*not that I would want to; holding till 2020!
By selling ADA to another person directly for fiat, of course
Cash is preferable against taxes )
Be warned that you have to pay taxes on all ways you earned crypto – not just buying on exchange. That is to say if you suddenly got X ADA and you sold it, the government is going to expect you to say where you got the ADA. Depending on if you got it from staking, buying, etc. the tax implications are different so you have to specify it.
If you suddenly sell ADA out of thin air and don’t explain how you got it, it will not hold up if you get audited and you may be in for tax fraud. Yikes.
Looks like they are ”imposing” KYC for localbitcoins…
To me, only way out is to buy btc or eth cash in hand - buy/sell crypto on exchagens as binance (no kyc under 2btc) and sell for cash
Cash is possible, but what will you do with a million dollars in Cash? ( for an extreme example)
Perhaps we can make a list of Countries and there Tax-rate?
Wait until ADA is the world currency and can be used ubiquitously.
Asking for “a friend”, haha?
This is the best answer ever “I have millions of dollars worth of ADA and I don’t know what would be the most secret and cheapest way to convert it into some globally-accepted currency… Well, seems the only option is to change the world, until ADA IS a globally-accepted currency” =)
I summoned my inner Charles Hoskinson by asking myself “What Would Charles Do?”
*Purely for academic purposes.
assuming you’re a US citizen (given the question)
you can always move to a country that doesn’t tax such transactions and relinquish your US Citizenship (you still owe taxes to uncle sam no matter where you are).
Not worth it IMO unless you’re dealing with tens or hundreds of millions of $ in taxes IMO. The US Citizenship if well used, is a damn lottery in itself.
Perhaps a work around is being able to indirectly control a foreign corporation in a tax exempt haven, and do all your crypto trading from it, not ever moving a penny to any US controlled account to your name or to a company you own a piece of in the US.
Here’s an article on crypto tax exempt countries
Well said @gubatron. Wouldn’t trade my citizenship for anything. All for taxes as well, I want to pay my taxes as a citizen. I’m just experiencing trust issues when it comes to governing bodies and cripto at this point. Cripto is fairly new and I don’t feel that the “tax man” and the legislatures have gotten their act together or even done proper research on the subject. Perhaps I can hold my cripto and avoid cashing it out until they’ve done their due deligence and come up with laws that make sense.
You would also never be able to buy anything with crypto over the internet. With Amazons new patent, they are wanting to start linking BTC with physical addresses. So, if you buy a TV for .05243BTC, then the algorithm would search the block for a transaction of that amount and link the two together. The lines between public and private are already being blurred and will only increase in the years ahead.
Pay the taxes, be honest, and be happy with your remaining profit. Then take your remaining profit and reinvest it however you see fit. Finally, when Charles runs for president in 2032 or 2036, remember that Cardano made you a lot of money
How many people here are happy with the current legislature regarding cripto?
Does it make sense to you? Does it need more work?
How would you feel after paying your taxes to find that you lost money because of a faulty law? I thought the whole point of cripto was decentralization, but the tone around here sounds like you would be just as happy running back under the umbrella of a central government. Pay your taxes if they make sense to you, if they don’t start a petition,take the problem to congress but don’t blindly follow like sheep.
How would you pay your taxes on a cup of coffee you just bought with cripto? The price is always fluctuating. Would you declare a profit? Would you declare a loss? How much will that $2 cup of coffee end up costing you after you pay your taxes. It’s not as simple as “pay your taxes and move on.”
The central banks will encrypt their currencies when blockchain becomes more mainstream. When that happens, it is my view that decentralized currencies will start to thrive. Thrive in the sense that Cardano will essentially be a digital country that will host a bunch of things that are thought to be looked down upon or ignored by other governments. Royale is a perfect example of this. The US government says you can’t play poker anymore without jumping through a bunch of hoops, but Cardano creates a fair poker system without a house take - only one transaction fee when you cash out.
Countries that are lacking in trust will also want to come to cardano as an establishment of trust. Decentralized currencies (in some form) are here to stay. However, governments are VERY greedy and will find a way to get their money. It is best to just be open and honest about taxes. It will bring more credibility to crypto as a whole, it will keep you out of jail, and you’ll still gain value. When you are able to pay your federal taxes with ADA or LTC or BTH then we will be doing really well. The regulations will change when they know how to understand it better.
You don’t pay capital gain tax if you bought some Euros in US, and then went to Paris and bought a cup of coffee, but the EUR\USD went up in the meantime. Crypto is not the first liquid market on the planet And the world economy is usually handled by fairly smart and educated people who relatively know what they are doing. Regulation is just half-way from the crib, as cryptosphere itself.
First, seller would have to pay tx fee instead of buyer for it to get popular. The lines will be blurred for sure, but you should still do your best to calculate the taxes for the year. You start by figuring out how many ADA you had at the start, how many ADA you have now, how many you bought, how many earned through staking. Then calculate the price of ADA on Dec 31 and make your best educated guess - if you’re unwilling to seek financial help. See where that lands you in the tax bracket and go from there. My guess is that Taxes are going to become such an issue with collecting that the government is going to just increase the sales tax and property tax and decrease the income tax.
Those “fairly smart and educated people who relatively know what they are doing,” are still “people,” fairly smart and educated and let’s not forget “self interested” people…who definitely know what they’re doing. I think it was Frank Herbert in “Dune,” who said don’t blindly trust your leaders.
I can’t find it but I believe it was one of Charles Hoskinsons Home videos where he mentioned something like crypto economic systems would need to switch to some consume-based taxation. So no taxes on gains or income but on top of everything you buy.
Another question is if thus who “accidently” forgot to pay taxes, then “consciously” use common services like streets, schools and hospitals or if they refuse anything related to this bad governments ?