Re:Killing TurboTax
by harshalizee on Wednesday March 03, 2021 @11:14PM
(#26338501)
I'm not sure that would work as simply as that. Imagine buying a volatile stock, say, TSLA at $100. This then skyrockets to $1000. You're now taxed on your wealth at that price point.
Then it immediately crashes down to $120.
All this while, you're just holding the stock but paid taxes on a non existent value.
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This is a solved problem. For taxation purposes, just integrate over all price points in the taxation interval. In other words, average it.
Re:Killing TurboTax
by cmeacham98 on Thursday March 04, 2021 @01:23AM
(#26339262)
Perhaps substitute the (inflation adjusted) price you bought the stock at? Or maybe something like a rolling average of the past month/year?
Re:Killing TurboTax
by acjohnson55 on Wednesday March 03, 2021 @11:26PM
(#26338588)
I haven't thought this through, but could that actually be a feature?
I'm not sure it would - it seems like this would discourage risk taking. Owning stock in a startup would be a terrible move in this case.
Re:Killing TurboTax
by acjohnson55 on Tuesday March 09, 2021 @09:07PM
(#26406936)
It would certainly discourage risk taking on highly volatile instruments, and I'm not so sure that's a net contributor to the economy.
Still sounds like a feature. The unicorn chase for value explosion is not a positive.