4um: Question For 4um folks:

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Title: Question For 4um folks:
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URL Source: https://vidrebel.wordpress.com
Published: Mar 7, 2021
Author: Horse
Post Date: 2021-03-07 08:15:12 by Horse
Keywords: None
Views: 223
Comments: 7

It has been suggested that we will have a market correction before Income Taxes are due on April 15th. On one hand some suggest that a crash will force people to sell to pay taxes. On the other hand some think a crash will give taxpayers deductible losses which will cut IRS revenues.
Bonus thought: A Minsky moment is when investors sell the good stuff to pay for the bad stuff. That could happen in April if margin calls have to be met to cover tanking stocks like Tesla. Personally, I am not in the stock market.
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#1. To: Horse (#0)
some suggest that a crash will force people to sell to pay taxes. On the other hand some think a crash will give taxpayers deductible losses which will cut IRS revenues.

Most filers expect a refund.
And any deductible loss cannot be taken until the next taxable year.

Ada posted on 2021-03-07 8:45:48 ET Reply Trace Private Reply
#2. To: Horse (#0)
I file in early Feb, refund in 4 weeks, I get it over with ASAP.

Darkwing posted on 2021-03-07 10:09:31 ET Reply Trace Private Reply
#3. To: Horse (#0)
On the other hand some think a crash will give taxpayers deductible losses which will cut IRS revenues.

Losses in 2021 don't affect 2020 taxes.
The light that burns twice as bright, burns half as long. - Dr. Eldon Tyrell
Godfrey Smith: Mike, I wouldn't worry. Prosperity is just around the corner.
Mike Flaherty: Yeah, it's been there a long time. I wish I knew which corner.
My Man Godfrey (1936)

Esso posted on 2021-03-07 10:17:51 ET Reply Trace Private Reply
#4. To: Ada (#1)
And any deductible loss cannot be taken until the next taxable year.

Good points. But people with investments and businesses have to pay additional taxes apart from withholding.
The Truth of 911 Shall Set You Free From The Lie
Horse posted on 2021-03-07 10:41:59 ET Reply Trace Private Reply
#5. To: Esso (#3)
True. I never filed a long form in my life. Never had any taxes apart from taxable income from wages.
The Truth of 911 Shall Set You Free From The Lie
Horse posted on 2021-03-07 10:43:34 ET Reply Trace Private Reply
#6. To: Horse (#0)
Taxes due by Apr 15 were from finance records for the 2020 calendar year, so any crash between now and then won't reduce the amount due this year. It could be some are planning to sell stock and such to pay the 2020 taxes and they'd be hurt.
In that scenario, many might use the expected "stimulus" pay out to pay tax bills.

Pinguinite posted on 2021-03-07 10:51:59 ET Reply Trace Private Reply
#7. To: Pinguinite (#6)
Those people won't qualify for any stimulus cash.
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
Lod posted on 2021-03-07 11:52:16 ET Reply Trace Private Reply
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