Topic: How do I avoid tax on crypto - page 6. (Read 18699 times)
Paying taxes is a legal obligation, and you shouldn't avoid it. You are benefiting from various governmental interventions for you to earn crytpo, be it electricity tariffs, super good internet, etc. So you are benefiting from this, in turn you need to return the favor in taxes for this "peaceful earnings to continue". The only thing I can figure out is how you can stay anonymous if you declaring taxes from crypto. Because most people want to stay anonymous via crypto involvement in the face of the government.
If I make money on crypto currencies. How do I avoid as much tax as possible?
Bitcoin is a currency, not some solution to avoid paying taxes. The moment when people start using Bitcoin or any other
Crypto currency as a method to avoid paying taxes, then the government will step in and ban it. I would much rather pay the
taxes and be done with it, than sleeping with open eyes, waiting for the Police to raid my house in the middle of the night.
That is no way to live your life... rather pay those taxes.
You're one of the first people I've heard agree with me about this! My thoughts are slightly different in that I think cryptos can be broken up into three classes: (1) currencies (bitcoin; monero; zcash; ltc; ripple; other 'store of value' coins); (2) commodities (ETH; some other ones; anything that gets 'consumed' when using the platform; and (3) utility (factom; storaj; espers; etc.; tokens that don't get destroyed and serve some sort of functional purpose but which are built upon a different cryptos platform).
Ideally, in this system, btc and the like would be classified and taxed as foreign currencies, ETH and the like would be taxed as commodities (60/40 rule), and utility tokens would continue to be taxed like property.
Too bad the IRS will never get their shit together enough to figure this out!
If I make money on crypto currencies. How do I avoid as much tax as possible?
Op, the only way in which you can avoid paying tax from your bitcoin and crypto currency earning is for to relocate from your current country to country where taxes are not paid on crypto currency related activities such as Nigeria. That is one of the option is to create a setup or register a company outside where their is not taxation. Another thing is that you can split the investment between your family members or whose income is very less so that the tax burden would reduce drastically. Total avoidance of tax could bring you in a legal trouble.
There is only one way to avoid paying taxes. You need to abandon the use of Fiat. I don't know if you're ready for this. Doubt. There is a way to change bitcoins to cash without using a Bank account. But this method contains great risks. I'm not sure you're not going to be a fraud victim. Sometimes robbers for that kind of money can even kill.
If you say, a wealthy businessman in Germany who wants to evade taxes, or a smuggler of illegal drugs, or a brutal ruler, then the means used to evade taxes and conceal the origin of money are very similar.
I don't think it's a good idea for you to keep hiding from your taxes due to your crypto. Since you're asking this, I am assuming that your country established regulations about cryptocurrency to which is why it is being taxed. With that being said, you have a responsibility to fulfill. Avoiding your tax would just lead to no good. Somehow and in some way, the government would find out and would even burden you with even more fees or penalties to pay. You're lucky that crypto is not banned in your country, so be a good citizen and do what you have to do. You wouldn't want to face worse situations just because you're avoiding a law that would actually lead the the betterment of your country.
If I make money on crypto currencies. How do I avoid as much tax as possible?
Simple
1. Move to a country that has 0 taxes or lower taxes on gains made from crypto trading.
2. Sell your coins for cash directly in person, then stash the bills under the mattress.
3. Hire a pretty good lawyer specialized in this....
Depending on which country you live in you might get away with the second option...or end up in jail.
It would also be nice if you would tell us where you're from...
Since it's one thing if you live in the US or Moldova.
I would have given you merit if I have some left.
The idea is very much precise.
I do agree that is will be depending on the country you are staying and if it will be upholding the taxes for bitcoins. Government will find ways to deduct fees and taxes through technology too. Like for an instance, here in our country, wallets are deducting fees in transacting through remittances.
Upfront transactions, or user to user is quite helpful too.
No fees and you can sell them freely.
Op, the only way in which you can avoid paying tax from your bitcoin and crypto currency earning is for to relocate from your current country to country where taxes are not paid on crypto currency related activities such as Nigeria.
How do you know that crypto doesn't get taxed in Nigeria? Even if it was like that, with more and more regulations being enforced globally, things might change rapidly, especially so when it concerns taxes on cryptos. And then it also depends on what category they place crypto in. In Japan for example, you'll end up paying 55% in tax when it comes to amounts over $350k in their own fiat currency. In the US there are states where the property tax rates are insanely low, but on top of that you will also have to pay state tax, welfare tax, etc. If you calculate all these different tax levels, you'll come to a tax figure close to 40-50% in certain states. Crypto is a cash cow for the government, that's a fact.
If I make money on crypto currencies. How do I avoid as much tax as possible?
