All things STOCKS

[BigOrangeMojo]

I'm looking for my next thing to buy.

I made about about 30% off both Ford and Smith&Wesson last year

If you believe the recent GDP, inflation, and jobs numbers, TGT and HD at these levels arent bad.....

TGT does have some internal issues to work through. But TGT getting to around $125 would be a 30% return once you factor in dividends. If you have GDP in the 4s and inflation in the 2s, that should fit right into HD and TGT'S wheelhouse....

 

[Thunder Good-Oil]

Bitcoin headed back where it belongs. Current price/$87K.

It’s a unique asset. I don’t think that anybody knows where it (or other large crypto market cap coins) belongs.

It’s really too volatile to be a reliable store of value.

The government has forced it to not really be invisible.

It’s going to be a long time before it has wide spread use as a transactional vehicle. But the huge money center banks are getting involved.

It’s generational. Guys like Buffet and Munger discount it as if it’s a dot com or meme type of investment. It creates value only if somebody else is willing to pay more for it than you did.

Is the IRS planning on taking a piece of every transaction if consumers eventually adopt it the same as cash/credit cards/checks?

Does it enable nations that don’t want to settle large trade deals in US dollars a viable alternative?

Without doing the math, are there enough coin slices available with the finite number of coins?

 

[YankeeVol]

If you believe the recent GDP, inflation, and jobs numbers, TGT and HD at these levels arent bad.....

TGT does have some internal issues to work through. But TGT getting to around $125 would be a 30% return once you factor in dividends. If you have GDP in the 4s and inflation in the 2s, that should fit right into HD and TGT'S wheelhouse....

I’ve got 100 shares of TGT with an average of 90.47 lol

 

[BigOrangeMojo]

I’ve got 100 shares of TGT with an average of 90.47 lol

Factoring in dividend, all you need to do is get to 114 or so for 30%...

 

[Thunder Good-Oil]

If you believe the recent GDP, inflation, and jobs numbers, TGT and HD at these levels arent bad.....

TGT does have some internal issues to work through. But TGT getting to around $125 would be a 30% return once you factor in dividends. If you have GDP in the 4s and inflation in the 2s, that should fit right into HD and TGT'S wheelhouse....

HD will soar if housing ever ramps up. Increasing the housing stock of starter homes is on the administration’s agenda. But health care reform and affordability, domestic manufacturing and securing supply chains, world conflicts, tariffs and fair trade, the $35-$40 trillion debt and a balanced budget, energy and petro pricing, and orderly immigration and balancing jobs with a work force are obstacles and distractions. But having a healthy housing industry and affordability plays well into the mid-term elections.

 

[Thunder Good-Oil]

TGT needs to figure out how to not be dependent on China and other frenemies for their inventory. Also WMT kicks their ass with technology.

I picked up M a year or two ago with some uninvested bits of cash across accounts and planned to ditch it if it made me a small profit. I’m now having second thoughts about possibly holding on to the shares for a multi-year cycle.

AMZN though. My widows and orphans long term hold exploiting the US consumer. With AWS propping it up instead of a pure play consumer dependent equity. AWS also has the spin off possibility, although I think that that would eliminate a huge advantage for Amazon dot com.

 

[Go aeiou]

It’s a unique asset. I don’t think that anybody knows where it (or other large crypto market cap coins) belongs.

It’s really too volatile to be a reliable store of value.

The government has forced it to not really be invisible.

It’s going to be a long time before it has wide spread use as a transactional vehicle. But the huge money center banks are getting involved.

It’s generational. Guys like Buffet and Munger discount it as if it’s a dot com or meme type of investment. It creates value only if somebody else is willing to pay more for it than you did.

Is the IRS planning on taking a piece of every transaction if consumers eventually adopt it the same as cash/credit cards/checks?

Does it enable nations that don’t want to settle large trade deals in US dollars a viable alternative?

Without doing the math, are there enough coin slices available with the finite number of coins?

IRS is already going after tax cheats that hope to hide transactions using Bitcoin. Several have been prosecuted. A profit would have to be involved. Hopefully more cases will curtail tax cheats.
Are states going to classify Bitcoin as tangible personable property? Not sure if that has been to court yet?
Sales by dealers who are paid in Bitcoin should be subject to sales and Use Tax at fair market value of items sold.

 

[Thunder Good-Oil]

IRS is already going after tax cheats that hope to hide transactions using Bitcoin. Several have been prosecuted. A profit would have to be involved. Hopefully more cases will curtail tax cheats.
Are states going to classify Bitcoin as tangible personable property? Not sure if that has been to court yet?
Sales by dealers who are paid in Bitcoin should be subject to sales and Use Tax at fair market value of items sold.

Would classifying Bitcoin as tangible personal property allow it to be used at the cash register without creating a taxable event? I guess that is similar to exchanging US dollars for foreign currency before traveling overseas.

