BTC Investing To Now Taxable Events

[worldtraveller321]

Question on BTC and other cryptos

This is from being in Canada.
I was wondering if there is a way to further invest with my BTC and other cryptos without and being in legal terms. As in ways that would not be considered a taxable event.
I know crypto to fiat and doing trades now is consider taxable.
Even staking?

What other ways can I further invest with my cryptos without it being a taxable event? Thanks

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[franky1]

moving any asset/commodity/security to fiat is a taxable event
but now CEX's have to report events, means the taxman has proof of events which you then hav to declare in your own filings

the only options are to know enough taxlaw to know the loopholes to avoid tax in such events(legal).. or find ways to swap to fiat outside of reporting services to evade tax(illegal)

main tricks are what the elites do
dont 'spend' value(buy/sell), personally lend value as loans are not taxable
its literally a process similar to fiat exchanging, but word it right and create your own paperwork to show it worded as such, it suddenly becomes a double sided personal loan to each other which cancels each other out the same day(paid in full)

speak to an accountant/tax specialist

[Poker Player]

I don't know the specific case of Canada but I'm sure it happens like in most of the world: the moment you use bitcoin to buy something else, be it cryto, gold or whatever is a taxable event. It does not happen like in investment funds in some countries that you can make transfers without paying taxes until you convert the funds to money.

[avikz]

Question on BTC and other cryptos

This is from being in Canada.
I was wondering if there is a way to further invest with my BTC and other cryptos without and being in legal terms. As in ways that would not be considered a taxable event.
I know crypto to fiat and doing trades now is consider taxable.
Even staking?

What other ways can I further invest with my cryptos without it being a taxable event? Thanks

Move from centralized exchanges to decentralized exchanges. That might help you in trading. But for crypto to fiat trading, I don't think you have any options available.

If you volume is huge, you may consider setting up a company in crypto tax heavens and you can transfer funds from that company to your Canadian account as profit. But I am not sure how the local law works. You may want to get more clarity from a local lawyer.

[Aanuoluwatofunmi]

I was wondering if there is a way to further invest with my BTC and other cryptos without and being in legal terms. As in ways that would not be considered a taxable event.

You can invest in bitcoin on a non custodial wallet, hold it for years and you will earn from it without paying anyone tax to either maintain the wallet you're using or the unit of account for your asset value as the banks do charges for maintenance.

I know crypto to fiat and doing trades now is consider taxable.
Even staking?

If you're going to opt in for trades, then you are likely to make use of the centralized exchanges in doing that and there is no how you can manage to escaped being taxed from these exchanges, what you should considered is the rate you're being charged, which i think should be more affordable for you than not, except you're not going or make use of a centralized exchange for trade or avoid trading at all.

[Maus0728]

I don't know the specific case of Canada but I'm sure it happens like in most of the world: the moment you use bitcoin to buy something else, be it cryto, gold or whatever is a taxable event. It does not happen like in investment funds in some countries that you can make transfers without paying taxes until you convert the funds to money.

You're not taxed with the usage of cryptocurrency though, you're taxed when you bought that item with fiat so the only taxable event is the time that there's a fiat interaction. Regards to transfers, I think that in some way, transaction fees in crypto counts as tax but with a lot of extra steps, think about it, the tx fees are used to pay the miners and those fees that the miners get, they convert it to cash and when they do it, they likely buy something for themselves that will benefit them and those stuff will involve taxes.

[Plaguedeath]

You're not taxed with the usage of cryptocurrency though, you're taxed when you bought that item with fiat so the only taxable event is the time that there's a fiat interaction. Regards to transfers, I think that in some way, transaction fees in crypto counts as tax but with a lot of extra steps, think about it, the tx fees are used to pay the miners and those fees that the miners get, they convert it to cash and when they do it, they likely buy something for themselves that will benefit them and those stuff will involve taxes.

Let's say someone earn Bitcoin whether it's from giveaway, freelance or jobs, it might be not a taxable event when you directly spend it (no capital gains since you use Bitcoin as a currency). But you still need to pay income tax because it's one source of your incomes.

Although it will decrease the tax you need to pay, but it's not a way to completely avoid paying tax.

[Wind_FURY]

moving any asset/commodity/security to fiat is a taxable event
but now CEX's have to report events, means the taxman has proof of events which you then hav to declare in your own filings

the only options are to know enough taxlaw to know the loopholes to avoid tax in such events(legal).. or find ways to swap to fiat outside of reporting services to evade tax(illegal)

main tricks are what the elites do
dont 'spend' value(buy/sell), personally lend value as loans are not taxable
its literally a process similar to fiat exchanging, but word it right and create your own paperwork to show it worded as such, it suddenly becomes a double sided personal loan to each other which cancels each other out the same day(paid in full)

speak to an accountant/tax specialist

The TaxMan is always looking, you can't escape him.

When we were audited, the IRS crypto committee told our accountant that cold storage was a "huge red flag", https://twitter.com/bitcoinmom/status/1783616508310237525

¯\_(ツ)_/¯

What's the best path for HODLers? Because they're making it an easier decision for long term investors NOT to declare anything to the TaxMan.

