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Cool but annoying af the government makes you pay tax when you realize those gains in a transaction for products (i.e., using crypto to buy stuff), however if it were something like CAD to USD, tax is only required when exceeding $200. IRS needs to make them the same if it's gonna ever be a legitimate type of currency. This problem is compounded by the lack of accounting by crypto wallets and trading platforms. I have some btc as a result of a combination of purchases and swaps but I have zero fucking clue what the original cost basis was. I'd have to do some serious digging to know that and it's annoying.
HypeBeastCool but annoying af the government makes you pay tax when you realize those gains in a transaction for products (i.e., using crypto to buy stuff), however if it were something like CAD to USD, tax is only required when exceeding $200. IRS needs to make them the same if it's gonna ever be a legitimate type of currency. This problem is compounded by the lack of accounting by crypto wallets and trading platforms. I have some btc as a result of a combination of purchases and swaps but I have zero fucking clue what the original cost basis was. I'd have to do some serious digging to know that and it's annoying.
You still would have to pay tax on what you received in return since it has value. Shit even if you buy a cheeseburger with crypto that has appreciated, you gotta pay capital gains tax on the portion that you used to buy that product.
Edit: the gift cards are the product in this case.
**This post was edited on Mar 2nd 2024 at 4:16:22am
HypeBeastYou still would have to pay tax on what you received in return since it has value. Shit even if you buy a cheeseburger with crypto that has appreciated, you gotta pay capital gains tax on the portion that you used to buy that product.
Edit: the gift cards are the product in this case.
**This post was edited on Mar 2nd 2024 at 4:16:22am
That’s fucking ridiculous. I’m not really into holding coins as an investment, but this really makes it impossible to use as a basic currency for anything outside of drug deals
RparrThat’s fucking ridiculous. I’m not really into holding coins as an investment, but this really makes it impossible to use as a basic currency for anything outside of drug deals
The even scarier part is it's not the anonymous method it was designed to be. Every transaction is still traceable and identifiable if you got enough skills in financial/crypto forensics, which the feds do through numerous firms they contract with. You'd be better off using old fashioned tangible forms of currency like paper money, precious metals, and gems. With all the focus of the IRS on unpaid crypto transactions and their implementation of AI for audits, it would be really stupid to do drug deals with crypto.
RparrThat’s fucking ridiculous. I’m not really into holding coins as an investment, but this really makes it impossible to use as a basic currency for anything outside of drug deals
As long as the government views it as an investment that's all it can be and will then be subject to CGT. Why shouldn't they tax the hell out of it, it's basically just used as any other investment vehicle at this point anyway.
If you really want cryptocurrency to be used as an actual currency I don't think BTC is the way, with every transaction being visible, tokens can be traced back to illegal trades and blacklisted, it's like not being able to use your cash cause some dude used it to buy coke before you got it as change at a shop. Fungible crypto like XMR is more interesting, being more like a digital analogue to cash.
HypeBeastThe even scarier part is it's not the anonymous method it was designed to be. Every transaction is still traceable and identifiable if you got enough skills in financial/crypto forensics, which the feds do through numerous firms they contract with. You'd be better off using old fashioned tangible forms of currency like paper money, precious metals, and gems. With all the focus of the IRS on unpaid crypto transactions and their implementation of AI for audits, it would be really stupid to do drug deals with crypto.
BTC was never designed to have anonymous transactions, but that doesn't mean cryptocurrencies designed around this aspect don't exist. The one I'm most familiar with is XMR, but I know of Zcash as well.
I still think the IRS are gonna have questions if you suddenly cash out, but it can be used to pay for goods/services anonymously, although it does seem like I'm describing tax evasion.
Also, crypto is definitely used for drug deals, just not using BTC and traceable cryptocurrencies.
**This post was edited on Mar 2nd 2024 at 5:35:41am
HypeBeastCool but annoying af the government makes you pay tax when you realize those gains in a transaction for products (i.e., using crypto to buy stuff), however if it were something like CAD to USD, tax is only required when exceeding $200. IRS needs to make them the same if it's gonna ever be a legitimate type of currency. This problem is compounded by the lack of accounting by crypto wallets and trading platforms. I have some btc as a result of a combination of purchases and swaps but I have zero fucking clue what the original cost basis was. I'd have to do some serious digging to know that and it's annoying.
There is no way it will be legitimate currency. It was useful for that to buy droogz back in the day but now it is what it is. If people make a bunch of money on it, thats great, but it's way to volatile to be used as a regular currency.
I think that's the big problem. So many crypto currencies now and they're all basically unusable outside of buying and selling them or trading them to try and make a profit. And for that profit people are cashing back out into normal currencies.
HypeBeastThe even scarier part is it's not the anonymous method it was designed to be. Every transaction is still traceable and identifiable if you got enough skills in financial/crypto forensics, which the feds do through numerous firms they contract with. You'd be better off using old fashioned tangible forms of currency like paper money, precious metals, and gems. With all the focus of the IRS on unpaid crypto transactions and their implementation of AI for audits, it would be really stupid to do drug deals with crypto.
It's still pretty anonymous if you know what you're doing. I used to put money on a money card and trade the cash card for bitcoin on anonymous various websites that didn't require ID for a wallet. Once I received the coins I'd wash the coins on a site like Bitcoin Fog and then move in and out of cold storage.
It's much easier to trace now a days but if you know what you're doing you can still remain pretty anonymous.
millions of people have made drug deals with crypto and are still living amongst us. In fact most bitcoin millionaires today were once selling pot and heroin 10 years ago.
I don’t follow crypto at all, but I had some money in my Venmo account and realized that I could buy some right there. I’m down $2 on my $25 investment.
