this post was submitted on 10 Mar 2025
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[–] buwho@lemmy.ml 6 points 1 day ago (4 children)

whos cashing all this out? and are they paying taxes on it? like how does it work? can you just move your assets/ close out on positions and immediately shove them into some compounding interest account but still capture all the profit, with no capital gain tax?

[–] technocrit@lemmy.dbzer0.com 1 points 13 hours ago

It depends on whether you're rich enough to not pay taxes.

[–] SkunkWorkz@lemmy.world 4 points 21 hours ago* (last edited 21 hours ago) (1 children)

Depends which country you live in. But in the US you’d still pay capital gains tax over it I reckon. Since it applies at the moment of the sale of an asset. Unless it’s a IRA or 401k then you pay income tax at withdrawal. Of course you pay the taxes end of year. So you can still put it in a savings account and receive interest on all the profits before you have to pay tax

If those stocks were held less than a year you pay income tax over all your short term trades total realized gains end of the year.

[–] 13igTyme@lemmy.world 3 points 15 hours ago (1 children)

If it's in a Roth, you don't pay tax on trades.

[–] jacksilver@lemmy.world 0 points 3 hours ago (1 children)

IRAs and 401ks aren't taxes until you withdraw the money (and Roth IRA/401ks aren't taxed at withdraw cause contributions are taxed).

https://www.investopedia.com/ask/answers/12/401k.asp

[–] 13igTyme@lemmy.world 2 points 3 hours ago

Yes. I know how taxes work. I have a Roth, 401k, 403b, and a "for fun" investing account.

[–] figjam@midwest.social 2 points 19 hours ago

Hopefully large institutions seeking stability.

[–] dickalan@lemmy.world 0 points 22 hours ago

I’m fairly certain until you put the money in your bank account and out of your brokerage account. You can do whatever the hell you want, but I also don’t trade like that.