Capital Gains Tax

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I am sure many of you have seen the story about Donald Trump talking about making US based crypto projects free from capital gains tax. There is a door open to allow other crypto projects to relocate with an eye on making the US the crypto capital of the world. This would definitely change things considering how the SEC has treated crypto projects up till now.

There is so much positive change happening it is hard to keep up
and guess it is a wait and see game to see if all of these stories are true or more of wishful hopium. This would be really big news for crypto investors based in the US who have invested in US crypto projects knowing these are capital gains tax free investments.

I have been looking at my crypto recently with regard to the complications of taxation. Capital gains tax in some places is free if you have held this investment for a year or longer. In my case that is my entire portfolio because I do not day trade and firmly believe staking is the way to go. This is why news such as this is important because the hope is other countries may try and follow suit hoping to keep or attract new crypto projects or investors.

We know the crypto cycle is roughly 4 years so holding an investment for more than 12 months is actually quite easy if you have it staked. On HIVE we are taught how to grow through compounding and this is nothing new to all of us so holding for 12 months stands us all in good stead when it comes to capital gains tax.

I was looking at the US which has a long term capital gains tax of 0%,15% or 20% depending on the time held. The UK it s slightly different with 0% up to £3K. 18% between £3K and £50K and 24% over £50K. In South Africa where I currently reside the Capital Gains Tax is 18%. This is quite substantial and why any positive changes should be welcomed with reduced taxation.

This is why I am heading to Dubai and Portugal later this year to open bank accounts so I can safely protect whatever investments I already have. This will all be done "legally" of course abiding by the rules of the host country where the bank account is situated. There is no rush on my part even though I know everything I have currently would incur tax as it is all 100% profit. Waiting whilst growing my bags seems the safest option right now because moving from crypto into FIAT could be a very costly experience triggering taxes owed.

The wait and see approach whilst staying up to date on regulations and taxes is the smart way to play this now. Over the next 12 months we will see proper crypto regulation coming into play now that Gensler and co will have been replaced. The SEC was used specifically to stall crypto and now that has been removed things are going to speed up very quickly.

Posted Using InLeo Alpha