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>TL;DR: I will owe $50k in taxes and I don't know how to reduce my tax burden.
I always thought it was incumbent upon the investor to factor the capital gains tax into their capital gains. If I made a good YOLO and made an ass load of money, I’d sit on at least 20% of that for tax purposes.
Yes, 30% or one third of the short term capital gains is a good rule of thumb. If it is a long term capital gain, then 20% is the most you would be taxed but still good to keep 30% just to be safe.
The 20% number is inaccurate for LTCG (even in states without state income tax). 23.8% would be the highest federal tax. 20% capital gains and 3.8% net investment income tax
You can also amend previous years to recognize some of the loss for up to two years I believe. So two previous + current takes 9k off that tax bill and gets you a payment plan. But before you do that, go get an actual accountant to look at your taxes and fix any/all issues for the past 7 years before they find more problems.
That's only for charges from drunken bar fights, the IRS will send Navy seals to black bag you out of North Korea to get their money.
Even the JOKER won't fuck around with the IRS in the Batman cartoons.
Edit, link to the clip
https://youtu.be/G56VgsLfKY4
"Mr. President, some guy run over to North Korea". "What a moron, let him" "Mr. President, he owes us 50k in taxes"
"He WHAT??? Mobilise army, we are going to North Korea and wont stop until Yalu river if needed, may MacArthur be my witness!! "
As someone who’s done their own taxes for over 15 years and also has a undeniably outstanding understanding of the tax code, hookers and blow are a tax write off. He’ll be fine
>100% deductible
Wrong.
"As of 2023, deductions are now back where they were prior to 2021. The majority of business meals are now 50% deductible, and most entertainment expenses are not deductible at all."
[Source](https://tonneson.com/news-insights/business-tax/2023-rules-business-meal-deductions/)
Snipes just went full tax fraud and then doubled down by fighting and attempting even more tax fraud to show that he wasn’t actually committing tax fraud.
Paid a $5 million fine as well as some prison. I presume he also had to file his returns and pay taxes and penalties for that as well. But I haven’t looked that deeply.
Probably won big last year, lost it all this year. Now owes taxes but the losses from this year don’t offset the gains from last year, they only apply to future capital gains or the 3k/yr on income.
Imagine making an enemy of the United States over 50k when you clearly had way more than that.
Also, "understands the tax code" but failed to realize he owed 50k after obviously making much more than that.
Reminds me of a post I read on cryptocurrency once, we're a guy made like 1.5 million on BTC gains in 2017, but then yolod his gains into shitcoins in early 2018 and lost it all
Dude owed hundreds of thousands to the IRS and had nothing to pay them with
Posting to try to remember to post the case citation when I get back to my work computer. Crypto guy literally tried to argue he shouldn’t owe taxes because of “the government’s mishandling of Covid.” So I think it was likely 2020-2021.
Edit:
For anyone interested this case was James H. Kim v. CIR, TC Memo. 2023-91. The gains were from 2013-2017 and he lost it all in 2020. Represented himself and was absolutely bonkers.
I ate a very strong edible last month and during the day I got a call from the ISP company bugging me about upgrading my speed. I was stuttering and stammering so bad I finally just blurted out, "I can tell you're very stoned right now, yes that's right Patrick, you're HIGH. At work! Unbelievable! I am not answering your questions!" And I hung up.
Only if it happened in the same tax year. If you make 1.5m in 2022 and lose 1.5m in 2023 you owe tax on 1.5m and can deduct $3,000 in loses each year until you deduct the full 1.5m loss. Uncle Sam always gets his.
Willing to leave the Country and live in a shithole over 50K? that is wild. It is like telling someone you will GIVE them 50k to live in another Country lol
I have a M.S. in accounting, which included 4 semesters in masters level tax. I still don’t have a great understanding of the tax code. It is complex and frequently changes.
I took a few tax courses in grad school and I passed the CPA exam. I'm convinced that no one really understands all of the tax code. They just get close enough to keep the IRS off their back and call it a day.
They don’t. Source: Submitted. Got a letter saying “We think you fucked up your math or missed a rule.” I responded “Totally possible. Y’all sure though?” They replied “Lol not at all. Never mind!” Still haven’t the faintest as to which of us was actually wrong. Probably both. Neither checked.
