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by pc86 1864 days ago
Wow this is insanely inaccurate and downright dangerous advice. If you listen to this comment and things go sideways you can literally lose major assets or even be imprisoned.

1. You must pay estimated taxes if you earn more than a certain percentage of last year's income without taxes withheld. You emphatically do not have until the next year's tax filing deadline to pay your taxes. Estimated taxes are due quarterly.

2. If you invest the tax portion of your income and it loses value, you still owe the original amount. So now not only do you need to liquidate that investment but you also need to pull money out of other areas to cover the loss.

3. Despite pseudo-libertarian propaganda to the contrary, money you owe in taxes does not magically become "your money" just because you haven't written the check yet. You shouldn't invest money you can't afford to lose (especially in crypto of all things) and you can't afford to lose Uncle Sam's money.

4. One of the only things the IRS won't take from you is your primary residence (but they will put a levy on it, making it impossible to sell or refinance until the debt is paid in full), so using tax money to buy down home equity is one the stupidest things you can do.

Talk to a CPA before making huge financial changes, especially if the entire reason for the changes is trying to make money by arbitraging tax funds.