But if a user's coins went through a centralized exchange, doesn't the government already know, or at the minimum, can know that that user HODLs Bitcoin?

[YUriy1991]

Question on BTC and other cryptos

This is from being in Canada.
I was wondering if there is a way to further invest with my BTC and other cryptos without and being in legal terms. As in ways that would not be considered a taxable event.
I know crypto to fiat and doing trades now is consider taxable.
Even staking?

What other ways can I further invest with my cryptos without it being a taxable event? Thanks

I think the approach is simple because every country wants income from all fronts including the most in the lyrics now. Well. It's simple, if you don't want to deal with the name, tax, just ignore it if your exchange asks to complete the data. It's just that exchanges sometimes make deductions in usually every transaction we make whether you are trading, staking or other always triggers a tax event and that applies if someone's investment is considered to be making a profit.

[Aanuoluwatofunmi]

Question on BTC and other cryptos

This is from being in Canada.
I was wondering if there is a way to further invest with my BTC and other cryptos without and being in legal terms. As in ways that would not be considered a taxable event.
I know crypto to fiat and doing trades now is consider taxable.
Even staking?

What other ways can I further invest with my cryptos without it being a taxable event? Thanks

I think the approach is simple because every country wants income from all fronts including the most in the lyrics now. Well. It's simple, if you don't want to deal with the name, tax, just ignore it if your exchange asks to complete the data. It's just that exchanges sometimes make deductions in usually every transaction we make whether you are trading, staking or other always triggers a tax event and that applies if someone's investment is considered to be making a profit.

This just come to my mind as well, maybe if he can afford a flexible tax policies or even a non taxable environment by migrating to regions and countries where this is not a challenge, such could be in El-Salvador or any other country like UAE in the middle belt where cryptocurrency is being allowed to perform under free zone, we could actually spend and make use of bitcoin in some of the countries or region mentioned and have no difficult time from how to use it on a daily basis and to run the economy without government regulation and taxation that could negatively affect us. 

[NotATether]

moving any asset/commodity/security to fiat is a taxable event
but now CEX's have to report events, means the taxman has proof of events which you then hav to declare in your own filings

So what happens when you earn some Bitcoin online without buying it and then cash out?

[livingfree]

In Canada? IMO, it's stricter than what you're thinking right now and don't you wish to find a way out of legal terms because there's no way to avoid your obligations unless you're ready to face some consequences later on.

For the others, don't patronize someone that's asking for a method to avoid paying taxes because it's unlawful. As for the consequences, be ready for this.

you may be fined up to 200% of the taxes evaded. you may be imposed a jail term of up to five years.

[PX-Z]

moving any asset/commodity/security to fiat is a taxable event
but now CEX's have to report events, means the taxman has proof of events which you then hav to declare in your own filings

So what happens when you earn some Bitcoin online without buying it and then cash out?

It is still taxable event only if you will declare it to your ITR filing since its you who earned that online. Minus the VAT (tax) you get when cashing out only using a centralized platform (if available), but except when using P2P or decentralized free of charge platform.

[Wind_FURY]

moving any asset/commodity/security to fiat is a taxable event
but now CEX's have to report events, means the taxman has proof of events which you then hav to declare in your own filings

So what happens when you earn some Bitcoin online without buying it and then cash out?

TAXED. You can't escape the TaxMan. But you could also play a game of "what if I don't declare my Bitcoin Cash Outs" and see if you win. Probably for small amounts of Bitcoin, Uncle Sam might let that go. But for more than $10,000 which could alert the IRS and AML red-flags, you better be sure that you're keeping the receipts, and you should also know who the counter-party of the trades are?

¯\_(ツ)_/¯

[franky1]

the only options are to know enough taxlaw to know the loopholes to avoid tax in such events(legal)..

speak to an accountant/tax specialist

The TaxMan is always looking, you can't escape him.

if you use the exemptions in the tax law.. via researching and learning the tax law. even if the taxman is always looking. he cant do anything if your using their laws against them

tax avoidance(legal) is using their law exemptions(such as loans are non taxible)
tax evasion(illegal) is trying to play dumb, ignore laws and hide which is where you will get caught and cant escape

learn/research the difference

moving any asset/commodity/security to fiat is a taxable event
but now CEX's have to report events, means the taxman has proof of events which you then hav to declare in your own filings

So what happens when you earn some Bitcoin online without buying it and then cash out?

the method is about HOW you "cash out"
learn the exemptions

the masters/elites at tax avoidance(legal) dont just 'cash out'

take elon for instance he didnt cash out his shares to then buy twitter.. he loaned shares to a private bank. the bank loaned him cash. thus tax free to then use that cash to buy twitter. without getting hit by a huge % tax bill for cash

bitcoiners can set up services where by:
people hand over bitcoin and get cash
BUT structured:
they hand over bitcoin as collateral for a loan
the 'buyer' acts as a loan giver of cash. and then claims the collateral as settlement of the loan

in short its still the same end result as giving bitcoin to get cash. but on paper structured in a way that its treated as loans

speak to a tax accountant/specialist for better way to structure it in ways that meet the tax exemption rule. i just dumbed it down for basic understanding

