https://twitter.com/bitcoinbeach/status/1436805254419468294
Saturday, September 11, 2021
Gematria of Abe Simpsons warning in the Simpsons movie
I will link to the post that has the video, this is just the gematria I found and it seems to have a deeper meaning and connect to a lot of key code words. May be disorganized, but I will likely come back to this post and clean it up. Onto the subject matter..
“People of Springfield, heed this warning! Twisted tale, a thousand eyes, trapped forever!” -Abe Simpson
After collapsing to the floor and repeating wubwubwubwubwub, the last word he says is devil. Watch the clip here for context on the significance of the gematria I am going to post.
If you are at all familiar with predective programming, you will recognize the Simpson’s as being a sort of mainstream hub for it. Donald Trump’s presidency, 9/11, and the pandemic are but a few of the world events programmed through the shows scripts.
Onto the gematria:
1) Twisted Tale
Master mason, United state, nationstate, nuclear test, termination
2) A thousand eyes
A Space Odyssey (Nasa deceit?), no living wages, world stage, world watching, temple of music, life extension
Thousand eyes
NINE TWO THREE (this number is coded in Hollywood/media like 9/11 was, possible future event)
3) Memphis pyramid, age thirty three, lodge forty nine (Masonic),
Using Jewish gematria
Twisted tale
Date God was born, JESUS unit, rapture of the holy child of God, the eleventh hour, the Tower of Babel, the lawless one (this is the antichrist)
A thousand eyes
I still believe, name of the ancient of days, Yeshua Christ, the King of Heaven, Be aware, new media, baphomet devil, Austin made himself the messiah (Austin name derives from Augustine, meaning great), zone six
Trapped forever
Trump COVID, unholy deity, pagan god within, blood thirsty cult, your in trouble, barbaric acts of cruelty
https://zonesix.bandcamp.com/ Has very clearly satanic symbolism in the bands logo, pyramid, blue beam ufos, Saturn, etc just thought it was neat maybe the term means more but I have no idea not going to look into it
People of Springfield heed this warning
Jewish gematria
King of Milky Way, where is zeus(satan), divine Sophia (wisdom) of the trinity ( Sophia (Koinē Greek: σοφία sophía "wisdom") is a central idea in Hellenistic philosophy and religion, Platonism, GNOSTICISM and Christian theology. ... References to Sophia in Koine Greek translations of the Hebrew Bible translate to the Hebrew term Chokhmah.), H and God said let us make man in Our image Austin Lee Meredith (there’s that name again), E V I L leaders when, another government false flag operation, military grade weapons, their feet are quick to shed blood, the new age religion is luciferianism, disturbing camps all over USA (fema), we are anonymous, I speak in truth and truth is out there, HE IS OF THE SEED OF MAN AND HOUSE OF JUDAH, KING YESHUA SLAYER OF SERPENTS
English/simple gematria
Gematrix org reveals the antichrist, all things come together to free Sophia (wisdom, luciferian religion is false “enlightenment”…), closely guarded government secrets, three and a half years to accept the truth (the antichrist will break his peace treaty halfway through his 7 year reign, 3 and a half years in), division the second seal of revelation, one hundred forty four thousand (see book of revelations), and unto dust shalt thou return, Austin Lee Meredith secret quanta key (that name again), Austin isn’t prophesying anymore, Austin Lee Meredith the unknowable one, messages from interstellar and Lucy (Lucy=Lucifer, interstellar=aliens/project bluebeam false flag, demons), what the people at area fifty one are doing (same as nasa probably, deceit), YOUR GEMATRIA NUMBER MESSAGE FROM GOD, Anaphaxeton Anaphaneton Primeumaton, I’m ready to find Jesus and settle down
Anaphaxeton Anaphaneton Primeumaton
(Side note, this name is associated with black magic and the triangle/pyramid in black magic satanism) here it is Solomons triangle
MANDATORY VACCINES, Trumps G O T seven (seven years? Antichrist will reign for seven years Donald means world monarch), the US president that rules as king, talbian the lamb of god the lion of Judah (…?), all occultists are child molesters and cannibals, BILL GATES CORONAVIRUS, Austin Lee Meredith the stupid retard (that name again), war preparations, the thing is they are not in control
Austin Lee Meredith
Jewish gematria
Gematria calculator, One and Only God, Christ’s Second Coming, the manifestation of God, Rosetta Stone, Expect Miracles, An enemy of mankind, secret noforn limdis (https://documents.theblackvault.com/documents/remoteviewing/stargate/STARGATE%20%236%20178/Part0012/CIA-RDP96-00789R002800180001-2.TXT NOFORN LIMDIS example), the son of infinite light (even the devil masquerades as an angel of light), the son of perdition (antichrist)
English/simple gematria
Vatican Rome Italy 00120 (not sure), Rothschild money, chill gematria secret, Bavarian Illuminati, judgement is coming, you have been warned, everything is a lie (in the kingdom of darkness it is, God does not lie), C it’s all over now, High level global elite, C Austin ends the game, C true messiah of God (seems like Austin is an antichrist figure gematria), satan needs a bigger hell, the divine angel of life,
On to the good gematria
The Light Kingdom of God, Lord God the Creator, the Holy Son of God, Jesus of Nazareth, shroud of Turin, cloth image of Jesus, image of God in the flesh, the Lord in the flesh, Alpha Omega Jesus image
Another that popped up frequent was stuff beginning with ray, and so I picked the one “Raymond koceja God code”
Jewish gematria results
Way fair (red flag #1), and the end will come, the name that means the greatest fabricator (satan is the father of lies), the voodoo serpent, malevolent nature, Keely mother of Babylon (keely means beautiful, possibly referring to whore of Babylon in bible, just a article that came up when searching here), Austin the messiah my sea, the adoptive son of satan, deceitful advertising,
love stops satan, arrest of Jesus (He suffered for us), Bruised for our iniquities (Jesus paid for our sins, Isaiah 53),
English/simple gematria results
Communist anthem, RAPTURE IS COMING, final seal thank heaven, graphene oxide 666, demon mind control (mk ultra is demonic), follow the money, central intelligence, Am new world order, a storm approaches, C set free from satan (freedom from sin and satans deception is in Christ!), who chipped us, the religious IV reich (one world religion), A pope Benedict supports Lucifer, trump the destroyer (his name is on Epstein’s flight logs), C bit the antichrist (Bitcoin one world currency?), C the powers that be, C the mystery code, ultimate code breaker, the satanic bloodline, da Vinci code thirteen (13 is big occult number?), the end of humanity, alien infiltration (project bluebeam, antichrist demons)
Jesus Christ gift (Jesus gift is Himself, He gave Himself freely for us so we could beg forgiven and set free from sin and given eternal life through simple faith in Him and turning our backs on our sin and turning toward Him), rises on third day, divine surprise, C Birth of the Messiah, trumpet of an angel (rapture), crown of thorns (Jesus wore this for YOU)
(Might have swapped last English and Jewish gematria a bit, my bad)
Last one I will do
Keely mother of Babylon
Jewish gematria
The Merovingian bloodline (Illuminati), absolutely nothing at all, don’t force a meaning through nonsense,
English/simple gematria
Gematria has a message for me, George perry Floyd jr, SUDDEN RAPTURE SOON, Christ will return, Divine Child slain Son of God, Revelation 1 18 (I am the Living One; I was dead, and now look, I am alive for ever and ever! And I hold the keys of death and Hades.), greedy ominous demoness
Keely the mother of Babylon
English/simple gematria
The myk hyn magic squares, builder of the great pyramid, now is come the trumpet (rapture), the darkness fears the light, get your house in order, who is Austin Lee Meredith, a satanic gematrix is of evil (Jewish 1666), Austin’s iq is really high, devil tracking our children, pleiadians of Jesus Christ (pleiadians are new age satanic alien project bluebeam end times deception), aleister Crowley revealed, J E S U S conquered the grave, Austin isn’t being yeshua, the harvest of the saints, He suffered for humanity, the bride of Jesus comes home
There is much more, key words must be used by these people to communicate using gematria im sure there’s patterns and significance to this stuff like there is for occult symbology, all this is mystery religion Kabbalah crap, they probably hide messages in a lot of things. From what I’ve seen so far the warning seems to be about us living in the last days, the rapture is close, and mandatory vaccines, and all the stuff happening right now are in the warning, do your own research. The last thing Abe Simpson said was devil after saying wub almost 20 times (I think 19, maybe check gematria on that if you really want to).
Anyways some of it seems to have a real message, there’s the clear message of the gospel, and of the end times including the rapture, the antichrist, and the evil world system we see being set up even as we speak. God bless you all Jesus is the truth.
“Bitcoin is not just for buying coffee anymore-My wife just bought my daughter an outfit for a school event @ZARA using Lightning” -Bitcoin Beach
https://twitter.com/bitcoinbeach/status/1436805254419468294?s=21
“Bitcoin is not just for buying coffee anymore-My wife just bought my daughter an outfit for a school event @ZARA using Lightning” -Bitcoin Beach (x-post from /r/Bitcoin)
https://www.reddit.com/r/Bitcoin/comments/pmj8uf/bitcoin_is_not_just_for_buying_coffee_anymoremy/
Subtipper has just tipped the top posts for this community! [01:44 GMT September 12, 2021]
Thanks to all posters for providing great content!
The top posts since the last payout (~1 week) have been tipped 1 US cent per vote, or 1595 sats per vote.
For an explanation of Subtipper and how it works, please see this article.
