5 ms·

Don't forget in the middle he states that this is a tax dodge on capital gains from said crypto money.

by bri3k 1y ago

Dylan16807 1y ago
In the same way that any business expansion is a tax dodge, sure.
- bri3k 1y ago
  He started out to find ways to lower his tax burden. Found something with solar infrastructure in a different state. Went ahead with it in spite of having no experience with the local laws or infrastructure projects and wondered why it failed?
  - Dylan16807 1y ago
    I'm not shocked that it failed. But taking money that would have been profit and turning it into company creation/expansion is something that is taxed lower for a reason.
    - Retric 1y ago
      > for a reason. Yea, corruption. Tax breaks on past gains are just handouts and everyone wants a handout.
      - Dylan16807 1y ago
        > past gains To focus on "past": I don't think deferring the gains for a couple years is a big deal. It's not a handout because he'll still be paying the same taxes if he doesn't end up reinvesting the money. It just offers him some more time to set up a business, instead of having to do it same-year. To focus on "gains": If you don't like the entire idea of reinvested money not counting as profits, oh boy that's a big objection, and it's not that way because of corruption.
        Retric 1y ago
        Sign me up for some interest free loans then. Deferring capital gains is a huge windfall. Reinvesting money getting special treatment provides zero benefits to the economy. It falls under the fallacy that rich people can avoid investing their fortunes, inflation already makes that a nonstarter. The only result here is a handout.
        AnthonyMouse 1y ago
        Business expenses are tax deductions because business taxes are on profits and profits are calculated as revenue minus expenses. Taxing businesses on revenue rather than profits doesn't work because it would bankrupt every business with slim margins, which is most of them, while effectively cutting taxes for the ones with the thickest margins and creating a massive tax subsidy for vertical integration. > It falls under the fallacy that rich people can avoid investing their fortunes, inflation already makes that a nonstarter. If all someone cared about was avoiding inflation they could just buy a stack of precious metals. Moreover, the return from typical passive investments (e.g. S&P 500) significantly exceeds the rate of inflation. The preference for investment is as opposed to spending. If inflation is at 3% and someone is getting a 10% return from stocks, they can avoid real value loss while still spending up to 70% of the nominal profits. But we'd rather people build factories and develop new drugs and technologies than buy second private jets and third personal mansions.
        Retric 1y ago
        > Business expenses Investment isn’t a business expense. > If all someone cared about was avoiding inflation they could just buy a stack of precious metals. Capital gains of precious metals “yield” drops you below inflation. > But we'd rather people build factories and develop new drugs and technologies than buy second private jets and third personal mansions. Someone needs to do that for your hypothetical 10% S&P gains. Giving handouts to wealthy people hardly discourages them using a private jet, just the opposite.
        AnthonyMouse 1y ago
- chairmansteve 1y ago
  Not true. If you read the article, arguably his main motivation was to avoid taxes. Not that I blame him. The lesson is though, never do anything just to avoid taxes. He would never have got into the solar business without the tax "opportunities".
kortilla 1y ago
Investing money isn’t a tax dodge
- baking 1y ago
  The taxes were for capital gains on his crypto assets, which is not an investment but pure speculation. The tax dodge was to find an actual investment with tax credits that would cover the capital gains on his speculation.
giblfiz 1y ago
I'm the original author. I'm not sure why you got down-voted for this, this was absolutely a "tax dodge". The polite term is "tax mitigation strategy", I'm also not sure why this is seen as an openly negative thing? The government wants a type of thing done, they say "hey, we won't pay people directly to do it, but we will subsidize it thru tax incentives" I was like "yeah, I like that thing (solar) and think it's good for the world, I will do it in return for tax incentives" Why exactly is that bad?
- micromacrofoot 1y ago
  because there's not necessarily a demand for this site, or even a personal interest — imo this sort of incentive produces worse outcomes than taxing people and farming it out to the lowest bidder, at least the lowest bidder has a business and reputation to maintain (thin, but not nothing)
- jeffrallen 1y ago
  > Why exactly is that bad? Because you could have just paid your taxes like the rest of us have to. Instead you made a big drama and are asking us to agree with you how unfair it all is that you have to pay taxes.
  - zekrioca 1y ago
    What a nonsense. This is the government itself proposing the subsidie to build up long term renewables, which have a much more important role to local communities. Author then writes about their important experiences, listing important lessons and insights for future endeavours, and you call it a ‘drama’. Tell me about your intentions without telling me about your intentions.
    - jeffrallen 1y ago
      Yup, sorry, I believe in big government. I think paying taxes allows the government to be able to afford to do the things it is responsible for (health, security, prosperity, equality). If an infrastructure project is only possible with government support (in this case subsidies), then let the government make it happen and let the population benefit from it. For example the Apollo program. If a solar farm is not possible to do in the free market without subsidies, then DON'T DO IT until the market is right. (Anyway, what was the author's plan if he got deep into the project and instead of having a disappointment from connection fees, the new president cuts the subsides he needed? Subsidies are political and temporary, you cannot build a sustainable business on them.) Pay your taxes, and contribute to building society. It's as simple as that.
nine_k 1y ago
Not "a tax dodge", but "following the tax incentives".