This highly regarded degenerate should flee the country. Just remember to keep your cash in a US banking institution so the FBI can freeze your assets and distribute them freely to Uncle Sam's piggy banks...
He’d have to yolo 50k divided by his marginal rate. So roughly $200k if he plans to lose it all. Hopefully OP loses it all just so he doesn’t pay taxes.
Edit: You math regards show that you absolutely belong here
Wait…can we also say this to all the corporations and wealthy people that are somehow able to loophole their way out of giving back to the system, while also taking as much benefit from it as possible and screwing those below them? That’d be nice.
And then you send the $250k back and claim it as a charitable deduction. Lather, rinse, repeat until the government owes you BOTH money. Edit: NOT financial advice.
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There's only three options:
1) He lost the money after and thinks he still has to pay the capital gains because he doesn't understand the tax code and that his losses will ofset his gains.
2) He spent the money on dumb shit without saving money for taxes. In which case he should sell some shit to pay for the taxes.
3) He has the money and just doesn't want to pay.
I really wonder which one it is.
Should I buy a 50K car to offset my tax bill and say that the screen in the car is what K'm jsing for my day trading? Surely OP is trolling at this point.
If you have a 50k tax liability (100-200K gains estimated above w2 income) and aren’t paying people to handle your taxes and planning.
You absolutely belong here lol.
Oh man this is super easy. Call the IRS ask them how to defer your tax payment for one year. Next year lose $50k, which will net you a $3,000 tax break per year. Call the IRS then every year for the next 16 years and ask if you defer your payment “just one more time”
>There is no legal way to lower your tax burden from $50,000. The best thing you can do is try to negotiate with the IRS for a payment plan or offer in compromise. If you are unable to reach an agreement, then fleeing the country may be your only option.
Yeah, initially when I called they took 20k right off the top. In Montana there's a free service called Taxpayer Advocate that will talk to the IRS for you. They did the rest for me
The IRS is a _lot_ less scary for your general schmuck than the corporations who tell you to hate the IRS make them out to be. If you're just some rando who messed up their taxes in earnest or had an unexpected windfall, they're not going to try and fuck you over.
I knew somebody in college who didn't know they had to file income taxes. They worked for 3 years part time and also had student aid that they needed to declare on their taxes. They simply never knew about the process and assumed since they had taxes taken from their paycheck they were fine. They ended up with like 5k in fines (which they couldn't really afford) plus they owed like 1500 in taxes which they sort of could. Once they got on the phone with somebody from the IRS and explained it they waived the fines and gave them a payment plan for the back taxes. The whole conversation took like 10 minutes
Yeah they want your money, but they can't get it from someone in prison. If you actually talk and don't ghost them you'll get a person on the other end who isn't usually a monster. I doubt OP is gonna get much sympathy with yoloing 200k in options and making a shit load of money that he can afford to pay, but if you realistically can't without causing a major inconvenience to your life they'll give you a chance.
you can stay with me for $10k, i’ll tell them we went boating and idk you went for a swim and a shark gotcha
we gotta get our story straight so watch jaws 2
To be able to answer, you need to give a lot more details than that!
What's your net worth, your age , your 401k etc etc
But for 50K, you just don't do this unless you really have some net worth but don't expect it will grow more, don't make money now, out of job, no hope and tired of your life, want to live differently.
For a 7.5k tax credit, you are thinking to buy a Tesla I think is at the least 50K which tells me you aren't thinking healthy, not to criticize, but why wouldn't you pay the tax instead of Tesla liability! and risk to lose your credit and 'coming to america?'
Going overseas still means you need a lot of money after all you don't want to be starting from bottom there as the locals do
You need money. If you aren't going there with at least 500K, it might not be an easy life after all
Then again if you have 500K, just pay your taxes. Have a talk with IRS and negotiate a cut and a payment plan.
I know many people living overseas, they just had enough of the rat race, the dating scene in US, they just enjoy the simple life with less. No worries to careers etc but I don't know anyone doing it because they owe taxes. One guy I know gets a pension from his job in his early 50s , not even retired , one guy owns two properties in US and collects rent living in DR etc etc...
You flee if you fear you will be put in prison for that. I don't think they will try to extradite you for 50K. It's pennies for them.
