[dtube] The Best Crypto-Related Tax Advice I Could Ever Provide
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.