So what will/does the government do if an individual has an account with $250,000 worth of Bitcoin purchased to initially fund the “investment”. Then if it appreciates to a million dollars of value. If the individual buys a boat or real estate or luxury/collectible car then no doubt the IRS will want some of that appreciation. But what happens if that account is functionally transactional and the owner buys a pack of gum, a 6-pack of beer, or lunch?

 

[YankeeVol]

I am relatively conservative on the amount I invest outside long term holds. 10K is about what I'm willing to "wager" with my spare cash in the account. I also like to have at least 100 shares (I really don't know why, it's just a weird thing I have with numbers**).

So obviously 10K on a $100 stock goes further than a $200, etc, etc.


**I have 185 of one stock and it irritates the f*** out of me. I like 50 or 100 increments lol.

 

[Thunder Good-Oil]

I roll all the cash in my Schwab account into SWVXX money market ETF that’s currently paying around 3.5%

But SWVXX isn’t an ETF is it. It prices at the end of the day and has a settlement period before it can be invested in something else.

I see somebody on Reddit has posted XHLF, CLTL, ICSH, and SGOV as possible alternatives. Ultra short bond fund ETFs.

 

[05_never_again]

I’d like to hear if anybody has thoughts on cash sweeps other than Fidelity (I’m happy with Fidelity’s rates and automatic sweep).

With E-trade I have to keep a separate account to move idle cash to for a market interest rate. It’s a PIA to move it over to the brokerage account to make equity trades and vice versa.

With Schwab I can’t find an option that pays better than about 1/10th of a percent on cash sweeps. I might use a short term ETF to stash cash.

It's not considered a cash sweep, but I've been keeping cash in PULS lately. Currently yielding 4.6%. SGOV is good as well

 

[Thunder Good-Oil]

It hasn’t been discussed recently, but TreasuryDirect is a good alternative program for those that use bank savings accounts. I wish that it could be integrated with brokerage accounts.

https://www.treasurydirect.gov/

 

[@1RBFjr]

I am relatively conservative on the amount I invest outside long term holds. 10K is about what I'm willing to "wager" with my spare cash in the account. I also like to have at least 100 shares (I really don't know why, it's just a weird thing I have with numbers**).

So obviously 10K on a $100 stock goes further than a $200, etc, etc.


**I have 185 of one stock and it irritates the f*** out of me. I like 50 or 100 increments lol.

Does having 100 shares get back to the time when you were charged a premium for odd lot share purchases, so you'd buy a minimum of 100 shares?

And, if you have dividends dripped back in, that'll give you an odd number.

 

[YankeeVol]

Does having 100 shares get back to the time when you were charged a premium for odd lot share purchases, so you'd buy a minimum of 100 shares?

And, if you have dividends dripped back in, that'll give you an odd number.

Maybe, I just can't seem to put my finger on it.

Dividends just end up in my FCASH.

What's funny is that it was 183, and I bought 2 (double from original cost) just to try and get it to look better. I still don't like it.

 

[Go aeiou]

I am relatively conservative on the amount I invest outside long term holds. 10K is about what I'm willing to "wager" with my spare cash in the account. I also like to have at least 100 shares (I really don't know why, it's just a weird thing I have with numbers**).

So obviously 10K on a $100 stock goes further than a $200, etc, etc.


**I have 185 of one stock and it irritates the f*** out of me. I like 50 or 100 increments lol.

I more often than not have dividends converted to additional shares of stock.. That means I usually own fractional shares. I'm guessing you don't do that?

 

[Go aeiou]

Would classifying Bitcoin as tangible personal property allow it to be used at the cash register without creating a taxable event? I guess that is similar to exchanging US dollars for foreign currency before traveling overseas.

You can pretty much bet that if there is a loss the individual will take a loss on their income tax. The IRS wants tax on any gains.
The gov't wants only their $ used as currency.
If tangible personal property states will want sales tax(9-10% in TN) on any sale or use that is not casual or isolated. If you trade your TV set(tangible personal property) for a new suit from a retail store the State would expect that store to collect sales tax. Same for bitcoin. Sales tax would normally involve a dealer who is registered to collect sales tax. There are exceptions for some things, Most notably motorized vehicles. If due the tax is paid when the vehicle is registered. Depends on the state.
Six pack or gum from a store would have sales tax charged and the # of bitcoins needed would be negotiated between the buyer and seller. The Seller would have to report the sale for income tax purposes, and charge sales tax and report/remit that tax.

 

[Vol737]

But SWVXX isn’t an ETF is it. It prices at the end of the day and has a settlement period before it can be invested in something else.

I see somebody on Reddit has posted XHLF, CLTL, ICSH, and SGOV as possible alternatives. Ultra short bond fund ETFs.

You’re correct. It’s not, it’s a MMF. I do the same as Yankee, but I leave some cash in my sweep for immediate opportunities. I just look at it as I’m okay with keeping some immediately available cash in the sweep even though it’s not earning anything, but when it looks like certain equities are getting more attractive, I go ahead and pull cash from the SWVXX with an intent to buy in the near term.

 

[YankeeVol]

I more often than not have dividends converted to additional shares of stock.. That means I usually own fractional shares. I'm guessing you don't do that?

