Yes, and 20% is the worst case for LTCG tax. There is the opportunity for 0%, depending on income levels, but the likely rate is 15%.
I don’t understand why someone would realize $4400 in short term gains (the 200 shares sold when the stock doubled after six months) but then become concerned about taxes on the long term gain of $6750 for the remaining 50 shares. If the short term rate is 22% and the long term rate is 15% then the amount of tax is roughly the same in both cases.
Well, well, well: all of a sudden silver is falling 15% and gold 7.5%.
Some say it is because tanTrump has nominated Kevin Marsh as his candidate for the Chairman of the Board of Governors for the Fed. This nomination does not mean he will be approved by the people who have the last word on this, nor will anything be a guarantee that he will behave in a certain way and not another, but "The Markets"™ are analyzing this choice has a TACO move, a sign of rationallity, i.e. caving in to them. We’ll see, many people have turned sycophants in tanTrump’s proximity. See Scott Bessent, for instance. He was also considered rational, and see where he is now and what positions he defends in public.
How much whipsaw do you predict for the day? Even yesterday they each went from opening significantly up to swinging significantly down to ending … flat.
I am only confident that the swings will be larger for silver than for gold but where each will be mid day and then end of day? I have zero idea.
I have no idea either. Not for today, not for next week. I agree that silver seems to double the current gold exagerations, both up and down.
If you twist my arm and force me to guess I would read the tea leaves as: gold will stay more or less at the current level for a while, perhaps a little lower (10%?) – silver will fall by 25% soon.
I am paying the extra IRMAA this year (it comes due two years after the triggering event). My normal income is so low, that with the increased IRMAA medicare assessment and the fact that my University health insurance, which cost me nothing in previous years, now costs almost $200/month, it looks like, for the first time in my life, I may be able to deduct some medical expenses if I itemize. I am kinda pissed. I will probably either put the Palantir shares into a Directed Giving account or pass them to the kids in my estate.
Kevin Warsh, not Marsh. And Trump apparently thinks that interest rates should be at one percent, rather than the current 3.5 percent to 3.75 percent. Trump said, “We should have the lowest rate in the world.”
If the Fed really does drop the interest rate that much, it will be a sign that the Fed is no longer independent.
I am expecting a lot more froth and turbulence for silver. I think it attracts the “hot” money much more right now and that hot money peels off as fast as it piled on.
You are correct, I did assume that since we are only talking about mid four figure gain that IIRMA and NIIT are not an issue, but you have clarified that that are. That sucks, but congrats on having enough income that these are concerns. That being said, you also say that your income is usually low, so maybe you can wait until a low income year and perhaps be able to take advantage of a 0% LTCG rate. Unless the stock tanks, in which case the problem goes away.
Correct. And Paul Krugman does not seem to have him in high esteem. The best he can say about him is that he will probably not be able to do much harm:
The silver lining to his appointment is that he shouldn’t be able to do much damage, although with one big caveat.
[…]
Fed chairs can only drive policy through persuasion — and Warsh lacks the intellectual and moral credibility to be effective on that score. But God help us if we enter a crisis that requires decisive Fed leadership, the kind Fed chair Ben Bernanke showed during the financial crisis, or Jay Powell is now showing against Trump’s attacks.
From
I apologize if it sounded like I’m “crying poor” when I have more than enough to maintain myself & the cats in our adequate, albeit modest, lifestyle. I know that most people in the US, including many Dopers, have it a lot rougher.
What I object to is the tax code “gotchas.”
Every investment decision should be made with full knowledge of the tax consequences. Far, far easier to say than to do.
But IRMAA, NIIT, taxation of SS benefits, and short vs long term capital gains tax are the biggies. Other than the basic progressive ordinary income tax brackets. So there are really about 20 tax brackets and some ways to game the system a bit in the gaps. By “game” I mean that you may have a choice of obtaining spendable income from source A or source B and the same amount of income may be taxed differently depending on which source you choose to tap.
Even with that full knowledge, a tax-aware and wisely chosen decision made in e.g. January might end up forcing your hand on another transaction later in e.g. December as happenstance during the year have moved you right up against one of the expensive breakpoints.
I have long taken the philosophical position that most people over-care about the taxes, and under-care about investment performance. IOW, they make dumb decisions on investments in order to avoid paying a fraction of their gains in tax.
There are spots, ref my “games” above, where you can hurt yourself with tax-clueless play. But rather few people are positioned right there where that’s a statistically realistic concern. IOW somebody is going to be in the exact right spot to screw themselves, but good bet it isn’t you and it isn’t this year.
Good lord. Switzerland has been at 0% since June, and had negative interest rates from 2015-2022. Let’s pump the brakes on yet another verbal purge, shall we Donnie?
No apology needed. And I think most will agree with you regarding the seemingly endless gotchas that are out there. As a young retired, it’s not too bad keeping up with everything, but I expect it to get worse as I get older. It’s really far more complicated that it should be.
You may find the following link useful. The person who posts this information updates it every year.
https://www.early-retirement.org/threads/some-important-trigger-levels-for-2026.127421/
Ditto.
The tax regime for investments gains in Germany is very simple: 25% plus 3% of “solidarity surcharge” (has something to do with a special fund to help re-develop Eastern Germany, established by Helmut Kohl’s government after reunification, a typical anachronism that will long outlive its usefulness and justification) on realised gains, no tax for what you don’t sell. I have often seen my bank and tax advisors raise their eyebrows in disbelief when I say that I would love to pay more taxes. If I paid one million, it would mean I have earned four, and can keep three (roughly rounded). After the surprise, they usually nod.
I am in the phase of my life now where all my income comes from investments and savings, no longer work.
Of course the four million mark is just an academic example, not a figure I would expect to achieve. Would be nice though.
If the damn swiss can have negative interest rates, we can have negativerer interest rates … get me that f***ing Warsh guy on the phone!
On a more “technical” level, a decent amount of positive interest rate (alternative cost) go a long way in the factor allocation segment. If money is “basically free”, all kinds of stupid projects get started, just look at 2007/subprime, etc…
IOW: If you can’t earn 5% in a new project, maybe you shouldn’t start it.
I read some of the posts here and realise that I’m lucky. Here in New Zealand, it’s a lot simpler if you’re dealing with ‘play money’. We have a $50,000 purchase limit on overseas shares, below which you won’t pay a capital gains tax. NZ shares don’t count towards that limit.
My share trading app does all the relevant calculations for me anyway and submits an annual tax statement to Inland Revenue, so I don’t have to do anything else apart from trade.
What trips me up sometimes is the exchange rate. I’ve more than once sold, thinking I’m getting a decent % gain, only to realise the currency exchange movement has worked against me and left me with next to nothing or even a slight loss.
Yep, every investment in shares/bonds/real estate in a foreign currency is really 2 investments:
both are independent from each other … and might very well cancel each other out