This thread not accurate but we’ve been knocking ATH last couple days anyways.
best thing I ever did w/ crypto is learning and filing my taxes. Seen people up big money but don’t sell because they’re scared of taxes then they lose it for years (or ever) in a bear market. Also funny you all talking about capital gains taxes as a bad thing, it means you’re making money… I understand and appreciate the arguments for flat rate tax but it’s just like people who talk about progressive tax rates as if you’re losing money when you get a raise… not how it works, I understand you don’t want to pay taxes but don’t act like you’re losing money.
also talking about taxes, savings account interest is taxed too you dolts. Most savings accounts pay a fraction of a percentage which is pathetic way below inflation rates so you’re basically paying for insurance when you leave money in a FDIC backed account since it’s losing pace to inflation. AND YOU GET TAXED ON THAT MINISCULE YIELD even though it’s technically a loss to inflation 98% of time (semi made up stat). People who think if they won a couple million in a lottery they would put it in a high yield savings account/bonds and live off interest are the paramount of financially illiterate. If you’re a frugal dumpster diving thriftster living in a trash can you may make it, but the majority would fail and be back at work in no time
I’ve just always been shocked how many people, even economics minded people have all the data sets right in front of their face yet can’t/refuse to see the conclusion. So many people think social security will always remain solvent, people have way too much faith in government even though we’ve all been grifting via government spending/tax cuts that benefit us now and put the burden on generations below. Kind of reminds me of big short, and buying Bitcoin is essentially shorting fiat
you do you I gotta finish my taxes. I paid so much in gains a few years ago, so much in losses last year my accountant said I have tons of profits I can offset losses too before I owe taxes again on gains. So can’t say I hate capital gains taxes, it’s how I afford my ski habits etc
iH8powalso talking about taxes, savings account interest is taxed too you dolts. Most savings accounts pay a fraction of a percentage which is pathetic way below inflation rates so you’re basically paying for insurance when you leave money in a FDIC backed account since it’s losing pace to inflation. AND YOU GET TAXED ON THAT MINISCULE YIELD even though it’s technically a loss to inflation 98% of time (semi made up stat). People who think if they won a couple million in a lottery they would put it in a high yield savings account/bonds and live off interest are the paramount of financially illiterate. If you’re a frugal dumpster diving thriftster living in a trash can you may make it, but the majority would fail and be back at work in no time
Most People who got a CD @8% for 2 million dollars and lived on 110K interest after taxes could live perfectly fine. Not sure wtf you're talking about.
Nice rant but you're missing the point that the irs treats crypto purely as a security and not like a currency when used in transactions. Therefore it is taxed different than currency exchange and that's the frustrating part.
You know you can only claim $3000 on losses per year right? So if you're good "for years" without having to "pay" on gains, that tells us that on average each year, you have 3k or less in capital gains. Not really something to brag about.
iH8powThis thread not accurate but we’ve been knocking ATH last couple days anyways.
best thing I ever did w/ crypto is learning and filing my taxes. Seen people up big money but don’t sell because they’re scared of taxes then they lose it for years (or ever) in a bear market. Also funny you all talking about capital gains taxes as a bad thing, it means you’re making money… I understand and appreciate the arguments for flat rate tax but it’s just like people who talk about progressive tax rates as if you’re losing money when you get a raise… not how it works, I understand you don’t want to pay taxes but don’t act like you’re losing money.
also talking about taxes, savings account interest is taxed too you dolts. Most savings accounts pay a fraction of a percentage which is pathetic way below inflation rates so you’re basically paying for insurance when you leave money in a FDIC backed account since it’s losing pace to inflation. AND YOU GET TAXED ON THAT MINISCULE YIELD even though it’s technically a loss to inflation 98% of time (semi made up stat). People who think if they won a couple million in a lottery they would put it in a high yield savings account/bonds and live off interest are the paramount of financially illiterate. If you’re a frugal dumpster diving thriftster living in a trash can you may make it, but the majority would fail and be back at work in no time
I’ve just always been shocked how many people, even economics minded people have all the data sets right in front of their face yet can’t/refuse to see the conclusion. So many people think social security will always remain solvent, people have way too much faith in government even though we’ve all been grifting via government spending/tax cuts that benefit us now and put the burden on generations below. Kind of reminds me of big short, and buying Bitcoin is essentially shorting fiat
you do you I gotta finish my taxes. I paid so much in gains a few years ago, so much in losses last year my accountant said I have tons of profits I can offset losses too before I owe taxes again on gains. So can’t say I hate capital gains taxes, it’s how I afford my ski habits etc
It’s nice how many investment options we have though, got some cone in my retirement, wife’s retirement, call options, and then the old fashioned cold storage btc/eth/shitcoins. So while my portfolio balance is far below ATH, I don’t suffer FOMO when I sell now so been doing a much better job printing money. As prices go up, I sell in my wife’s portfolio first, then my call options since they expire, then my retirement and finally my cold storage stacks if we really sore.
my plan is to go “all-in” (not really) on gold this year
iH8powShoulda sold it all, at least I paid off my Audi.
It’s nice how many investment options we have though, got some cone in my retirement, wife’s retirement, call options, and then the old fashioned cold storage btc/eth/shitcoins. So while my portfolio balance is far below ATH, I don’t suffer FOMO when I sell now so been doing a much better job printing money. As prices go up, I sell in my wife’s portfolio first, then my call options since they expire, then my retirement and finally my cold storage stacks if we really sore.
my plan is to go “all-in” (not really) on gold this year
Gold baby. Only thing that will help you when the dollar collapses. Hard to argue against it while the USA racks up 40 Billion dollars a day of interest alone.
