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22141699 No.22141699 [Reply] [Original]

Now that we're gearing up for next year, potentially in range of the golden bullrun once we break $20k again, I'm starting to think about taxes, price targets and exit strategies.

One strategy I'm planning to use is cashing out fully this month, recording a small paper capital loss, and buying back in immediately.
This will raise your cost basis and spread your tax burden across multiple years while still enabling you to get that sweet long term capital gains rate.
Is this ultimately a good idea or no?

Naturally no one knows when the golden bullrun top will come, but historically it comes 9-12 months after we break Bitcoin's former ATH, and so far this cycle has followed this pattern like clockwork.

>> No.22141769

Yep, the tax authorities will definitely fall for that. They've probably never seen it before. Smart thinking, OP.

>> No.22141786
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22141786

>>22141769
>the tax authorities

>> No.22141833

>>22141699
>This will raise your cost basis and spread your tax burden across multiple years while still enabling you to get that sweet long term capital gains rate.
So many things wrong here. If you're selling for a loss and then buy back in, by definition your basis went down, not up. Also if you buy back within a month you'll violate wash trading rules and get fucked by the IRS. And lastly, you reset your long term maturation date when you sell and buy back, so you're just delaying the date for when you can claim long term gains rate.

>> No.22141865

>>22141786
not really related to taxes but yes they want to make the dollar a commie food stamp which it already is. this thread should not bother with how to cash out to [minecraft] dollars. they are going to be fucking worthless. You should figure how to move the fuck out of this cucked ass country.

>> No.22141976

>>22141786
>>22141865
>You should figure how to move the fuck out of this cucked ass country.
Even if you figure out how to renounce your citizenship and move elsewhere, all your assets and equities will be taxed on your way out the same as if you had sold them all.

>> No.22141997

>>22141833
Correct except you can wash trade crypto

>> No.22142413

>>22141833
You're right, I worded that wrong
The small loss would be from my most recent buy
I could use that small loss to counteract what I'd need to pay on the other buy orders' gains, right? Either way I would be raising my overall cost basis and not having those gains (only a few thousands since Bitcoin hasn't really mooned yet) count toward next year's gains
I also believe the top of the bullrun is probably somewhere between October 2021 - January 2022 so under this assumption you could still get the long term capital gains if this was done right now

I'm not aware of wash trading laws but how does that apply here?
You can sell and buy back a stock within the same month no problem

>> No.22142773

How much capital gain before you have to start paying taxes? Assuming I have 0 income.