Simple
1. Move to a country that has 0 taxes or lower taxes on gains made from crypto trading.
2. Sell your coins for cash directly in person, then stash the bills under the mattress.
3. Hire a pretty good lawyer specialized in this....
Depending on which country you live in you might get away with the second option...or end up in jail.
It would also be nice if you would tell us where you're from...
Since it's one thing if you live in the US or Moldova.
I would have given you merit if I have some left.
The idea is very much precise.
I do agree that is will be depending on the country you are staying and if it will be upholding the taxes for bitcoins. Government will find ways to deduct fees and taxes through technology too. Like for an instance, here in our country, wallets are deducting fees in transacting through remittances.
Upfront transactions, or user to user is quite helpful too.
No fees and you can sell them freely.
If I make money on crypto currencies. How do I avoid as much tax as possible?
Op, the only way in which you can avoid paying tax from your bitcoin and crypto currency earning is for to relocate from your current country to country where taxes are not paid on crypto currency related activities such as Nigeria.
For those who are planning to break the law in relation to cryptocurrencies, this story from Time magazine re Jason Klein may be a good read - http://time.com/5161663/bitcoin-sting-jason-klein-crypto-irs-money-transmitter/.
It is not a good idea to avoid paying your taxes if the law says so. You may be able to get away with it for a while but the troubles you'll have to go through if you get caught are just not worth the few dollars that you've stashed. While moving to another country where laws are easier to circumvent compared to where you came from is an option or there are no taxation on bitcoins in that place at all, doing such a move for the sake of avoiding taxes is quite a big price to pay unless you earned billions through your cryptocurrency investments. But by then, you wouldn't actually be in this forum since you can now hire a team of lawyers to do the thinking for you just like what big multinationals do.
Not everywhere cryptocurrency is even recognized enough to be taxed because the government at these countries do not even view it as a verified sense of legal tender.
After they do then they will regulate it and will have its own little box on your annual tax form to fill out the amount that you made using it for the year.
Until that time just enjoy using it not to be a tax evader.
After they do then they will regulate it and will have its own little box on your annual tax form to fill out the amount that you made using it for the year.
Until that time just enjoy using it not to be a tax evader.
If I make money on crypto currencies. How do I avoid as much tax as possible?
One simple way you can reduce your tax liability as much as possible is by declaring income as less as possible. The less amount of income you will declare less will be the tax. You can do this by not bringing in your funds on places where you have complied in with KYC requirements. Moreover what you can do is make most of your expenses payment directly using cryptocurrencies which too will make tax burden less. Rest depends upon the laws prevalent in your area.
If I make money on crypto currencies. How do I avoid as much tax as possible?
One simple way you can reduce your tax liability as much as possible is by declaring income as less as possible. The less amount of income you will declare less will be the tax. You can do this by not bringing in your funds on places where you have complied in with KYC requirements. Moreover what you can do is make most of your expenses payment directly using cryptocurrencies which too will make tax burden less. Rest depends upon the laws prevalent in your area.
We can actually avoid tax easily especially when our country does not regulate tax yet or has imposed tax, we can easily do it actually so nothing to worry about avoiding it unless you are in Korea, Japan, USA where they have strict implementation when it comes to paying taxes.
If I make money on crypto currencies. How do I avoid as much tax as possible?
Bitcoin is a currency, not some solution to avoid paying taxes. The moment when people start using Bitcoin or any other
Crypto currency as a method to avoid paying taxes, then the government will step in and ban it. I would much rather pay the
taxes and be done with it, than sleeping with open eyes, waiting for the Police to raid my house in the middle of the night.
That is no way to live your life... rather pay those taxes.
if it happens we should not avoid it because the taxes of each country aim for the development of existing infrastructure, we must support the existence of government policy.
If I make money on crypto currencies. How do I avoid as much tax as possible?
You can gift up to $15,000/year in the US taxfree.
If I make money on crypto currencies. How do I avoid as much tax as possible?
Bitcoin is a currency, not some solution to avoid paying taxes. The moment when people start using Bitcoin or any other
Crypto currency as a method to avoid paying taxes, then the government will step in and ban it. I would much rather pay the
taxes and be done with it, than sleeping with open eyes, waiting for the Police to raid my house in the middle of the night.
That is no way to live your life... rather pay those taxes.
If I make money on crypto currencies. How do I avoid as much tax as possible?
Bitcoin is a currency, not some solution to avoid paying taxes. The moment when people start using Bitcoin or any other
Crypto currency as a method to avoid paying taxes, then the government will step in and ban it. I would much rather pay the
taxes and be done with it, than sleeping with open eyes, waiting for the Police to raid my house in the middle of the night.
That is no way to live your life... rather pay those taxes.
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