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Merged Bitcoin - Part 3

MinnesotaBrant said:
Is there any reason they should tax crypto? Like for instance then you could claim a loss if sold at a loss. I guess I don’t know why they tax gambling wins either. Maybe not for this thr ad
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It isn't taxed, you can buy as much crypto as you want and it will never be taxed, it is only when you sell it an receive a profit that the profit gets taxed. Why should it be different from other investments?
 
ponderingturtle said:
It isn't taxed, you can buy as much crypto as you want and it will never be taxed, it is only when you sell it an receive a profit that the profit gets taxed. Why should it be different from other investments?
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Because if you classify it as "winnings from gambling" you can get more tax revenue?
 
psionl0 said:
Capital gains are taxed at varying rates depending on your income and whether you have held the asset for more than a year or not. Most people will pay 15% (no more than 20%) on the gain if they sell their asset after 1 year.

The federal tax rate for winnings from gambling is a flat 24% (but you can claim gambling losses up to the amount of your winnings as a deduction).

I don't know if the IRS classifies profits from crypto sales as capital gains or as winnings from gambling but I can guess how they would like to classify it.
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Hi Psionio I am studying taxes in order to start a business and its very enlightening so far. Taxes and business in general seems like it is designed to be gamed as long as you have the time and knowledge to game it. I am not going to use any credit yet to fund it so that will affect how I approach it. Going to carry a lot of loss the first year then go to work and make money the next.
 
ponderingturtle said:
It isn't taxed, you can buy as much crypto as you want and it will never be taxed, it is only when you sell it an receive a profit that the profit gets taxed. Why should it be different from other investments?
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I don't know. I think that crypto would be a lot cooler if it wasn't taxed. I have not read a book on it yet but I am not sure if you can deduct taxes from crypto or not
 
psionl0 said:
Everybody thinks that their comment against bitcoin is original. It isn't. This thread is more than 13 years old and you can be sure that somebody has posted the same thing in the past.
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you're not getting my point because of your never ending vigilance in protecting bit coin. I'm talking about ASTROLOGERS.
 
gabeygoat said:
you're not getting my point because of your never ending vigilance in protecting bit coin. I'm talking about ASTROLOGERS.
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That is another one of those arguments that has been made ad-nauseam over the years: "Only a bitcoin lover would point out when somebody else is posting BS about bitcoin".

I have said it before. I have no particular interest in bitcoin. I just find the types of arguments used against bitcoin to be offensive considering that this is supposed to be a forum that values critical thinking.
 
MinnesotaBrant said:
Hi Psionio I am studying taxes in order to start a business and its very enlightening so far. Taxes and business in general seems like it is designed to be gamed as long as you have the time and knowledge to game it. I am not going to use any credit yet to fund it so that will affect how I approach it. Going to carry a lot of loss the first year then go to work and make money the next.
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MinnesotaBrant said:
I don't know. I think that crypto would be a lot cooler if it wasn't taxed. I have not read a book on it yet but I am not sure if you can deduct taxes from crypto or not
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Considering that it is not clear that you know the difference between taxing cryptos and taxing the profits you make from selling cryptos, I would suggest that you get a lot of professional help before you embark on any tax minimization schemes. Otherwise, you might find yourself in a lot of hot water.
 
psionl0 said:
Considering that it is not clear that you know the difference between taxing cryptos and taxing the profits you make from selling cryptos, I would suggest that you get a lot of professional help before you embark on any tax minimization schemes. Otherwise, you might find yourself in a lot of hot water.
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Nope. Thinking of making my daughter an employee and having her start a 401k at age 12. I think having a pile of money that is not included in figuring assets would be cool. As far as the IRS goes I am not really afraid of them which is a good thing. I do know what you are saying and if somehow I make more than 52k on my first year there might be something to what you are saying. Might have 1-2 employees first year and I am working it just to get experience running a business.
 
Thinking of carrying over the loss from not generating income this year. Incorporating a family business in Jan paying wages out of my own pocket. The finding an extremely upscale liberal focused market and offer a premium eco focused service. Lots to do. I have to figure out website, bookkeeping, taxes, and have some more equipment to buy
 
psionl0 said:
I have said it before. I have no particular interest in bitcoin. I just find the types of arguments used against bitcoin to be offensive considering that this is supposed to be a forum that values critical thinking.
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You are offended by your own arguments?

Of course not. That would require some actual critical thinking. But don't worry about it. Many others are in the same boat.
 
Back around 2013, I scrounged some BTC and other alt coins on forums and chat rooms and in other weird ways. Made good trading them, in terms of more crypto coins.

I still think the whole thing is a ponzi; a slow append-only database is the solution to no interesting problem. Real fraud happens by putting bad data into the ledger, not by altering the ledger.

Anyway: fast forward ten years, and prices are way up beyond anything I thought was possible. Made a good 3-4 BTC trading Vanillacoin (later VCash) until the dev went nuts and killed off his own coin. Got out with a decent profit still.

Just sold the BTC for enough for a down payment a nice electric car.

Unfortunately, the whole market just took a **** today as I decided to sell. I had a stop/limit order open, so once it crossed my threshold for loss, it sold, and everything is ok.

Still have some ETH I'll probably sell to cover the capital gains tax on the BTC, and still holding a few thousand $ worth of Doge.

Given the crazy volatility, I still do not recommend this stuff as an "investment" to anyone other than gamblers. My cost basis was literally zero (except some opportunity cost of time), so I made out. But I was lucky my coins were never on an exchange that closed.

In around 2017 when I sold a little BTC to buy my wife an iPhone X, that went through QuadrigaCX, which is now defunct. My coins were only there a day or so. But the CEO who was the only one with the password to the cold wallet "died in Italy" (or something) later and disappeared. They sent me the cash in an envelope, in the post with no tracking or anything. It was $800 short. I called, they put me on hold, came back and said, "Yeah, it was a trainee who filled your order. The rest is on its way." And I got another plain post envelope with more cash.

Take care out there everyone.
 
When DJ Trump proposed paying the 35 trillion national debt off with bitcoin, I think a few minds would have been focused on what a ridiculous notion this is, and the intrinsic and epically valueless instrument crypto generally is.
As Warren Buffet says, it's going to end badly, I don't know when or how.
When he pivoted into the techs like Google and Apple, he was purchasing value and revenue streams.
There is no way Berkshire will ever support this environmental fraud.
 
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Samson said:
When DJ Trump proposed paying the 35 trillion national debt off with bitcoin, I think a few minds would have been focused on what a ridiculous notion this is, and the intrinsic and epically valueless instrument crypto generally is.
As Warren Buffet says, it's going to end badly, I don't know when or how.
When he pivoted into the techs like Google and Apple, he was purchasing value and revenue streams.
There is no way Berkshire will ever support this environmental fraud.
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Why would the opinion of a ceremonial county in South East England be at all relevant to this subject?
 
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