/biz/ - Business & Finance

Everything in the future will be a taxable event. As government are insolvent and the rich are fleeing and hiding their money, the governments will have to employ increasingly draconian measures to stay afloat.

>>25917253
discussing Bitcoin is a taxable event.

>>25917276
>>25917361
make it stop i just want to afford a house plz

>>25917253
why would you do that?
why do you feel the urgency to give away your private keys?

>>25917438
You WILL live in a wrapped pod, and you WILL like it.

>>25917459
i want to earn yield on my cones

>>25917253
Convert your BTC to Monero, send to multiple addresses you own and then reconvert to BTC. Use multiple bank accounts to liquidate and pay 0 tax.

>>25917253
moar cat please.

>>25917700
answer my tax question first

bumping for cats

>>25918010
I'm running out of cats I just need tax help PLEASE

You mean exchanging BTC for WBTC? Of course that's a taxable event. It's a crypto to crypto trade.

>>25918144
i dont feel so good

Are you talking about this? Whatever it is

>>25917640
>BTC to Monero

taxable and trackable

>>25918310
what about morphtoken

>>25917253
You can probably get away with not reporting it.

>>25918331
Just use BISQ if you already have the BTC off exchange.

>>25917253
people running tax services have never even heard of the concept of "wrapping a bitcoin" you can easily get away with lying .

if you crystallise profits on trades, it is

>>25917253
>>swap BTC for wBTC 1:1
>>Make no profit on it

What exactly are they supposed to tax?

>>25917253
>wrapping your bitcoin instead of just making cz take the pill
ngmi

>>25918561
In theory: price you bought-price at time of swap

Zero eggs bitcoin doesn't even know how to spell tabaxle enevt

>>25918668
But theres been no profit. And what if you sold for a lower price?

>>25918475
Not really. They're gonna follow your transaction to the wrapper smart contract.

>>25918994
You buy bitcoin for 10k, sell it for a token worth 35k (wrap it). You make 25k profit

>>25920078
where did you profit exactly if you havent cashed out?

>>25917438
>i just want to afford a house
Easy, here you go fren.

>>25918246
anon you're not giving me hope that this is just a correction and not a crash

>>25920165
God those people got fucked so hard.

>>25920138
That isn't how US tax law works. Trading shitcoins are taxable events regardless of if you realize profit or not. Idk about other countries.

>>25918994
Buy btc at x usd/btc = basis. Convert bitcoin to token at y/x token/btc. Taxable gain or loss is y * usd/token - basis

>>25920165
wow, less than the price of ETH at the EOY

>>25920304
1 ETH will be enough to buy a house, what a time to be alive

No. The bitcoin you have wrapped is still your bitcoin. You haven't bought any other coin, you have just changed the vessel in which the coins are stored. It's like depositing cash into your bank account, it's still dollars.

>>25918668
couldn't it be seen as a redeemable token or something? I think US crypto tax laws will change soon, as all the boomers die off.

>>25920224
>>25920265
So you can technically be in millions of debt if you trade on uniswap even if you haven't seen a single dollar cashed out?

Jesus christ. Land of the free indeed

>>25920138
>cashed out

Doesn't matter.

What matters is the asset went up in value, you disposed of it (swapped it for something else), thus crystalising the gains, and therefore taxable.

>>25920438
yea, I recall in the last bubble some people had millions of realized gains, and then since the top was the new year a lot of people lost everything without actually cashing out and still owe taxes they had no chance of ever paying off.

>>25920438
>So you can technically be in millions of debt if you trade on uniswap even if you haven't seen a single dollar cashed out?

Yes

>>25919801
lol no they're not. Have you ever actually looked at a 1099-b for capital gains? You literally just write "efferiyums bought this date for this much, sold that date for that much". They're not tracking your fucking smart contract. They don't even know what that shit is.

>>25920480
>>25920496
hoooooly fuck

why aren't people shooting up congress about this tyrannical laws?

This shit is legit insane

>>25920438
Technically yes but you'll never get held accountable for that shit.

>>25920526
What is chain analysis software

>>25920526
The diversity hire Lawtawnsha at the IRS definitely understands how xmr and dexes work

>>25920582
show me a single instance of someone getting buttfucked by the IRS for not reporting on-chain crypto-to-crypto swaps.

>>25920603
Exactly. Just keep away from swapping shitcoins on a KYC DEX like coinbase and you're golden.

>>25920662
>DEX
*CEX

>>25920662
>be me
>baby's first crypto on goybase dec 2020
>swap and sell coins like a mad swinger because I have no clue what I'm doing
>realize all crypto transactions are taxable events
I'm sweating a bit

>>25921584
IIRC coinbase will send a report to the IRS on your shit if you either traded >20k worth of crypto, or you've made 200+ trades. Apparently you'll know if they reported it because they'll also send you a 1099-K as well.
I haven't received anything like that, but I also make sure to do any flipping/swinging not on coinbase.

Can anyone who's done a significant amount of trading on CB say whether or not they've received a 1099-K from them? I'm not even sure if they would've sent them out this early in the year yet or not.

>>25920526
nigger my third world country knows what smart contracts are
you have to get a loicence in order to write smart contracts legally that will be used by other people
you also have to register your white paper, so that pajeets can sue you if you don't follow through your white paper
there's also some shit on ICUs, but i forgot

>>25917253
Yes

>>25920138
It's to discourage barter economies

>>25920224
Canada is the same with a couple of caveats that allow them to consider even a single trade to be professional income and thus taxed at a less favourable rate than capital gains. Americans have it good relatively.

>>25920393
The wrapped BTC is a different asset than BTC. You have exchanged cows for fancy chickens so that you can barter in the chickens-only market under tax law and each direction is a taxable event. It will not be considered "like" until institutions start complaining about undue hardship.

If you swap back in the same tax year, it's easy enough to track though. Unless you're in fucking Canada where the frequency of the swaps can get into legal areas where you can't capitalize losses because there wasn't enough time between the trades (fuck Canada).

>>25920438
Yes. Especially if you ride up in one year and trade yourself penniless (using Uncle Sam's money) in a subsequent year. You are effectively branded a criminal.

>>25920662
It will take them years and regulations to do this. What may end up happening is you getting audited because you used a CEX and being unable to explain where the money is. Then you get audited way too fucking much because you're essentially being watched to track whether or not you are laundering to acquire assets with your untaxed gains.


Have to get ready for work. Good luck.

>>25922398
>implying the USA isn't a 3rd world country

>>25922433
>The wrapped BTC is a different asset than BTC.
It's not though. It's the same asset with an added utility layer. If I wrap my dollar around a rock so I can throw it further in what world did I make a taxable trade of my dollar for the rock wrapped in a dollar?