Avoiding Tax on Capital Gains from Bitcoin (Legally?)

[BTCEnthusiast2]

Just to clarify, I'm not condoning avoiding paying taxes. The questions here are for educational purposes - anyone can choose to report/not report any gains at their own risk.

Anyone who does not condone tax avoidance, that's fine, you are entitled to your feelings and opinions.

But if someone wants to think intelligently about how to manage their tax, like the wealthy do, then that's their prerogative.

Remember that the tax laws are created by the same extremely wealthy people who are able to avoid a large chunk of their taxes.

They create loopholes that they and their wealthy buddies can use to avoid taxes.

They use trusts, off-shore shell companies, off-shore bank accounts, charities, etc etc. The loopholes change every few years to catch out those who are not in-the-know.

Politicians do it; celebrities do it; the wealthy do it; and big corporations like Google, Apple, Facebook, Amazon, and Starbucks, who pay as little as 5% tax, yep they do it too.

And you can do it too. But to do it, you just need to use the gray matter between your ears.

If you're investing in Bitcoin, then who knows, you might be extremely wealthy in the very near future. It's worth thinking about the tax implications now. Not in the future when you're staring down at a tax bill for hundreds of thousands.

Think like the wealthy do, and you'll retain your wealth. Think like a poor person, and you'll quickly lose your wealth and in a few years you'll be back where you started.

There's a reason the rich stay rich, and the poor stay poor. The rich come up with creative ways of guarding their wealth. They definitely don't just say "tax is unavoidable". That's the lie they want you to believe to stop you from even thinking about it.

There may very well be ways to LEGALLY reduce, or minimize your tax burden - EVEN BETTER!

[RodeoX]

In the USA capitol gains are an arguably unfair tax that favors the wealthy, not an unfair tax that is too high. You will likely pay twice the tax on the money you worked for as you will pay on your bitcoin gains. It could be as high as 20% or as low as 0%.

That's only for long term capital gains, where you held for more than a year. Short term capital gains are taxed at your ordinary tax rate, up to 37%.

Good point! I was considering long term gains, not short.

If grown up means letting crony government to take away MY HARD EARNED MONEY then I am glad I am not grown up.
Why SHOULD I PAY taxes when the government cant even pave the road to my village?

Maybe you would say just because I dont, they dont fix it. Well I do not need them to fix it. I can fix it on my own.

How your tax money is spent is a different issue. I assume much of the money I pay in taxes will be wasted. However taxes can be a very fair way to pool the money needed for common projects. It sounds like you don't have a bitcoin problem, you have a government problem. You may want to become politically active to solve that kind of dilemma. But just sticking your neighbors with your tax bill is not going to do anything except bring you financial/legal pain.