Well if you sell after the new year that’s a whole other year before you have to pay. Civilization as we know it could be gone by 4/15/22.
I’m facing a similar dilemma with my Carnival stonk, which I stupidly bought in my brokerage account and not my IRA. I can’t sell before 11/11/21 or I incur short term cap gains tax. So do I take the tax hit this year, or next? Next always seems like the right answer.
If these are short-term gains, it is pretty defensible to wait until they age into LTCG before selling. The rate difference is really significant.
I assumed that being a hundred bagger ruled out short term status. Maybe I don’t dream big enough.
I assumed that as well. I thought that info was enough to make it pretty clear. But bobman’s interpretation that it might not be LTCG is not unreasonable since it was not explicitly specified.
Agreed, but I guess when this button has worked endlessly with tsla, you just keep mashing it.
I need to find something risk to put my Roth IRA in. I had it in UCO (3x oil prices). Had a nice 2.5x in a year. But you can’t leave it in that forever and I think we might be peaking.
The idea is to do all my gambling in my Roth since the gains will be tax free.
I’ve been thinking about starting a baccarat mutual fund. It might appeal to people who aren’t sufficiently bankrolled to play at the big table. I’d keep fees low but keep all the free cocktails for myself.
The problem is that you can’t TLH out of a Roth.
I bet someone could run some scenarios on what kind of gambles you have to make in order for doing them in a Roth to be +EV. I suppose it largely depends on what you’re doing in the taxable account.
I’m putting all investing in individual stocks in the category of gambling. I might make an exception for BRK. Not gambling would be VTI and other broad based index funds. I realize this definition of gambling is probably controversial, and many view it differently.
What does TLH mean?
The Roth is like 1.5% of my total portfolio. The rest is in regular IRA and brokerage. The IRA is mostly in index funds.
I ran some scenarios where the Roth 10x-es and where it goes to zero. I gain a lot more in the moon scenario if it’s in a Roth, whereas the crash scenario is very similar whether it’s in the Roth or not.
Tax-loss harvesting.
When your gambools outside the roth go busto, you can use the losses to offset taxable gains.
When your gambools inside the roth go busto, you can’t take advantage of them in any way.
This is obvious. But how much more frequent is the busto scenario than the 10x scenario. You’re making it sound like it’s 50-50.
The problem is that James Bond is literally the only person who knows how to play baccarat and he’s not even a real person.
https://twitter.com/elonmusk/status/1457064697782489088
https://twitter.com/elonmusk/status/1457066048944066565
Selling my QCLN Monday. If he does this it will probably tank TSLA.
What are the results so far?
55% in favor of selling
Lol he wants to sell during this insane runup, but doesn’t want the narrative that comes with him selling a large portion of his stake. And when it drops, he wants to be able to say ‘see what happens when you make us rich folk sell and pay taxes’.
TSLA is apparently worth substantially more than every other car company on the planet combined. It just makes sense.
Musk personally owns about .5% of the market cap of the entire stock market, lol stonks
