Is it okay to spend crypto? Or is that a taxable event even if you pay sales tax?
So is it a double tax?
Taxable event if you make any gains on the transaction. I doubt many people report these tho.
You should not report your crypto to the tax office. You should your cryptocurrency wallet and all of your important data behind encryption:
https://truecrypt.ch/
Can’t anyone just track transfers to and from wallets based on any transactions that occur tho? Tax man will be able to see what was bought/sold and when and at what price...
They not care about random blockchains. They care about the balance of your legal income and spending. If they confiscate your computer, they need browser data + your personal files.
Gonna have to disagree with this one.. if you sell a bunch of your crypto to fiat.. and don’t report it.. you’re going to, at some point have a problem
Yeah, but that bunch is really a bunch.
I mean... not necessarily.. at the moment you are audited or any reports are made, every single transaction will be scrutinized.. that’s a fact
"At the moment you are audited" - thats my point, dont get audited at all :D Basically, people should not use exchanges which asks ID, photo, semen sample, fang of a loli dragon.
But only for fiat right?
Only for fiat..... until you go back to fiat... then every transaction is already recorded permanently on the chain and you are liable for all past taxes and penalties if not reported
Yes, if you pay sales tax, it would be a double tax. But the amount of capital gains tax that you would have on a hamburger meal, the IRS wouldn't waste their time.
Think you have it backwards. This is exactly who the IRS will go after to try to make examples. People with money have loopholes the little guys don't.
No they won't The IRS doesn't have the resources anymore to go after a buck or two. And the letters they sent out to people was like 10,000 or 20,000 or more. Something like that.
They would go after people if they made much bigger purchases
well that's one thing I don't have to worry about I never have enough to even go above any brackets LOL
If you sell or spend your crypto that was owned for more than a year, it can be classed as long-term and any gains made will have discounted tax rates.
The rate depends on your other income, but can be 15% or even 0% for lower income taxpayers. There is a 20% rate for high income earners. ~ This is what Bing says.
No ETF approval, but they’ll tax your capital gains on it.
Hypocrites...
