It's been a while since I've done much trading; it's not something I have the time for and I don't keep fully up to date with the fluctuations so it's difficult to make (potentially) good decisions. I have a look now and then, set some buys and sells, try to get a read on the markets, and move on pretty quickly knowing I'm probably missing out on some gains. It is what it is.
I'm in a Discord group with a few other Hive people, it's a private group where much gets said that can't see the light of day on the Blockchain and it's a lot of fun although there's a serious side to it as we discuss things including market fluctuations and expectations, so I'm never too far from the right information, just several hours behind, or in front, considering time differences between the six people in the group. So, I'm not clueless about the markets, just time-poor so I can't trade as much as I like.
Not long ago there was some talk around cashing out a portion of holdings and the tax implications of that. I've written posts about this in the past as I investigated how things stand in Australia and what it might look like for me considering I hold a reasonable amount of crypto. I concluded that it's going to look fucked because I'll loose a lot to tax should I cash out...I have no plans of doing that currently but will in the future so losing some to tax sucks; still, I'll get a lot of fiat currency in my pocket so it's not all bad.
So many people stick their head in the sand when it comes to taxation on cryptocurrency and that's certainly one way to go...it might work in third world countries (where nothing else works), although I'm not so sure it will work out well even in under-developed countries, however in developed countries it's a thing whether people want to admit it or not. Sure, there maybe a place or two where governments impose no tax on crypto but they're few and I think they'll catch on eventually...so, it's going to be an issue for most of us; I believe that wholeheartedly.
I've seen people brag about how they don't pay tax but have wondered what's going to happen when it's time to pay the piper, meaning they get caught up with. Yet others say, I'm never going to withdraw any, and that's fine...but capital gains tax applies to gains made in exchanges as well, not just on crypto brought out in fiat currency (I know because I had to pay it) and with exchanges taking passport and drivers license verifications there's not much scope to hide from it. I think bragging is a cunt-act in the first place but bragging about getting away with something a person doesn't even understand is simply dumb. Oh well, time will straighten it all out I suppose.
Is taxation, in respect of cryptocurrency, something that's on your radar or do you prefer the blissfully-unaware-head-in-the-sand approach? Either way, there's going to be implications down the track, to think there'll not be is naïve in the extreme.
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For several years in my country the tax on cryptocurrency withdrawals was 0%. From 2025 the tax will be 13%. 2017-2024 were good for me.
And so it begins.
I hope that I will not withdraw fiat from the crypto before 10 years have passed, which is currently the defined term that is paid for withdrawing money from the crypto, when no tax is paid..
Maybe the solution is face-to-face sales, directly to the wallet of a well-known customer who pays cash? Then it's up to him to think when he takes out 🙂
For now, crypto is on model One, only in black...
This is called tax evasion.
In that case I will be happy to evasion it.
I pay taxes to the state for the apartment I live in, I pay taxes on the income I earn.
We pay very expensive excise taxes for fuel (I consider alcohol and cigarettes a luxury, so I won't mention them).
I pay car registration tax, as well as mandatory health insurance tax.
And whenever we get sick, we are treated via text messages and donations and we pay for private health insurance.
From the collected tax, the state coffers are filled from which education, infrastructure, health care should be paid, and our education is falling apart, the infrastructure is even worse.
I have already written about healthcare...
Everything is in a state of decay, with politicians' pockets even fuller.
And now someone expects from me, that because I invested my money in crypto (risking in various bear markets that I would be left without it) and in the end made some profit, that I pay taxes on it, so that the thieves in politics could fill theirs even more pockets?
No, no, they won't watch that movie.
From the crypto, no matter how I end it, the state will not get a single cent from me.
Well, that's your prerogative but I've been around long enough to know that most actions, or failures to act, come with repercussions. Good luck with your mission to evade the tax laws.
My position has always been that the IRS is still kind of figuring things out as they go. If I move crypto off an exchange into fiat I will claim that because they can clearly see it. I've only ever done that twice. Anything else, if it catches up with me I will gladly do the work to make things right, but I kind of think they have bigger game in their sights.
Agreed, they don't really know what's up at the moment and so some of their measures are somewhat draconian.
I totally agree!
There will definitely be changes in the future regarding cryptocurrencies, it is already being seen, but there are people who ignore it, or cover their eyes, but this is a reality that is happening and that of course will increase in controls and tax payments. The best thing to do is to get the best possible advice and do things right.
Yeah, pretty much what I was getting at I guess. It's pretty clear to see I suppose.
It is. Very clear.
For now I am postponing my concern about taxes and cryptocurrency. But it is true that if I withdraw any amount now I would lose quite a lot of money, I am sure.
Although I have not declared these cryptocurrencies, I am sure that the day I want to withdraw them, the Treasury will ask where that money came from, which will be a problem.
For now, I live like an ostrich that knows it will have problems in the future with its cryptocurrencies. In addition, the EU is becoming more and more vigilant with this market. It doesn't like cryptocurrencies.
Death and taxes are the two sureties in life, or so they say. I don't mind paying a reasonable amount of tax because it means I made some money, but with governments still unsure about how or what to do...well, I think a lot of us will get smashed with tax.
I'm afraid so, there are predators that are insatiable.
Yes, they're called governments.
🤣🤣🤣🤣🤣 They call it that. Until that time comes, I hope you continue to enjoy your days off.
Portugal is still kind of a crypto heaven. You are only taxed when you convert from crypto to fiat, but if you hold the crypto for at least 1 year there's no tax, although you still have to report it.
Yeah, I've heard that...and also that Portugal is a beautiful place...a pity I don't live there.
I was dreading it. But it
L👀ks like crypto has a bright future now in N America. At least for the next 4 years...
Yeah, it could work out well for some but with so much uncertainty around it I think many will pay much more than they should in taxes, or fines.
Right after the season of peace and goodwill comes the 'you fuckin assholes' season, which I detest with a passion. Someone's always got a finger in your pie. Yes, death comes for us all as does the tax man. I prefer to do my taxes early in the season, but this year I will let it drag on out.
I think it's going to be a problem for a lot of people and governments are so badly prepared. A lot of them have simply neglected to understand it and governments have simply implemented draconian rules because a lack of understanding and that's not helped anyone. Time will tell. I wonder how it's going to go for all those people cashing out hive all the time...they never mention it or comment to posts like this but I get the impression that eventually they'll be forced into a corner and then, of course, they'll be fucked because they will have nothing left to pay taxes with.