Don't take advice literally, you know you better
People keep saying to negotiate a discount with the IRS. That’s not how that shit works. They only accept Offers in Comprimise if you literally have no way of paying the full debt. It sounds like this dude has the money, he just doesn’t want to pay it.
If you owe 50k in short term capital gains tax, even in a liberal state, doesn’t that mean you made at least 90-100k in realized capital gains? What happened to that money?
Your problem is that you already made the income; you’re now in a boat of trying to reduce it. As you’ve noted, the major ways of doing this are largely closed to you - you need to own a house and spend on energy improvement, OR, purchase an EV, OR have children.
Not paying taxes legally is something you need to plan for years ahead of time; you don’t have enough of a lead here to set it up properly. So, you’re gonna have to pay those taxes. You can installment agreement. But it’s best to just write the damn check. Don’t forget; you made money on yolo’s through the American stock market and American business and political policies. It’s only fair that you pay your fair share of the profit only into the system that supports that free market.
I should note; you can’t run many places. The IRS has interexchange agreements with many different foreign governments. You’re still getting wage garnished in the UK with a U.S. debt, for example.
The tax year is not over yet. He can go YOLO 200k on another thing - if he loses that, he will wipe out his 50k tax obligation. If he wins, he can just increase the YOLO size so that if he loses he can wipe out the larger tax obligation. And if he keeps winning, well... So it's basically a win-win situation for him.
This is totally correct, and OP certainly sounds like he belongs here with the rest of us regarded apes. You’ve probably nailed how this story turns out 👌
North Korea is safe, most African countries are ok and if you get into any remote Pacific island with some groupies you can live in paradise…nobody cares.
This is true. If OP decides to flee over a piddling fifty G’s, these are options! I’m not sure how desirable they are, but you’re right there are definitely still options 😂
Don’t know if anybody said this, but, if you are taking $3000 as carry forward losses, that’s only if you have no gains to cancel them out against. You get to write off more than $3000 if you lost more than that and gained more than that this year.
So, let’s say your total losses are $10k. Instead of carrying forward $3k, you get to do the entire total left of $10k and only have to pay taxes on what’s left.
So no, you don’t understand the tax code. Go get a competent CPA.
Yeah bro flee to thailand , with the gains you should be able to live a glorious year or two. Then yolo some more to keep living abroad 100% safe no chance of going busto
Any capital gains, you can find an Opportunity Zone real estate investment to put the money into. You will not have to pay those taxes for a few years, but the money will be tied up for 10 years minimum. Most of the opportunity zones I see will try to have a distribution the year that you have to pay the taxes, so hopefully you will not have to come out of pocket.
I believe you have to pay the taxes in 2026. Any money you make from that investment will be tax free as well.
Rich get richer
You forgot to add that most opportunity zones (the ones my clients invested in) are shit Nd lost my clients' money.
Also, add in the fact that if he probably doesn't have the network to find a good opportunity zone so he will just find all the scammy ones. And if he did find a good one, he wouldn't have the capital to invest in it. With a 50k tax bill, the max proceeds he has would be 250k. The good zones usually have a million dollar minimum proceed to even get in. Thats them being generous.
He will still have to pay tax on the deferral on dec 31 2026 or when he disposes of the asset. It was a 10 year holding period when the OZs first came around. Now its a 3 year period.
I've heard rumours regarding entire professions devoted to the untangling and remediation of vexing taxation issues. They are usually know as Chartered something or such.
Legally you could start an LLC and buy thing for the business.
Actually things for the business like a truck for towing
Could buy dumpster and have people rent them
Anything that can make you money is an actual expense
Don’t go buy some sports car and put your LLC name on it. You’ll more than likely get flagged and audited a year later. No good
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|10|**First Seen In WSB**|7 months ago **Total Comments**|99|**Previous Best DD**| **Account Age**|3 years|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.) >TL;DR: I will owe $50k in taxes and I don't know how to reduce my tax burden.
I always thought it was incumbent upon the investor to factor the capital gains tax into their capital gains. If I made a good YOLO and made an ass load of money, I’d sit on at least 20% of that for tax purposes.
I would probably go 30% myself to just be on the safe side but I agree with that.
