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Comment by linksnapzz | Hacker News Reader

How much in taxes should you pay on a loss?

But that's the thing, if I take my entire salary and lose it gambling I still owe the government taxes.

I the person am taxed on revenue.

If instead I have a corporation handle everything then I can come up with (relatively simple) systems so that I don't pay taxes and the corporation doesn't pay taxes either.

Gambling isn't considered an investment. It's consumption.

You asked:

>How much in taxes should you pay on a loss?

It was implied that the loss here was defined as difference between corporate revenues and expenses.

This concept doesn't apply to personal income taxes and gambling losses.

yes yes, different rules for the rich than the working class.

That is true, but not just.

Investment is a form of gambling.

Plenty of people experience a net loss after paying for the goods, services, and amenities required to keep themselves and their families alive.

Is this a trick question about Hollywood accounting?

It isn't Hollywood accounting, it is just that Tesla isn't very profitable once the proper accounting is done. If you tax profits and companies don't have a lot of them then they won't pay taxes. Particularly if the government puts tax incentives in place to encourage people to go in to solar and EVs.

I guess that explains why Elon is so poor and the company is valued at practically nothing compare to all other automakers.

I urge you to check out the valuation of $Fartcoin.

The value of an speculative item is not linked to it's yield.

Valuation != profits. Tesla's profits do not explain Musk's wealth, people have been pointing out for years that the valuations of companies like Tesla make little sense. There was a long stretch of many years where they were bleeding red ink like crazy with not much to show for it.

The tax system works on accounting reality, not the opinions of stock traders.

But it _is_ profit, just without directly paying it out.

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