Winning posts:
Shiba Inu crashes 85% in one minute candle after Coinbase listing. by u/ShotBot
[tip] - 291885 sats = 0.00291885 BCH = ~1.83 USD
[tip] - 283910 sats = 0.00283910 BCH = ~1.78 USD
The new official wallet from El Salvador Government requires unnecessary and suspicious permissions like microphone access by u/nullama
[tip] - 279125 sats = 0.00279125 BCH = ~1.75 USD
Sweden might Drop all Taxes on Crypto because Bitcoin just became a Official Currency in El Salvador by u/Anen-o-me
[tip] - 252010 sats = 0.00252010 BCH = ~1.58 USD
[tip] - 232870 sats = 0.00232870 BCH = ~1.46 USD
I've Gained a Viral Following in El Salvador. I'm Using it to Teach Non Custodial-ship of BTC. by u/Mafalzon
[tip] - 220110 sats = 0.00220110 BCH = ~1.38 USD
Good News: Ukraine has legalized Bitcoin by u/Hugobrookz
[tip] - 170665 sats = 0.00170665 BCH = ~1.07 USD
"No mo money man 😥😥😥😥" by u/user4morethan2mins
[tip] - 157905 sats = 0.00157905 BCH = ~0.99 USD
The choice is yours by u/Egon_1
[tip] - 156310 sats = 0.00156310 BCH = ~0.98 USD
End of Day 2 - Here's the Chivo App Checklist by u/Mafalzon
[tip] - 129195 sats = 0.00129195 BCH = ~0.81 USD
Tips not claimed within 7 days will be returned to the Subtipper fund and tipped out to future posts.
To support this bot, help spread Bitcoin Cash, and encourage great content in the r/btc community, tip this post using Chaintip by including u/chaintip in your comment!
Thanks!
Note: this payout event was triggered by block 704960, which was mined more than 3 days since the last event and has the last three hex digits of its hash (joined as a number) strictly smaller than 7. The BCH price at the time of activation was $626.82
All the cryptocurrency tax information you don’t want, but need to know. (US taxes)
Which transactions are taxable events and which ones aren’t? What has to reported and what doesn’t?
Fair warning: This is going to be a long post with a lot of information. This entire post is a TL:DR of cryptocurrency taxes.
….but I reluctantly added a TLDR at the end
There are tax laws that absolutely apply, guidance issued by the IRS that isn’t law, and scenarios where no one knows what the hell to do. I’ve tried to sort it out.
I’m not a tax expert. I’m not a financial advisor. I’m literally a random Kevin. Use this post as a starting point. Do your own research.
One of my main sources for this post is the Internal Revenue Service’s website. I’ll list other sources at the end.
May the wings of capital gains carry you a loft to dance on the moon.
TABLE OF CONTENTS
1) A Cryptocurrency description from the Internal Revenue Service Of The United States of America
2) Types of taxes associated with crypto and their rates - 2A) Income taxes and 2021 brackets - 2B) Short term capital gains and 2021 brackets - 2C) Long term capital gains and 2021 brackets - 2D) Collectable Capital gains
3) Taxable events, corresponding tax rates, non taxable events, required reporting - 3A) Purchasing - 3B) Holding (HODL) - 3C) Transferring between wallets - 3D) Debit/credit/prepaid crypto back rewards cards - 3E) Staking rewards - 3F) Interest payments - 3G) Airdrops - 3H) Crypto to fiat sells - 3I) Crypto to crypto sells - 3J) Mining rewards (staking as well for the most part) - 3K) Crypto received as payments for goods and services - 3L) NFTs (regular and liquidity)
4) Determining your taxable profit/loss and your tax liability with examples of transactions from section 3 - EXAMPLE 1: Determining gains and taxes owed on crypto you purchased with fiat and sold for fiat - EXAMPLE 2: Using the First In First Out method to determine capital gains. - EXAMPLE 3: Determining tax liability on staking rewards that you did not sale. (Applies to interest, airdrops) - EXAMPLE 4: Determining tax liability on staking rewards that you did sale. (applies to interest, airdrops) - EXAMPLE 5: Crypto to crypto trades - Tips on minimizing taxes owed (lawfully) included
5) Glossary and Sources - Important words, phrases, and abbreviations in this post that are distinguished by being both bold and italicized can be found in the glossary.
Some words may seem self explanatory but are defined differently by the IRS for tax purposes.
SECTION 1: Excerpts from the IRS description of cryptocurrency as stated on IRS. GOV
“Cryptocurrency is a type of virtual currency that uses cryptography to secure transactions that are digitally recorded on a distributed ledger, such as a blockchain.”\ “Virtual currency is a digital representation of value, other than a representation of the U.S. dollar or a foreign currency (“real currency”), that functions as a unit of account, a store of value, and a medium of exchange.”\ “Regardless of the label applied, if a particular asset has the characteristics of virtual currency, it will be treated as virtual currency for Federal income tax purposes.”\ “Virtual currency is treated as property and general tax principles applicable to property transactions apply to transactions using virtual currency.”\
SECTION 2: Types of taxes associated with crypto and their rates
2A Income Tax
Your tax liability for certain cryptocurrency transactions (listed and explained in section 3) will be based on one of the seven tax rates that apply to you based on your adjusted gross income and filing status.
The proceeds you receive from qualifying transactions will be taxed according to your personal income bracket along with the rest of your income. This is a different than the tax that’s levied on the sale of capital assets.
The 2021 income tax brackets:
| RATE | SINGLE | MARRIED/JOINT |
|---|---|---|
| 10% | $0-$9,950 | $0-$19,000 |
| 12% | $9,951-$40,525 | $19,901-$81,050 |
| 22% | $40,526-$86,375 | $81,051-$172,750 |
| 24% | $86,376-$164,925 | $172,751-$329,850 |
| 32% | $164,296-$209,425 | $329,851-$418,850 |
| 35% | $209,426-$523,600 | $418,851-$628,300 |
| 37% | $523,601 + | $628,301 + |
| RATE | MARRIED/SEPARATE | HEAD OF HOUSE |
|---|---|---|
| 10% | $0-$9,950 | $0-$14,200 |
| 12% | $9,951-$40,525 | $14,201-$54,200 |
| 22% | $40,526-$86,376 | $54,201-$86,350 |
| 24% | $86,376-$164,925 | $86,351-$164,900 |
| 32% | $164,926-$209,425 | $164,901-$209,400 |
| 35% | $209,426-$314,150 | $209,401-$523,600 |
| 37% | $314,151 + | $523,601 + |
2B Capital Gains: Short Term
Short term capital gains tax is applied to the realized gains from the selling, trading, or disposal of cryptocurrency that you’ve held for less than one year.
The tax rate is the same as the rate you’d pay for ordinary income, based on your personal tax bracket, the same brackets listed above in section 2A.
2C Capital Gains: Long Term
Long term capital gains tax is applied to crypto that you hold for more than one year before selling or trading. These rates are typically much lower than ordinary income. 2021 long term capital gains brackets:
| RATE | SINGLE | MARRIED FILING SEPARATE |
|---|---|---|
| 0% | $0-$40,000 | $0-$40,000 |
| 15% | $40,401-$445,850 | $40,401-$445,850 |
| 20% | $445,000 + | $445,000 |
| RATE | MARRIED FILING JOINT | HEAD OF HOUSEHOLD |
|---|---|---|
| 0% | $0-$80,000 | $0-$54,100 |
| 15% | $80,801-$501,600 | $54,101-$473,750 |
| 20% | $501,600 + | $473,751 + |
2C Collectible Capital Gains
The IRS has not issued a definitive guidance on how certain cryptocurrency may be taxed in this way but a growing opinion is that some tokens will fall under the IRS definition of collectible capital assets. This tax has a flat rate of 28% We’ll cover these tokens in the next section. Can you guess what’s in question?
The IRS defines collectible assets broadly. Any work of art, most metals, gems, coins and this super general statement: Any personal property that the IRS determines a collectible under IRC Section 408(m).
SECTION 3 Taxable events, corresponding tax rates, non taxable events, and required reporting
The part you’ve been waiting for! Which cryptocurrency transactions trigger a taxable event ? How are they taxed? Let’s explore.
Examples in Section 4 for different scenarios.
3A 3B 3C Purchasing, Holding and Transferring.
These are not taxable events. No tax liability of any kind is incurred by these actions alone and you don’t have to report crypto that you buy and transfer if you don’t sell or trade it. Even if the value of your crypto rises or falls dramatically, you own no taxes because you have not realized gains.
NOTE: Having a Record of every transaction you make, regardless of tax liability or the current reporting requirement, is very important.
To be able to properly report when you do trigger a taxable event you’ll need to know either your cost basis or the fair market value (one of these apply depending on how you acquired it and what you do with it) for each transaction, the amount of fiat spent, the amount of crypto purchased, the date of purchase and any fees you paid.
It’s also important to note that your cost basis is different than your **average* cost.
3D Crypt rewards cards: general
Generally, the IRS categorizes credit and debit card rewards as non-taxable. They are treated as rebates or discounts on what you purchased.
That implies that for now, all those juicy crypto back rewards we get do not trigger any taxable event and no reporting requirements upon receipt (Capital gains, income, or otherwise).
Selling them will trigger a taxable event though, so you’ll need to know the fair market value at the time you received the rewards and the amount received for each transaction. Sounds like a hassle? There are multiple ways to record transactions, I do it manually through Blockfolio (now FTX) but there’s software that can track almost everything.
NOTE If you receive cryptocurrency through rewards, staking, interest or any means other than purchasing (using fiat or crypto) the fair market value at the time you received them becomes your cost basis for tax purposes.
Some platforms may send you a 1099-MISC if you go over a certain amount of rewards, but that doesn’t make it taxable. Whether something is listed on a 1099-MISC and whether it’s taxable are two different questions.
- ###Crypto rewards cards: Fiat Payments
Crypto rewards Cards that are pre-loaded with fiat, or that utilize fiat as the means of payment, do not trigger a taxable event when you make a purchase using the card and receive crypto back because you are paying with the US Dollar, the legal tender of The United States.
