Unrealized gains tax... why is nobody talking about this? Australia: Starting July 1, 2025 — 15% tax on unrealized crypto gains over $3M AUD (~$2M USD). Denmark: Proposed up to 42% tax on unrealized crypto gains (2026). U.S.: Biden’s 2025 budget includes a 25% “billionaire minimum tax” on unrealized gains over $100M — Harris publicly backed it. Meanwhile, hardcore HODLers are cornered. If this gains traction, it could trigger forced mass liquidations — not because people want to sell, but because they’ll be legally obligated to pay tax on unrealized gains. Tax Rate (%) | Unrealized Gain ($) | Tax Owed ($) | Remaining After Tax ($) | |--------------|----------------------|--------------|--------------------------| | 40% | 99,000 | 39,600.00 | 60,400.00 | | 30% | 99,000 | 29,700.00 | 70,300.00 | | 25% | 99,000 | 24,750.00 | 75,250.00 | | 20% | 99,000 | 19,800.00 | 80,200.00 | | 15% | 99,000 | 14,850.00 | 85,150.00 | And if that door opens… what’s next? Unrealized gains at $100K? All capital gains? Eventually, any “profit” on the books, whether you’ve sold or not? This isn’t about the rich — it’s about normalizing taxation without realization. And once that precedent is set, no investor is truly safe. There’s already discussion around taxing unrealized gains on home equity. While the proposed rates seem modest for now, it signals a shift — to tax value that hasn’t been realized, across all asset classes. Canada’s Home Equity Tax (Under Discussion) LinkedIn overview: No federal legislation has been introduced yet. Homeowners still benefit from the Principal Residence Exemption (PRE) — meaning no capital gains on their primary home. But think tanks like Generation Squeeze and a CMHC-funded study have floated surtaxes on homes over CA $1 million (0.2–1%) as a fairness measure. RE/MAX Canada coverage: Confirms the tax remains theoretical. Conservative leader Poilievre warned it could be used to fund deficits, calling it “crippling” for seniors, while the Liberals deny any intention What starts with crypto could easily expand — slowly, quietly — until it touches every form of stored wealth.
One of dumbest ideas ever. Until profits are realized they are not profits. What happens if position later looses value refund back ?
You could trade from a retirement account to avoid taxes, or just make alot then fall off the face of this planet. So you don't have to constantly worry about taxes.
I believe these taxes are being considered because billionaires are using loopholes to avoid paying taxes. Maybe closing the loopholes wouldn't require a new layer of taxes.
How the Wealthy Avoid Taxes (Even in Death): Unrealized Gains: The ultra-wealthy often hold assets (like stocks or real estate) that grow in value but aren’t taxed until sold. By never selling, they avoid capital gains tax altogether. Borrow, Don’t Sell: They borrow against their assets to fund their lifestyle, using loans that aren’t taxable income. Step-Up in Basis: When they die, heirs inherit the assets at current market value, wiping out decades of gains — so those gains are never taxed. Trusts & Loopholes: Wealth is funneled through trusts and legal vehicles to further minimize or delay taxes across generations.
I think for about 20 years, all futures trading -- Section 1256 --are marked-to-market at end-of-tax year. In theory, one could make a million on Dec 30/31st, and lost it on Jan 2, but required to pay based on the OTE as of Dec 31st. The tax law change was because many futures traders were previously just using spreads to move profits from one tax year to another. To compensate for the above scenario, the futures are split between long & short-term capital gain. And futures losses may be carried-back 3 years, or carried forward indefinitely. So taxing unrealized gains is not a new concept.
I thought the 3 year carry back had been eliminated by Trump in 2017? Edit: I was wrong. Only applies to NOLs from operating companies. 1256 can go backwards 3 years.
bro millionaires and billionaires have been using all kinds of loopholes to avoid paying taxes. i dont hate them but i do understand that more for them means less for everyone else. some people belive that bullshit that you are generating new money into economy by doing financial manipulations. and its absolute bullshit. you are generating money for yourself. while causing inflation and reducing buying power for those who actually work physical labor jobs.