I know lawyer and the website where he explains how it calculates, it is two diffirennt income: you buy you sell you pay gained profit taxes, if you exhange one crypto to other, you dont need pay taxes, it, but if you trading you will be charged differently.
Again, it depends. It gets very complicated quickly … you mentioned 15% previously which happen to be the capital gains tax bracket I fall into in the states. Could be a coincidence but I’ll keep going with what I know about my country assuming we are in the same boat.
In the US if you buy and then sell within one year you pay income tax which depending on your other income sources may be significantly higher than your capital gains tax bracket. You only pay capital gains tax if you hold it for longer than a year as an investment. Then it gets weirder. If you exchange from crypto to stable coin that may trigger either event, income tax or capital gains, depending on when you acquired the source crypto and what value it was exchanged at then versus now. Furthermore if you buy crypto on a regular cadence then determining the exact amount, dates, and values to compare becomes even more fuzzy. It likely gets worse from there … in general, the more financial activity you have the more math you’ll be doing at tax time. Unless your citizenship is with an avant-garde nation like Portugal or Belarus that are currently being very favorable towards crypto.
The good news is Uncle Sam handles trillions of USD each year so I suspect if you are not in a high income tax bracket (over $500K) and not trading larger volumes (over 6 figures) then the chance of being audited, incurring fines, and other penalties is somewhat reduced and which tax bracket you incur is somewhat less important. If like most of us you still earn income and are not in the capitalist or wealthy classes of society then you are not as interesting to the government so long as you keep working and paying taxes. However if you got into crypto early (<= 2010) or more recently acquired a large estate of value to manage then it is worthwhile to hire a firm to help manage your assets and mitigate your risk. The crypto-whales out there should be able to afford an army of lawyers to protect their interests.
In conclusion, if you are only interested in the technical applications of blockchains like myself or you just started getting into crypto more recently and have relatively small holdings (<$1,000,000 USD) then there is far less problems and probably not much to worry about anyway!
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I live in Lithuania, we are in european union for more than 15 years, they all copying laws from europe and sometimes from US. I am also working full time job and paying taxes, but I will quit my job this year I think, than will start cashing out my profits for house, cars, holidays, living, etc. Yes we pay 15% from gained profit and there are some more taxes if we are doing trading activities, but I am not active trader, I did only 1 trade in 2 years and made some profit, I dont think it will be important to them.
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Reading your answers I guess you’re a Brazillian! The same rules you quoted works perfectly here. We just pay when we cash out, so it’s just about to take your cryptos without realizing the profit in fiat. You have to declare it to the government but they will take it just when you realize the profit. I was thinking of the same strategy you mentioned, keep the USDT and pass unhurt by the crypto winter.
But a safeguard here: We don’t know how will be the winter crash this time, since the world is accumulating more and more inflation and quantitative easing is ruling all the countries. So at least we should wait for the end of the year. When I think makes more sense the supercicle will end.
The hyper inflation wont happen over night, but crypto can crash just in weeks,
you can lose big part of your wealth just in few weeks.
I studied the btc cycles, and I am planning to exit from crypto next year spring with my exit strategy. You will never sell perfectly as well as buy perfectly
Think the laws are pretty different for every country tax-wise. Croatia’s taxation event is only the cash-out, Also 2 years of hodling means u don’t have to pay the taxes.
i mean thats pretty stupid law though, do u pay taxes when converting fiat currency’s apart from fee?
The croation rules sound very attractive for traders then!
For FIAT transactions which generate a value Increase = Forex Trading the individual Income Tax applies in Austria. This ranges from 0 to 55% depending on your total income
Hey lovely people! i’m a newbie here and i’m generally new to crypto. i’m doing research on which companies are dealing with crypto and who accepts usdt to be precise. the article i linked is fine but the list of the companies is rather small and doesn’t answer all of my questions. would you be so nice to help me about your experience of paying/accepting tether? thank you so much!
Hello @sarahblumfeld
USDT is more of a Bitcoin, Ethereum, EOS blockchain thing. Many people may use it on exchanges to hold and trade crypto as well as to use in swaps to exchange for crypto. USDT is not available on Cardano blockchain (luckily). Cardano developers are working on creating their own stable coin to be used trough out Cardano ecosystem and other networks. Also, you may want to look into some issues that have been brought up about USDT lately. Here is a video you may find interesting: Exposing Tether - Bitcoin's Biggest Secret - YouTube
Hope this helps 
I just cant see the different between current USDT blockchain and cardano stable coin. What is the cardano stable coin edge against others?
Main difference between USDT and most other major stable coins is that Company that controls USDT was found to be lying about USDT being back with dollars. USDT as it turns out was not a stable coin at all. New York attorney general uncovered this during an investigation into Tether.
“Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie.”
and
“Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,”
These are direct quotes from ruling against Tether USDT. If you like to read more here is a link to New York Attorney Generals judgment against Tether: https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal
If you’ve converted all of your holdings to USD, and they are not held by a third party such as an exchange, you are safe. If you’ve converted your holdings to the Tether cryptocurrency, whose symbol is USDT, then you should be aware that your shares of USDT are worth only what a third party is willing to pay for them. The current market rate for one share is $0.968726.
The USDT cryptocurrency is not redeemable for any particular value in USD, so you are not safe from losses. Despite a claim that they are fully backed and redeemable, the fine print at Tether - Legal show otherwise:
There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.
what you mean USD holding not in third party? You must hold them in cash than.
bank is also the third party. I discovered that USDC is better choice to hold as crypto queivalent.