Re:The IRS Is Coming for Crypto Investors Who Haven’t Paid T...
by rawtxapp on Friday May 14, 2021 @10:29AM
(#27154712)
Notice that borrowing != trading on margin, you can certainly buy back into the asset, but you can also do lots of other things with the money. You can be careful with your borrowing, like the example I gave, in that case, Bitcoin would need to drop by 50% before that person get's liquidated and even if that happens, they still have the 82M$ in cash.
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Re:The IRS Is Coming for Crypto Investors Who Haven’t Paid T...
by TuringNYC on Friday May 14, 2021 @01:48PM
(#27157360)
>> You can be careful with your borrowing, like the example I gave, in that case, Bitcoin would need to drop by 50% before that person get's liquidated and even if that happens, they still have the 82M$ in cash.
Not quite...now you still owe capital gains tax on the forced liquidation price (minus cost basis)! So perhaps a large part of your $82M draw goes into taxes.