Nope lol

 

[Go aeiou]

Nope lol

Well, in case you don't know: If you own 80.23 shares of stock, and you place a buy order for 80 shares the fractional shares (.23) will also be sold. At least that happens at Vanguard.

 

[Jax_Vol]

I more often than not have dividends converted to additional shares of stock.. That means I usually own fractional shares. I'm guessing you don't do that?

I've gone back and forth on that.

Ended up just putting it all back into the various stocks.

When I had some going to cash, it would sometimes sit there for a long time before I even realized there was a balance..

 

[YankeeVol]

Well, in case you don't know: If you own 80.23 shares of stock, and you place a buy order for 80 shares the fractional shares (.23) will also be sold. At least that happens at Vanguard.

That makes sense IMO.

 

[95 Vol Alum]

I am relatively conservative on the amount I invest outside long term holds. 10K is about what I'm willing to "wager" with my spare cash in the account. I also like to have at least 100 shares (I really don't know why, it's just a weird thing I have with numbers**).

So obviously 10K on a $100 stock goes further than a $200, etc, etc.


**I have 185 of one stock and it irritates the f*** out of me. I like 50 or 100 increments lol.

You don’t DRIP dividends?

 

[YankeeVol]

You don’t DRIP dividends?

No

 

[Thunder Good-Oil]

You can pretty much bet that if there is a loss the individual will take a loss on their income tax. The IRS wants tax on any gains.
The gov't wants only their $ used as currency.
If tangible personal property states will want sales tax(9-10% in TN) on any sale or use that is not casual or isolated. If you trade your TV set(tangible personal property) for a new suit from a retail store the State would expect that store to collect sales tax. Same for bitcoin. Sales tax would normally involve a dealer who is registered to collect sales tax. There are exceptions for some things, Most notably motorized vehicles. If due the tax is paid when the vehicle is registered. Depends on the state.
Six pack or gum from a store would have sales tax charged and the # of bitcoins needed would be negotiated between the buyer and seller. The Seller would have to report the sale for income tax purposes, and charge sales tax and report/remit that tax.

So you’re expecting a national sales or consumption tax on transactions as well as a capital gains tax on Bitcoin/CC tgat is converted directly into US dollars?

I see a mess coming no matter how it plays out. Maybe the government will have to legislate two classifications for BTC/CC. An “investment” account that can’t be used for transactions and a transactional account where they’ll take up to 10% as a national sales tax. But then how do they manage moving investment Bitcoin that’s moved to a transactional Bitcoin to make ourchases? LIFO? FIFO?

 

[Thunder Good-Oil]

AI when asked how the government would tax crypto:

The IRS treats cryptocurrency as
property for federal tax purposes, not currency. This means that general tax principles applicable to property transactions (like stocks) apply to crypto, and any transaction where you sell, exchange, or otherwise dispose of your digital assets is a taxable event.

Key Taxable Events and Treatment

• Selling for Fiat Currency (e.g., USD): The difference between your cost basis (original purchase price plus fees) and the sale price is a capital gain or loss.
• Exchanging One Crypto for Another: This is considered a sale of one asset to acquire a new one and is a taxable event. You must report a capital gain or loss based on the fair market value at the time of the exchange.
• Spending Crypto on Goods or Services: This also triggers a capital gain or loss, calculated as the difference between the crypto's value when you acquired it and its fair market value when you spent it.
• Earning Crypto (Mining, Staking, Airdrops, Wages): When you receive crypto as payment for services, mining rewards, staking rewards, or airdrops, its fair market value at the time of receipt is considered ordinary income and is subject to income tax.

Capital Gains Tax Rates
The tax rate depends on how long you held the digital asset before disposing of it:

• Short-Term Capital Gains: For assets held one year or less, gains are taxed at your ordinary income tax rates (which range from 10% to 37% for the 2025 tax year).
• Long-Term Capital Gains: For assets held for more than one year, gains are subject to more favorable long-term capital gains tax rates (0%, 15%, or 20% for the 2025 tax year, depending on your total income).

Reporting Requirements and Forms
You are responsible for keeping detailed records of all your crypto transactions, including dates of acquisition and sale, purchase and sale prices, and the purpose of the transaction.

• Form 1040: You must answer the digital asset question at the top of this form.
• Form 8949 and Schedule D: Use these forms to report capital gains and losses from sales, exchanges, and other dispositions of crypto held as a capital asset.
• Schedule C or Schedule 1 (Form 1040): Use these to report ordinary income from crypto activities, such as self-employment earnings (Schedule C) or other income like staking rewards (Schedule 1).

Information Reporting by Brokers
Starting with the 2025 tax year, digital asset brokers (centralized exchanges, payment processors, etc.) are generally required to report gross proceeds from customer sales and exchanges to the IRS and to you on the new Form 1099-DA. This makes it easier for the IRS to track transactions and ensure compliance. However, even if you do not receive a form, you are still obligated to report all taxable activity.
For more information, consult a tax professional or refer to the official IRS guidance on digital assets.