~~Hi Friends,
I mentioned the other day that I played a FanDuel fantasy golf competition for the Ryder Cup. I ended up in the green and doubled my $2 to win $2 more:
Playing for fun of course, but it goes to one of my beefs with the US tax system. When you win money, they tax you, but they will only let you deduct losses up to your winnings. In an extreme example, if you win $100,000 in gambling net profits in a year, but then lose $100,000 gambling the next year, they make you pay taxes on the $100,000 in the positive year, and give you no benefits breaks/benefits for the year you lose the $100,000 - you are just out of luck, in more ways than one. The IRS comes out the winner for collecting taxes, and you lost money overall, since you broke even gambling, but had to pay taxes on the profitable year - boo!
Crypto taxes are similar - if you sell your ETH and realize a $100,000 gain in a year, but then reinvest it in other coins that go to $0 the following year - you have to pay tax on the $100,000 in the year of the gain, but you can only deduct $3,000 in losses in the year of loss (can carryforward loss to future years so hopefully you will have future profits). Not cool!
Oh well, such is life.
Thanks for coming by,
Brian
~~
Posted Using LeoFinance Beta
Investing in their crypto is often confusing, sometimes big profits in a short time, and vice versa..
But the taxes charged are no less confusing,
It is strange to hear collecting tax from revenues from cryptocurrencies. No tax in my country yet.
Congratulations to you. Which has doubled to $2. But one should play by looking at victory and defeat. thanks for sharing
True story!
No paying taxes on crypto ;)
It’s always a way to go around it ;)@brian.rrr
Namaste 🙏