- ###Crypto rewards cards: Crypto Payments
Cards that spend your crypto, whether they are rewards cards or not, trigger a taxable event. (stable coins are no exception, but do not incur tax liabilities in most cases) When using a card to spend crypto, the card issuing platform is liquidating your crypto to fiat then using the fiat for the purchase via the card, this is a disposal of a capital asset.
Even if the provider of the goods/service you purchase from accepts crypto, and you actually transfer your crypto to them via a card or any other method, you are triggering a taxable event by trading crypto for goods and services.
- ###Crypto rewards cards: Stable coin payments
Crypto Card issuing platforms that guarantee a 1:1 ratio between US Dollars and the stable coin the card utilizes, will not result in capital gains or losses, but each transaction is still required to be reported.
Stable coins are still cryptocurrency and this means that transactions involving stable coins are disposal of capital assets. Although minimal, stable coin prices can fluctuate. If you’re not guaranteed a 1:1 ratio, you may trigger a taxable event and you’ll need to calculate your profit or loss.
While using your crypto to pay for goods and services via a pre-loaded card triggers a taxable event, it doesn’t always result in a capital gain. If the fair market value at the time of your payment to a merchant is lower than your cost basis, you may actually incur a capital loss that can be used to offset gains. (With some exceptions)
3E 3F 3G Staking Rewards, Earning interest, (including Defi) and Airdrops
Each one of these transactions trigger a taxable event. They are viewed by the IRS in the same way as fiat interest in traditional finance. They are required to be reported and are taxed as income at your personal tax rate, not as capital gains… unless or until you sell.
What separates these payments from traditional fiat interest is in crypto, for each individual transaction, you need to know the fair market value on the date you received the crypto because upon selling these rewards, the fair market value becomes the cost basis that you must use to calculate your profit/loss and the resulting capital gain or capital loss.
3H 3I Selling crypto for fiat and crypto to crypto trades/transactions
These are both taxable events and both result in capital gains/loss tax. Selling crypto, your property as defined by the IRS, is of course a taxable event and profit is taxed the same as stocks, gold, or any other “property”. Capital gains apply, either short or long term and according to the bracket you’re in.
Trading one crypto to another crypto is taxed exactly the same way. You’re disposing of one asset and purchasing another that are both valued in US dollars.
3J Cryptocurrency mining and (staking revisited)
Tax calculations based on the receiving of cryptocurrency through mining are taxed similarly to staking and there’s a lot of debate about this, especially staking rewards.
According to the IRS, when a taxpayer successfully mines Bitcoin or other cryptocurrency he/she must include it in their gross income after determining the fair market value at the time they receive it.
There are two ways to report mining rewards on your taxes: as a hobby or as a business as defined by the IRS. In both, much like interest, Airdrops, and staking rewards, the fair market value (at the time you received them) of your mining rewards will be considered income and taxed at your personal tax bracket.
As a hobby, this will be reported on form 1040 as “other income”. If you run a mining operation as a business, you can fully deduct expenses and the net profit is taxable and reported on Schedule C.
3K Crypto received as payments for goods and services, crypto received as wages and salary and using crypto to pay employees
- ###Crypto received as payment for goods and services
Similar to mining, payments received in Cryptocurrency must be converted to their value in US dollars and included as income. Expenses can be deducted if you are a business owner.
- ###Crypto received as a form of wage or salary payment, for employees and employers.
Employers must convert employee earnings paid in crypto to US dollars on the employees W-2 form. These wages are subject to the same withholdings as payment in US dollars. Employers also incur capital gains tax for disposing of their crypto as payment to employees.
And again, the fair market value at the time you receive the crypto becomes your cost basis if you trade.
3L NFTs
Creating an NFT is not a taxable event, and has no value to report when you create it, however, it is considered a cryptocurrency by the IRS. Trading an NFT for another NFT, disposing of an NFT for a fungible cryptocurrency or US dollars is a taxable event subject to capital gains/losses.
Many NFTs are considered collectibles and may fall under the IRS definition of a collectible capital asset. The IRS has not issued guidance on this so the presumption right now is to use the definition of a standard capital asset.
Trading cards, for example, are not specifically listed by the IRS as collectible capital assets but have historically been taxed as such and this makes me think of NBA Top Shots NFT series.
The short term rule applies to collectibles in the same way as regular capital gains tax, it’s based on your income tax bracket. However, Long term collectible capital gains tax is a flat 28%. That’s strange to me.
There are NFTs that do not fit the definition of a collectible. Take Uniswap V3 as an example. Liquidity positions are not represented by ERC-20 tokens anymore, they are represented by NFTs and are obviously different than NFTs that represent art of any kind.
SECTION 4 Determining your profit/loss from different transactions and your tax liability with examples of transactions from section 3
You’re going to basically need a record of every transaction that involves cryptocurrency. You can do it manually with a notes app, excel spreadsheet or a crypto tax software tool that pulls the information from all your exchanges and wallets. Some of these software programs don’t cover everything though. You’ll get reports from many exchanges and you can find a record of your transactions on these exchanges.
INFO YOU’ll NEED
- cost basis or fair market value
- how you acquired the crypto (income or purchase)
- how much crypto you acquired or sold
- how much fiat you invested or how much fiat received for the sell
- the date you acquired or sold the crypto
EXAMPLE 1 Determining capital gain and taxes owed on crypto you bought, held, transferred then later sold.
NOTE: Remember to deduct fees to lower your cost basis.
- Frank buys 10 ETH on December 10, 2020. 1 ETH was $1000 - He spent $10,000
- The transaction fee was 0.5%, or $50
-
$10,000 invested - $50 in fees = $9,950 / 10 ETH = $995 cost basis of per ETH
- Frank transfers the 10 ETH to a ledger where he plans to hold it for one year.
NOTE No fee = Cost basis is the exact price per coin. Fee = deduct fee, $50 in this case, from total investment ,divide total investment by total coins purchased. (If you incur other fees for transfers, those can be deducted as well.) Cost basis is now $995 for tax purposes, average cost is still $1000 for investment purposes.
-
On December 11, 2021 (over 1 year later) Frank transfers back to an exchange and sells 5 of his 10 ETH when Ethereum his $10,000. He pays $250 in fees. Remember that he paid $950 per ETH when he made his purchase.
-
5 ETH X $10,000 per ETH = $50,000 - $250 fee = $49,750 net proceeds
-
The next step is to deduct your cost basis from your proceeds from the sale.
-
$950 cost basis X 5 ETH = $4,750 total cost basis
- Net proceeds $49,750 - $4,750 cost basis is $45,000 long term capital gain.
- Frank is married and they file jointly, she has a boyfriend but that doesn’t affect taxes. Their total taxable income is $90,000 which puts them in the 15% long term capital gains bracket.
- $45,000 capital gain X 0.15 (taxed at 15%) capital gain tax rate = $6,750 owed in capital gains tax
EXAMPLE 2 Expanding on the above scenario to illustrate the FIFO (first in first out) method of tax reporting.
- Frank also purchased 2 more ETH in March 2021 (we’ll assume no fees this time for simplicity). Ethereum was $2,500. His cost basis for these 2 ETH is $2,500 each.
- We know from the first example that Frank sold 5 ETH from the original 10 he purchased. He now has 7 ETH. 5 left with a cost basis of $950 and 2 with a cost basis of $2,500
- On January 1, 2022 Ethereum drops to $2000 and He sells 6 ETH
- 6 ETH X $2000 = $12,000 net proceeds
IMPORTANT NOTE: Since Frank has two different cost basis for Ethereum and his sale was for more ETH than he owns at the first cost basis of $950, the sale can be split into two transactions when figuring taxes.
FULL TRANSACTION 6 ETH sold at $2,000 ETH = $12,000
TAX TRANSACTION ONE - He has 5 ETH from 2020 with a cost basis of $950 per ETH They were purchased first, they sell first. FIFO - 5 ETH @ $950 cost basis = $4750 total cost sold for $2000 per ETH or $10,000 total proceeds - $10,000 proceeds - $4750 cost basis = $5,250 LONG TERM NET GAIN on these 5 ETH
TAX TRANSACTION TWO - He has 2 ETH that he purchased for $2,500 and sold one of them (he sold 6 total, the 5 left from his original purchase plus 1 from his latest purchase = 6) - All 10 of the original ETH he bought have been sold. He must now use 1 of the 2 he recently purchased to determine his tax liability on this 6 ETH sale. - 1 ETH @ $2,500 cost basis sold for $2,000 total - $2,000 proceeds - $2,500 cost basis = $500 SHORT TERM NET LOSS
- Frank has two taxable situations here that resulted from one sale. A $5,250 long term capital gain that he owes 15% tax on ($787.50) and a $500 Capital loss that he can claim.
NOTE Capital losses are first used to offset gains of the same type. So, short term losses are first deducted from short term gains and long term against long term. Losses of either type that are higher than gains of the same type can then be used to deduct against the other kind of gain.
If you have an overall net capital loss for a tax year, you can deduct up to $3,000 of that loss against your income. Any capital loss in excess of $3,000 can be carried over to subsequent years and deducted against capital gains first then other kinds of income. Married filing separate is $1,500 for these scenarios.
EXAMPLE 3 crypto received as staking or interest payments. Claiming them as income.
Karen has 10,000 ADA that she wants to stake. She staked and received rewards in February.
| REWARD/DATE | ADA FMV | REWARD VALUE |
|---|---|---|
| 6.124 FEB 5 | $0.44 | $2.69 |
| 6.654 FEB 10 | $0.93 | $4.26 |
| 5.976 FEB 15 | $0.86 | $3.53 |
| 6.612 FEB 20 | $1.12 | $7.41 |
| 6.489 FEB 25 | $1.08 | $7.01 |
- Karen earned 31.855 ADA
- Each of these rewards has a different fair market value( $.44 $.93 $.86 $1.12 $1.08 per ADA) and represent income of $.24 + $.64 + $.59 + $.77 + $.74 each for a total of $24.90 of income.
