ADSactly on ADSACTLY - part #39
ADSactly - Taxation of Crypto - Part #2
In the last post on crypto taxation (https://steemit.com/adsactly/@adsactly/adsactly-on-adsactly-part-38-taxation-of-crypto-part-1), we discussed an analogy of children, bullies and pebbles. Let's continue to explore further and read what the bullies have say. Check out the following wisdom, coming from the ones who should be smart enough to lead a country.
In sum, taxpayers must track their cryptocurrency purchases carefully. Each cryptocurrency purchase should be kept in a separate online wallet and appropriate records should be maintained to document when the wallet was established. If a taxpayer uses an account with several different wallet addresses and that account is later combined into a single wallet, it may become difficult to determine the original basis of each cryptocurrency that is used in a subsequent transaction.
Hello? "Every purchase in a separate wallet"? Do we use a different wallet every time we shop in a mall? We all got to love this part: "it may become difficult". :D
Source
This one is also brimming with wisdom:
In summary, if a taxpayer acquires cryptocurrency as an investment and chooses to dispose of it by purchasing merchandise or services, any loss realized will be treated as a deductible investment loss. However, at times, it may be difficult to determine whether cryptocurrency is held for investment or personal purposes.
And yet again: "it may be difficult...". Is this another way of saying "impossible to impose and we'll decide for you whatever we deem appropriate"?
To be able to follow the "accounting instructions", every cryptopreneur needs to hire an army of paper pushers, whose only job would be to make sure that every transaction is done in a separate wallet and determine (on account of what?) if crypto transaction is investment or whatever they actually consider "personal purposes". However, not even an entire army of paper pushers may assure that it will be done correctly! The interpretations are too wide, vague and inaccurate. For example: What about a failed transaction resulting in a loss or will losing of a private password, and the entire stash along with it, be tax deductible? Will we be able to deduct such insufferable crypto loss from the overall fiat* tax that we're paying every year?
Source
Yeah, right...
It all makes us really pleased to see that the old bloodsucking system cannot find a way to continue its wretched practices. The nonsense of imposing the rule through financial control of free individuals must and will be replaced by a system that will not propel unjust taxation of individuals in order to support non-productive government officials and their crypto witch hunts.
According to the Notice, virtual currency is treated as property for federal tax purposes. This means that, depending on the taxpayer's circumstances, cryptocurrencies, such as Bitcoin, can be classified as business property, investment property, or personal property.
Property? Really? Can someone explain how can a non-governed, virtual asset be labelled a property? This is less reasonable than taxing people for gathering pebbles on a beach, proclaiming them legal property and making people pay real money for owning a bunch of pebbles. If we all start collecting dog shit and start adding a virtual value to it, will dog shit soon be proclaimed a property and be taxed?
Why not start taxing "property" in Second Life and other online games...?
Source
Why would one pay tax on crypto gains in fiat money if the regular tax cannot be paid in crypto? It seems that we are all considered fools when it suits the governments. In worst case scenario, the taxes on crypto should be payable in crypto. But, which government will take a non-legal tender 'property' as a regular tax? None! :D Why? Because crypto is not money, right? But they still want us to pay tax on gains on something that is not accepted as means of payment!
How about accepting pebbles or dog shit for tax, instead?
However...
We understand how the system works. Regular taxing of the fiat money income, taken out of crypto, is in order. We don't mind paying taxes, we only mind being considered fools. As soon as crypto becomes a worldwide legal tender and is widely accepted as means of payment for goods and services, take your tax on crypto earnings, by all means.
But, we cannot mix apples and oranges, the tax needs to be payable in crypto.
Source
"Equal justice Under Law!"
If you are interested in joining the ADSactly society, please read the blog series on ADSactly from the beginning. Have all of your questions answered in advance.