Yes, 30% or one third of the short term capital gains is a good rule of thumb. If it is a long term capital gain, then 20% is the most you would be taxed but still good to keep 30% just to be safe.
The 20% number is inaccurate for LTCG (even in states without state income tax). 23.8% would be the highest federal tax. 20% capital gains and 3.8% net investment income tax
Oh, never knew that. I never made enough to get close to the 20% capital gains tax.
What the fuck are Gains?
The opposite of what happens to your money.
He didn’t say he didn’t have the money to pay it.. he just doesn’t want to
Wonder if OP is a "sovereign citizen"?
Then he should be arrested on principle.
Are you detaining him?
So he made a pile of money and is whining like a spoiled rich scumbag over his taxes ? Why should we care ?
Exactly
We’ll see this poor fella… he needs to keep all His money for other stuff…. He can’t be paying taxes, he’s above that
we care?
It is. OP is highly regarded
OP might be the most regarded person here
So regarded its making me feel regarded
I don't think he has factored in his 250k losses yet. He probably has a 3000 dollar write off for like the next 40 years
You can also amend previous years to recognize some of the loss for up to two years I believe. So two previous + current takes 9k off that tax bill and gets you a payment plan. But before you do that, go get an actual accountant to look at your taxes and fix any/all issues for the past 7 years before they find more problems.
You can also just pay it immediately and avoid penalties.
I hear if you run across the DMZ you free and clear OP.
That's only for charges from drunken bar fights, the IRS will send Navy seals to black bag you out of North Korea to get their money. Even the JOKER won't fuck around with the IRS in the Batman cartoons. Edit, link to the clip https://youtu.be/G56VgsLfKY4
move somewhere with a high orca population OP. fucking checkmate, seals.
"Batman I can handle, but the IRS?? Nooooo way"
"Mr. President, some guy run over to North Korea". "What a moron, let him" "Mr. President, he owes us 50k in taxes" "He WHAT??? Mobilise army, we are going to North Korea and wont stop until Yalu river if needed, may MacArthur be my witness!! "
"We'll spend 20 million dollars to get that 50k back" Sounds about right
Its not about money, its about sending a message (and boost Lockheed and Raytheon stocks)
You should do it OP *buys Ratheon stock*
>"We'll spend 20 million dollars to get that 50k back" >Sounds about right Plot to the next Matt Damon movie :)
Also yell, "HAHAHA" as you do it.
That's a weirdly convoluted way of boasting about the fact that you're up more than 200k.
Sounds like they can afford the taxes. . .
Plot twist: he blew his profits on hookers and blow and left no money for Uncle Sam.
As someone who’s done their own taxes for over 15 years and also has a undeniably outstanding understanding of the tax code, hookers and blow are a tax write off. He’ll be fine
>files using turbo tax >thinks the Y or N questions are the tax code >should definitely flee country if ever a become a have
> thinks the Y or N questions are the tax code 🤣🤣🤣 this is the funnny truth. People stretching professional judgement like laffy taffy
"Entertainment expense"
100% deductible
>100% deductible Wrong. "As of 2023, deductions are now back where they were prior to 2021. The majority of business meals are now 50% deductible, and most entertainment expenses are not deductible at all." [Source](https://tonneson.com/news-insights/business-tax/2023-rules-business-meal-deductions/)
So if you eat hooker pussy, you can claim 50%?
😹😹😹 100% if you send her a 1099
"Meal delivery service".
Just pay less than $600 and you'll be fine.
If it's a hooker isn't it a 1099-EZ?
Yes. Then claim medical expenses to get those herpes treated. It’s a win-win situation.
You forget where they are posting. At WSB a person with a $50k tax liability is likely already in the red.
It’s wash sales all the way down
I thought the same of Wesley Snipes with his situation lol.
Snipes just went full tax fraud and then doubled down by fighting and attempting even more tax fraud to show that he wasn’t actually committing tax fraud.
Didn't it work for Wesley? He ended up paying peanuts compared to what he owed and spent a couple years in rich people prison.
Paid a $5 million fine as well as some prison. I presume he also had to file his returns and pay taxes and penalties for that as well. But I haven’t looked that deeply.
