Medinah Minerals (MDMN)

[TradinOnUp]

Tax Implications for Flippers& Those FlippinOut?

I am by no means a tax expert and if anyone can help me if I am off a bit, let me know. I have never been one to flip due to my not really taking the time to do the math, amd 3 out of 4 times, I guess wrong. Today I said I am gonna try and get me sum of dat, as I anticipated a little tree shake and watching Friday's Shake down, I thought, this should be easy money. I wanted to see if I could make a couple bucks off the shakky ones. When I got to my office this morning a ran some numbers and here is what I came up with, assuming I am dealing with a short term capital gain taxed at my 33% tax bracket for ordinary income ( as I did not want to assign my long term capital gain acquistions, as I will need to save those 15%ers for later).

Example: An investor in the 33 percent tax bracket trying to decide whether to sell 100000 shares in MDMN stock at.14 that was purchased nine months ago at.03 is going to generate a capital gain of $11,000, the amount one actually keeps is quite different as a short-term capital gain taxed at a 33 percent ordinary income level creates a tax of approx $3993, leaving a profit of $7007.

Assume you Rebuy at .10 and if If you are lucky enough to capitalize on the shake down low, of the day which let's say is .10. It will cost you $10,000 to jump back in, thus your net loss on that move is - 2993 ( 11,000 gain - 3993 tax), when you factor in your cost basis of .03 lol.

Now if I am off somewhere, let me know, as this is more of a question I am trying to solve and figure out if it makes any sense to flip or wait for the ultimate prize to just get out to stay out.

Whatever you do, do not rely on this as any sort of tax advice, haha.