42
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 26 Oct 2024
42 points (92.0% liked)
Economy
433 readers
25 users here now
Lemmy Community for economy, business, politics, stocks, bonds, product releases, IPOs, advice, news, investment, videos, predictions, government, money, politics, debate, current trends and more.
founded 1 year ago
MODERATORS
No, when someone like Musk sells their investments it's not taxed as regular income, it's taxed as "capital gains." The capital gains tax rate is lower than the income tax rate, and can be as low as 0%. Also, only the net profit (if there is any) is taxed. Unlike income, where it's all taxed and the lowest rate is 10%.
Someone like Musk can sell a billion USD of stock and not have to pay any tax on it by selling a mix of shares that lost money and made money.
If you sell stock that lost and made money in balance like that, then you're just liquidating your own money. There hasn't been any profit, so there's nothing that should be taxed.
True. But it's also part of a greater strategy to avoid paying taxes.
https://www.investopedia.com/terms/t/taxgainlossharvesting.asp