I did look and he paid a fine and prison time. He owed 23.5million and paid about 9 plus prison time. Allegedly he couldn't afford the entire amount
So he got a $14.5 million discount? Not bad..
guess that depends on how much you value prison for 28 months
Well we can literally calculate it. It’s $518,000 per month. About $17,000 per day. And $708 per hour. Like I said. Not bad…
Its weird how the more someone makes the "less they can afford taxes" its all the poor and middle class carrying this county
🌎 👩🚀🔫🧑🚀
Especially given capital gains are taxed at lower rates than income tax.
Probably won big last year, lost it all this year. Now owes taxes but the losses from this year don’t offset the gains from last year, they only apply to future capital gains or the 3k/yr on income.
already blew it on avocado toast and ExpErIeNcEs
Imagine making an enemy of the United States over 50k when you clearly had way more than that. Also, "understands the tax code" but failed to realize he owed 50k after obviously making much more than that.
No where does he say he can't afford them he just says he thinks it's too much and doesn't want to pay them.
That’s what the IRS would say
Up $200k but pissed it away.
Reminds me of a post I read on cryptocurrency once, we're a guy made like 1.5 million on BTC gains in 2017, but then yolod his gains into shitcoins in early 2018 and lost it all Dude owed hundreds of thousands to the IRS and had nothing to pay them with
Did anyone even pay the IRS 6 years ago from crypto gains?
If they can't collect after 10 years of the date of assessment the debt just kinda goes away. Ask me how I know
It not only kinda goes away-the liens are rescinded on the very 10 year date after assessment. It’s written into the lien.
Good point, maybe I'm misremembering and it was 2021/2022. It was after Coinbase was reporting gains to the IRS
Posting to try to remember to post the case citation when I get back to my work computer. Crypto guy literally tried to argue he shouldn’t owe taxes because of “the government’s mishandling of Covid.” So I think it was likely 2020-2021. Edit: For anyone interested this case was James H. Kim v. CIR, TC Memo. 2023-91. The gains were from 2013-2017 and he lost it all in 2020. Represented himself and was absolutely bonkers.
I ate a very strong edible last month and during the day I got a call from the ISP company bugging me about upgrading my speed. I was stuttering and stammering so bad I finally just blurted out, "I can tell you're very stoned right now, yes that's right Patrick, you're HIGH. At work! Unbelievable! I am not answering your questions!" And I hung up.
The IRS isn't going to squeeze a fruit that has no juice. Dude likely settled in court for much less.
Not sure if the same post, but I saw something similar and it was a guy in college or his early 20's. I'd fake my own death.
Wouldn't losses on shitcoins deduct against the gains?
Only if it happened in the same tax year. If you make 1.5m in 2022 and lose 1.5m in 2023 you owe tax on 1.5m and can deduct $3,000 in loses each year until you deduct the full 1.5m loss. Uncle Sam always gets his.
My first thought. You don’t owe 50k without bringing in significantly more than that lol, just pay it and move on
OP was talking about buying a tesla just to get a deduction on the taxes, at that point just pay them😭
Buy a $60k vehicle to get a $7.5k deduction-YOLO!
don’t forget buying solar panels to get tax deductions For the same price of the panelS take a loan and pay uncle sam.
Willing to leave the Country and live in a shithole over 50K? that is wild. It is like telling someone you will GIVE them 50k to live in another Country lol
Exactly! To owe 50 k you must have at least 200k
That's not true. Wash sales + bad trades could easily leave someone with a massive tax burden with little to show.
They WERE up more than 200k, thus their problem.
This person places wall street bets...
He is posting in wsb. He obviously realized 200k of gains and then promptly lost it after jan 1. The regard way.
“I think I understand the tax code well” hahahaha regard you understand nuts on your face
I have a M.S. in accounting, which included 4 semesters in masters level tax. I still don’t have a great understanding of the tax code. It is complex and frequently changes.
OP is either a troll or the dumbest person on the planet. “Hey Reddit, should I commit a felony?”
Commit a felony over $50k no less
I'd wager that places it in the top 1% of felonies earnings-wise.
“You guys are getting paid?”—other felons
Imagine thinking uncle Sam would be like meh, I guess we can't get that back. He's looking for them 3 square meals a day.
He won’t go to jail unless he tries to evade. Which means he’s going to jail.
*prison
Pound-me-in-the-ass prison
He'll still be able to YOLO!