ADSactly on ADSACTLY - Part # 1 Open-Value Network / Co-opoly
ADSactly on ADSACTLY - Part # 2 Do-ocracy / Value Network
ADSactly on ADSACTLY - Part # 3 Open Stewardship
ADSactly on ADSACTLY - Part # 4 Society's Value Contribution System
ADSactly on ADSACTLY - Part # 5 The Value of Our Time
ADSactly on ADSACTLY - Part # 6 Cooperation and fair benefits
ADSactly on ADSACTLY - Part # 7 Support local production
ADSactly on ADSACTLY - Part # 8 Cooperation vs Competition
ADSactly on ADSACTLY - Part # 9 Sustainable Social Model
ADSactly on ADSACTLY - Part # 10 Blockchain Technology
ADSactly on ADSACTLY - Part # 11 Support for Decentralization
ADSactly on ADSACTLY - Part # 12 The Importance of Bitcoin
ADSactly on ADSACTLY - Part # 13 ADSactly in Discord (1)
ADSactly on ADSACTLY - Part # 14 ADSactly in Discord (2)
ADSactly on ADSACTLY - Part # 15 ADSactly in Discord (3)
ADSactly on ADSACTLY - Part # 16 ADSactly in Discord (4)
ADSactly on ADSACTLY - Part # 17 ADSactly in Discord (5)
ADSactly on ADSACTLY - Part # 18 ADSactly Clubs
ADSactly on ADSACTLY - Part # 19 ADSactly Tokens (1)
ADSactly on ADSACTLY - Part # 20 ADSactly Tokens (2)
ADSactly on ADSACTLY - Part # 21 ADSactly Tokens (3)
ADSactly on ADSACTLY - Part # 22 ADSactly Tokens (4)
ADSactly on ADSACTLY - Part # 23 ADSactly Tokens (5)
ADSactly on ADSACTLY - Part # 24 ADSactly Tokens (6)
ADSactly on ADSACTLY - Part # 25 Full Stack Startup
ADSactly on ADSACTLY - Part # 26 Artificial Intelligence Government Pt. I
ADSactly on ADSACTLY - Part # 27 Artificial Intelligence Government Pt. II
ADSactly on ADSACTLY - Part # 28 ADSactly Steemit Blog
ADSactly on ADSACTLY - Part # 29 The Future Of Crypto
ADSactly on ADSACTLY - Part # 30 ADSactly on Globalization
ADSactly on ADSACTLY - Part # 31 Blogging on Steemit
ADSactly on ADSACTLY - Part # 32 Social P2P network
ADSactly on ADSACTLY - Part # 33 Projects in ADSactly Society
ADSactly on ADSACTLY - Part # 34 ADSactly - Medium Blog
ADSactly on ADSACTLY - Part # 35 ADSactly - Environmental Protection
ADSactly on ADSACTLY - Part # 36 ADSactly - Sharing of Ideas
ADSactly on ADSACTLY - Part # 37 ADSactly - Centralized System vs. You
ADSactly on ADSACTLY - Part # 38 ADSactly - Taxation of Crypto - Part #1
Every honest individual with good intentions is invited to join and offer their skills, knowledge, energy, time or resources to various ongoing projects within ADSactly society. The channel is here: ADSactly and you are welcome!
Click on the coin to join our Discord Chat
Witness proposal is here: https://steemit.com/witness-category/@adsactly-witness/adsactly-steemit-witness-proposal
In the bottom of the page type: adsactly-witness and press vote.
Use small letters and no "@" sign. Or, click here to vote directly!
Thank you!
This is an important point you highlighted. All these Governments and banks are trying to stop the surge of crypto currency. They are seeing the potential of crypto and want to take their share from our hard work. That is complete non sense to tax crypto in fiat
Now that document got me really angry - the amount of paperwork required just shows how they miss the whole idea - cryptos are fast, clean and elegant- and forcing those foolish regulations will remove the basis of the whole thing!
I didn't think about the point of being taxed for crypto in crypto and I must say it's brilliant! It will actually be a huge step of acceptance as it will make the governments stakeholders in the crypto world by themselves and they will be forced to care and advance the crypto world - they will be a part of it.
