Starting 2018 all crypto transactions are taxable events. What does this mean?
Simply if you trade 1 Bitcoin to buy 2 Dashs and sold the Dashs again for 1.5 Bitcoins, then you owe the IRS X% of the .5 Bitcoin you made as profit. To convert this to dollars let us assume for the ease of calculations that at the time of “buy and sell” the average Bitcoin price was $20K and the average Dash price was $1000. Then you owe the IRS x% percent of the $10 k you maid. The x depends on how long you held the 2 Dashs and your total income tax bracket. Let us say 25%.
You might say will I made profit and I will pay the taxes so what. I am a good citizen and I always vote!. This is the big fucken trap. You do owe IRS $2500 at the end of the year even if Bitcoin value goes to Zero. Yes you got right ZERO. At the end of the year crypto might collapse and Bitcoin go to $1000. And you have to come up with $2500 then you have to sell the 1.5 bitcoin that you have and feed uncle Sam and still owe $1000. What if bitcoin goes to $100? Then you have to sell the 1.5 bitcoin for $150 and you still owe IRS $2350. Now what if you did this with 100 Bitcoins and the same scenario happened? May be your house is not enough to pay the bill.
Don’t believe me? here is a quote from an article that talks about what happened to Tech workers' stock options
“Many of these workers now owe far more in taxes than their stock is worth. Former Cisco engineer Jeffrey Chou, 32, owes $2.5 million in taxes on company stock he purchased last year that has since withered in value. Chou figures that if he were to sell everything he owns, including the three-bedroom Foster City, Calif., townhouse that he shares with his wife and 8-month-old daughter, the family still could not pay the bill.”
And here one more:
” Many of the affected workers, however, said they believed they were doing the right thing by exercising options and then hanging on to the stock instead of selling it for quick profit. Some did not understand the tax implications of their stock purchases, and many said they wanted to show loyalty to their companies.”
"There was this feeling of 'hold on to it for the long term,' " said Marilynn Goldberg, an unemployed Redwood City, Calif., executive recruiter who faces a $500,000 tax bill from Portal Software Inc. stock she purchased using options last year. Shares of the Cupertino, Calif.-based company have fallen more than 80% since then.”
To avoid all this trouble just donate all your profit to Charity. Can't sell it to them.
I am not by any means an expert on any thing. This is my own conclusion. Do your own research please.
Sorry for the bad news. I just don’t want you to be the next victim.
I feel a shame to ask for an up vote. But, hey, we are grownups we can take it.
If you like to see the source of the article please ask in the comment section below.
Be Happy and resteem please
Trump is making America great again - NOT
please resteam and spread awareness or blog abut the subject. lets us help save families homes.
Crazy that I wrote an article asking how does the taxes thing work in my country as our revenue services are really delayed, and thus could make it be a hassle, or something that might not be worthwhile in the end.. We work differently to the USA though, and it sounds way more concerning for your guys than in South Africa.
The cost of free market is not cheap. You might go to the moon or sink to the bottom of the sea.
Tax is an interesting thing isn't it?
Only if you are US citizen
Ouch, investing in crypto's lost it's appeal, and precious metals looks much better. Thank you for posting this, I resteemed it.
Be optimistic because this new bill might stabilize the market
I am curious as to how this will work in regards to Steemian's, because how would votes be taxed?
If you do search on tax tag you will find many who posted on that.
tax is theft, there is a $300k reward on offer, for anyone that can find a law, that says people have to pay it, now explain how anyone can tax me, for selling you, or sending you 300 ripple from my own wallet to yours, I use the nano s ledger, I will send you 50, right now, if you show me any LAW, that I have to pay tax, to send this 50 ripple to you
Sorry It is not my fault. They want their taxes. The problem is not in paying taxes, it is in fairness of collecting it and in spending it.
http://fortune.com/2017/12/21/bitcoin-tax/
All bees work for the queen.
Here's the kicker to all of this: The IRS did not create nor sign the new tax code, President Trump did.
Thank you for this information. I would like to see the source article so I can research further.
http://www.chicagotribune.com/sns-tech-taxes-story.html
Thank you! :)
You welcome. please resteam and spread awareness or make a post abut the subject.
Posted! Thank you again for bringing this topic to my attention. https://steemit.com/news/@sunsquall/new-tax-law-closes-bitcoin-loophole-fortune-com