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A comment on Launch HN: Financial Choice (YC S21) – Checking accounts with market returns. Parent comment

Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by shmatt on Monday August 09, 2021 @01:44PM (#28119851)
if i put in $50k, gained 10%, then payed rent with $2k. Is that $2k taxed as the profit? as someone not very knowledgable in the investment world, this seems pretty complicated, and also weird that i'd be taxed for every "faux checking" use if my portfolio is in the green
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Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by rmah on Monday August 09, 2021 @01:57PM (#28120028)
It depends on how much of your assets are invested in the market. And on how you're handling cost basis. And if you are carrying forward any previous losses. And how long you've held the asset. And... well, you get the idea.
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Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by shmatt on Monday August 09, 2021 @03:00PM (#28120854)
well I'm not handling cost basis, Financial Choice is. and they're not sharing any of that AFAIK. which makes this confusing. Especially with the comparison here and on their home page, to a checking account.

Sounds like if the market is green I'm paying a hefty free for every single checking transaction

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Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by jklein11 on Monday August 09, 2021 @03:27PM (#28121234)
I think the tax filer max the ultimate decision on cost basis, not the financial institution.
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Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by konne88 on Monday August 09, 2021 @02:24PM (#28120348)
If you put in $50K, and it gained 10% your account would now have $55K. If you withdraw $2K, you could be taxed on the 10% profit on that $2K, so $200. So if your tax rate is 25%, you'd pay $50 in taxes because of that 2K withdraw.
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Re:Launch HN: Financial Choice (YC S21) – Checking accounts ... by zie on Monday August 09, 2021 @06:03PM (#28122888)
You are correct, but assuming the holding was < 1yr and STCG applied. If >1yr holding period, LTCG would apply. chances are it would only be a 15% tax rate in a LTCG applied tax. given current 2021 tax brackets.

Even this is incomplete, because we don't know the other tax situations, was there a tax loss carryover that would/could be applied, etc, etc, etc.

Taxes are complicated.

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