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I didn't know this back then but it looks like I owe income taxes on those trades, which adds up to about $50k if I add up state (California) and federal. But with the crash that happened recently, I added up my altcoins and I only have like $30k worth. I only have about $5k in other savings.
I make $47k a year at my job as an office assistant......I took most of my savings
RSUs are better.
* Worker gets options to buy company stock at $1/share, hangs out long enough to vest.
* Company hits it big, stock goes to $100/share.
* Worker exercises option, buys stock at $1/share, giving him ownership of shares valued at $100/share, and a big tax bill.
* Worker prevented from selling for 6 months by "employee lock up period".
* Stock falls back to $1/share before the 6 months are over.
* Worker owes tax on $99/share gain, but never was able to actually get the $99.
>I think that's the difference between "incentive options" and "non-qualified options". The incentive options are not taxable upon exercise, only upon sale of the stock. Or something like that. IANATL>
If you want to play this game in the future, try doing it in a IRA, In this case, your $7200 initial investment would still be worth $30k, and no taxes due. If you do not need the money until retirement, you can do all kinds of sell/buys without tripping any taxes. You will just pay taxes at the going rate when you retire, and then just on what you take out. Maybe even better with a Roth IRA. Example, if you have an IRA with $10k worth of stocks in it, sell $7200 and buy the coins with it. Or set up a new IRA, but you will be limited to $5500 unless you are over 50.
"I make $47k a year at my job as an office assistant.
At the advice of my friends, I took most of my savings and bought 8 bitcoins back in early 2017 for about $7200. You can imagine how I felt when it went up. Around December 2017, I got caught up in the altcoins frenzy and sold most of my bitcoins (about $120k worth) to buy a bunch of different coins. I didn't know this back then but it looks like I owe income taxes on those trades, which adds up to about $50k if I add up state (California) and federal. But with the crash that happened recently, I added up my altcoins and I only have like $30k worth. I only have about $5k in other savings.
https://www.reddit.com/r/personalfinance/comments/84huks/i_just_discovered_that_i_owe_the_irs_50k_that_i/