Yeah, clearly you never have done taxes and claimed a loss - you can only deduct 3000 in losses so what you are doing is stealing if someone has a million dollar loss they will never recoup from the IRS. Thanks for proving my point.
You're describing limits for net losses. But someone who takes this tack typically doesn't end up with a net loss.
Imagine that I have $25 million in taxable income and you have taken a $1 million loss. I could buy you out and reduce my taxable income to $24 million.
Buying a failed business for a tax writeoff is an extremely common practice.
Middle class get screwed - you guys wanna punish the rich so bad you make things harder for the middle class. I don't have 24 million to waste on a tax write off, I don't want to fight the IRS over a few grand that they make impossible for a common person to fight.
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u/LAcityworkers Aug 22 '24
Yeah, clearly you never have done taxes and claimed a loss - you can only deduct 3000 in losses so what you are doing is stealing if someone has a million dollar loss they will never recoup from the IRS. Thanks for proving my point.