People keep asking me to make crypto-related content concerning taxes and the capital gains tax liabilities that people might incur from investing in the likes of Bitcoin and Ethereum.
The truth is that I'm just not qualified to comment on this. But I still want to offer a little piece of advice that I think will be of enormous value to people.
DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.
***I am in the process of adding many of my videos from YouTube on to DTube. Apologies for any posts that you've already seen before!
Original date of upload: November 20th 2017
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Please do, i always love your analysis
I always learn from this videos. It was a great trial on tax. These tax rules will get to change with time. Till eliminated.
Tax man! Everyone is afraid of these rulers. I’m not worried as of now since I haven’t sold any of my holdings and not planing to for long time. When the time comes I will have my accountant taking care of this as well.
The best tax advice in crypto as of now is to hold whatever you buy. Be long therm investor and perhaps wait once the tax rules change. That’s one of the reason I don’t plan to sell anything. They eventually will change the tax rules, just like regular curency. You don’t pay taxes at all on curency. In the US it’s treated as a property, not as curency. Whatever your net profit is you pay taxes. But, you have to sell first of course. And yes, as you mentioned “hire a professional”. It’s worth spending money.
In Venezuela, the government kidnaps unregistered Bitcoin miners... But when I'm out of here, I'll consider it seriously, since literally ALL of my money and income is in cryptocurrencies.
Well, taxes are necessary evil in order to induce mass adoption and take the cryptosphere to the next level.
PS: Only advice I give people is to HODL and not sell their coins for peanuts. But again, that's me.
I see taxes as a necessary evil.But if it is for the recognition of cryptos...what the hell.So be it.(not that i like the prospect)
Sound advice @LouisThomas. I don't think many people realise that even if you never liquidate back into fiat you could be liable for tax if you for example trade one crypto for another. If you do this calculating your profit/loss gets horrendously complicated and IMHO you definitely need the advice of a professional accountant.
I think that my country has some kind of law that if you hold it for more than 2 years, you don't need to pay any taxes.
But, it's only 12% for everything you profit, so it's not that big of a deal to pay it.
I know there are some ways of getting that cash without paying taxes, but 12% really isn't much.
Transaction fees depend on the currency pair you’re trying to exchange as well as the website you’re using. The best one to go with will greatly depend on the amount that is being exchanged and, again, what currencies are involved in the particular transaction.
That’s why it’s always a good idea to compare a few places every time you’re looking to trade. You can use free tools such as Switchain to see exactly how much you can get with some of the most used exchanges.
Most of them are equally user friendly and have similar safety features, so it doesn’t make too much sense sticking with the same one with every particular transaction.
You want great tax advice? move to the Cayman islands or Andorra :-D
Great analysis ..
Your explanation is effective in crypto current market...
I always learn form your analysis thats help me in trading...
If you didn't sell anything at a profit, you wont have to pay taxes just because you were up on that date unless you were trading. If you bought and held, you're good..
Is this accurate? (good follow - good advice and info crypto-tax-related)
Excellent video, it is quite useful like the one you did a few months ago on how to declare the taxes of the money received in steemit.
For me your videos have always been helpful. Compared to me you are a veteran and I may not exactly follow your advice but it is a great learning experience. Thanks :-)
Actually capital gains/losses is amongst the most simple of things . The potential problem with crypto currency is that one is obligated to make many purchases with cryptocurrency , rather than the fiat currency of one’s particular state.
Keeping track of each transaction and converting each to fiat value is very labour-Intensive. One possible approach is to simply take the value of the account at the beginning of the year and at the end of the year ( corrected for deposits and withdrawals of course). This results in one paying for ( as yet) “unrealized”gains which is a downside. However it is easy to calculate, and is manifestly honest. My guess is that most government agencies would accept this (admittedly unconventional) approach. They would probably insist that losses ( should that happen) be carried forward until one eventually had a capital gain to which it could be applied but this is the case in many instances , even when the loss is realised)
Sound was good bro, running through amplifier and two bookshelf speakers
... I think I’m only going to claim taxes when I cash out or make a purchase with my investments. 🤔
tax in crypto is so different. it depends on the country you live in and it's a headache. i know i need to look into it i just haven't yet :S
My advice, PAY your taxes. Uncle Sam will want his cut eventually.
Great ur article and good vedio , thanks u sharing a good information, so good luck my dear friend @louisthomas 👍👍😃
All the best for you 😉
Very thank you for great advise . You every time you teaching us. I am very happy to follow you.
Well done
The best tax advice for now is to hold your stake in crypto currencies as a long term investor and wait to see until the tax reforms changes somehow @louisthomas
Great advice my friend, you will always be my best crypto currency tutor and mentor. More grease to your elbow. Keep steeming and touching lives
Taxes vary from platform to platform
And from another country
We want more clarification
You are a great investor and I trust you and your words
Always take your advice
The best thing to do is keep the cryptocurrency until the tax policies change.
Hodl than as you can!!
I will see the video later.
Very nice video just special video sir.i really like this post
Wonderful 💟
Solid and well explained video. We got a bit hard time with taxes in Poland and other country have also some trouble.
I havnt thought about this...
cryptotax girl can be found with google search she is accountant based in usa also she appeared on cryptopodcast search for that for 40 minutes of news and advice on tax, puerto rico i believe you pay no tax and you can live there for 130 days a year to qualify, DYOR follow me for crypto news
Amazing, this was very detailed and nice. I always like your videos and I was waiting for one. You explained everything very briefly and nicely. Thanks a lot for sharing this I appreciate your time and efforts.
With reference to Section 2(14) of the Income-tax, Act 1961, cryptocurrency could be deemed as capital assets if they are purchased for the purpose of investments by the taxpayers and any gain arising on transfer of such cryptocurrency shall be taxable as capital gains.
Its further classification into short-term or long-term capital gain would depend upon the period of holding of cryptocurrency. If they are held for more than 36 months from the date of purchase, it will be considered as long-term capital asset, otherwise a short-term capital asset. Short-term capital gains are taxable as per the slab rates applicable to a taxpayer. And long-term capital gains are taxed at the flat rate of 20% with the benefit of indexation.
However, if the transactions in cryptocurrency are substantial and frequent, it could be held that the taxpayer is trading in cryptocurrency. In this case, income from sale of cryptocurrency would be taxable as business income.
Your opinion and analysis will be very useful to know the market development.
Like
Wonderful 💟 Thsnks for sharing
Nice eassential video about crypto.
Great presenting this post of cryptocurrency tax.
But what happends if you don't plan on cashing out for a while. Can they tax that?