Quote from: Biodom on Today at 03:49:07 PM

First off, you are wrong on math a bit (due to NIIT), second, I was talking about the Biden tax proposal (are you aware of it?), which, if passed, would apply retroactively to Jan 2021, no doubt (to prevent EOY selling).

Math? Even now, you would pay 3.8% NIIT extra PLUS state tax (add 12% more in cali). So, 43.4+state on above 1mil (in proposal).

Medicare. Fair enough. State taxes are tricky: You used to be able to deduct them against Federal, but then Trump goat-fucked people with the SALT limit. If that's not repealed then yes this would suck big time (double tap tax). At the same time, one could move to a low tax state, but a lot of those seemed to be.... poor choices for COViD this time around. So it's an interesting mental exercise (how much additional does Bob need to take out for a moat filled with gasoline around his ranch? I don't know. Does that exceed the tax benefits of TX? Not sure)

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In my example, only 100K exceeds (bad example), so make it 40 coins for $500, lol, then more than a mil will exceed.

I was assuming a sale price of 50k which is probably an average of what you would get this month. If you have 40 coins then the first 50% are taxed as above, the second 50% are taxed at the higher rate. That does suck, but it's still not bad. And you could avoid it by simply rolling the cost over 2 years (do the whole thing Dec 31/Jan 1.) If more than 2m at a shot is needed then you need to hire a professional.

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BTW, I also think that 20% tax is fair, and even 23.8% is OK, but 43.4 and above is approaching confiscation. I paid once 39.6% CG tax (had large short term profits in 2000). Man, that was brutal.

CG is tricky. I've always found it annoying that my labor is taxed at a higher rate than luck+"incredible foresight to invest wisely" (when you come out ahead). Putting the two on a more even footing (they are all "work", some are physical, some are mental, some are a combo of both) always struck me as more fair, but your mileage may vary.

Overall though unless I decide to liquidate a massive stash (and why would anyone do that? Huh

?? HODL for fucks sake) this is not going to affect me directly.