You are quite entitled to your opinion, after all there are two sides to every trade. So follow your conviction and make the sale. However I would suggest that there is an inherently high risk in this trade a couple of days before Q1 earnings. Also this is maybe something that you should have done when the price was in the high 800's, as I did. Either way good luck!
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Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
- Thread starter AudubonB
- Start date
You are quite entitled to your opinion, after all there are two sides to every trade. So follow your conviction and make the sale. However I would suggest that there is an inherently high risk in this trade a couple of days before Q1 earnings. Also this is maybe something that you should have done when the price was in the high 800's, as I did. Either way good luck!
One thing is for sure, if long term gains were taxed the same as short term, the increase in volatility would be dramatic. A major reason to NOT day trade is to get the tax advantage of holding something long term. Stocks like TSLA could see really large swings that make the current volatility look like child's play.
If it's a rental, and one qualifies as a real estate professional to take advantage of depreciation expense, then even the cash flow could be tax free. Upon sale, there's a concept called 1031 exchange where you buy a similar like in kind property of value (or properties that equal the value) and avoid capital gains taxes. Regardless if this bill passes or not, I'm sure there will be plenty of loopholes the K Street folks in good ole' DC will put into the bill to help the millionaires and billionaires avoid paying too much taxes!
They also discovered that handguns are especially dangerous, since other long guns have a very long barrel that makes it difficult to reach the trigger if a user put the muzzle in his/her mouth.
Hence CR is urging all handguns to have at least 16 inch barrel length.
The
First off real estate, even cash flow profitable real estate, almost always loses money on paper.
And when you sell, even with huge capital gains on tax depreciated properties, you can 1031B it, buy even more property and PAY NO TAX at all.
This is for investment properties of course.
What you do not get in real estate: overnight 100% gains.
So works great for people already rich to continue to grind huge amounts of money every year. But hard to become a billionaire without starting with a good amount of cash (millions) and making good investments for 30 years.
Does not... until it does.
First off real estate, even cash flow profitable real estate, almost always loses money on paper.
And when you sell, even with huge capital gains on tax depreciated properties, you can 1031B it, buy even more property and PAY NO TAX at all.
This is for investment properties of course.
What you do not get in real estate: overnight 100% gains.
So works great for people already rich to continue to grind huge amounts of money every year. But hard to become a billionaire without starting with a good amount of cash (millions) and making good investments for 30 years.
I'm not a US citizen, so not very clued-up on the tax rules, but at a basic level, capital-gains, is capital-gains, no?
So let's imagine you have 1000x $TSLA in your portfolio today, but you're worried about this new tax, so you sell it all and buy a property somewhere
First observation is that you'll pay tax on selling those shares. Second observation is that if $TSLA doubled a year later, you'd held then sold, or sold for the "real-estate", it doubled then you sold, it's the same gains = same tax, except you're worse off, because you sold the $TSLA to buy the house, shed, mansion (state dependent)
But more likely, is that $TSLA, or some other high-growth stock might 3x over the next year. Yes, you'll pay more tax, but you'll be paying more tax because you made more capital gains (if, and on IF, you sell > $1M), but even with the extra tax paid, you'll have more money
Am I missing something here?
uujjj2
Member
Dude, I already did it, when the price was in the high 800s!
That is as concise and yet as anodyne of an example I’ve seen of why the lack of a middle ground is the real problem posed to civilization by the rise of internet communications.
TSLA today - not the action I was hoping for. If earnings were coming out on Monday BEFORE market open, I think we would have seen a larger rise. It looks like Monday will be FOMO day if we have one. Premiums for options next Friday are high, so it is great if you are willing to take on the risk of selling those options today going into Monday earnings....
Joe F
Disruption is hard.
Does anyone here know how to block posts by keywords, like "taxes" or "tax rate"?
AaronP85
Member
My kids love the idea too so they drew up what this could look like but the slapper is on the outside of the car. It could work. Can somebody send it to the patent office?
uujjj2
Member
I'm not recommending other assets. Tesla is an uber awesome company, long term and short. All the other investment vehicles (real estate, growth stocks, value stocks, bonds) in the US are also overpriced. I'm saying to take (some of) your gains and buy your dream car and take a vacation.
Pezpunk
Active Member
eh, i think it's obvious that the "natural" pressure of the stock has been upward this week, but it's been artificially hamstrung by the autopilot silliness and the capital gains scare.
It's not the lack of a middle ground, it's the appearance of no middle ground because internet communications are used to take people's comments and twist them so they appear extreme. Capitals gains are already progressive. But if you oppose making them extremely progressive, you are now self centered and don't appreciate the existence of sidewalks and sewers.
Paracelsus
Active Member
I think putting TSLA just below the 3 month resistance line prior to earnings is a brilliant play by MM's. If TSLA earnings are a blowout we could see >100 point move to the mid-800's quickly. And if it is a disappointment, we could see a move to the 1 year support at ~650 just as fast. Taking a deep breath and a longer view going into earnings was what the slapping machine taught me over the years.
4/23 - 750 Open Interest -17.9 calls
4/30 - 750 O.I - 7.3K calls .... so ya 750 might be easier to cross next week. 800 call strike has 15K O.I
( note, just like the weather, the further out you are the less accurate the predictions
)
bkp_duke
Well-Known Member
You can write off depreciation against the purchase price, among other things.
I have a house in another state, first house my wife and I owned, that we have rented out for 12+ years. It's a money maker rental unit, and we've never once paid a penny in state or federal taxes on it. Only the annual property tax (which is an expense that can be written off against the rental income).
tschmidty
Member
I have been wishing for something like that for "robotaxi" for a long time...
So for perspective on SP price movement remember when were we were fighting fort $630...oh, like 3 weeks ago? Definitely frustrating but but not as frustrating as the AH algo rise on Monday on great earnings and the hard walk back we will see Tuesday morning.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
Today's so far 1,8% in the green (just a tad more than NASDAQ +1,5%) on low volume feels analogous to if everyone sitting around a table playing Texas Hold 'Em would just call on the flop. The comes Monday (analogous to the turn) where the same thing is going to happen, then ER which is the river (final card) and only after that are we going to see some action...
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