- This $24.90 will be added together with the rest of Karen’s taxable income to determine her tax rate.
- Karen is single and earned $35,000. Her tax rate is 12%
- She’ll owe an additional $2.98 on her $24.90 of staking income.
EXAMPLE 4 Expanding on staking rewards. Selling them and using FIFO
We know that our staking and interest rewards are considered income and taxed according to our personal tax bracket. This changes when you sell your staking reward. You’ll owe capital gains tax.
- Karen decides to sell some of her staking rewards as Cardano approaches $3.00 later the same year.
- She sells 18 ADA at $3.00. Assuming these were next on the list to be sold using FIFO, she uses ADA from her first 3 rewards dates.
- Karen received these ADA as rewards so she’ll have to know the fair market value at the time she received them.
- First out of her 18 total sell is the 6.124 ADA she received on February 5th, ADA was trading at $0.44 that day, $0.44 is the fair market value and now becomes her Cost basis.
- 6.124 ADA X $0.44 Cost basis = $2.69 total cost
- 6.124 ADA X $3.00 ADA sell price = $18.37 total proceeds
- $18.37 total proceeds - $2.69 total cost = $15.68 short term capital gain
- The second part of the 18 ADA transaction will use the 6.654 ADA she received on February 10th with a fair market value, now her cost basis, of $0.93
- 6.654 ADA X $0.93 cost basis = $5.72 total cost.
- 6.654 ADA X $3.00 ADA sell price = $19.96 proceeds
- $19.96 proceeds - $5.72 = $14.24 short term capital gain.
- The third part of the transaction will use 5.222 (6.124 + 6.654 + 5.222 = 18) out of the 5.976 ADA she received on February 15th with a cost basis of $0.86
- 5.222 ADA X $0.86 cost basis = $4.49 total cost
- 5.222 ADA X $3.00 ADA sale price = $15.67 proceeds
- $15.67 proceeds - $4.49 total cost = $11.18 short term Capital gains.
- Now we add each part of the transaction.
- $15.68 + $14.24 + $11.18 = $41.11 total short term capital gains** from the sale of 18 ADA received as staking rewards.
- Karen found a husband on r/datingover30 and they had a combined income of $90,000 which puts them in the 24% tax bracket.
- Karen and Kevin will owe $9.87 in short term Capital gains tax on the sale of the 18 ADA at $3.00
EXAMPLE 5 Crypto to Crypto trades
- Kevin wants to buy TRAC but can only find it with a BTC pair.
- He buys $250 worth of Bitcoin at $50,000
- $250 investment / $50,000 BITCOIN = .005 BTC purchased
- He trades his .005 BTC for 650 TRAC at $0.40 - Bitcoin had risen to $52,000 at the time of his TRAC trade.
- When you trade crypto to crypto, you’re essentially selling one crypto to fiat and buying another crypto. The IRS views this as a disposal of one capital asset and the purchase of another.
- .005 BTC X 52K = $260 / $.40 TRAC = 650 TRAC
- His cost basis for BTC was $50,000 ($250) and when he disposed of it for TRAC the price had risen to $52,000 ($260)
- $260 proceeds - $250 cost = $10 short term capital gain.
- Kevin incurred a capital gain on his BTC to TRAC trade.
Ways to minimize taxes owed.
- Monitor your holding period. Try to turn short term gains into long term gains.
- Use losses to offset gains and wash sales are currently allowed but be careful because the IRS has a clause called The Economic Substance Doctrine
- Keep records of all of the fees that you pay for everything
- Donate to charity
- Gift crypto to family members
- Consider a crypto self directed retirement account
- If you mine, deduct every expense possible.
- Use every deduction or credit available to lower your taxable income
GLOSSARY: Internal Revenue Service or economic/accounting definitions
- 1099-MISC: An Internal Revenue Services form used to report certain types of non-employee compensation. ###A
- Adjusted gross income: Gross income minus all available deductions.
- Average cost: Total cost divided by the total number of units. ###B
- Business: An activity carried on for livelihood or in good faith to make a profit. ###C
- Capital asset: Significant pieces of property whether owned by a business or individual.
- Capital gains: Profit from the sale of property or an investment.
- Capital gains tax: A tax levied on profit from the sale of property or an investment.
- Capital loss: A loss that is incurred when a capital asset is sold for less than the price that was paid for it.
- Collectible capital assets: Alternative investments that include things like art, stamps, coins, cards, comics, rare items, antiques and so on.
- Cost basis: The original value of an item, usually the purchase price and is used to determine capital gain or loss ###D
- Disposal: Asset disposal is the act of selling, trading, or removal of an asset that is no longer needed. ###E
- Economic Substance Doctrine: A tax law under which a transaction must have a substantial purpose aside from reduction of tax liability in order to be considered valid.
F
- Fair market value: The price that an asset would or did sell for at a given time on an open market.
- Form 1040: A common tax form used by US taxpayers to file an annual income tax return. ###H
- Hobby: An activity that is engaged in for sport or recreation, not to make a profit. ###I
- IRC section 408(m): An Internal Revenue Service document that explains and helps determine the consequences of investing in collectibles in an individually directed account.
- Internal Revenue Service (IRS): The revenue service of the United States federal government that is responsible for collecting taxes and administering the revenue code. ###L
- Legal tender: Anything recognized by law as a means to settle public or private debt, or meet a financial obligation. ###R
- Realize Gains: The difference in investment amount and proceeds when an investment is sold for a higher price than it was purchased. ###S
- Schedule C: The IRS tax form used to report income or loss from a business you operated or as a profession you practiced as the sole proprietor. ###T
- Taxable Event: Any action or transaction that may result in taxes owed to the government.
- Tax liability: The total amount of tax debt owed.
sources for definitions and information in the post. IRS. GOV • Investopedia • cryptotrader .tax • sourceforge .net • coin telegraph • cointracking .info • Forbes advisor • thebalance .com • bankrate • taxbit .com •
This post was born from my research into tax law and code due to my disagreements with the way newly mined or minted coins are taxed. Never in the history of the United States has something been taxed at the time of creation.
TLDR: If you purchase crypto, you pay capital gains/loss when you sell. If it’s a reward (except from crypto back cards) from interest, staking or mining, you owe income tax on it and if you sell it then you owe capital gains tax.
Any crypto you trade/sell/dispose of is subject to Capital gains tax.
How does cashcats work?
Cashcats were distributing 1m $cats and I was wondering how I can get some to distribute to a bitcoin cash meetup that I am hosting using SmartBCH? I will be teaching how to set up MetaMask to add smartbch and I want to do an airdrop to people who come to the event
Latin America, Tipping Point: Axie Infinity Scholarships + Venezuela's Petro | Bitcoinist.com
This would be awesome!
Brazil Wants Control Over Cryptocurrencies. Brazilians Want Bitcoin
Mauricio Moura, Director of Relations, Citizenship, and Conduct Supervision of Brazil’s Central Bank, promised to stop anonymous digital asset transactions. Of course, when he promised the impossible, Moura was showing off at an event at the Institute of Professionals for the Prevention of Money Laundering and Terrorism Financing. Diario Bitcoin quotes Moura saying:
“I can’t say much. But the names of those involved in cryptocurrency transactions will be known from start to finish.”
The Sherlock Communications agency released a report called Blockchain 2021. Among other things, it reveals that a whopping 48% of Brazilians think that their country should follow El Salvador’s example and adopt Bitcoin as legal tender. More than any other country in Latin America. From that percentage, “31% said they agree, and 17% said they fully agree with the measure.” Diario Bitcoin quotes the report:
“Brazilians were the biggest proponents of crypto-recognition in the region, with 56% supporting El Salvador’s approach and 48% saying they want Brazil to adopt it as well.“
https://bitcoinist.com/latin-america-tipping-point-axie-petro/
This is a thread to vent unpopular opinions
I think we all need some time to relax, watch Netflix or something with this price correction. Now that Bitcoin has seen a 12%+ downwards movement and the price has been flirting with 44k for a while now, I believe more than one of you is getting a little nervous. So I wanted to entertain you all with this.
Put on your boxing gloves, share your most controversial crypto related opinion and prepare to defend it to death in the comments
For example I can't stand Guy from Coin Bureau, I think the guy is an idiot and 90% of his videos are useless. Although I'm really biased because I day trade. YES I DAY TRADE. So I think most fundamental analysis is BS and nobody knows about what's going to happen in the next 3 months. He just comes and does a review on a coin that has already pumped (take for example his latest video on SOL). The idea is buying the coin BEFORE it pumps. It's easy to spot a coin once it pumped 100% in two days and do a review on the project. You must predict what's going to happen in the future, the past is just for learning, and the guy never does predictions to the future, he just analyses past events which is easy.
That's my really controversial opinion, and I'm really firm on that.
I wanna see teeth, blood and punches in the comments. There you go, fight
Few words of advice to new investors
Welcome
As always when crypto goes up and new ATHs are reached, everyone is optimistic about the future and new investors enter the crypto world. They are full of hopes of getting rich fast and dreaming of owning a lambo.
As most of us know what goes up must go down, and when crypto goes down - it's really goes DOWN. Not 5% or 15% but 70-80% drop in value. Not one coin but basically all crypto market. And not for a day or a week, but for months.
So this post is for those new boys and girls who decided they are ready to be part of this world.
Few tips and terms I wish I knew when I joined in.
How to enter into crypto the wrong way.
I knew about crypto for some time, but only entered properly in April 2021. All coins were up, reaching ATH after ATH. Media, social networks - everyone was seeing crypto future via pink glasses. I bought some ETH via revolut. Then more, then more.
