MARKETS,Anybody even yet?

[olds442jetaway]

No problem itemizing away the losses on the Fed return, but the Greedy State of Ct was doing their usual victory dance by taxing me on Gross gambling winnings which are part of AGI with no writeoff ability. A nice hefty 7 percent too. One huge and unavoidable booby trap by itemizing my Federal deductions. The cap on State and local tax deductions of 10,000. I exceeded that by a mile, so everything over the 10,000 number was lost as an itemized deductions. If I had no W-2gs, we would have taken the standard deduction. Here in Ct, we have BIG State and local taxes. Income, Real Estate, Auto. Ultra bummer that 2/3 of that was just lost because of the Tax Reform Act that kicked in in 2018. This affects mostly Ct, New York, and New Jersey though other states are playing catchup with bigger taxes as well. Of course none of this is indexed for inflation, so the Federal Government has a nice built in and automatic tax increase every year. Speaking of deductions that aren’t indexed for inflation, the 3,000 deduction for losses over gains available as a deduction in the year of the loss in the Market. That amount was set way back in 1978. If you can believe this, 3,000 should be nearly 15,000 today due to inflation. So let’s say they had indexed it properly for inflation etc. Also let’s say I lost 15,000 bucks after offsetting all of my gains. Also let’s say for this example, my last dollars in are in the 22 percent bracket. That represents a cool 3,300 bucks the Feds just slipped out of my pocket as well as 1,050 the State pick pocketed as well because the 3,000 deduction amount was never changed.

[Karl_EDT]

Olds I am no tax expert; in connecticut do you have to pay gambling taxes if you had a net loss for the year? In the late 1990s and first decade or so of 2000s, Back when we played a lot, we stuck with having taxes deducted on the spot with any handpays that happened in US casinos. Canada is very different than US in that only professional gamblers in Canada might be required to pay some taxes on winnings. Also for non-professional recreational gamblers, if a canadian citizen loses a lot in US casinos, that canadian citizen can write off some of the losses depending on their overall tax & income situation & levels etc. Of course I don't have to worry about any of this anymore and was never a pro in any country or territory or state.

[olds442jetaway]

The correct name of the law that limited State and Local tax deductions to 10,000 was the Tax Cuts and Jobs act. That has nothing to do with the 3,000 rule on Capital losses. I should also probably mention that the excess over 3,000 can be carried forward to subsequent years, but you can’t keep it in your pocket this year. Also some people that would lapse into a low or no tax bracket would lose the excess entirely.

[Karl_EDT]

Sadly, the recent unrest in the middle east gives sudden bumps upward in the price of precious metals like GOLD and silver and others. It's a very conflicted feeling, as you know that the only way a sudden rise in the price of GOLD that stems from someone attacking someone else in the middle east can last is if the war & fighting lasts or escalate; as soon as things calm down and return to near normal, the price of gold drops back down, sometimes even lower than it was before the recent bloodshed.

There's also the very nature of modern war and it's massively destructive potential (think nuclear weapons or even some of the modern destructive weapons like hypersonic missiles and thermobaric bombs). Whatever gain or profit someone might get from a surge in fighting in the world's different regions, if it escalates then eventually your increase in wealth becomes moot; you cannot spend money in a destroyed marketplace, or even in a world where everyone is too afraid & depressed to go anywhere or do anything. This is why I always regarded Vladimir Putins threats of nuclear war to be really dumb and non-legitimate. He is purported to be the wealthiest man on the earth, and perhaps of all time in history. Non of that would matter or apply anymore if the world becomes uninhabitable or completely destroyed. And modern science today is able to run simulations of the impact of even just a handful of modern nuclear warheads exploding within a short time period or simultaneously. I have read that even a very limited nuclear exchange, such as between India and Pakistan, of 5-7 nuclear warheads blowing up several cities within a tight timeframe would have devastating consequences for the entire world's environment.
We planted our first radishes recently .

[onemoretry]

Back when we played a lot, we stuck with having taxes deducted on the spot with any handpays that happened in US casinos.

There wasn't really any choice, was there? In our experience, that 30% withholding has always been mandatory.

[FAA]

NVIDIA was -10% today. The markets are taking its lead. Just the worst Friday for me all the way around.

[case]

Most of the magnificent 7 were overpriced and prices had to come down. FAA just keep holding NVIDIA and you will be fine but it could drop further in the short term.

[olds442jetaway]

To answer Karl….. In Ct, they tax you on gross gambling winnings as they are part of your AGI. You can only write off the losses on your Federal Return if you itemize your deductions. Those write offs take care of the Fed, but leave you with a broomstick up your behind with the State. Soooo unfair. That’s like if you buy a stock for 10,000, it goes down and you sell it for 7500. You may have a 2500 Fed writeoff, but if it worked the same as the State taxes Gambling, you would pay State tax on 7500!!!!!

As to the market, I have taken a recent hit like everyone, but have managed to stay even the last few days because I don’t buy tech stocks. Too old to wait them out for a possible comeback. I’m not buying anything at present except CDs and money market funding. I hope I am wrong, but 2024 could be a bad year for the market. I’m still up 5 percent for the year, but was up 9. As to gold, I learned as a child from my Great Grandfather born in 1882 to accumulate it for a Rainey day, dire emergencies, or as a safe haven in case of Government collapse or worse. What I haven’t learned is how to win consistently or at least stay even at the casino playing VP. .

[FAA]

I have plenty of time, knock on wood. But hell do I ever regret choosing an aggressive tech portfolio. Company shares sold at a loss. Bank going bankrupt, total loss.

[olds442jetaway]

Check out Warren Buffets performance so far and what he buys.