Well ever wonder what you have to do with your gains from cryptocurrency? Me too. Thing is, you go look on youtube and you cant really find a thing. Now why is that? Are most simply avoiding talking about it and shy away? Or do they not really know anything about what comes next? Well, I dont know much either. But I can give you a outline of what you need to do.
Capital gains tax. Yep thats what its called when you make income from investment type monies. Its what you need to pay. And you must do the right thing and pay. Look at it this way, pay your taxes and be truthful and still enjoy whats left........or lose it all because you wanna try and cheat? Yea, im gonna do the right thing. If you are smart you will too. As far details go, ill break it down in the simplest way i know. It may not even be accurate, but its generally how any of us pay taxes in the USA.
You will get put into a tax bracket. Lets say bottom tier is 0-15%. Middle is 16-30%. And lets just say 31-40%+ is high. Now if you made a small amount of gain(net profit) youd be in low bracket. Say you did good, you made $5k. Ok, you could pay up to 15% on that. Again, i wanna remind you im no tax authority and these numbers arent accurate but it gives you a basic outline of what to expect. So $5K - 15% tax = $4250. I could definitely live with that. $750 worth of tax versus not reporting and paying and losing $4250? Yea ill pay my taxes everytime thank you. As you make more you go up in brackets. Higher brackets you pay more, and this is where it start to hurt bad. But again, pay some and keep most or lose it all. You do the math. Feel free to add in accurate info as im merely reminding folks of the ugly side of making all that coin. I do find it odd no one discusses it on youtube. It doesnt make it go away just because you dont talk about it. So lets talk about it. Being informed is the best plan to success, just like your investments. Thanks. Lets make this grow and get everyone the info they need.