I knew nothing about the fees, or that revolut charges 2,5% and that it was way to much. I did not know I would not be able to withdraw it, and effectively not even own my coins.
Once I got into crypto world I started reading, learning, asking questions. I learned what basic term means and how to find best deals. How to safely store my crypto and how to DCA and panic or fomo buy.
So after April came May and then after ATH came crash... My crypto value was down significantly. But at this point I was already aware of basics and how to deal with situations like this.
I knew I don't lose money until I sell so I told myself to not tuch my revolut account until ETH is at very least back to the same value when I purchased it, no matter how long this may take.
I reviewed several projects and decided amount of money I was comfortable to invest on regular basis.
I don't drink alcohol, don't smoke and as such I decided that money others spent on alco/ cigarettes I could put into crypto. I made sure I'm not touching my savings, I can still pay my bills and got spare money for going out and in case emergency.
It wasn't much but I'm not a big investor and already had significant amount of money locked in ETH when I entered crypto like a moron. So I planned my DCA strategy.
I wanted to have more then few coins in my portfolio to maximise my chances of success.
I decided on following strategy:
15% into biggest and safest coins - BTC and ETH.
10% on coins that I could see potential in becoming big and safe - ADA, ERG, SOL and ATOM
6% in coins that were fairly cheap, strong team behind the project and potentially massive gains at some point - VET, TEZOS, DOT, LUMEN and ALGO
I am DCA'ing monthly. This was my investment and I understand not everyone share my sentiment for those coins.
You should only invest in projects you support for whatever reason.
Only last week or so my portfolio started showing green. And finally I manage to sell my ETH with profit and move all my money out of revolut.
It doesn't really matter since my plan is to DCA until 2025 and then hold until 2030. Then sell during next bull market.
But it nice to know my average price for coin is half of the current price ;).
What I want new investors to understand:
As crypto scene is still young, most altcoin follow BTC. When BTC pump - other coins follow. When BTC dives - other coins follow.
In the past, both leading up to and immediately following halving events, Bitcoin price has experienced a bull run. These bull runs have been followed by crashes. The crashes have been followed by long “crypto winters” where sentiment is at its lowest and major news networks suddenly lose interest in Bitcoin. Until the next halving cycle starts the process again.
So expect sentiment to go down at some point (probably before Xmas).
Terms you should be familiar with:
FIAT - standard money (£,€,$ etc)
ATH - all time high - refer to day when crypto value reached its highest value to date
HODL - holding crypto assets for long time
DCA - dollar cost averaging - it's an investment strategy, basically meaning you put set amount of FIAT on a regular basis (daily, weekly, monthly etc) to buy crypto. By doing so you avoid risk of buying at ATH and you have a good chance to lower your average price per coin which means once you sell you will get higher profit. Decide how much you can afford to lose.
So first of all you need to decide how much you can spare for your investments - do not go balls deep, see what you wasting monthly on junk food / vices/ prostitutes and decide what you can live without or using less - this will be your DCA amount.
It doesn't matter if you have massive pool of money or odd few bucks - DCA is your safest way to invest and minimasing any loses.
You should never invest in crypto any money that you can't afford to lose. Do not put your life savings, money you know you might need in the future. Crypto is still young and very viotile market. People make great gains but also people loose all their investments. Look at this as buying lotto ticket, just with higher chance of winning, but there is still risk you can not get your investment back.
Remember nothing is sure in crypto it can go up, it can go down - only invest what you can afford to lose.
Decide what to buy
DYOR - do your own research - don't just jump on the bandwagon because there is a hype or reddit told you to do so. Read about project, development team, future proposals. Compare with other similar projects. Check past performance and how stable the coin / token is. Read outside of reddit on price predictions to get the general idea. Avoid scam coins/ meme coins - they are not good for long time investment.
FOMO - fear of missing out - Don't buy based on emotions. Be prepared for your coin to drop in value as soon as you buy it - I call it the crypto law - it will go up eventually.
And remember as long as you don't sell you didn't lose any money. 1 coin of btc, eth etc is still 1 coin of btc, eth etc.
Decide where to buy
EXCHANGE - The places where you normally buy coins. There are big and small ones. If you are just starting I would advise to use the one that are most popular and safe. Using small ones you risk of being scammed.
You should always check the fees for buying / selling crypto as well as fees for withdrawals of crypto.
For example exchange A can have cheap fee for buying but high fee for withdrawing. Exchange B can have high fee for buying but cheap or free withdrawals. You should always compare where overall is cheaper for you. It may depend on your location, currency you are using etc.
Some fees are fixed, some are percentage.
If you are small investor percentage fees are more friendly for you.
MAKER ORDER is when you make order to buy / sell if the trade order is not matched immediately against an order already on the order book, which adds liquidity.
TAKER ORDER is when you make order to buy / sell if the trade order is matched immediately against an order already on the order book, which removes liquidity.
Explanation for dummies:
if someone is seelling for 10 and you place order to buy for 9.99 you will be paying maker fee as long as no one at this time is selling for 9.99 as you "making" market.
If you make order to buy for 9.99 and there is someone who already placed order to sell for 9.99 you will be paying taker fee as you are "taking" this offer.
Your order may take minutes / days / weeks to be completed - or not be completed at all if no one will be willing to sell / buy for your price. You do not pay fee for canceled orders.
INSTANT BUY / SELL - you pay price set by exchange there and then. For this privilege you pay 1.5% - 5% fee.
Even if fees for withdraw are free you still need to pay miners fee for some crypto (not to exchange but to the miners) these are same no matter what exchange you use.
Below is summary of 3 biggest exchanges.
KRAKEN
Instant buy fees 1.5%
Instant sell fees 1.5%
FIAT deposit - free
FIAT withdraw - free
Crypto withdraw - flat fee ( there is minimum requirements) Full list here:
Kraken withdrawal fees and minimus
Kraken pro (monthly trade below $50.000)
Buy / sell order fees 0.16% (for maker order)
Buy / Sell orders fees 0.26% (for taker orders)
COINBASE
Instant buy/sell fees approx 4% (Coinbase has the highest fees in the industry)
If you are buying or selling in the amount of $10.99 or less, the trading fee is $0.99 (min. 9%)
If you are buying or selling between $11 and 26.49, the trading fee is $1.49 (min 5%)
If you are buying or selling from $26.50 to $51.99, the trading fee is $1.99 (min 3.8%)
If you are buying or selling from $52 to $78.05, the trading fee is $2.99 (min 3.8%)
FIAT deposit - €0.15 / £0
FIAT withdraw - €0.15 / £1
Coinbase pro (monthly trade below $10.000)
Buy / sell order fees 0.5% (for maker order)
Buy / Sell orders fees 0.5% (for taker orders)
Crypto withdraw - free (apart from network fees)
BINANCE
Instant buy fees 0.5%
Instant sell fees 0.5%
FIAT deposit - free
FIAT withdraw - free
*Binance has biggest choice of FIAT that you can use.*
Crypto withdraw - flat fee (there is minimum requirements)
Full list here:
Binance withdrawal fees and minimums
Buy / sell order fees 0.1% (for maker order)
Buy / Sell orders fees 0.1% (for taker orders)
For small investors difference in market fees is negligible (if used pro version of exchanges) and Real difference is in withdraw fees.
To compare withdrawals fees go HERE - you can search by coin or exchange and compare.
Decide where to keep your crypto
"not your keys not your crypto" - you'll see this here a lot. It only means if you keep your crypto on exchanges you don't have physical control over your crypto (like if you keep cash in Bank).
IMHO sometimes it's more practical / worth to keep your coins on exchanges. It's a simple access, all in one place and if it's a small amount you might actually lose more by moving your coins out (by paying fees).
In any other case it's advisable to keep your crypto on cold wallet.
COLD WALLET - device to store access keys to your crypto, that is not connected to Internet and as such risk of someone getting access to your crypto is significantly reduced. Most popular seems to be ledger and trezor.
DYOR before deciding if / which one you want.
There are also wallets that are off exchange but still on the Internet. - personally I do not like them. If you want to keep your crypto on wallet connected to network you might as well leave it on exchanges.
Additional ways to get crypto for free
STAKING - allocating crypto to staking pool/nodes etc and by doing so you receive reward on regular basis (small portion of coin Staked). Think of this as saving account in Bank. You can stake some coins directly from cold wallet which makes it very safe. Staking usually gives profits around 5% per year but it vary depending on coin.
Some coins allow staking on exchanges where you buy them, some can be staked on cold wallets.
If you are holding crypto for long term you might as well let them generate some profit for you.
Taxes
Before you start investing in crypto you should really read on your tax obligation. Different countries have different rules but most common one is that every time you buy crypto and sell it you need to pay some sort of tax based on profit you made. Most of the time it only come to light once you sold crypto.
Some places require you to pay even if you convert crypto to another crypto.
So keeping record of your activity is very important. There are online tools that can help with this search crypto tax calculator and you have list of those.
Tldr:
- Doesn't matter if you put £5 or £5000 - if you have money you can spare - get in.
- Do not get FOMO, invest after DYOR.
- Plan your DCA and don't panic sell.
- You don't lose unless you sell at loss.
***not financial advice****
Awakening is not a matter of intelligence
We have been living in an inverted matrix, a luciferian consciousness. Those who are awake to any level of what is actually going on, are all that stands on complete Global tyranny.
People don't realise how hard it is to speak the truth full of people who don't realise they are living a lie. Very often people don't want to hear the TRUTH about things because they don't want their illusion destroyed.
A lot goes on behind what gets reported. We get deceived by the Media Mafias and the politicians who are under the control of the CABALS.
