Whoever put the loot cap in place, thank you from the bottom of my heart

[Methais]

What's the tax situation like if you invest $10k into one crypto, ride it to $100k, convert it into another crypto, ride that one to $350k, then convert into a 3rd one, which ends up tanking completely and you lose everything. Do you owe nothing or do you owe $220k in taxes on your failed trading run?

I'm pretty sure you would owe nothing, and also owe 10k less on future taxes since you lost your starting 10k too. Capital gains taxes go both ways. Short term (held under a year) is taxed at the same rate as your regular income.

I'd be about where Crooks is at right now if I jumped on GMR a day earlier when he told me about it. Still pulling in awesome numbers though. Pays way better than plane 5.


1. Farm GS.
2. Invest GS money in crypto.
3. ????
4. Profit.

[POWPOW]

yeah im just gonna cash out end of year and give them 50% like they'll expect. I dont care as long as its still huge gains on my part. I have friends who tried to dodge taxes and one of them is doing 4 years in prison. So yeah, ill pay those taxes without a doubt LOL. Matter of fact ill contact a CPA before I do anything.

Assuming you don't need all the cash right away couldn't you convert to a stable coin that's tethered to the USD, and then sit on it for a year? Then you can pull out up to $40k a year after that tax free, as it will fall under capital gains tax. That's my understanding at least.

[Methais]

Assuming you don't need all the cash right away couldn't you convert to a stable coin that's tethered to the USD, and then sit on it for a year? Then you can pull out up to $40k a year after that tax free, as it will fall under capital gains tax. That's my understanding at least.

That law got “clarified” a few years ago. Trading up, even for another crypto is considered a capital gain. Not sure how the government would track all that, but that’s how it’s been since 2018 if I’m not mistaken.

[2Sage]

There is stuff that does the Defi taxes for you just by importing wallet addresses. The exchanges either send you your stuff or at least a trade history you can reference. What I would stay away from is tiny little exchanges run by your friend, in case they go offline and take the history with them.

but like someone said earlier, yeah just pay a bunch and you move yourself far down the list of likelihood that already started out unlikely. Plenty of people are going to only report what they think they should be without looking into it and you'll just be another one of those guys.

[2Sage]

Also you guys who just started be aware that this is the most monumental bull run yet and at some point its all gonna stop for 4 more years. First likely stopping point is September although with everything going exponentially crazier this run it might not be that soon. But definitely start to watch around then