[thghtihadanacct]

But $26B seems like a pretty good tax write off. Seriously tho, How much of this drop (adjustment to reality) could Musk potentially write off on taxes, etc? Especially when it was pretty obvious he tanked it on purpose.

[guntars]

Losing actual money is not a good tax write off strategy.

[mminer237]

Until it's realized, nothing. If he sold Twitter tomorrow, he could take the $25 billion loss and not pay taxes on that much of his next capital gains, essentially saving him $5 billion, for a net loss of only $20 billion.

[ars]

That's not how tax write offs work.

You can write that off against profits, and save around 20% - but you still lost 80% of the money.

So what would be the purpose of tanking it on purpose? He could just send the US Treasury the money for less trouble.

[KMag]

I'm not an accountant, but doesn't he need to realize investment losses in order to write them off? Capital expenses can be depreciated for tax write-offs, but I wasn't aware that corporate investments could be marked to market for write-offs.

[thghtihadanacct]

I dont know either but I cant fathom why he paid that much for the company only to play Nero.

[KMag]

Like most super-successful people, he's smart, hard-working, overconfident, and very lucky. His luck didn't work out for him this time when he overstepped his expertise. Survivorship bias made him think he'd be fine.

(Yes, it's very possible to be both smart and overconfident.)

[asylteltine]

Can you write off this stuff? You can only personally write if like 3k of loses per year

[gowld]

$3,000 loss limit is the amount that can offset ordinary income.

Capital losses can offset unlimited capital gains.

[nova22033]

https://www.youtube.com/watch?v=aCP27_vquxQ