Not much that can be done. I've looked into as many tax loopholes as I can. I even had all of the paperwork ready to create an offshore business to funnel my bitcoins through but the controlled foreign corporation rules require any foreign corporation where you own 50% of requires you to declare capital gains that the company gets immediately even if the company does not distribute it to you.

There are some companies that allow you to take out a loan on your stock options (which fixes the price) where they "hold" the stocks and you "fail to pay back the loan".

Living overseas you can withdraw $38k per year and pay zero capital gains as long as you have no other income.

Though a really good tax lawyer could probably figure something out. Tax "loopholes" are legal ways of not paying taxes that the tax legislators just haven't noticed yet.

If your accountant tells you that there's no getting around paying capital gains taxes he's really saying there's know way -he- knows of how to get around them. There is always a way especially the more money you have.

Bravo sir.

Personally, I like the idea that I will live longer than the US government will exist. At that point I can cash out into whatever I want to and not have to pay taxes on it.

I don't want luxury or "nice things". I want to live for hundreds of years and travel to new worlds. That will take money.

I know that the IRS has specified that calculating your gains on bitcoin you should use FIFO or LIFO as long as you are consistent.

But can you choose FIFO for bitcoin and then use LIFO for litecoin?

The case use would be that you use FIFO and have fiat on an exchange that you want to move to another exchange but if you buy bitcoins then transfer to another exchange and sell you would be selling coins you bought years ago, not the coins you just bought. Thus requiring double capital gains.

But if you buy litecoins, transfer to another exchange and sell the litecoins using LIFO then you would have zero capital gains on the transfer.

You would only sell if it falls after reaching the top....double top.

Exactly. There are thousands of years of rational market examples. Cherry picking a small sliver of time in some remote small country that had a market crash after a few months is pretty desperate. Why not point out the follies of the great depression or Black Monday? Or the market collapse in 2009? At least those are more recent and had a larger affect on the economy.

It sucks that understanding Bitcoin also involves a 2 month market movement on some speculation that happened a few hundred years ago.

The fact that they always have to bring up that small window of the market means they are trying to push an agenda and had to search all of history to find something that fit their narrative.

Down almost 2% for the day. Might have to buy a lambo with just 3 tires.   

I was looking at some old test transactions I did for my Bitpools site. I noticed that one address has .009 bitcoins in it. Now do I want to go through the trouble of tracking down where I put that private key? I guess I need to do some spring cleaning.

Here you go R0ach, some gold hating crypto porn from Mises:
https://mises.org/blog/why-cryptocurrencies-will-never-be-safe-havens

Great read, for example:


Hilarious read if you want to read some commodity investor desperately trying to tell why Bitcoin has no value but really has no idea what Bitcoin actually is.

When I sold my house last June I put all of the money in bitcoins mainly because I didn't know where else to put the money and didn't really have a plan for them. I wanted to use that money for a "safe" investment that could grow, I considered moving the bitcoins from the sale to Bitfinex to loan out at a high interest rate. Just never got around to it.

Not many traders here. Most have learned our lesson and just buy and hodl.

The reason for the upward movement? Many people are trying to figure out where to put their wealth for safe keeping. With a madman running the US economy and military, incompetent idiots running the other countries economies off a cliff and uncertainty everywhere, bitcoin has proven itself to be a store of value that will not be stopped. Everyone was just waiting to see if the hard fork and SegWit activation would cause any turmoil. Bitcoin survived both with no problems, demonstrating that it can grow and adapt over time as necessary.

Investors have had 4 years to think about how they missed out on the big rise in 2013. They have been on the sidelines waiting. This time they will participate. And it will be glorious.

Take out only what you need to spend. Use bitcoins for any spending that you can.

If you need a safety net for some of your wealth, short bitcoin for as much as you might need over the next year or so (as much as you want to be secure). By shorting (without margin) you are effectively freezing your bitcoin wealth at the current price. The downside is you have to pay a few percent per year to do that and you risk having your coins on an exchange (perhaps spread between several exchanges). This avoids capital gains and allows you to pull it out at a later date as needed.

At $38k total income you pay zero capital gains tax (this year). Might be best to do until you find a better way down the road (with a better CPA).


I recall in 2011 asking my CPA what he thought about bitcoins. He just laughed.

If I was worried I would not live in South Korea right now.
(though I am about 10 feet away from 2 gas masks and a chemical suit...but that's not by choice)

When the price was around $750 my sister asked if she should sell her .5 btc and my thoughts on the price.

Based on the cup and handle thing people brought up here I told her that if the price broke $800 the price would skyrocket.

Now she thinks I'm a financial genius



Is that a 3 day cup and handle I see? Break $4190 and the price will skyrocket

Same answer being repeated over and over.

Lock the thread OP.


unsubscribe

Living in Korea I mainly only see trading done on the exchanges, not much real world spending.

It would affect the price about as much as all of the trading ceasing on an exchange like...oh..say, btc-e.

During a quick climb people hold off on selling because they don't know how high the price will go. When it starts to level out normal trading comes back in and people sell again.

Funny thing is that with all of the crazy price action I locked in a $4k rate with an investment yesterday with someone but was traveling and couldn't get to my cold storage. I had no idea what the price would be when I finally did send the payment. The price was about the same as when we locked it in. I'm glad it returned to that price just in time, mainly because it was likely the first experience with real world spending of bitcoins for a few people and if the price had dropped $500 in that time it would sour them of the whole bitcoin thing and have them forever linking bitcoin to being "too volatile".

For those that have seen me bring up seasteading before, I will post this sneak peek of something I've been helping work on for the past few months..

https://www.blue-frontiers.com/token-offering/


I don't know what I can disclose about it yet other than that it's gonna be yuuugge..

Ya...but that crash from $16,000 to $7,000...   

I know the feeling. I remember in 2013 walking into work pumped because I was up 10k over night.

My gf has been visiting me for a few weeks and my wealth has almost doubled since she got here. When I asked her if she wanted to go see a movie she said it was too expensive. I can just watch the movie at home for free.