Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

How to have a billion dollar exit with zero capital gains tax

axiomalpha.com

Post reply on HN
Print view View original

11–20 of 305 posts

Re: How to have a billion dollar exit with zero capital gains tax

#11

Post by nebulous_two »

imgabe wrote: post #6
Layke1123 wrote: post #2

Is this really what people strive for in the USA. To avoid contributing anything back to the country that helped them achieve everything they've ever wanted?

The government is not a charity. If they have deemed something to be non-taxable, it's because the government (and by extension, the people it represents) want to incentivize that particular activity, in this case investing in economically depressed areas. If at some point we no longer want to incentivize that behavior, the government can simply remove the tax break. Moralizing about how people shouldn't engage in th…

Do you also give all your information to a random caller that offers you a free cruise? I think you forgot that politicians are legally bribed to behave against the wishes and/or needs of the people.

You're right that moralizing is beyond useless. Instead let's define the bounds of our morality by our tax code. What can go wrong?

Re: How to have a billion dollar exit with zero capital gains tax

#12

Post by travisjungroth »

imgabe wrote: post #6
Layke1123 wrote: post #2

Is this really what people strive for in the USA. To avoid contributing anything back to the country that helped them achieve everything they've ever wanted?

The government is not a charity. If they have deemed something to be non-taxable, it's because the government (and by extension, the people it represents) want to incentivize that particular activity, in this case investing in economically depressed areas. If at some point we no longer want to incentivize that behavior, the government can simply remove the tax break. Moralizing about how people shouldn't engage in th…

The author suggests operating in areas near colleges because they're developed but the students artificially depress the wages (there's a big difference between a median income of $10k for a neighborhood of families vs college students). Selling these tax laws as the will of the people is a bit of a stretch.

Re: How to have a billion dollar exit with zero capital gains tax

#13

Post by imgabe »

nebulous_two wrote: post #11
imgabe wrote: post #6

Earlier quoted context omitted.

The government is not a charity. If they have deemed something to be non-taxable, it's because the government (and by extension, the people it represents) want to incentivize that particular activity, in this case investing in economically depressed areas. If at some point we no longer want to incentivize that behavior, the government can simply remove the tax break. Moralizing about how people shouldn't engage in th…

Do you also give all your information to a random caller that offers you a free cruise? I think you forgot that politicians are legally bribed to behave against the wishes and/or needs of the people. You're right that moralizing is beyond useless. Instead let's define the bounds of our morality by our tax code. What can go wrong?

I assume when you file your taxes, you refuse all deductions and tax credits that you're eligible for, because obviously the most moral thing is to give as much of your money to the government as possible, right?

Re: How to have a billion dollar exit with zero capital gains tax

#14

Post by spliunder54 »

imgabe wrote: post #6
Layke1123 wrote: post #2

Is this really what people strive for in the USA. To avoid contributing anything back to the country that helped them achieve everything they've ever wanted?

The government is not a charity. If they have deemed something to be non-taxable, it's because the government (and by extension, the people it represents) want to incentivize that particular activity, in this case investing in economically depressed areas. If at some point we no longer want to incentivize that behavior, the government can simply remove the tax break. Moralizing about how people shouldn't engage in th…

This is why people should stop complaining about religions. Of course it's done for the tax break. You don't cede power when the government allows you to grab it. If you want your special interest group to thrive in the US, get with the program and exploit the tax loopholes before they're gone.

Re: How to have a billion dollar exit with zero capital gains tax

#15

Post by imgabe »

Layke1123 wrote: post #10
imgabe wrote: post #6

Earlier quoted context omitted.

The government is not a charity. If they have deemed something to be non-taxable, it's because the government (and by extension, the people it represents) want to incentivize that particular activity, in this case investing in economically depressed areas. If at some point we no longer want to incentivize that behavior, the government can simply remove the tax break. Moralizing about how people shouldn't engage in th…

Or...the government is corrupt and used by the wealthy to write loop holes that allow them to escape paying taxes.

If you think it's corrupt for the government to offer incentives for people to invest in underserved areas where they otherwise wouldn't, by all means, write your representatives, or run for office yourself to end this corrupt practice.

Re: How to have a billion dollar exit with zero capital gains tax

#16

Post by jhugo »

Layke1123 wrote: post #10
imgabe wrote: post #6

Earlier quoted context omitted.

The government is not a charity. If they have deemed something to be non-taxable, it's because the government (and by extension, the people it represents) want to incentivize that particular activity, in this case investing in economically depressed areas. If at some point we no longer want to incentivize that behavior, the government can simply remove the tax break. Moralizing about how people shouldn't engage in th…

Or...the government is corrupt and used by the wealthy to write loop holes that allow them to escape paying taxes.

Seems to me that "the wealthy" could come up with simpler loopholes without the pesky requirement to actually invest money in depressed areas.

Re: How to have a billion dollar exit with zero capital gains tax

#17

Post by 0xy »

Layke1123 wrote: post #2

Is this really what people strive for in the USA. To avoid contributing anything back to the country that helped them achieve everything they've ever wanted?

Capital gains tax is a parasitical tax that punishes people for being responsible with their after-tax money. It also creates massive, massive loopholes that can be abused.

The fairest solution is to scrap CGT and associated capital loss write-offs.

This allows the middle class to thrive by investing in productive enterprises and not getting taxed yet again to do so.

It's the worst kind of tax that punishes success by stealing your after-tax money.

As for your appeal to nation, the US will waste your money on slaughtering Afghanistani children with bombs and handing out cash to serial fraudsters (look up how many people on Social Security are actually real). Most tax money is wasted by government.

Re: How to have a billion dollar exit with zero capital gains tax

#19

Post by thrwawy283 »

Layke1123 wrote: post #2

Is this really what people strive for in the USA. To avoid contributing anything back to the country that helped them achieve everything they've ever wanted?

I don't know why you're being downvoted. While I would commonly understand people want to avoid taxes, I think there's a real question in there:

Why don't people want to contribute back to an environment that enabled their success?

I have too many family members that will avoid acknowledging anything the government does for them.

"The social contract."

Re: How to have a billion dollar exit with zero capital gains tax

#20

Post by TAForObvReasons »

LewisVerstappen wrote: post #18
chrisbrandow wrote: post #7

This is gross.

Nope, this is on the net sale of the asset not gross income. In terms of gross, you need at least 50% gross income in the qualified opportunity zone.

> The regulations provide three safe harbors that a business may use to meet this test. These safe harbors take into account any of the following:

> - Whether at least half of the aggregate hours of services received by the business were performed in a QOZ;

> - Whether at least half of the aggregate amounts that the business paid for services were for services performed in a QOZ; or

> - Whether necessary tangible property and necessary business functions to earn the income were located in a QOZ.

So "in" is flexible.

Post reply on HN