After earing this idea it's pretty much the most logical thing to demand! If you regard it as an asset that has to be managed like fiat regulatory - then take you pays in the currency itself!
The most frustating point right noe is that life are difficult just because goverments do not know how to deal with crypto - they do not publish orders to the banks and so people with large amounts can't use them for local purposes ( at least in Israel in the last few years and the situation is still the same)
With time I'm sure we will win! The revolution comes from the people and it will become a flood!
(I can feel the anger! Analogue to dog's poo! Thats how rage is supposed to be!)
While I firmly believe tax should be paid on crypto converted to fiat or exchanged for goods and services, I honestly have no idea how any govt agency can prove your transactions, let alone accurately track them.
I will be making my best effort to pay tax on all conversion to fiat and spent crypto. Other than that, I guess I'll just wait for the audit.
I am agree with you on this tax paying topic.The reception of tax by government will definately increase the trust on crypto currency.so it's future will become automatically bright..
it is sad theu do not fully grasp the idea
Screw it! I'll just wait for the audit and pay the bill.
I really want to thank you soo much for this and recent post regarding tax on cryptos. Everything you mentioned in your posts got me even more confused that as of now there is no way I would sell or exchange any cryptos I have been buying recently. Until they solve all these nonsense things taxation, which would take years to solve it, I’m holding like a crocodile or a pit bull. At the end I can be very thankful to “you” for “ME” being so confused of all these rules you posted. At the end I do belive it’s still not too late to buy crypto and not to spell it for a few years! Don’t invest what you can’t afford to loose!
MY RULE # 1!
lol
@justiceweye We at ADSactly never gave you any authority to curate this article as if your own. Do you know why? Because we have no clue who you are and we don't like unknown people arrogantly take credit for our article.
I looove when you mentioned “How about accepting pebbles or dog shit for tax, instead?”lol
There is, or at least was discussion about "US Bill to make transactions under $600 tax free" However this bill still hasn’t pass as far as I’m concerned.
Given that the price of bitcoin and other cryptocurrencies have increased so quickly in the past few years, even the most stubborn HODLers would be hard pressed not to consider liquidating at least a portion of their crypto portfolio to lock in their gains. This will trigger capital gains tax. Buying and selling cryptocurrencies is the same as buying and selling gold or stock. You can also consider donating cryptocurrency to your favorite public charity (not to a private foundation), can help you save taxes on the coins you do sell. The charity gets a large donation, and you get a larger deduction, if you donate the coins to a charity instead of selling the coins and donating cash.
I agree with you
voto si votas por mi
When there is a single thief, it's Robbery & when there are thousand thieves, it's taxation .. Vanya Cohen.
Rightly said about taxation, I mean we don't need to even discuss it. This is simply a blood sucking process of one's hard earned money. There was a time when government would say pay taxes because you are working .Like American President Roosevelt said Taxes are paid in the sweat of every man who labors. I mean why one's hard earned money is somebody's business. It's total injustice. There should be a limited tax slab, in order to manage the state funds but to kill a human with taxation is Capital punishment. This is a slow killer present in our society
https://steemit.com/nicolas/@jordanbelford/what-do-you-think-of-nicolas-maduro
I read part 1 of this series but was unable to respond at the moment. I absolutely love the bully analogy!!! Governments are so accustomed to playing big brother and having control of every move we make that Crypto has them over the top with fear. They have quickly realized that they have pretty much no control over the crypto market and those of us who are involved. They are attempting to strike fear into people with threats and innuendo but the reality is that they will have a difficult time controlling anything here.
An interesting thought I shared on another blog is the nature of “why” some governments are starting to shift and claim that they are going to start accepting Bitcoin and possibly other Crypto as payments for a variety of services. Hmmmmm??? Why the radical shift in thinking? I personally don’t know the exact answer but consider the following:
And
Just some food for thought.
You'll be the funniest guy in Federal Prison! No, seriously, just pay your taxes and avoid the hassle.
