It’s frustrating to see that 50% gain is actually just 35% after you pay the taxes! Are there any tricks for reducing short term capital gain tax? I know about using spx but are there any other such tricks we could leverage?
Edit:
Aggregating some ideas i have seen in the comments
Validated:
- Change residency to PR or trade through an independent firm there.
- Create trading LLC with a management stakeholder that gets paid and can give out dividends to owners. This is a deferral mechanism but can help keep the capital in trade longer.
Seem invalid:
- Buy a rundown property and use profits to improve it. I didn’t find anything to support this but stumbled into qualified opportunity zones concept, which allow deferral/exclusion. I will have to dig into that.