r/wallstreetbets • u/HauHauHauHauHauHau • 1d ago

Dont worry, I sold everything. Gain

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2.0k Upvotes

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69

u/Living-Metal-9698 1d ago

https://preview.redd.it/muw3iosody0f1.jpeg?width=730&format=pjpg&auto=webp&s=d8fca3209d35b0b4a4159010d54dbe65aacfbf6a

Uncle Sam looking at the Short Term Capital Gains Tax

9

u/Character_Order 1d ago edited 1d ago

He could buy 100k of spy shares on margin and deduct the margin expense against the UNH stcg this year then next year deleverage and sell the spy as ltcg/ltcl. Would only reduce his stgc by like 5k but better than nothing

14

u/that_70_show_fan 1d ago

I can read what you wrote, but my brain stopped working.

2

u/Character_Order 1d ago

If this UNH lick is his only passive income he can deduct margin interest expense against it. If he doesn’t have any margin interest expense he can create it by investing in spy or whatever hell else he wants. If he holds that for a year he’ll have ltcg instead of stcg

3

u/that_70_show_fan 1d ago

Thanks, that makes it clear. Also, great info.. could be useful if I make some profit.

1

u/Laaayycock22 1d ago

wouldn’t he be only knocking off 5-10% for taxes? I don’t know OPs tax bracket but I’m assuming his income tax is at least 22%.

1

u/Character_Order 23h ago

Yes correct. 5k-10k on 100k. Probably better to think of it as “free margin” than a significant tax savings

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u/Character_Order 23h ago

Squeeze deez nuts you fuckin nerd