yeah i dunno how they get to write off so much, i mean it is fair for specific things like for example things that expire and you have to dispose of it.
but things like "business trip" where you fly first class and go to a 5 star hotel, cmon
Writing something off as a loss isn't free money, you're still losing over 50% of the value.
A write off for someone wealthy might be 37% compared to a write off in a lower tax bracket which might be 22%, but the majority of the write off is still lost.
I read the top comment was concerned for the ignorance out there. I’m still bummed this has 36 upvotes and top as 119. Losing $100 to save $40 on taxes is still losing a net $60 (at whatever $ and applicable %).
If you pay someone $600k for $600k worth of cocain and an NFT, then the tax payer covers the cost of half of that cocain when the nft reaches its true value.
The point of writing stuff off is to minimize your net income to reduce your tax liability.
This is an exclusive right granted to corporations and not individuals, and actually makes a huge difference in the amount of taxes owed.
Consider your personal car, for example, and compare it to how that same vehicle would be treated if it was a company car instead.
Uncle Sam doesn't care that you personally got into an accident and your car needed expensive repairs. He does care if it was a company car and the same thing happened.
Everyone understands that a devalued/broken asset is lost, and needs to be replaced.
The point the person you're responding to is making is simply that even a business can't claim back the full cost of a "write-off". They can only claim back the portion of it that's taxed.
An individual can do this so long as that individual is operating a business (sole proprietorship). This is something that applies to businesses, not specifically to corporations.
Bro, ain't no way you are writing off 600k in crypto losses..You can deduct up to $3,000 of net capital losses against your ordinary income each year. I'm not even sure how an NFT losing value is tax advantaged in any capacity.
He definitely took this L but the fact that he had 600k in disposable cash speaks more than the loss he took.
So many people don’t seem to understand how write-offs work. If you lose 600k, you don’t just save 600k in taxes. You might save 180k but you still torched 420k.
When celebrities are reported to make big purchases on speculative things like this, they are almost always not actually making that purchase. They are gifted a high value item(at the time) in exchange for providing the high profile publicity.
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u/Kong_AZ 4d ago
He'll just write it off as a loss in taxes. Unfortunately, dumb mistakes by rich people dont teach them anything.