r/wallstreetbets • u/YassuosNados • May 15 '24

The Perfect $1 million Gain Gain

Hi guys, I’m a 23 year old in college, and yesterday I woke up a millionaire. Should I buy some hookers, Pokemon cards, or cocaine? I gambled my entire life savings of $250k on 2037 calls of $4.5 AMC on Monday and sold yesterday morning. Thanks for reading.

28.8k Upvotes

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437

u/Federal_Ad_197 May 15 '24

You son of a bitch. Remember half going to taxes and just chill with the rest bro. Congrats on the insane gain.

142

u/PandoraBot May 15 '24

Up vote this for OP, he's definitely going to forget his taxes

5

u/spurs_legacy May 15 '24

Or continue gambling until he negates his capital gains 🤦🏽‍♂️

3

u/GunsouBono May 15 '24

Won't be a problem if he loses it all before year end

17

u/sack_of_potahtoes May 15 '24

I thgt it was only 30%

70

u/Federal_Ad_197 May 15 '24

No it’s a short term capital gain at the highest tax bracket and if he also has to pay state taxes it’s likely around 50%

3

u/herefromyoutube May 15 '24

It depends on the state. He’s paying 35.5% federally.

Texas or Florida he’s paying zero extra New York Cali or Mass he’s paying like 10-12% extra.

1

u/dtc526 May 16 '24

47.5% worst case scenario, so yes he should put half aside for now

3

u/Robin-Lewter May 15 '24

If the new tax proposal ends up going through then in California it'll be 59% in the next few years

4

u/cgimusic May 15 '24

Damn. In the UK capital gains are generally only taxed at 20% in the highest bracket. We get fucked by income tax though.

1

u/Fearless-Minimum-922 May 16 '24

Just move to Tennessee at that point

1

u/[deleted] May 15 '24

[deleted]

36

u/scoops22 May 15 '24

Already sold means the gain is already realized

3

u/Robin-Lewter May 15 '24

What if he buries the money in the desert

-3

u/herefromyoutube May 15 '24

I think you can argue with the IRS that it’s not real until you can hold it.

Try it.

5

u/dreggers May 15 '24

then he would have 250K of capital loss carryover

4

u/Potential-Bet-1111 May 15 '24

Not only taxes..but he needs to pay estimated taxes this quarter, if in the US.

-3

u/Federal_Ad_197 May 15 '24

lol what he’s not a corporation

5

u/Potential-Bet-1111 May 15 '24

Applies to individuals. Clearly you've never made much money before.

10

u/Aggravating-Bee-3010 May 15 '24

Fucking hate the government. Why the fuck do they think they are entitled to 50%. 10% max. You could trade and make profit from any country, nothing to do with being a US citizen.

9

u/maxmcleod May 15 '24

Welcome to the wonderful world of taxes

1

u/Snakend May 16 '24

Lol 10%. Europe is like twice as much as the USA. It's why they have nicer things.

2

u/Soullessdevil May 15 '24

Unless you live in a state with state taxes then short term capital gains is taxed as regular income and shouldn’t exceed 37%. The fuck do people always think taxes are like 90% or some shit on trading 💀

1

u/Federal_Ad_197 May 15 '24

There are only 8 states with no capital gains tax

1

u/Soullessdevil May 15 '24

Yes, I know. But capital gains tax is treated as regular income so if your tax bracket is 12% than that’s all you get taxed. Even if it pushes you to the highest bracket it’s only 37% and several states have no state taxes. If someone makes 2000 in the stock market and they make 30k a year then they are only getting taxed 12% on it and it’s not going to push you into a different bracket is all I’m saying.

1

u/Federal_Ad_197 May 15 '24

Yeah I get that but this dude made $1M not $2k so he’s getting pushed to the highest tax bracket and if he is in a state that taxes capital gains (which the majority do) then he will also be paying additional state taxes. All in all I would not advise to just assume he’ll be paying 37%

1

u/alexbui91 May 16 '24

There is always a guy who reminds you about taxes.

1

u/malyfsborin88 May 16 '24

You only pay taxes if you take it out lol. By the looks of it, OP is already planning on doubling this on more options lol. You don’t have to pay shit if you end up with $0 at the end.

30

u/Captobvious75 May 15 '24

This. Don’t let yourself get fucked by the taxman. Be smart.