English Chess Forum

Around this time last year, these were a "big thing", as witnessed by a chessbase article
https://en.chessbase.com/post/nft-colle ... -of-genius

It now seems NFTs can be worthless except as a tax loss.
https://www.theguardian.com/technology/ ... -write-off.

I wonder if anyone bought the chessbase offer.

Roger de Coverly wrote: ↑

Thu Dec 29, 2022 7:06 pm

Around this time last year, these were a "big thing", as witnessed by a chessbase article
https://en.chessbase.com/post/nft-colle ... -of-genius

It now seems NFTs can be worthless except as a tax loss.
https://www.theguardian.com/technology/ ... -write-off.

I wonder if anyone bought the chessbase offer.

Fools and their money ...

I really don't know why the government lets people write anything off taxes - it pretty much exclusively gets used by the rich to scab some money back from the state, and schemes like this seem to make it even easier for them to gamble recklessly safe in the knowledge they can get the money back.

The main aim, as I understand it, of the "write off against taxes" ability is to ensure people aren't unduly penalized for trying to increase their income.

IM Jack Rudd wrote: ↑

Thu Dec 29, 2022 11:17 pm

The main aim, as I understand it, of the "write off against taxes" ability is to ensure people aren't unduly penalized for trying to increase their income.

Yes, but if you are both (1) trying to increase your income from a position in which you are already very comfortable, and (2) doing nothing at all for the wider society in your attempt, then what is wrong with being penalized when your gamble doesn't pay off?

Brian Egdell wrote: ↑

Fri Dec 30, 2022 9:31 am

Yes, but if you are both (1) trying to increase your income from a position in which you are already very comfortable, and (2) doing nothing at all for the wider society in your attempt, then what is wrong with being penalized when your gamble doesn't pay off?

If you invest £10,000 in asset A and £10,000 in asset B and then sell asset A for £15,000 and asset B for £5,000 is it fair that you are taxed on those transactions when you've gained nothing overall?

Joey Stewart wrote: ↑

Thu Dec 29, 2022 10:36 pm

I really don't know why the government lets people write anything off taxes - it pretty much exclusively gets used by the rich to scab some money back from the state

With the recently announced substantial cuts in capital gains tax allowances it won't necessarily be paid just by rich people. When index-linking of gains was removed some years ago it became a tax on inflationary gains. Now the allowances will be very low, and inflation very high, people with modest assets will be paying tax when their real gain is nothing, or even negative.

Ian Thompson wrote: ↑

Fri Dec 30, 2022 11:01 am

If you invest £10,000 in asset A and £10,000 in asset B and then sell asset A for £15,000 and asset B for £5,000 is it fair that you are taxed on those transactions when you've gained nothing overall?

From a pure taxation perspective: yes. Those who have more money than they need for their day-to-day lives, and can afford to indulge in investment schemes for the purposes of increasing their wealth still further, should be contributing more to public funds than those whose emphasis in life has to be struggling to get by at all.

From the point of view of expected personal winnings: also yes. In your example the gambler (investing is a euphemism for gambling) has failed to win anything, but - unlike in gambling for more normal people - their expected gain was positive. Rich people investing thousands in get-even-richer-quick schemes tend to increase their wealth in the long run. It's fine to tax them on every transaction they make regardless of whether they win or lose.

Also it's not that hard to hide successful investments and only declare the "losses" thus allowing a continual stream of free money coming in until every single pound is making heavy profit.

Joey Stewart wrote: ↑

Fri Dec 30, 2022 3:44 pm

Also it's not that hard to hide successful investments

Please don't keep these methods to yourself. Many of us lack your deep knowledge of financial instruments.

Didn't you once say you were friends with Kirsan Ilyumzhinov, I'm sure he would fill you in if you were looking to misappropriate some public funds.

Seems to me we've now wandered well into "Not Chess!" territory.

Er..if you hide the successful investments, how do you get credit for your losses?