AllonzeeSep 19, 2024

Let's play the rich get everything. The rules are the rich get everything. participation is mandatory.

https://lemmy.world/post/19957740

Let's play the rich get everything. The rules are the rich get everything. participation is mandatory. - Lemmy.World

Did I say mandatory? I meant optional! You’re “free” to die in a cardboard box under a freeway as a market capitalist scarecrow warning to the other ants so they keep showing up to make us more!

Show threadGoodieSep 19, 2024

I think a law stating you can’t borrow against unrealized gains would be sensible.

You can keep your unrealized gains forever, live of your dividends for all i care, and pay no tax. But realizing them, either through selling or borrowing against, triggers a taxation.

Show threadYeatherSep 19, 2024
Aren’t dividends taxed?
Show threadabysmalpoptartSep 19, 2024
Yes
Show threadWwwbdd
Not sure if it’s the same everywhere, but if I pull a dividend I don’t pay tax initially, but when I do my income taxes it’s part of my income and I’d have to pay tax on it then
Sep 19, 2024 at 9:38pmWeb
Show threadGoodieSep 19, 2024
Where I’m from, we don’t do that. All dividends come with an “imputation credit,” which basically says “this money’s already been taxed.”
Show threadroscoeSep 19, 2024

Careful with that. If you’re not making estimated tax payments on your dividends (or other capital gains) every quarter or increasing your withholdings from wages to compensate, and you owe too much at the end of the year, you can get hit with penalties and interest.

For most people the quarterly dividends in their brokerage aren’t enough to trigger that, but as your savings grows and quarterly dividends become significant they might.