Enjoy Paying The Government For Your Crypto Fortunes
Hey Jesstax payers
As the Bitcoin bull run continues to pick up heat and everyone who ever bought Bitcoin before 2021 is now in profit, we're seeing a lot of cocky arseholes showing up bragging about what geniuses they are for being Bitcoin or Ethereum. Wow who would have thought, you must be the next Warren Buffet just look at all those consistent returns.
Honestly, it doesn't take a genius to invest and make money in a bull market, hell Dave Portnoy's stock portfolio is murdering a host of professional investors.
It's one thing to make money, it's another thing to keep it, retained earnings are far more important than paper earnings and it's a lesson many do not learn nor do they understand the implications.
Give to Caeser what belongs to Caesar
As people continue to cash out and take their profits, which they have EVERY right to, don't get me wrong. They also increase their tax burden, depending on the country you live in, this could be capital gains tax or added as income for that financial year.
Either way, you're government is going to want a piece of the action. Do you honestly think that with all the printing happening, governments aren't going to look at ways to generate new forms of revenue to service the debt they'll never payback?
When you move your purchasing power back into fiat, you're making a deal with your government. You're saying I am going to use your medium of exchange and I'm willing to pay a premium to use it.
I am no fan of government but I do think this is a reasonable request if you want the benefits of the payment rails they build you better pay the freight.
There's nothing wrong with taking profits, if you need it you should take it if you want to take chips off the table you should, if you want to deleverage and invest in something else you should.
However, if you're not looking at ways of minimizing your tax burden you're minimizing your profit-taking and in some cases, you could even reduce any chance of making a profit.
You should be consulting a tax professional and looking at offsetting spending you've made, look at ways you can right of expenses against this profit.
In some cases, You may want to set up a business open an account and run your trading through the business as a business account can come with several benefits.
You could look at securing a position in stable coins, be it algorithmic or backed, you could look at gold-backed crypto, you could look at purchasing precious metals outright with your crypto instead.
You could look at a combination of these methods to help reduce your tax burden, of which I am pretty sure no ones going to do and they're going to take the cash thinking they've made a killing until the tax man comes knocking on the door.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
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