• breetai@lemmy.world
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    6 months ago

    Well if I had to pay unrealized gains I’d have zero but have to pay taxes on 20 million.

    It’s why we don’t do it. It would be overly complicated.

    • Bytemeister@lemmy.world
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      6 months ago

      No, you would pay taxes on the unrealized gains of your assets. So if your assets are worth 0, then you pay 0. If they are worth 20mil, then you pay taxes on 20mil.

      Just a quick reminder, one of the main principles of capitalism is risk vs reward.

      • breetai@lemmy.world
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        6 months ago

        That’s my point. They were worth 20 million. Due to legal restrictions I couldn’t sell. As such I would have to pay taxes on 20 million. When I could sell they were worth zero.

        So I would have ended up negative.

        • Bytemeister@lemmy.world
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          6 months ago

          Sounds like that stock wasn’t worth the risk then. That’s capitalism in a nutshell brahski, people lose money betting on the market every day.

          • breetai@lemmy.world
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            6 months ago

            It was part of my compensation. It didn’t cost me anything.

            It’s naive to think we will ever tax unearned income. Not only is it against the law, it would destroy everyone.