Question and I know many will suggest see an accountant. However just wanted to throw it out there.....
Lets just say you purchased $5000 of a stock at .25 and lucky enough to double your money in a short time frame and sell for .50. 100% profit.
Obviously you will face a capital gains tax on 100% of the $5000 profit. If you were to reinvest the $5000 and then lost 30% would this -$1500 loss be able to be used to offset the initial $5000 gain? Therefore almosted netting out?
Essentially could you take some risks on these crazy pumps happening...if you knew you were going to pay the tax man $1500 could you try these pumps and if you lose just means nothing for the tax man?
