Why would you earn a credit?
You created a tax event and paid taxes on it and you got a loan for x% of $100.
If you sell the stock at $80 you'd pay no taxes on the appreciation (-$20). No credits, investing is risky.
Re:Who died and left the US $7B?
by hnaccount_rng on Wednesday October 09, 2024 @04:41PM
(#41792397)
Why not just treat it as any other loss for tax reasons? If I understand this correctly, then the current state is basically: If you take losses you can use those to nullify a future gain. Just do that.
And.. the bookkeeping thing is really solvable. That's kind of what banks are for
Here’s a hypothetical:
- I own $100 of stock in Company A.
- The First International Bank of efsavage decides to accept that $100 in stock as collateral on a loan. So I pay taxes assuming a value of $100.
- When I dispose of the stock, it is only worth $80.
Will that be a retroactive credit, meaning that I will have to amend my tax return in the year that I collateralized those assets? Would it be a forward tax credit, meaning that I could apply that credit to future years?
I worry about this both from a bookkeeping point of view (since this is potentially a lot of credits) but also worry the ways it could be manipulated.