The choice lies with us whether you ignore it all or expose it. I choose to to expose it. Satanic Secret societies/Illuminati control and have infiltrated most political parties and Organisations. These group of insanely wealthy influential people own the CENTRAL BANKS (Centralised system of Money Control), the mainstream media, Pharmaceutical and anything under the sun, fund both sides of the wars as we have seen in the last 100 yrs and patronise the pedofilia-child-trafficking network to harvest Adrenochrome -- the wonder drug from the children for these rich Satanic Elites to enhance their life-longivity. HOLLYWOOD is a ghost town, the Andrenochrome is dry!
The Satanic Rich Elites are getting exposed and eventual Apocalyptic destruction of the CABAL. There is a huge military operation going on Europe now and a huge number of Deep state is being arrested in Europe right now! All Deep State Governments are being removed. Hats off to the US Military and Trump who are relentlessly behind them as the Nuclear codes remain with Trump even after leaving the Office, as Trump the most unappreciated President in History -- A selfless man lost well over 2Billion dollars of his own money in serving his Country. President Trump is now responsible for the for the Banking system of the WORLD! Worldwide banking is now being tested for QUANTUM FINANCIAL SYSTEM!
It's a Military operation as the trials are on at GITMO, against those who did the treason and commited the crimes against humanity....
The next few days will be an insane Journey.
WW - III will be announced soon.
Not a nuclear war with guns and bullets, but a HUGE CLOSING AND A DIGITAL BATTLEFIELD
MASSIVE Cyber attack is happening now and will get worse.
Recently, the internet, Stock market and Bitcoin have fallen and expect the global economy to crash too.
It will be the biggest financial collapse in the History of humanity which will result in darkness.
Global currency reset and milestones are coming in.
But nothing to worry about!!
White hats are in control. We're all new to upcomming global events that can cause panic, especially those who have done no study , no reflection who scoff at you when you suggest the world is not as they think it is, and are still sleeping and refuse to believe and may treat you like mental disorder as the global events are happening in the next few days. It's gonna be a BUMPY RIDE!!
THEY (Transgeneration Criminal Mafia) fooled us for centuries, our lives is run by these 13 bloodline families. "THEY" are the power behind Corporations and Govt. and the Global Institutions like UN, UNICEF, WHO, IMF, WORLD BANK and so on. The UNITED NATIONS is the Headquarter of the DEEP STATE CABAL, But it's time to wake-up!!!!
"THEY" control us through movies and music and use subliminal messages and programming to manipulate us into having negative thoughts and feelings.
There are 1500 Newspapers, 1100 Magazines, 9000 Radio Stations, 1500 TV stations, 24 publishers owned by only 6 Corporations and these Corporations are owned by these Satanic Rich Elites through which "THEY" Control their conspitorial narrative.
"THEY" planned the D Pandemic and spread the fear-mongerring through their News-network and the Va©xx©intin drive to keep people disconnected from one another, to keep them isolated in fear, trapping communication so people stay asleep while "THEY" remain in the domain of POWER which is aimed at depopulating the planet through Vaxxinatin drive as "THEY" refer to it as "GREAT RESET FOR A NEW WORLD ORDER" trying to sell a pipe dream of false UTOPIA!!
Here's what people mean when they say
"THEY" (the Evil force from our planet), Low dimentional paracitical entities.
-- Rothschild
-- Rockefeller
-- Bilderberg group
-- Monopoly holders (Gates, Bezos, Google, fuckerberg)
-- Jesuits
-- CIA
-- Mossad
-- DARPA
-- Trilateral Commission
-- Club of Rome.
"THEY" control us by....
Market:: Manipulation
Internet:: Censoring
Media :: Biased reporting
Economy:: Shut down
Election:: stolen
Democracy:: Fake
System:: Rigged
Awakening is not a matter of intelligence. Awakening happens when one has an insatiable thirst to know THE TRUTH.
The Great Awakening is upon us and nothing can stop what is coming!!!
VICTORY OF LIGHT.
New book by a member: Practical Doomsday
Hey folks - I'm a long-time regular here, for many years posting under the username of /u/fut-. You might know me from stuff like the hyperinflation gallery, an in-depth introduction to two-way radios for preppers, or an older feature-length guide titled Doomsday Planning for Less Crazy Folk.
For the past several months, I've been working on Practical Doomsday: a book focusing on what I like to call joyful resiliency - having plans that let you detach from 24-hour news and and that pay off even if the apocalypse doesn't come. It also emphasizes focusing on simple, tractable scenarios, rather than doing down the rabbit hole of doomsday porn. I think this approach is popular on /r/preppers, so I figured some folks might enjoy it.
I took care to unearth a ton of relevant data and research, sometimes to dispel some of the popular survivalist tropes; for example, there are around 40 pages dealing just with financial preparedness, focusing not just on tired approaches such as gold or Bitcoin, but also on the use of equities or commodity futures options as a way to hedge against monetary crises with greater fidelity. To give you another example of things we probably get wrong: did you know that many anthropologists believe that the apocryphal barter economies were never a thing, and by extension, are very unlikely to make a comeback in the event of any sort of an economic collapse?
The book also features also a meaty section on online safety, written from the perspective of someone who spent the past 20 years working in this industry, dealing with some of the folksy beliefs around VPNs, password hygiene, and so forth, and discussing the ecosystem of data brokers - something that doesn't really get talked about here very much.
If this sounds interesting, the publisher has a somewhat tongue-in-cheek sample chapter available for free. Print book release date is a bit out, but preorders from the publisher give you early access to the chapters in PDF form. For folks who review books on their blogs or elsewhere, I can hook you up with a reviewer copy, too - just PM me, no strings attached (i.e., no embargos and you're welcome to pan the book if you hate it).
Gg
Which transactions are taxable events and which ones aren’t? What has to reported and what doesn’t?
Fair warning: This is going to be a long post with a lot of information.
There are tax laws that absolutely apply, guidance issued by the IRS that isn’t law, and scenarios where no one knows what the hell to do. I’ve tried to sort it out.
I’m not a tax expert. I’m not a financial advisor. I’m literally a random Kevin. Use this post as a starting point. Do your own research.
One of my main sources for this post is the Internal Revenue Service’s website. I’ll list other sources at the end.
Please do inform me of errors and omissions. May the wings of capital gains carry you a loft to dance on the moon.
TABLE OF CONTENTS
1) A Cryptocurrency description from the Internal Revenue Service Of The United States of America
2) Types of taxes associated with crypto and their rates - 2A) Income taxes and 2021 brackets - 2B) Short term capital gains and 2021 brackets - 2C) Long term capital gains and 2021 brackets - 2D) Collectable Capital gains
3) Taxable events, corresponding tax rates, non taxable events, required reporting - 3A) Purchasing - 3B) Holding (HODL) - 3C) Transferring between wallets - 3D) Debit/credit/prepaid crypto back rewards cards - 3E) Staking rewards - 3F) Interest payments - 3G) Airdrops - 3H) Crypto to fiat sells - 3I) Crypto to crypto sells - 3J) Mining rewards (staking as well for the most part) - 3K) Crypto received as payments for goods and services - 3L) NFTs (regular and liquidity)
4) Determining your taxable profit/loss and your tax liability with examples of transactions from section 3 - EXAMPLE 1: Determining gains and taxes owed on crypto you purchased with fiat and sold for fiat - EXAMPLE 2: Using the First In First Out method to determine capital gains. - EXAMPLE 3: Determining tax liability on staking rewards that you did not sale. (Applies to interest, airdrops) - EXAMPLE 4: Determining tax liability on staking rewards that you did sale. (applies to interest, airdrops) - EXAMPLE 5: Crypto to crypto trades - Tips on minimizing taxes owed (lawfully) included
5) Glossary and Sources - Important words, phrases, and abbreviations in this post that are distinguished by being both bold and italicized can be found in the glossary.
Some words may seem self explanatory but are defined differently by the IRS for tax purposes.
SECTION 1: Excerpts from the IRS description of cryptocurrency as stated on IRS. GOV
“Cryptocurrency is a type of virtual currency that uses cryptography to secure transactions that are digitally recorded on a distributed ledger, such as a blockchain.”\ “Virtual currency is a digital representation of value, other than a representation of the U.S. dollar or a foreign currency (“real currency”), that functions as a unit of account, a store of value, and a medium of exchange.”\ “Regardless of the label applied, if a particular asset has the characteristics of virtual currency, it will be treated as virtual currency for Federal income tax purposes.”\ “Virtual currency is treated as property and general tax principles applicable to property transactions apply to transactions using virtual currency.”\
SECTION 2: Types of taxes associated with crypto and their rates
2A Income Tax
Your tax liability for certain cryptocurrency transactions (listed and explained in section 3) will be based on one of the seven tax rates that apply to you based on your adjusted gross income and filing status.
The proceeds you receive from qualifying transactions will be taxed according to your personal income bracket along with the rest of your income. This is a different than the tax that’s levied on the sale of capital assets.
The 2021 income tax brackets:
| RATE | SINGLE | MARRIED/JOINT |
|---|---|---|
| 10% | $0-$9,950 | $0-$19,000 |
| 12% | $9,951-$40,525 | $19,901-$81,050 |
| 22% | $40,526-$86,375 | $81,051-$172,750 |
| 24% | $86,376-$164,925 | $172,751-$329,850 |
| 32% | $164,296-$209,425 | $329,851-$418,850 |
| 35% | $209,426-$523,600 | $418,851-$628,300 |
| 37% | $523,601 + | $628,301 + |
| RATE | MARRIED/SEPARATE | HEAD OF HOUSE |
|---|---|---|
| 10% | $0-$9,950 | $0-$14,200 |
| 12% | $9,951-$40,525 | $14,201-$54,200 |
| 22% | $40,526-$86,376 | $54,201-$86,350 |
| 24% | $86,376-$164,925 | $86,351-$164,900 |
| 32% | $164,926-$209,425 | $164,901-$209,400 |
| 35% | $209,426-$314,150 | $209,401-$523,600 |
| 37% | $314,151 + | $523,601 + |
2B Capital Gains: Short Term
Short term capital gains tax is applied to the realized gains from the selling, trading, or disposal of cryptocurrency that you’ve held for less than one year.