[Wind_FURY]

the only options are to know enough taxlaw to know the loopholes to avoid tax in such events(legal)..

speak to an accountant/tax specialist

The TaxMan is always looking, you can't escape him.

if you use the exemptions in the tax law.. via researching and learning the tax law. even if the taxman is always looking. he cant do anything if your using their laws against them

tax avoidance(legal) is using their law exemptions(such as loans are non taxible)
tax evasion(illegal) is trying to play dumb, ignore laws and hide which is where you will get caught and cant escape

learn/research the difference

Get the context. None of that has changed the fact that the TaxMan is always looking and finding MORE reasons to take money from its citizens. Plus for ordinary people, what "tax exemptions" could they truly have? They're not like the rich who could set up corporations, and foundations.

BUT there's nothing wrong with taxes IF they spend it for the benefit of their citizens. Finland has one of the highest tax rates, but they have free healthcare, free education, and other benefits.

[davis196]

Question on BTC and other cryptos

This is from being in Canada.
I was wondering if there is a way to further invest with my BTC and other cryptos without and being in legal terms. As in ways that would not be considered a taxable event.
I know crypto to fiat and doing trades now is consider taxable.
Even staking?

What other ways can I further invest with my cryptos without it being a taxable event? Thanks

I guess that you are talking about capital gains tax. AFAIK, buying Bitcoin/crypto isn't a taxable event. Selling BTC/crypto is a taxable event(if you sold at a higher price than you bought). If you are seeking advice about how to conduct tax evasion, then this forum isn't the right place.
Just find a tax accountant in your country and ask him. The other solution is to just move to another country with liberal tax laws and less taxes, or use offshore companies that are registered in "tax heaven" jurisdictions. I live in a country, where there's no capital gains tax, so I'm pretty much OK with my crypto holdings here. I don't know if this is going to change in the future, though.

[franky1]

the only options are to know enough taxlaw to know the loopholes to avoid tax in such events(legal)..

speak to an accountant/tax specialist

The TaxMan is always looking, you can't escape him.

if you use the exemptions in the tax law.. via researching and learning the tax law. even if the taxman is always looking. he cant do anything if your using their laws against them

tax avoidance(legal) is using their law exemptions(such as loans are non taxible)
tax evasion(illegal) is trying to play dumb, ignore laws and hide which is where you will get caught and cant escape

learn/research the difference

Get the context. None of that has changed the fact that the TaxMan is always looking and finding MORE reasons to take money from its citizens. Plus for ordinary people, what "tax exemptions" could they truly have? They're not like the rich who could set up corporations, and foundations.

if you are just cashing out small amounts like $10-$500 per time, then you just use the other exemptions like 'gifts'
if you are moving large amounts then you set up structures or use financial services set up

imagine CEX services but not set up as markets facilitating bids. but instead 'loan services' matching 'borrowers'(sellers) to 'loaners'(buyers)
same end result, different wording
just be sure to do your research to learn the exemptions.. then use them. there are many. but first you need to learn them so go research

[Wind_FURY]

the only options are to know enough taxlaw to know the loopholes to avoid tax in such events(legal)..

speak to an accountant/tax specialist

The TaxMan is always looking, you can't escape him.

if you use the exemptions in the tax law.. via researching and learning the tax law. even if the taxman is always looking. he cant do anything if your using their laws against them

tax avoidance(legal) is using their law exemptions(such as loans are non taxible)
tax evasion(illegal) is trying to play dumb, ignore laws and hide which is where you will get caught and cant escape

learn/research the difference

Get the context. None of that has changed the fact that the TaxMan is always looking and finding MORE reasons to take money from its citizens. Plus for ordinary people, what "tax exemptions" could they truly have? They're not like the rich who could set up corporations, and foundations.

if you are just cashing out small amounts like $10-$500 per time, then you just use the other exemptions like 'gifts'
if you are moving large amounts then you set up structures or use financial services set up

imagine CEX services but not set up as markets facilitating bids. but instead 'loan services' matching 'borrowers'(sellers) to 'loaners'(buyers)
same end result, different wording
just be sure to do your research to learn the exemptions.. then use them. there are many. but first you need to learn them so go research

You're merely talking about something else. Sure I will do the research, and sure an individual might have exemptions, but nothing from what you posted has changed the fact that the TaxMan is always looking and has always found reasons to tax you more. No one escapes the IRS, and every "exemption" you find, they will mark that as a "red flag" like how they marked something like cold-storage a "red flag".

[franky1]

they dont mark cold storage as a red flag.. you have just heard that from your cult brethren who have their own motives. rather than reading actual regulations

as for people not paying tax, many do have ways to pay less tax, if you learn how
did you know in america you get tax breaks and rebates for many things even at poverty levels of income.. the sooner you learn the better your tax filings will result in paying less tax. but first you should learn them