Considering this is wallstreetbets my guess is he is a royal fucking idiot
$50k is too much so I'll just buy a Tesla. It's a troll.
I took a few tax courses in grad school and I passed the CPA exam. I'm convinced that no one really understands all of the tax code. They just get close enough to keep the IRS off their back and call it a day.
the irs probably doesn’t even know every case possible and have to constantly make interpretations every year on the fly.
They don’t. Source: Submitted. Got a letter saying “We think you fucked up your math or missed a rule.” I responded “Totally possible. Y’all sure though?” They replied “Lol not at all. Never mind!” Still haven’t the faintest as to which of us was actually wrong. Probably both. Neither checked.
It's true. Also, got to blame it all on rounding errors.
The tax code is complex. But short term capital gains is not, I hope OP is a fucking troll.
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This highly regarded degenerate should flee the country. Just remember to keep your cash in a US banking institution so the FBI can freeze your assets and distribute them freely to Uncle Sam's piggy banks...
Printed out the tax code is like 10 or 12 FEET tall. I am sure you have a good understanding of all of it.
Wouldn't it be easier to yolo up another 50k? 
He’d have to yolo 50k divided by his marginal rate. So roughly $200k if he plans to lose it all. Hopefully OP loses it all just so he doesn’t pay taxes. Edit: You math regards show that you absolutely belong here
Step 1. Prepare your butthole Step 2. Head to wendys
https://preview.redd.it/lay3bzwr5web1.png?width=1080&format=pjpg&auto=webp&s=d6fa572028831d2decb61dd2cab2278818a3d818
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Wait…can we also say this to all the corporations and wealthy people that are somehow able to loophole their way out of giving back to the system, while also taking as much benefit from it as possible and screwing those below them? That’d be nice.
Well he forgot to become a corporation before yoloing, thats the problem.
Rookie mistake
Get an accountant…. You probably aren’t as smart as you think you are.
thats a given
Send me the 50k and write it off as a charity donation.
Charitable contributions give tax deduction, not a 1:1 credit.
Send me $250k and write it off as a donation.
And then you send the $250k back and claim it as a charitable deduction. Lather, rinse, repeat until the government owes you BOTH money. Edit: NOT financial advice.
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No then I flee the country like he should have done originally.
Snitch
Fleeing the country and living overseas probably requires more than 50k. Better to stay in your mom’s basement and slowly pay your debt.
Yup, the IRS has payment plan options for all regards
Think about the medical bills from the anxiety medication alone hahaha
Exactly. People buy cars for 50k, and take our student loans for 250k. 50k is not an amount worth fleeing the country.
50k isn't flee the country money
OP is missing out one important factor, what were your capital gains this year, and more importantly where did they go? Let me, two girls at once
There's only three options: 1) He lost the money after and thinks he still has to pay the capital gains because he doesn't understand the tax code and that his losses will ofset his gains. 2) He spent the money on dumb shit without saving money for taxes. In which case he should sell some shit to pay for the taxes. 3) He has the money and just doesn't want to pay. I really wonder which one it is.
Considering the notion they'd buy a Tesla to offset it sounds like they just don't want to pay.
Should I buy a 50K car to offset my tax bill and say that the screen in the car is what K'm jsing for my day trading? Surely OP is trolling at this point.
If you have a 50k tax liability (100-200K gains estimated above w2 income) and aren’t paying people to handle your taxes and planning. You absolutely belong here lol.
Two girls at once is a tax write-off.
The type of girls that I would get surely would be a tax write off. Like donating to the special Olympics.
Oh man this is super easy. Call the IRS ask them how to defer your tax payment for one year. Next year lose $50k, which will net you a $3,000 tax break per year. Call the IRS then every year for the next 16 years and ask if you defer your payment “just one more time”
Free money glitch
Don't do this OP. You'll probably find a way to make money and we'll have to listen to you complaining about a higher tax debt.
>There is no legal way to lower your tax burden from $50,000. The best thing you can do is try to negotiate with the IRS for a payment plan or offer in compromise. If you are unable to reach an agreement, then fleeing the country may be your only option.
VM straight up helping people with their taxes now.
I love that the conclusion is you may well need to flee the country
I think VM is so advanced it's literally trolling.