The tax rate is the same as the rate you’d pay for ordinary income, based on your personal tax bracket, the same brackets listed above in section 2A.
2C Capital Gains: Long Term
Long term capital gains tax is applied to crypto that you hold for more than one year before selling or trading. These rates are typically much lower than ordinary income. 2021 long term capital gains brackets:
| RATE | SINGLE | MARRIED FILING SEPARATE |
|---|---|---|
| 0% | $0-$40,000 | $0-$40,000 |
| 15% | $40,401-$445,850 | $40,401-$445,850 |
| 20% | $445,000 + | $445,000 |
| RATE | MARRIED FILING JOINT | HEAD OF HOUSEHOLD |
|---|---|---|
| 0% | $0-$80,000 | $0-$54,100 |
| 15% | $80,801-$501,600 | $54,101-$473,750 |
| 20% | $501,600 + | $473,751 + |
2C Collectible Capital Gains
The IRS has not issued a definitive guidance on how certain cryptocurrency may be taxed in this way but a growing opinion is that some tokens will fall under the IRS definition of collectible capital assets. This tax has a flat rate of 28% We’ll cover these tokens in the next section. Can you guess what’s in question?
The IRS defines collectible assets broadly. Any work of art, most metals, gems, coins and this super general statement: Any personal property that the IRS determines a collectible under IRC Section 408(m).
SECTION 3 Taxable events, corresponding tax rates, non taxable events, and required reporting
The part you’ve been waiting for! Which cryptocurrency transactions trigger a taxable event ? How are they taxed? Let’s explore.
Examples in Section 4 for different scenarios.
3A 3B 3C Purchasing, Holding and Transferring.
These are not taxable events. No tax liability of any kind is incurred by these actions alone and you don’t have to report crypto that you buy and transfer if you don’t sell or trade it. Even if the value of your crypto rises or falls dramatically, you own no taxes because you have not realized gains.
NOTE: Having a Record of every transaction you make, regardless of tax liability or the current reporting requirement, is very important.
To be able to properly report when you do trigger a taxable event you’ll need to know either your cost basis or the fair market value (one of these apply depending on how you acquired it and what you do with it) for each transaction, the amount of fiat spent, the amount of crypto purchased, the date of purchase and any fees you paid.
It’s also important to note that your cost basis is different than your **average* cost.
3D Crypt rewards cards: general
Generally, the IRS categorizes credit and debit card rewards as non-taxable. They are treated as rebates or discounts on what you purchased.
That implies that for now, all those juicy crypto back rewards we get do not trigger any taxable event and no reporting requirements upon receipt (Capital gains, income, or otherwise).
Selling them will trigger a taxable event though, so you’ll need to know the fair market value at the time you received the rewards and the amount received for each transaction. Sounds like a hassle? There are multiple ways to record transactions, I do it manually through Blockfolio (now FTX) but there’s software that can track almost everything.
NOTE If you receive cryptocurrency through rewards, staking, interest or any means other than purchasing (using fiat or crypto) the fair market value at the time you received them becomes your cost basis for tax purposes.
Some platforms may send you a 1099-MISC if you go over a certain amount of rewards, but that doesn’t make it taxable. Whether something is listed on a 1099-MISC and whether it’s taxable are two different questions.
- ###Crypto rewards cards: Fiat Payments
Crypto rewards Cards that are pre-loaded with fiat, or that utilize fiat as the means of payment, do not trigger a taxable event when you make a purchase using the card and receive crypto back because you are paying with the US Dollar, the legal tender of The United States.
- ###Crypto rewards cards: Crypto Payments
Cards that spend your crypto, whether they are rewards cards or not, trigger a taxable event. (stable coins are no exception, but do not incur tax liabilities in most cases) When using a card to spend crypto, the card issuing platform is liquidating your crypto to fiat then using the fiat for the purchase via the card, this is a disposal of a capital asset.
Even if the provider of the goods/service you purchase from accepts crypto, and you actually transfer your crypto to them via a card or any other method, you are triggering a taxable event by trading crypto for goods and services.
- ###Crypto rewards cards: Stable coin payments
Crypto Card issuing platforms that guarantee a 1:1 ratio between US Dollars and the stable coin the card utilizes, will not result in capital gains or losses, but each transaction is still required to be reported.
Stable coins are still cryptocurrency and this means that transactions involving stable coins are disposal of capital assets. Although minimal, stable coin prices can fluctuate. If you’re not guaranteed a 1:1 ratio, you may trigger a taxable event and you’ll need to calculate your profit or loss.
While using your crypto to pay for goods and services via a pre-loaded card triggers a taxable event, it doesn’t always result in a capital gain. If the fair market value at the time of your payment to a merchant is lower than your cost basis, you may actually incur a capital loss that can be used to offset gains. (With some exceptions)
3E 3F 3G Staking Rewards, Earning interest, (including Defi) and Airdrops
Each one of these transactions trigger a taxable event. They are viewed by the IRS in the same way as fiat interest in traditional finance. They are required to be reported and are taxed as income at your personal tax rate, not as capital gains… unless or until you sell.
What separates these payments from traditional fiat interest is in crypto, for each individual transaction, you need to know the fair market value on the date you received the crypto because upon selling these rewards, the fair market value becomes the cost basis that you must use to calculate your profit/loss and the resulting capital gain or capital loss.
3H 3I Selling crypto for fiat and crypto to crypto trades/transactions
These are both taxable events and both result in capital gains/loss tax. Selling crypto, your property as defined by the IRS, is of course a taxable event and profit is taxed the same as stocks, gold, or any other “property”. Capital gains apply, either short or long term and according to the bracket you’re in.
Trading one crypto to another crypto is taxed exactly the same way. You’re disposing of one asset and purchasing another that are both valued in US dollars.
3J Cryptocurrency mining and (staking revisited)
Tax calculations based on the receiving of cryptocurrency through mining are taxed similarly to staking and there’s a lot of debate about this, especially staking rewards.
According to the IRS, when a taxpayer successfully mines Bitcoin or other cryptocurrency he/she must include it in their gross income after determining the fair market value at the time they receive it.
There are two ways to report mining rewards on your taxes: as a hobby or as a business as defined by the IRS. In both, much like interest, Airdrops, and staking rewards, the fair market value (at the time you received them) of your mining rewards will be considered income and taxed at your personal tax bracket.
As a hobby, this will be reported on form 1040 as “other income”. If you run a mining operation as a business, you can fully deduct expenses and the net profit is taxable and reported on Schedule C.
3K Crypto received as payments for goods and services, crypto received as wages and salary and using crypto to pay employees
- ###Crypto received as payment for goods and services
Similar to mining, payments received in Cryptocurrency must be converted to their value in US dollars and included as income. Expenses can be deducted if you are a business owner.
- ###Crypto received as a form of wage or salary payment, for employees and employers.
Employers must convert employee earnings paid in crypto to US dollars on the employees W-2 form. These wages are subject to the same withholdings as payment in US dollars. Employers also incur capital gains tax for disposing of their crypto as payment to employees.
And again, the fair market value at the time you receive the crypto becomes your cost basis if you trade.
3L NFTs
Creating an NFT is not a taxable event, and has no value to report when you create it, however, it is considered a cryptocurrency by the IRS. Trading an NFT for another NFT, disposing of an NFT for a fungible cryptocurrency or US dollars is a taxable event subject to capital gains/losses.
Many NFTs are considered collectibles and may fall under the IRS definition of a collectible capital asset. The IRS has not issued guidance on this so the presumption right now is to use the definition of a standard capital asset.
Trading cards, for example, are not specifically listed by the IRS as collectible capital assets but have historically been taxed as such and this makes me think of NBA Top Shots NFT series.
The short term rule applies to collectibles in the same way as regular capital gains tax, it’s based on your income tax bracket. However, Long term collectible capital gains tax is a flat 28%. That’s strange to me.
There are NFTs that do not fit the definition of a collectible. Take Uniswap V3 as an example. Liquidity positions are not represented by ERC-20 tokens anymore, they are represented by NFTs and are obviously different than NFTs that represent art of any kind.
SECTION 4 Determining your profit/loss from different transactions and your tax liability with examples of transactions from section 3
You’re going to basically need a record of every transaction that involves cryptocurrency. You can do it manually with a notes app, excel spreadsheet or a crypto tax software tool that pulls the information from all your exchanges and wallets. Some of these software programs don’t cover everything though. You’ll get reports from many exchanges and you can find a record of your transactions on these exchanges.
INFO YOU’ll NEED
- cost basis or fair market value
- how you acquired the crypto (income or purchase)
- how much crypto you acquired or sold
- how much fiat you invested or how much fiat received for the sell
-
the date you acquired or sold the crypto
- ###EXAMPLE 1 Determining capital gain and taxes owed on crypto you bought, held, transferred then later sold.
NOTE: Remember to deduct fees to lower your cost basis.
- Frank buys 10 ETH on December 10, 2020. 1 ETH was $1000 - He spent $10,000
- The transaction fee was 0.5%, or $50
-
$10,000 invested - $50 in fees = $9,950 / 10 ETH = $995 cost basis of per ETH
- Frank transfers the 10 ETH to a ledger where he plans to hold it for one year.
NOTE No fee = Cost basis is the exact price per coin. Fee = deduct fee, $50 in this case, from total investment ,divide total investment by total coins purchased. (If you incur other fees for transfers, those can be deducted as well.) Cost basis is now $995 for tax purposes, average cost is still $1000 for investment purposes.
