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A comment on The rise and fall of Cathie Wood, controversial Wall Street investor. Parent comment

Re:The rise and fall of Cathie Wood, controversial Wall Stre... by refurb on Monday May 30, 2022 @07:30AM (#31557879)
God I love HN.

Tax are due on capital gains which is basically <sale price> minus <purchase price>.

You can't claim a capital loss unless you paid the overvalued price. And then you just lost money anyways.

[ Parent | on HN ]
Re:The rise and fall of Cathie Wood, controversial Wall Stre... by salawat on Monday May 30, 2022 @02:01PM (#31561732)
It's not so much just HN.

https://www.investopedia.com/terms/t/taxgainlossharvesting.a...

It is literally a thing. I cannot for the life of me make sense of how to make it work that doesn't strike me as off, but enough people get utility out of the moniker that it's got a page. So...

[ Parent | on HN ]
Re:The rise and fall of Cathie Wood, controversial Wall Stre... by refurb on Monday May 30, 2022 @02:06PM (#31561795)
That’s not the same thing.

Tax loss harvesting is real, you just time when you take a loss to offset a gain. Then immediately reinvest. You haven’t lost any money in total, you can just claim the loss on your taxes (but will pay higher capital gains in the future).

[ Parent | on HN ]
Re:The rise and fall of Cathie Wood, controversial Wall Stre... by dikaio on Tuesday May 31, 2022 @01:01AM (#31566269)
Exactly correct, legal, and done by every trader I know.
[ Parent | on HN ]
Re:The rise and fall of Cathie Wood, controversial Wall Stre... by sgjohnson on Tuesday May 31, 2022 @04:11AM (#31567154)
There are ways to do that. The simplest one is to overvalue inherited assets.

You don’t pay taxes on inheritance.

[ Parent | on HN ]