I would rather pay more in taxes than take a 65% haircut in PPS. Not saying that will happen. I think the stock needs a rest and will consolidate eventually moving higher. That said I sold half my shares at .74 I was in at .4 so I had to take a profit. It would be dumb not to. The tax code, IMHO is dumb. it shouldn't matter how long an investor holds a stock. It should just be a 15% capital gain tax and that is it.
<<<<<is it worth flipping this stock when you consider the 28% tax?>>>>>>
According to my CPA and others in the firm, absolutely!!! Especially in Penny Land where things can change in a heartbeat. When I initially showed him how much I had made and was still holding he freaked out. He thought I was nuts and strongly advised taking profits.
People think that if they hold for a year they only pay 15% taxes on capital gains and if they sell in less than a year they pay 35% taxes on capital gains.
What most don’t realize is that your income is figured into the equation. For example, you can be charged up to 35% federal taxes on your income if you make a certain amount of money. Most people don’t pay 35% because they don’t make that much and therefore don’t fit into that tax bracket. Same applies to capital gains.
If you sell in less than a year you do not pay a flat 35%. It depends on your income. Or that is what I am told by those who know more about taxes than I do.
Using the example I gave earlier of the stock that went up from single digits to over 0.50 and then dropped 90% over the next ten months. I would prefer to take the profit and pay the taxes. JMHO and my CPA’s.
Call me crazy but I will pay 35% in taxes on a 2500% gain vs. paying no taxes and losing 90% of my investment.
I think short term cap gain tax is around 35%-40%, BUT... BUT everyone's tax situation is different. You can make 10k in the market and owe nothing. Or you can owe up to 4k. If you are going to "play" here you gotta talk to your tax dude and know how much of each trade you need to "stash" for da tax man.
STEAM: Flipperboys are back---they sell to people who think it is going up. And then, it does ON NEWS. Who do you think you got your shares from?? Without sellers, there are no buyers. Let others worry about their taxes; remember, a good investment in the broader market is 15% per year---CHICKENSCRATCH compared to us here at PHOT. Thank heaven for your flipperboys; you won't get rich without them!!!.....cashish
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