-
On December 11, 2021 (over 1 year later) Frank transfers back to an exchange and sells 5 of his 10 ETH when Ethereum his $10,000. He pays $250 in fees.
-
5 ETH X $10,000 = $50,000 - $250 fee = $49,750 net proceeds
-
The next step is to deduct your cost basis from your proceeds from the sale.
-
$950 cost basis X 5 ETH = $4,750 total cost basis
- Net proceeds $49,750 - $4,750 cost basis is $45,000 long term capital gain.
- Frank is married and they file jointly, she has a boyfriend but that doesn’t affect taxes. Their total taxable income is $90,000 which puts them in the 15% long term capital gains bracket.
- $45,000 capital gain X 0.15 (taxed at 15%) capital gain tax rate = $6,750 owed in capital gains tax
EXAMPLE 2 Expanding on the above scenario to illustrate the FIFO (first in first out) method of tax reporting.
- Frank also purchased 2 more ETH in March 2021 (we’ll assume no fees this time for simplicity). Ethereum was $2,500. His cost basis for these 2 ETH is $2,500 each.
- We know from the first example that Frank sold 5 ETH from the original 10 he purchased. He now has 7 ETH. 5 left with a cost basis of $950 and 2 with a cost basis of $2,500
- On January 1, 2022 Ethereum drops to $2000 and He sells 6 ETH
- 6 ETH X $2000 = $12,000 net proceeds
IMPORTANT NOTE: Since Frank has two different cost basis for Ethereum and his sale was for more ETH than he owns at the first cost basis of $950, the sale can be split into two transactions when figuring taxes.
FULL TRANSACTION\ 6 ETH sold at $2,000 ETH = $12,000
TAX TRANSACTION ONE\ - He has 5 ETH from 2020 with a cost basis of $950 per ETH They were purchased first, they sell first. FIFO - 5 ETH @ $950 = $4750 cost basis sold for $2000 per ETH or $10,000 total - $10,000 proceeds - $4750 cost basis = $5,250 LONG TERM NET GAIN on these 5 ETH
TAX TRANSACTION TWO\ - He has 2 ETH that he purchased for $2,500 and sold one of them (he sold 6 total, the 5 left from his original purchase plus 1 from his latest purchase = 6) - 1 ETH @ $2,500 cost basis sold for $2,000 total - $2,000 proceeds - $2,500 cost basis = $500 SHORT TERM NET LOSS
- Frank has two taxable situations here that resulted from one sale. A $5,250 long term capital gain that he owes 15% tax on ($787.50) and a $500 Capital loss that he can claim.
NOTE Capital losses are first used to offset gains of the same type. So, short term losses are first deducted from short term gains and long term against long term. Losses of either type that are higher than gains of the same type can then be used to deduct against the other kind of gain.
If you have an overall net capital loss for a tax year, you can deduct up to $3,000 of that loss against your income. Any capital loss in excess of $3,000 can be carried over to subsequent years and deducted against capital gains first then other kinds of income. Married filing separate is $1,500 for these scenarios.
EXAMPLE 3 crypto received as staking or interest payments. Claiming them as income.
Karen has 10,000 ADA that she wants to stake. She staked and received rewards in February.
| REWARD/DATE | ADA FMV | REWARD VALUE |
|---|---|---|
| 6.124 FEB 5 | $0.44 | $2.69 |
| 6.654 FEB 10 | $0.93 | $4.26 |
| 5.976 FEB 15 | $0.86 | $3.53 |
| 6.612 FEB 20 | $1.12 | $7.41 |
| 6.489 FEB 25 | $1.08 | $7.01 |
- Karen earned 31.855 ADA
- Each of these rewards has a different fair market value( $.44 $.93 $.86 $1.12 $1.08 per ADA) and represent income of $.24 + $.64 + $.59 + $.77 + $.74 each for a total of $24.90 of income.
- This $24.90 will be added together with the rest of Karen’s taxable income to determine her tax rate.
EXAMPLE 4 Expanding on staking rewards. Selling them and using FIFO
We know that our staking and interest rewards are considered income and taxed according to our personal tax bracket. This changes when you sell your staking reward. You’ll owe capital gains tax.
- Karen decides to sell some of her staking rewards as Cardano approaches $3.00 later the same year.
- She sells 18 ADA at $3.00. Assuming these were next on the list to be sold using FIFO, she uses ADA from her first 3 rewards dates.
- Karen received these ADA as rewards so she’ll have to know the fair market value at the time she received them.
- First out of her 18 total sell is the 6.124 ADA she received on February 5th, ADA was trading at $0.44 that day, $0.44 is the fair market value and now becomes her Cost basis.
- 6.124 ADA X $0.44 Cost basis = $2.69 total cost
- 6.124 ADA X $3.00 ADA sell price = $18.37 total proceeds
- $18.37 total proceeds - $2.69 total cost = $15.68 short term capital gain
- The second part of the 18 ADA transaction will use the 6.654 ADA she received on February 10th with a fair market value, now her cost basis, of $0.93
- 6.654 ADA X $0.93 cost basis = $5.72 total cost.
- 6.654 ADA X $3.00 ADA sell price = $19.96 proceeds
- $19.96 proceeds - $5.72 = $14.24 short term capital gain.
- The third part of the transaction will use 5.222 (6.124 + 6.654 + 5.222 = 18) out of the 5.976 ADA she received on February 15th with a cost basis of $0.86
- 5.222 ADA X $0.86 cost basis = $4.49 total cost
- 5.222 ADA X $3.00 ADA sale price = $15.67 proceeds
- $15.67 proceeds - $4.49 total cost = $11.18 short term Capital gains.
- Now we add each part of the transaction.
- $15.68 + $14.24 + $11.18 = $41.11 total short term capital gains** from the sale of 18 ADA received as staking rewards.
EXAMPLE 5 Crypto to Crypto trades
- Kevin wants to buy TRAC but can only find it with a BTC pair.
- He buys $250 worth of Bitcoin at $50,000
- $250 investment / $50,000 BITCOIN = .005 BTC purchased
- He trades his .005 BTC for 650 TRAC at $0.40 - Bitcoin had risen to $52,000 at the time of his TRAC trade.
- When you trade crypto to crypto, you’re essentially selling one crypto to fiat and buying another crypto. The IRS views this as a disposal of one capital asset and the purchase of another.
- .005 BTC X 52K = $260 / $.40 TRAC = 650 TRAC
- His cost basis for BTC was $50,000 ($250) and when he disposed of it for TRAC the price had risen to $52,000 ($260)
- $260 proceeds - $250 cost = $10 short term capital gain.
- Kevin incurred a capital gain on his BTC to TRAC trade.
Ways to minimize taxes owed.
- Monitor your holding period. Try to turn short term gains into long term gains.
- Use losses to offset gains and wash sales are currently allowed but be careful because the IRS has a clause called The Economic Substance Doctrine
- Keep records of all of the fees that you pay for everything
- Donate to charity
- Gift crypto to family members
- Consider a crypto self directed retirement account
- If you mine, deduct every expense possible.
- Use every deduction or credit available to lower your taxable income
TLDR: If you purchase crypto, you pay capital gains/loss when you sell. If it’s a reward (except from crypto back cards) from interest, staking or mining, you owe income tax on it and if you sell it then you owe capital gains tax.
Any crypto you trade/sell/dispose of is subject to Capital gains tax.
GLOSSARY: Internal Revenue Service or economic/accounting definitions
- 1099-MISC: An Internal Revenue Services form used to report certain types of non-employee compensation. ###A
- Adjusted gross income: Gross income minus all available deductions.
- Average cost: Total cost divided by the total number of units. ###B
- Business: An activity carried on for livelihood or in good faith to make a profit. ###C
- Capital asset: Significant pieces of property whether owned by a business or individual.
- Capital gains: Profit from the sale of property or an investment.
- Capital gains tax: A tax levied on profit from the sale of property or an investment.
- Capital loss: A loss that is incurred when a capital asset is sold for less than the price that was paid for it.
- Collectible capital assets: Alternative investments that include things like art, stamps, coins, cards, comics, rare items, antiques and so on.
- Cost basis: The original value of an item, usually the purchase price and is used to determine capital gain or loss ###D
- Disposal: Asset disposal is the act of selling, trading, or removal of an asset that is no longer needed. ###E
- Economic Substance Doctrine: A tax law under which a transaction must have a substantial purpose aside from reduction of tax liability in order to be considered valid.
F
- Fair market value: The price that an asset would or did sell for at a given time on an open market.
- Form 1040: A common tax form used by US taxpayers to file an annual income tax return. ###H
- Hobby: An activity that is engaged in for sport or recreation, not to make a profit. ###I
- IRC section 408(m): An Internal Revenue Service document that explains and helps determine the consequences of investing in collectibles in an individually directed account.
- Internal Revenue Service (IRS): The revenue service of the United States federal government that is responsible for collecting taxes and administering the revenue code. ###L
- Legal tender: Anything recognized by law as a means to settle public or private debt, or meet a financial obligation. ###R
- Realize Gains: The difference in investment amount and proceeds when an investment is sold for a higher price than it was purchased. ###S
- Schedule C: The IRS tax form used to report income or loss from a business you operated or as a profession you practiced as the sole proprietor. ###T
- Taxable Event: Any action or transaction that may result in taxes owed to the government.
- Tax liability: The total amount of tax debt owed.
sources for definitions and information in the post. IRS. GOV • Investopedia • cryptotrader .tax • sourceforge .net • coin telegraph • cointracking .info • Forbes advisor • thebalance .com • bankrate • taxbit .com •
This post was born from my research into tax law and code due to my disagreements with the way newly mined or minted coins are taxed. Never in the history of the United States has something been taxed at the time of creation.
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