Don't forget in the middle he states that this is a tax dodge on capital gains from said crypto money.

by bri3k 1y ago

Don't forget in the middle he states that this is a tax dodge on capital gains from said crypto money.

Dylan16807 1y ago

In the same way that any business expansion is a tax dodge, sure.

bri3k 1y ago
He started out to find ways to lower his tax burden. Found something with solar infrastructure in a different state. Went ahead with it in spite of having no experience with the local laws or infrastructure projects and wondered why it failed?
- Dylan16807 1y ago
  I'm not shocked that it failed. But taking money that would have been profit and turning it into company creation/expansion is something that is taxed lower for a reason.
  - Retric 1y ago
    > for a reason. Yea, corruption. Tax breaks on past gains are just handouts and everyone wants a handout.
    - Dylan16807 1y ago
      > past gains To focus on "past": I don't think deferring the gains for a couple years is a big deal. It's not a handout because he'll still be paying the same taxes if he doesn't end up reinvesting the money. It just offers him some more time to set up a business, instead of having to do it same-year. To focus on "gains": If you don't like the entire idea of reinvested money not counting as profits, oh boy that's a big objection, and it's not that way because of corruption.
      - Retric 1y ago
        Sign me up for some interest free loans then. Deferring capital gains is a huge windfall. Reinvesting money getting special treatment provides zero benefits to the economy. It falls under the fallacy that rich people can avoid investing their fortunes, inflation already makes that a nonstarter. The only result here is a handout.
        AnthonyMouse 1y ago
        Business expenses are tax deductions because business taxes are on profits and profits are calculated as revenue minus expenses. Taxing businesses on revenue rather than profits doesn't work because it would bankrupt every business with slim margins, which is most of them, while effectively cutting taxes for the ones with the thickest margins and creating a massive tax subsidy for vertical integration. > It falls under the fallacy that rich people can avoid investing their fortunes, inflation already makes that a nonstarter. If all someone cared about was avoiding inflation they could just buy a stack of precious metals. Moreover, the return from typical passive investments (e.g. S&P 500) significantly exceeds the rate of inflation. The preference for investment is as opposed to spending. If inflation is at 3% and someone is getting a 10% return from stocks, they can avoid real value loss while still spending up to 70% of the nominal profits. But we'd rather people build factories and develop new drugs and technologies than buy second private jets and third personal mansions.
        Retric 1y ago
        > Business expenses Investment isn’t a business expense. > If all someone cared about was avoiding inflation they could just buy a stack of precious metals. Capital gains of precious metals “yield” drops you below inflation. > But we'd rather people build factories and develop new drugs and technologies than buy second private jets and third personal mansions. Someone needs to do that for your hypothetical 10% S&P gains. Giving handouts to wealthy people hardly discourages them using a private jet, just the opposite.
        AnthonyMouse 1y ago
chairmansteve 1y ago
Not true. If you read the article, arguably his main motivation was to avoid taxes. Not that I blame him. The lesson is though, never do anything just to avoid taxes. He would never have got into the solar business without the tax "opportunities".

kortilla 1y ago

Investing money isn’t a tax dodge

baking 1y ago
The taxes were for capital gains on his crypto assets, which is not an investment but pure speculation. The tax dodge was to find an actual investment with tax credits that would cover the capital gains on his speculation.

giblfiz 1y ago

I'm the original author. I'm not sure why you got down-voted for this, this was absolutely a "tax dodge". The polite term is "tax mitigation strategy", I'm also not sure why this is seen as an openly negative thing? The government wants a type of thing done, they say "hey, we won't pay people directly to do it, but we will subsidize it thru tax incentives" I was like "yeah, I like that thing (solar) and think it's good for the world, I will do it in return for tax incentives" Why exactly is that bad?

micromacrofoot 1y ago
because there's not necessarily a demand for this site, or even a personal interest — imo this sort of incentive produces worse outcomes than taxing people and farming it out to the lowest bidder, at least the lowest bidder has a business and reputation to maintain (thin, but not nothing)
jeffrallen 1y ago
> Why exactly is that bad? Because you could have just paid your taxes like the rest of us have to. Instead you made a big drama and are asking us to agree with you how unfair it all is that you have to pay taxes.
- zekrioca 1y ago
  What a nonsense. This is the government itself proposing the subsidie to build up long term renewables, which have a much more important role to local communities. Author then writes about their important experiences, listing important lessons and insights for future endeavours, and you call it a ‘drama’. Tell me about your intentions without telling me about your intentions.
  - jeffrallen 1y ago
    Yup, sorry, I believe in big government. I think paying taxes allows the government to be able to afford to do the things it is responsible for (health, security, prosperity, equality). If an infrastructure project is only possible with government support (in this case subsidies), then let the government make it happen and let the population benefit from it. For example the Apollo program. If a solar farm is not possible to do in the free market without subsidies, then DON'T DO IT until the market is right. (Anyway, what was the author's plan if he got deep into the project and instead of having a disappointment from connection fees, the new president cuts the subsides he needed? Subsidies are political and temporary, you cannot build a sustainable business on them.) Pay your taxes, and contribute to building society. It's as simple as that.

nine_k 1y ago

Not "a tax dodge", but "following the tax incentives".