Anyone holding XRP? Holy shit, +29% today!
-
Where's the fuckin power box, Carol?Comment -
Any rule of thumb on cashing out a situation like this?
One simple-math mentality on how to take gains would be...cash half on every Double.
IE, let's say one share = $100 today, and u hold 100 shares. Fair value = $10,000.
If it doubles to $200 per share, u now hold $20,000 value. If u cash out half, u still hold $10,000 (your original value). You have $10k to invest elsewhere, and u still have your original nut. That's one way to split your risk.Where's the fuckin power box, Carol?Comment -
Yeah you have to be alot quicker to the draw with these coins 100%. But there is a strong community with members that watch the whale accounts hourly to see if any of the trillionaires are dumping...
Also as the price drops i keep going more tokens due to the burn. all the major dips have been eaten up pretty quick Price is dropping today a bit but I've gotten some millions extra tokens from those sale offsComment -
For sure! Paper-gain is just that, if u don't cash any out. Paper-gain that goes up in smoke...it's enuf to crush a man's soul.Where's the fuckin power box, Carol?Comment -
One other thing about this method is you still don't owe taxes, yet. You've invested $10K, you doubled, then cashed out $10K. Technically, you don't have capital gains, yet. You get your initial investment back in your pocket and have a stash. Every cash out from then on will be capital gains, of course, but hold for at least 1 year to lessen the tax rate....
This really works well the higher it goes before cashing out..... 4x, 6x, 10x, etc. You can end up with more stash than just a 2x.....Comment -
By the way I'm not trying to start an argument, but that is wrong. Taxes owed on sales are based on the "Cost Basis."
If you invest $10,000 and it doubles and you sell half, then your cost basis is $5,000 on the $10G you made.
So you'd pay/owe taxes on the profits. Which are $5,000. Whatever you sold the other half for the cost basis
on that half is also $5,000. In your example, if you sold half today and half tomorrow for $10 grand apiece,
then you'd owe no tax on the first sale and you'd owe tax on the whole $10 grand of the second sale.
That is not correct. You'd owe tax from the cost basis of each individual sale.
Comment -
Is that the way it works? I've reported it the way Arky explains it and never had a problem. Doesn't mean it's the correct way though.By the way I'm not trying to start an argument, but that is wrong. Taxes owed on sales are based on the "Cost Basis."
If you invest $10,000 and it doubles and you sell half, then your cost basis is $5,000 on the $10G you made.
So you'd pay/owe taxes on the profits. Which are $5,000. Whatever you sold the other half for the cost basis
on that half is also $5,000. In your example, if you sold half today and half tomorrow for $10 grand apiece,
then you'd owe no tax on the first sale and you'd owe tax on the whole $10 grand of the second sale.
That is not correct. You'd owe tax from the cost basis of each individual sale.Comment -
You might be right. Still, are you not paying the same in taxes in both scenarios? By selling all at two different times, you're still paying tax on $10K profit (or whatever it turns out to be).By the way I'm not trying to start an argument, but that is wrong. Taxes owed on sales are based on the "Cost Basis."
If you invest $10,000 and it doubles and you sell half, then your cost basis is $5,000 on the $10G you made.
So you'd pay/owe taxes on the profits. Which are $5,000. Whatever you sold the other half for the cost basis
on that half is also $5,000. In your example, if you sold half today and half tomorrow for $10 grand apiece,
then you'd owe no tax on the first sale and you'd owe tax on the whole $10 grand of the second sale.
That is not correct. You'd owe tax from the cost basis of each individual sale.
As BTJ mentioned, the IRS always has their hand out if you want to volunteer your money. Bastids.
The IRS rules on crypto are complex, not completely defined and not easy on anyone. Frankly, I don't think they can keep up with crypto at present and they resort to "we are watching you" to get people to pay crypto taxes....Last edited by Arky; 04-05-21, 07:21 PM.Comment -
I think you are but in Joe's scenario the IRS is getting their money sooner and I'm sure they like that.
My feeling is that whatever way you calculate it, as long as you are paying some reasonable amount of taxes on your crypto earnings they will leave you alone.
It's the guys that take a big payout from coinbase and report nothing that are going to get F'ed.Comment -
I don't buy and sell crypto. Like I said before, I can't hold crypto because I will send it in and gamble it.
But when you sell crypto, it IS just like the stock market! You have created a taxable event by selling.
And unless you broke even, then you either have capital gains or losses. And you (are supposed to) pay
taxes on any gains. But no they haven't "enforced" it until now. So I hope nobody reported gains and paid
taxes on crypto sales before now. But as for now, the IRS wants their hand in your profits. So don't claim
gains at your own risk from now on!Comment -
Yes, you would pay the same amount either way as long as it didn't move you into a higher tax bracket.
But it doesn't work the way you said it. Crypto tax rules are NOT "complex." Nor are they different from stock sales!
