SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : John Pitera's Market Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John Pitera who wrote (18428)10/17/2016 10:54:27 AM
From: The Ox2 Recommendations

Recommended By
Hawkmoon
sixty2nds

  Read Replies (3) of 33421
 
Would it make sense for the US Government to have a policy to buy up every stock that is going out of business at ($0.01)/share? Force short sellers to declare their gains for tax purposes? I am guessing that the IRS or Treasury could spend a few thousand dollars per bankruptcy to yield much more by getting taxes on the short seller's net profit.

I saw this on another thread as I was trying to catch up....

The same tax advantage applies to any company that you short and they go out of business. The position is never squared and you do not have to realize the gain.
WIth all the talk of people and businesses avoiding taxes, it would seem that this is a HUGE loophole and it would also explain one reason why so many companies are setup to hit the market and then go bankrupt. They restructure and return to business after the bankruptcy process.

Just kicking this out there off the top of my head.....haven't given it a lot of thought.....
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News