Send the tax man a check now. I had a friend cash out 200k in december 2017 he sold 11 coins at about 19k.
he let the cash burn a hole in his pocket. decided to buy back in when coins dropped to 10k and then did not have any cash to pay the tax man.
If your tax bill is 400k at least send in 200k don’t fuck around.
Current max tax rate in US for long-term gains is 20%.
one would wish this were true... don't forget to add in the Net Investment Income Tax (an additional 3.8%) that kicks in somewhere between 200 and 400k
also don't forget most states want their cut also (in some states topping out over 12%)
between these two that 20% max just turned into 35%
It is why I am ball parking number and telling him try to pay some like right now. I know what happens when people's ship's come in.
I have seen two bankers fuck up really big money scores. pre tax 40 mill and pre tax 20 mill
back when Clinton was letting the dot com market whale. these two guys invested 500k and 1 million to a hot shot I am god day trader .
He ran the 500k to 20 mill in 5 years.
He ran the 1 mill to 40 mill in the same time.
I told both guys just cash ½ and drop it into 30 year t-bills which were about 8-9% yield .
after tax 10 mill would be 6 mill in t bills and earn 480-540k a year for 30 year 2029 to be exact
after tax 20 mill would be 12 mill in t bill and earn 960-1080k a year for 30 years 2029 to be exact.
and they still would have had
10 mill in stocks up for 500k
20 mill in stocks up from 1mlll
Their third friend turned 150k into 3 million. he did sell 2 million of his stock and buy the bonds.
One of the hardest things to do is take profit properly.
boblawlaw is in the perfect spot to do it. I love to see someone do it right.
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