Once it reaches 50K, all the grandmas and taxi drivers fomo in, then one sells.
Then when it dumps back to 40K, one buys those coins back.
Not rocket science.
Aye, captain.
In my poor ass case, this would make the majority of my corn subject to tax (if i'd actually sell and buy back in 100%).
Most of my corn is tax-free, because bought before 2021, when the tax law changed. As soon as i sell it, it's untaxabe fiat money, but when i buy in again with that money, all corn i'd get hold of would be taxable when i sell it.
In the face of 25% capital gain tax, this trade wouldn't work in my favor.
Judging by the numbers, it's best for me to straight hodl, because IF i sell in the future at the
(theoretically) highest price, only a fraction of the money would be subject to capital gain taxation. So i better choose wisely when to sell. That said, the projected ETF pump/dump seems not to be the best event for me to trade.
The current situation of law kind of sucks in this manner, i can only hope for subsequent occasions to up my BTC holdings through trading back and forth, and preceding changes in taxation policies that would work in a better way for trading BTC.
I can trade back&forth between Cryptocurrencies (and stablecoins) withour being taxed, but the crux here is that once i make such a trade, the amount of BTC (or Crypto) i'd sell for fiat money would make it taxable. So this option would be great, but the law considers sold/traded coins as the "oldest coins" of my holdings, making them taxable when selling for money as well.
It's a shit law, and it's clearly aimed at milking traders, but it goes a little bit to far. But there's no reason to change the taxation policy, because why would the government want to pass on the extra money?
EDIT: While thoughtfully writing this post, Bitcoin went up several hundred US-bucks. Niiiice
EDIT2: Aaand back again
@Chartbuddy: Let's make a deal like last time. I go to sleep and you push it over $45k? Thanks in advance!
#GN
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