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21334217 No.21334217 [Reply] [Original]

Lads I know it's a meme not to sell but when you do decide to take any profits in crypto should you just exchange everything to tether and then cash out little bits from there to not pay absurd amounts of tax?

>> No.21334250

>>21334217
crypto to crypto is taxable

>> No.21334266

>>21334250
Fack

>> No.21334278

>>21334217
if you are in the US or anywhere else that taxes crypto-to-crypto you will be taxed for the chainlink->tether trade

>> No.21334347

>>21334217
fuck the IRS, come get me bitches. Never have paid my taxes and never will. Jew niggers

>> No.21334364

>>21334250
>>21334278
What percentage?

>> No.21334384

>>21334217
I will. But there is still Tax from Crypto to Crypto transactions. It may not save much on tax but compared to maybe cashing out a lump sum into fiat, systematic withdrawlsa every year can help reduce tax on capital gains. I mean Tether to USD doesn't have much capital gains since it's trying to be 1:1.

Also think about yourself as well, do you trust yourself will a lump sum of fiat that can be spent easily, or a temporary financial easing into luxury.

>> No.21334432

>>21334364
<1 year between buy and sale — 30%
>1 year — 10%

>> No.21334884

>>21334364
for the US:

Short term (held for less than one year):
counts as income for the purpose of determining tax bracket. If you have no other income for the year and you cash out less than the standard deduction (approx 12.4k) then you pay $0. Otherwise it starts at 10% and ramps up to 37% as your total income increases. You only pay tax on income beyond the deduction, so that first 12.4k is always tax free. But you should still file

Long term (held for a year or longer):
separate from your income tax and does not affect your income tax bracket. no tax up to about 39.3k, beyond that 15% tax, capping at 20% once you go past approx. 434k

these numbers are for single filers, most states will also charge you some kind of
capital gains tax as well but it’s smaller

I’m not a tax expert so verify when it’s time to pay, but I’m pulling these numbers from sites off google

>> No.21334934

>>21334884
Much thanks fren. We'll all make it together

>> No.21334953

>>21334432
Maybe I'm just retarded and not understanding you correctly, but what do you mean "more than a year or less than a year"?

I know that capital gains tax is higher if you held your asset for less than a year, or lower if more than a year.

If I swap $1000 of Bitcoin for $1000 of Etherium, that swap is taxable, right? That's what you're saying? It's an instantaneous swap, so what is ">1 year or <1 year" about it?

>> No.21335246

Lmao imagine coming here thinking you got some 200iq tip to avoid taxes only to be told crypto to crypto is taxable and in reality you know nothing about it hahahahhahaa

>> No.21335469
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21335469

Also what the fuck, just saw this in another thread.


>I have an announcement also.

>All those gains you made. You need to pay quarterly taxes on them. It is due September 15th.

>Any tax over $1000 has to be paid quarterly.

>Thanks, signed the IRS.

>> No.21335503

>>21334953
How long did you hold the Bitcoin for? If less than a year, you pay tax for whatever your tax bracket is at the time of filing. If more than a year, you pay either nothing, 15%, or 20% based on your tax bracket.

>> No.21335550

>>21335469
You have no gains until you cash out. Letting crypto sit isn't a taxable event.

>> No.21335632

>>21335503
So all of my Uniswap trades where I:

Buy ETH ----> Swap ETH for Shitcoin ---> HODL Shitcoin for a few days -----> Swap Shitcoin back to ETH ----> Sell ETH for USD

I'm getting taxed three times? On the ETH? Then the shitcoin? Then the ETH again? What the fuck?!

>> No.21335736

>>21335632
yeah but you only get taxed on the realized gains, if there was no change in the relative USD value of the asset prior to the trade, then there is no tax. So while there were three taxable events, the shitcoin gain is likely the only appreciable gain for which you’ll have to pay taxes

>> No.21335806

>>21335736
Oh ok, I understand it now. Thanks for tolerating this retard, anon.

>> No.21335845

>>21335632
Yes, you would have to pay tax on ETH -> Shitcoin. Shitcoin -> ETH is a little different, because you could have sold for a loss - which would then mean there's nothing that can be taxed (though you would still report it).

Not sure on ETH to USD.

>> No.21335870

>>21335632
You’re taxed on GAINS you FUCKING RETARD

>> No.21335945

>>21335550
I think it's considered a reportable event. They go by fair market value at the time of the transaction, so you don't actually make any kind of gain as its treated similarly to a like-kind exchange since they treat crypto similarly to property. So they probably just want it on record that the trade was fair and not tax evasion or some shady money laundering operation. The gains tax kicks in when you cash out and then they look at how long you held the asset to determine the appropriate tax scheme.

Someone correct me if I'm wrong here.

>> No.21336034

>>21334250
this is the case in the US, but what about the UK? If i trade my crypto gains into tether and then cash it out slowly each year, they won't come after me for the full amount right?

>> No.21336059

>>21334217
You have to pay tax on crypto to tether

>> No.21336120

europoor here, how the fuck crypto to crypto can be taxed? do you send a percentage of transaction to government crypto address?

>> No.21336913

Here is a little unofficial way of handling some crypto to crypto transactions. Let's say I buy eth on coinbase and transfer to another website to buy xrp. Then I transfer the xrp back to coinbase and sell. The IRS wants you to do two tax transactions. You can do one though with eth as your basis and putting only the xrp that you sold in the description. If the IRS audits your basis is still right so they can't get you for any taxes. They can bitch about wanting a eth to xrp tax transaction but they can't fuck you over it.

>> No.21336953

>>21336120
You have to write in cash equivalent. And give them cash in taxes.