Very apt
This is a great post,,
It is quite enlightening
Naturel @titanik
Do you see who's got the upper hand?
The whole idea of cryptos is the fact that it can't be regulated and taxed. They just don't get it
I think they know this really well. But they want to use cryptocurrencies under their own trading software, which is centralised and also...taxed
To cash out crypto without paying taxes..Simple.Set up offshore Charitable Purpose Foundations!
Choose mission like "strengthen the capacity of people throughout the world to meet the challenges of global interdependence” (that is Clinton foundation) avoid too specific Mission like “raising money for children battling life-threatening diseases” (that's Trump - you might end up struggling to proof that)
Once you transfer your bitcoins to your foundation - travel the world first class, stay in most expensive hotels or do anything that you enjoy with a message that you do it to “raise awareness”.
Obviously even the elite have ways preventing them paying full tax. It's a flawed system
Thank you so much for everything information @adsactly group ! Under the heading of other incomes, it was requested that cryptographic cash earnings to be included in the bill promulgated last year should be stated in the complaints to be filled between 16 February and 15 March.
Unlike 20 percent of the tax on the stock market and the foreign exchange market, the tax brackets for crypto money will range from 15 to 55 percent. The highest tax bracket will be applied to those who earn more than $ 40 million a year, or $ 365,000 a year. Other details of the design are not yet clear..
Güzel bilgi
hehehehe
@justiceweje We at Adsactly don't remember giving you the authority to curate this article on our behalf. You didn't write so please stop taking credit for it. This is the top of of the arrogance scale.
Tax but why
Thank you @adsactly
I have methods of winning bitcoin
Can you tell me
this bitcoin, feel free to send us a message
Taxation is fundamental part of the civilised world. But unfair practices are unforgivable. Roosevelt is right, thanks to the sweat of every man who labors. This situation should not be abused.
yo dentro de 6 meses estare con un buen trabajo fijo unas buenas publicaciones en este medio y con buena remuneración monetaria jajajaa
What I learned here :
Steemit is not only about UPVOTES & Money
It is about writing..
It is about reading..
It is about knowing people and their side of the story..
It is about learning..
It is about finding a path to follow..
It is about keeping yourself motivated to write better..
It is about broadening your thinking..
It is about spending your time productively..
It is about making you think from a different perspective..
It is about writing without any expectations of UPVOTES..
@adsactly
I think this is how we could explain this to kids:
Cryptos are a nice shiny cake, made by a community kitchen.
Chef Nakamoto provided the original recipe, others brought the ingredients.
Customers seems to like this community cake and pay to acquire a slice of it.
As the supply of cake slices starts to finish, the cake increase value and people start trading it for money.
Now the owner of the money wants a slice of the cake too.
The owner of the money really wants a slice of this cake but doesn't want to admit it's an edible and valuable cake.
Nice your post brother @lovebird
great job sir...keep it up
Generic comments could be mistaken for spam.
Tips to avoid being flagged
Thank You! ⚜
thank you for tips sir @spaminator
lol
Stop taking credit for the work of others!
making amend man, maybe if you look well you would realize that. peace!
This is a very useful post with different kinds of information.You have understood every thing clearly.Thank's for the post.@upvoted and resteemed
hehe
You are well come.
Deriving the crypto currency in Fiat without paying taxes is incredibly simple. Many offshore companies are ready to provide you with this service. All you need is to purchase a plastic card from them. All.
Attempts of the state to get into carmen to their citizens is a common practice. In some countries this is done less intrusively - in other countries it is done openly and brazenly, without the consequences. But the consequences are not necessary. You need to keep the crypto currency even further. In the future, there will be services that allow you to pay for goods and services with your crypto.
If you need a Fiat, do not be lazy to find a company that will help you. As I wrote above - it should not be difficult. At least in Europe for sure.
