you take money from people making dumb gambles. But, once in awhile, you lose a lot of money when their dumb gamble pays off. When you buy OR sell options, 99.9% of the time a dealer is taking the other side of that trade, not another retail trader. And the dealer is hedging so you are not taking money from anyone.
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Sep 15, 2021 21:16
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This poo poo is just sad. https://www.reddit.com/r/SPRT/
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Sep 15, 2021 22:03
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Uranium 235 posted:This poo poo is just sad. https://www.reddit.com/r/SPRT/ What did happen? Because I don’t understand. It appears a merger was going to happen and instead of the price going up in the event of a merger, it dropped a lot and people bought options on it for high premiums?
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Sep 15, 2021 22:44
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Cacafuego posted:What did happen? Because I don’t understand. It appears a merger was going to happen and instead of the price going up in the event of a merger, it dropped a lot and people bought options on it for high premiums? It's a disaster. I made a lot of money on SPRT and ditched the remainder of my position as soon as the merger date was announced on Monday for Wednesday. They did an 11.5:1 conversion of SPRT to GREE and did the merger so fast that brokers don't have GREE shares. Not only did people get absolutely hammered on their shares due to the dilution but also they can't get out of their positions because the brokers don't have shares! Some brokers didn't even do the merger and just closed the position at a huge loss. Simple math told me that GREE would have to trade at 100+ to break even with the SPRT price after conversion and I knew it would get slammed at 4 AM opening. I don't even want to know how people got destroyed with options.
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Sep 15, 2021 22:55
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cirus posted:It's a disaster. I made a lot of money on SPRT and ditched the remainder of my position as soon as the merger date was announced on Monday for Wednesday. They did an 11.5:1 conversion of SPRT to GREE and did the merger so fast that brokers don't have GREE shares. Not only did people get absolutely hammered on their shares due to the dilution but also they can't get out of their positions because the brokers don't have shares! Some brokers didn't even do the merger and just closed the position at a huge loss. Simple math told me that GREE would have to trade at 100+ to break even with the SPRT price after conversion and I knew it would get slammed at 4 AM opening. I don't even want to know how people got destroyed with options. Is that even legal? (I know the answer in my heart but God drat)
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Sep 15, 2021 23:22
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Baddog posted:Every so often one gets away from you, heh. SC commercial rates usually hover $0.06-0.065/kwh fyi
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Sep 15, 2021 23:24
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shame on an IGA posted:SC commercial rates usually hover $0.06-0.065/kwh fyi Pretty good. I sold 4 and 5ps on this piece of poo poo, and I'm not losing money until it hits around 35. Hopefully it stabilizes here, and I can get out. I believe they will show more revenue than MARA trailing 12 months, and they probably actually made money instead of whatever MARA is doing. So the valuation seems off now. GREE at 1B, MARA at 3.6B.
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Sep 16, 2021 00:26
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cirus posted:It's a disaster. I made a lot of money on SPRT and ditched the remainder of my position as soon as the merger date was announced on Monday for Wednesday. They did an 11.5:1 conversion of SPRT to GREE and did the merger so fast that brokers don't have GREE shares. Not only did people get absolutely hammered on their shares due to the dilution but also they can't get out of their positions because the brokers don't have shares! Some brokers didn't even do the merger and just closed the position at a huge loss. Simple math told me that GREE would have to trade at 100+ to break even with the SPRT price after conversion and I knew it would get slammed at 4 AM opening. I don't even want to know how people got destroyed with options. If their thesis had been right, you wouldn't hear anyone complaining about not being able to close their positions. They're upset because today forced them to confront the fact that their thesis was wrong, and when they realized that, they wanted to cut their losses ASAP.
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Sep 16, 2021 00:41
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If you want loss porn look at INDP where people are down 200% in a few hours.
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Sep 16, 2021 00:45
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Uranium 235 posted:This poo poo is just sad. https://www.reddit.com/r/SPRT/ I didn't follow this ticker/story at all but it looks like something extremely funny has occurred
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Sep 16, 2021 00:50
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Uranium 235 posted:This poo poo is just sad. https://www.reddit.com/r/SPRT/ That sub is loving bonkers. Its like the GME related subs but the crazy is even more concentrated. Has this kind of conspiracy stuff always been common with traders?
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Sep 16, 2021 02:59
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I miss the easy money of the NDRA rise and fall. Still sitting on $900 at $2.10 per share. I should have sold it when it cracked $2.00 but I got greedy.
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Sep 16, 2021 03:13
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