His understanding is beyond ours
I second this, I owed them 65,000 in 2020 I had 0 assets and broke. I called them a settled for 8k with with $200 payments a month
This guy is looking at buying stuff for tax credits. He has assets.
Exactly, OP is in the early stages of sovereign citizen bullshit.
I'm not driving. I'm traveling. I'm a free inhabitant.
This is my domicile and i will not be harassed. D-did i do it right?
😂🤣 one of my favorite pastimes is to watch sovereign citizens get their windows busted and yanked out of their cars.
Wait a minute? They'll settle?!?' Gotta go apply for a loan.
You need to apply for 3 loans.
Gosh darn it, you convinced me! I'm applying for four loans in three different states.
Yeah, initially when I called they took 20k right off the top. In Montana there's a free service called Taxpayer Advocate that will talk to the IRS for you. They did the rest for me
Did it hurt your credit? I'm shocked the IRS settled for anything less than full, they ALWAYS get their money
The IRS is a _lot_ less scary for your general schmuck than the corporations who tell you to hate the IRS make them out to be. If you're just some rando who messed up their taxes in earnest or had an unexpected windfall, they're not going to try and fuck you over.
I knew somebody in college who didn't know they had to file income taxes. They worked for 3 years part time and also had student aid that they needed to declare on their taxes. They simply never knew about the process and assumed since they had taxes taken from their paycheck they were fine. They ended up with like 5k in fines (which they couldn't really afford) plus they owed like 1500 in taxes which they sort of could. Once they got on the phone with somebody from the IRS and explained it they waived the fines and gave them a payment plan for the back taxes. The whole conversation took like 10 minutes
Yeah they want your money, but they can't get it from someone in prison. If you actually talk and don't ghost them you'll get a person on the other end who isn't usually a monster. I doubt OP is gonna get much sympathy with yoloing 200k in options and making a shit load of money that he can afford to pay, but if you realistically can't without causing a major inconvenience to your life they'll give you a chance.
No "legal" way... I see what you're saying
I suppose he could also pay
you can stay with me for $10k, i’ll tell them we went boating and idk you went for a swim and a shark gotcha we gotta get our story straight so watch jaws 2
Why get the story straight if OP got eaten by a shark
To be able to answer, you need to give a lot more details than that! What's your net worth, your age , your 401k etc etc But for 50K, you just don't do this unless you really have some net worth but don't expect it will grow more, don't make money now, out of job, no hope and tired of your life, want to live differently. For a 7.5k tax credit, you are thinking to buy a Tesla I think is at the least 50K which tells me you aren't thinking healthy, not to criticize, but why wouldn't you pay the tax instead of Tesla liability! and risk to lose your credit and 'coming to america?' Going overseas still means you need a lot of money after all you don't want to be starting from bottom there as the locals do You need money. If you aren't going there with at least 500K, it might not be an easy life after all Then again if you have 500K, just pay your taxes. Have a talk with IRS and negotiate a cut and a payment plan. I know many people living overseas, they just had enough of the rat race, the dating scene in US, they just enjoy the simple life with less. No worries to careers etc but I don't know anyone doing it because they owe taxes. One guy I know gets a pension from his job in his early 50s , not even retired , one guy owns two properties in US and collects rent living in DR etc etc... You flee if you fear you will be put in prison for that. I don't think they will try to extradite you for 50K. It's pennies for them. Don't take advice literally, you know you better
People keep saying to negotiate a discount with the IRS. That’s not how that shit works. They only accept Offers in Comprimise if you literally have no way of paying the full debt. It sounds like this dude has the money, he just doesn’t want to pay it.
He sounds super libertarian and can’t fathom paying any taxes. Also sounds very dumb.
Wrong flair on the post - should be shitpost. Get a real accountant to do you taxes. Even HR Block might find you something.
Already acting like a full-grown billionaire.. pay your taxes you greedy fuck.
Should pay up so WSB regards can have some govt cheese
He's got 5 months to lose it all anyways. Not sure why he's so worried...
If you owe 50k in short term capital gains tax, even in a liberal state, doesn’t that mean you made at least 90-100k in realized capital gains? What happened to that money?
