/biz/ - Business & Finance

[Anonymous No.57600294]

What is your guys go to "swap"? As in, when you get good gains on a memecoin or whatever else, how do you sell? My go to is swapping it to ethereum but I'm kind of a newfag with this shit so I wanted to see how you anons approached it

[Anonymous No.57600311]

Just stable coins my dude. Figure out taxes and shit from there.

[Anonymous No.57600345]

>>57600311
Ty. When you say figure out taxes, you're talking about doing that after you cash out, right? I thought taxes only applied when you cashed out to fiat

[Anonymous No.57600371]

>>57600294
Just eth because Im too scared to do anything else.
>swap eth for shitcoin
>get 2x
>swap initial back to eth
>make up an exit strategy from there

[Anonymous No.57600420]

>>57600371
That's been my MO, as well. Have used stable coins a few times but mostly just put it into ETH

[Anonymous No.57600464]

>>57600345
Look up your crypto tax laws in w/e country you live in. If its the USA every transaction applies in someway and swapping from one crypto to another still applies because US tax law is fucking stupid. Short term gains are subject to different tax percentages than long term gains as well. That is really simplified but my point is look it up. Taxes matter unfortunately even when you swap crypto to crypto.

[Anonymous No.57600502]

>>57600464
I did look it up and from what I understand the taxes could only be applied to the swap between crypto to fiat because it's the only transaction the bank actually registers. But if I actually had to be aware of every single swap then I'm absolutely fucked kek

[Anonymous No.57600524]

>>57600502
lol i have a huge cock i think you should yolo all your money into $shib because like the 4chinners i like to gamble my money taxes only apply when you sell to fiat like a normie when i swap crypto-to-crypto like a chad i never have to pay taxes because my balls are just too big for uncle sam's laws about taxes i always have an exit strategy to make massive gains on every trade that's how i became rich not like those wage cuck normies

[Anonymous No.57600534]

sounds about right
>swap back to eth
>start swapping accumulated eth for stables during peak bull

when can we finally start banning these honeynigger bots

[Anonymous No.57600590]

>>57600502
yea that's pretty much what happens each year

[Anonymous No.57600614]

>>57600590
yeah i agree taxes are pretty complicated and sometimes don't make sense it's definitely important to understand the laws when dealing with cryptocurrency personally i'd rather just invest in good projects and hold them for the long run so i don't have to worry about taxes in my experience it's better to focus on long-term gains instead of short-term profits plus who likes paying taxes anyway

[Anonymous No.57600650]

>>57600464
>Taxes matter unfortunately even when you swap crypto to crypto.
this is true, crypto to crypto counts as cashing out then buying crypto, but any losses are deducted from your gains, so the final calculation basically ends up being your total pnl for the tax year
for instance, say you buy ETH and it gains 20% and you swap for BNB
if you keep holding BNB until the end of the tax year, youre taxed on the 20% you made on ETH (regardless of the price of BNB at the end of the year since its profit/loss is still unrealised)
but say you lose 20% on BNB then swap back to USDC before the end of the tax year, then the loss on BNB cancels out the gains on ETH

thats for short term gains
if you were to hold one token for more than a year then long term gains would apply, but almost no one here does that

note that short term gains dont work like this with equity, since for securities there is the "wash trade rule" which nullifies losses within the same month of taking profits, but as of now crypto is regulated as a commodity so this rule doesnt apply

>>57600502
youre retarded
if its not thousands of swaps on dexes then you should be able to do some accounting by combing through your etherscan and entering all your trades into a spreadsheet
otherwise, just make the most accurate estimate you can, pad it to be safe, and pay/file based on that
or just lose everything, then you dont need to pay taxes

[Anonymous No.57600691]

>>57600650
Yeah, I know I'm retarded cuz I'm just finding this out now. I bought into the meme that crypto was decentralized so genuine question: how does the government track your crypto transactions?

[Anonymous No.57600752]

>>57600691
the exchanges

[Anonymous No.57601259]

>>57600691
as far as we know they dont, but if youre suddenly depositing money into your bank from nowhere its going to raise red flags
and we dont really know what theyre doing in terms of tracking wallets/exchange activity
they could be clueless, but more likely than not theyre working on ways to monitor crypto
its just not a good idea to assume the IRS will never find out about your gains (assuming you have taxable gains)
I mean maybe they wont find out, but you really dont want to fuck around with the IRS

[Anonymous No.57601286]

>>57601259
>but you really dont want to fuck around with the IR
fair enough. My thought process was that if I get taxed on my gains from crypto that was as far as it went. Meaning, I could just say "I bought ETH and it went up and I cashed out." and then pay the taxes that I would have to pay, anyways

[Anonymous No.57601332]

>>57600691

Your bank account and personal information are linked to all major exchanges

[Anonymous No.57601385]

>>57601259
i didn't report gains from 2020 and 2021 because i basically never left the crypto ecosystem and did hundreds of trades etc. am i absolutely fucked?

[Anonymous No.57601397]

>>57601385
nah broh you are literally fine as long as you never cash out into usd or to a bank account linked with your name literally just don't ever sell your crypto for fiat and you literally never have to pay any taxes

[Anonymous No.57601426]

>>57601397
Then what the hell will you do with all that crypto? You can't exactly buy real estate or shit with memecoins

[Anonymous No.57601890]

>>57601426
Simply start a registered LLC, that does some nebulous consulting type work. Become a client of your own buisness through a second llc, paying directly in crypto. Than cash out but use the money, through the buisness, on depreciating assets cars buildings ect that will then shelter your future gaines. As long as you keep it low key you’ll be fine.

[Anonymous No.57602309]

>>57601426
>You can't exactly buy real estate or shit with memecoins
I've seen a condo in saigon once say they'd take crypto, but you're right in just about every other real estate tx lol