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Not even close. Anytime you buy low and sell high you owe taxes on the difference. This applies to everything from antiques to livestock.

It doesn't matter if the stuff is tangible or imaginary. You would owe taxes for mining World Of Warcraft coins if you sell them. You would owe taxes for picking up cans off of the street and recycling.

How much you owe can change with how you earned the money, but if you earned money you owe taxes. Only two things in life are certain. Taxes is one of them.




What if you buy high and sell low. Can you write off the losses for tax purposes?


Yes, it's called a capital loss. A loss can be used to offset an equal amount of capital gain, or a small amount (up to $1500/year) of earned income.

http://www.irs.gov/uac/Ten-Important-Facts-About-Capital-Gai...


It also doesn't matter if what you own only went 'up' in value due to inflation, thus you're in fact taxed just for living.

And they say we have a free country.




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