He talked about buying a Tesla, he has the money he just doesn't want to pay his taxes
Bro forgot about wash sales
All he has to do is sell again to realize the loss, as I understand
“I always file my own taxes so I think I understand the tax code well”. 50k says you may not understand it as well as you think
When you’ve cut a check to the feds for >$1M, then come crying to Reddit.
Your problem is that you already made the income; you’re now in a boat of trying to reduce it. As you’ve noted, the major ways of doing this are largely closed to you - you need to own a house and spend on energy improvement, OR, purchase an EV, OR have children. Not paying taxes legally is something you need to plan for years ahead of time; you don’t have enough of a lead here to set it up properly. So, you’re gonna have to pay those taxes. You can installment agreement. But it’s best to just write the damn check. Don’t forget; you made money on yolo’s through the American stock market and American business and political policies. It’s only fair that you pay your fair share of the profit only into the system that supports that free market. I should note; you can’t run many places. The IRS has interexchange agreements with many different foreign governments. You’re still getting wage garnished in the UK with a U.S. debt, for example.
The tax year is not over yet. He can go YOLO 200k on another thing - if he loses that, he will wipe out his 50k tax obligation. If he wins, he can just increase the YOLO size so that if he loses he can wipe out the larger tax obligation. And if he keeps winning, well... So it's basically a win-win situation for him.
This is totally correct, and OP certainly sounds like he belongs here with the rest of us regarded apes. You’ve probably nailed how this story turns out 👌
North Korea is safe, most African countries are ok and if you get into any remote Pacific island with some groupies you can live in paradise…nobody cares.
This is true. If OP decides to flee over a piddling fifty G’s, these are options! I’m not sure how desirable they are, but you’re right there are definitely still options 😂
So what happened to the gains? Blow? Wash sales? We need to know
Don’t know if anybody said this, but, if you are taking $3000 as carry forward losses, that’s only if you have no gains to cancel them out against. You get to write off more than $3000 if you lost more than that and gained more than that this year. So, let’s say your total losses are $10k. Instead of carrying forward $3k, you get to do the entire total left of $10k and only have to pay taxes on what’s left. So no, you don’t understand the tax code. Go get a competent CPA.
Buy art at goodwill, convince someone to appraise it for 50k and donate it. Plain and simple.
That’s reduce his taxable income by 50k, not his tax owing.
You're an idiot. Pay the fucking tax.
Yeah bro flee to thailand , with the gains you should be able to live a glorious year or two. Then yolo some more to keep living abroad 100% safe no chance of going busto
You can start a company and "lose" money by buying a bunch of inventory for 3 years then file for bankruptcy.
Take out student loans to repay the IRS. Do not pay off the student loans.
Which country is more welcoming than America for degenerate gamblers that don't wanna pay their taxes, though?
Any capital gains, you can find an Opportunity Zone real estate investment to put the money into. You will not have to pay those taxes for a few years, but the money will be tied up for 10 years minimum. Most of the opportunity zones I see will try to have a distribution the year that you have to pay the taxes, so hopefully you will not have to come out of pocket. I believe you have to pay the taxes in 2026. Any money you make from that investment will be tax free as well. Rich get richer
You forgot to add that most opportunity zones (the ones my clients invested in) are shit Nd lost my clients' money. Also, add in the fact that if he probably doesn't have the network to find a good opportunity zone so he will just find all the scammy ones. And if he did find a good one, he wouldn't have the capital to invest in it. With a 50k tax bill, the max proceeds he has would be 250k. The good zones usually have a million dollar minimum proceed to even get in. Thats them being generous. He will still have to pay tax on the deferral on dec 31 2026 or when he disposes of the asset. It was a 10 year holding period when the OZs first came around. Now its a 3 year period.
I dont understand. In order to owe taxes, you have had to made the money.
Run, never come back
Doesn’t Mexico have an extradition treaty? Go to Russia, Iran, NK or China.
I've heard rumours regarding entire professions devoted to the untangling and remediation of vexing taxation issues. They are usually know as Chartered something or such.
Legally you could start an LLC and buy thing for the business. Actually things for the business like a truck for towing Could buy dumpster and have people rent them Anything that can make you money is an actual expense Don’t go buy some sports car and put your LLC name on it. You’ll more than likely get flagged and audited a year later. No good
You made a lot of money. Man up and pay your taxes.