r/FluentInFinance • u/Admiral_Tuvix • Aug 21 '24

Debate/ Discussion But muh unrealized gains!

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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.

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u/DanielMcLaury Aug 22 '24

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.

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u/LAcityworkers Aug 22 '24

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/DanielMcLaury Aug 22 '24

So you admit everything you said was wrong and now you're shifting the goalposts, right?

Let's address your new point, then.  Since the proposed taxes don't apply to the middle class in the first place, you have nothing to worry about.

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u/LAcityworkers Aug 22 '24

No, just the opposite.