Tax on Cryptocurrency in the United States
The IRS treats cryptocurrencies as property, as opposed to currency, for tax purposes. As with stocks, bonds, or real estate, you must report capital gains or losses and pay the appropriate tax rates.
If you sell crypto for a gain, the you (are supposed to) report it and pay tax on it. Just like stock gains.
Let's put it this way. If someone who owns 1000 shares of Home Depot Stock that they bought at around $150
per share, Now it is (over) $300, so they have doubled their money. But they can't sell half of it for $300 and not pay
any taxes on it until they sell the other half! Because their cost basis is $150 on the half that they sold for $300!
So they owe capital gains taxes on whatever they made above their cost basis. Same goes for crypto. If you sell for gain,
then you owe taxes from whatever your cost basis was, no matter if you sell half or 1 quarter or all of it at once.Last edited by JoeCool20; 04-05-21, 08:05 PM.Comment -
I'm not a stock guy but crypto will give you a tax break if you hodled for 1 year before cashing out. (long term gains tax) If you can't wait a year, you have to pay the short term tax which is (something like) 34% vs. 20% for the long term gains tax. I forget the exact percentages...
Do stocks work this way? (I don't know)
Also, the way I understand it, the stock guys get a tax form in the mail that has their profits/transactions/losses whittled down so that there isn't much calculating that needs to be done. The way I understand it, make good with that form and all is well.
In crypto, every tiny transaction is expected to be done by the tax payer. Ever bought a shitcoin by buying BTC first and then sending it to an exchange to purchase said shitcoin? There's the fee you had to pay to buy the BTC, the (sometimes) fee to send it to the next exchange, the fee to buy the SC on the exchange. Oh, and BTW, did BTC increase/decrease in value during this process? Gotta calculate that, too.
So, yeah, kinda complex.
What I've learned is the IRS wants an honest attempt from the tax payer to get their cut. Don't do the crime if you can't pay the fine....Comment -
You are right in EVERY way! Yes stock sales are treated as either short term or long term gains and taxed differently. So is crypto, with the 1 year + hold time having a less/lower tax on gains. Just as you said, stocks have an "Easy" form that the broker sends you at the end of the year. I traded almost 3 million dollars worth of stocks in 2020 and it was all consolidated into one form. I downloaded it into Turbo-T and boom that was it. Crypto is like that too, for tax purposes, but there ain't no damn consolidated form! Like you said, you (taxpayer) have to do it all yourself when it is crypto buys & sales!Comment -
Where's the fuckin power box, Carol?Comment -
Finally catching up with other top cryptos. Still a long ways to ATH.
Apparently some good news on their SEC case:
Comment -
Could someone post link to a website with all blockchain fees and graphs? It was posted earlier but I'm failing to find itComment -
Where's the fuckin power box, Carol?Comment -
JoeCool20 and Arky's discussion on taxes is correct. I have struggled with this issue for the last 5 years and spent hundreds of hours of data downloads and programming to try and do the "right" thing (i.e. pay my taxes). Technically every movement is in effect a transaction and subject to taxes. But because many are between different coins it's unbelievably complex. I finally settled on a procedure that primarily tracked cash related movements and do report these in summary form. Mainly I'm interested in being consistent year to year and being fair. I sleep well at night and have no fear of running afoul of the govenment.Comment -
I used this technique on stocks, it locks in a profit and reduces the weight of individual stocks in your portfolio.
One tip. If you are going to sell a stock at say $200, consider selling a very short termed covered call option with a strike price of 200. If goes up it will get exercised, you complete the sale with a little extra for selling the call. If it doesn't and the call expires, then you have pocketed the sale and can repeat again. Of course, there is the downside risk if it falls rapidly. But, it's been working for me rcently.Comment -
.Comment -
Link to Frisby book: Bitcoin-The Future of Money (2014)
This is a very good read/listen. As this was written seven years ago, listen closely to the prices he quotes. Just interesting to crawl into a time capsule.
I'm sure that Frisby thought his price projections were speculative. IE, it COULD happen but maybe > 50/50 that it would. Interesting that the price realized to a number even beyond his scope.
There's more to it than just the price projections. A lot of good research went into this book. 5-hour listen, well worth the time.Where's the fuckin power box, Carol?Comment -
Is there a chart showing how many blocks were mined in the last hour/24hours etc? I sent a transaction last night with a really low fee (under $1) and another today with a 'just low' fee (around $6), neither is confirmed now. First one was sent 28+ hours ago, second one - around 6 hours ago. Any guesses of when either might get confirmed?Comment -
Did you rebroadcast transaction?
Also try an acceleratorComment -
$56,642Comment -
Fees are running about 60 sats/vb right now.
Your tx will probably take a couple/few days
I always try to get my tx in with about 10 sats/vb or under a $1 but that is more difficult lately unless you don't care how long it takes
If your wallet support RBF you can bump the tx fee
I also check https://twitter.com/CoreFeeHelper on twitter to get a rough estimate of current feesComment
