[Taxes] What to do with huge gains in 2021 but equally as bad losses in 2022


So I was wondering if anyone is in a similar situation and has any advice on what to do.

I had a lot of short term gains last year from day trading semiconductor companies during a few key earnings periods. I never pulled any of the money out and just reinvested profits from day trades to long term shares to hold in those same companies. Stopped day trading at the beginning of the year and since then these companies have been freefalling worse than crypto crashes.

Now I am fucked because at this point my account is worth a little bit less than what I started with, but I also owe that same amount in taxes. Since the massive losses I would take would be this year it cannot offset any of the gains from the previous year, and I'll be limited to $3000 of losses a year which will basically take me over 25 years till I can claim all those losses.

For now I have applied for the IRS and state payment plans but I am pissed because I basically owe them a shit ton of money for money I did not make. And you could say I made that money but lost it, but it sucks that they tax us on the way up but the relief for losses (being capped at $3000) is so little in comparison.


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