One state in Europe recently boasted that the revolutionary law has unleashed a hand to people engaged in crypto-currencies. But the most that it is not quite so :) began to appear flaws in this law and the state will try to control the turnover of your funds. That is, the very law on crypto-regulation is a screen for trying to establish control over "smart" citizens who earn on the Internet. I follow the developments.
Forget about the fact that you have to pay tax on crypto currency. The Internet does not belong to individual countries, so they can not force you to do this. If you certainly do not allow them.
Thank you @adsactly
wow very excellent
resteemit done sir
it is an educative post.
sir i praise your activity...
Educative enough you read it in a minute🤔
How do you know he read it in a minute????
Thats not rocket science I think.i just want him to read first so he could come with better conclusion.
Its aii
Nice post
I get many knowledge from this post
Thank u sir
this part is really good sir
i appreciated the post
keep it up
very informatve info...
It must be a nightmare for those who day trade to keep track.
Good article.
Don't worry, just HODL, make approx 1.000.000 and buy the citizenship of tax-free paradise such as Cyprus or Monaco :)
Well manner u described briefly
i must upvote and resteem u...tnx for ur post
Good post @adsactly
Well you described it well mate keep going
....always on point when it comes to matters concerning steemit. @adsactly
Q: if govt is taxing for every crypto gains,what if we loss heavily in crypto?Will govt bear the loss too.
Q: if crypto is not a legal tender, why govt are not banning it?
#DoubleStandered.
Government cannot make it a legal tender or can accept it as a payment system because that would compete directly with their governed money. At the same time in a democratic country they cannot ban it completely because for that they would solid reasons to do that. If they do ban it some how it will make them look like non progressive infront of the world.
When you lose money they will tell you that they have already told you to invest at your own risk. They make it look like people will lose money by investing in crypto. At the same time they know that those who Hold on to their crypto currencies they will never lose.
But they can create a FUD out of it,so that people go mad after it?👏👏👏
Problem is govt can't give assurity with Fiat money to the commoners,but can waive millions to the rich,& if the rich didn't pay back govt took that money through commoners tax.
Yes, It is true to some extent. They send notices to 1 lakh small bitcoin investors but let people like Nirav modi escape with 1.8 billion dollar worth of bank money. Then later they will cover this loss by people's hard earned money.
Good post my friend
Always such great info! @journeyfreedom
Yes I do , I use different wallets , for simple cheap things one and another wallet for expensive stuff, generally i like cash and i dont use my credit card only hardly evern , my reason is to avoid getting hacked
I have methods of winning bitcoin. @titanik
Crypto taxation??? That's fantastically weird.
I never saw that coming in a long while...not in Nigeria at least. Cryptocurrency is not yet a fully acceptable means of transaction and investment in the country so chances that it'd be subject to tax laws is quite low for now.
Still, I believe it's way too sudden, too greedily rushed.
you feel like you own it right? then it is your property.
But, which government will take a non-legal tender 'property' as a regular tax?
Arizona.
...Why would one pay tax on crypto gains in fiat money if the regular tax cannot be paid in crypto?
If you ask me, I will tell you that people in governments that are looking for a way to put tax on cryptos do not understand the chemistry of cryptos. They believe they control everything, including the cryptos they have refused to admit as a replacement to papers they have stored somewhere. This is why you will keep hearing different fallacies from different countries around the world. For example, In my country Nigeria, the federal government announced publicly through the central bank that cryptos are ponzi schemes. Can you imagine that?
🌌 exuberant & exuberant!
Muchas gracias! me encantó tu post! debemos ser muy cuidadosos con este tema y estar siempre a la vanguardia con informaciones que nos ayuden a manejar mejor nuestras monedas. Un abrazo desde Venezuela!
That's what people want.
If it comes to government they will even tax dog shit, if it comes to that.
I believe in paying taxes honestly but this does not mean that i can allow the government to milk me like a cow. This is clearly unfair.
Since i had already paid taxes on the money that i used to buy bitcoin, i wonder why i should i pay capital gains on it?
When i pay taxes i expect government to work for me. Create opportunities for me but not hinder my growth.