/biz/ - Business & Finance

[Anonymous No.16746634]

i hope you make under $39,375 a year in taxable income or you gotta pay 15% in taxes on long term capital gains if you live in the U.S.

and the other anon from the other tax thread is totally wrong. you do not get that money back. that's not how taxes work at all.

[Anonymous No.16746641]

if you make under 39k a year from your job then you don't have to pay any taxes at all on crypto gains as long as you held the coin/token for at least 1 year and 1 day before selling

[Anonymous No.16746657]

>>16746634
you've only made capital gains when you sell for a profit, right? not when you're holding something that's worth more than you bought it for?

[Anonymous No.16746667]

>>16746657
correct. only when you sell. either capital gain or capital loss. however, if you're making dividends they are taxed when you receive them.

[Anonymous No.16746671]

>>16746657
correct. but it counts if you sell it for another alt, bitcoin, or fiat. it's all considered cashing out if you created more value.

[Anonymous No.16746682]

>>16746667
>>16746671
what if you're staking a cryptocurrency?

[Anonymous No.16746685]

So basically after LINK moons I should just stop working for a year and then cash out, and pay 0% taxes

noice

[Anonymous No.16746694]

>>16746634
You get the money back in the form of the top notch government services that the Federal government provides you. Taxes are the cost of a civilized society.

[Anonymous No.16746696]

>>16746641
so capital gains aren't counted as taxable income outside of the 15-20% brackets, which are based solely on taxable income?

[Anonymous No.16746700]

>>16746694

[Anonymous No.16746705]

>>16746682
It’s taxable at a rate of like 3.75% a year under income tax

[Anonymous No.16746706]

>>16746682
I got no idea about crypto. I would assume they'd fall back on the current tax rules/ legislation and use that, but again I dunno for sure.

[Anonymous No.16746712]

>>16746705
good luck proving my staked cryptocurrency even exists lol

[Anonymous No.16746720]

>>16746705
in the US? shit, paying uncle sam single digit taxes feels like stealing lmao

[Anonymous No.16746781]

The New York Times reports that similar to the tax rules for the stock market, cryptocurrency “ losses can be used to offset capital gains, subject to certain rules, and losses that are not used to offset gains can be deducted — up to $3,000 — from other kinds of income.”

Someone interpret how this fits into OP’s pic. Is OP right in that if you make under 39k a year you don’t pay taxes on long term crypto gains ??

[Anonymous No.16746784]

>>16746696
Pretty sure this is wrong.

If you sell for a long-term capital gain of $50,000 (~50 LINK in 2021), your taxable income is at least $50,000.

[Anonymous No.16746796]

>>16746781
>losses that are not used to offset gains can be deducted — up to $3,000 — from other kinds of income.”

damn I should've sold some before Jan 1 lol

I mean uh, all of my buys were totally based and redpilled and good and I'm in the green right now

[Anonymous No.16746798]

>>16746784
>More good news, it’s not an “all or none” calculation. If you are married, have $60,000 in taxable income, and $100,000 in long term capital gains, a portion of your $100,000 in capital gains will be taxed at the 0% rate with the majority taxed at the 15% tax rate.

>As you might have guessed the IRS is not going to let you get away with paying 0% on a $100,000 in long term capital gains because you maneuvered your taxable income into the 0% cap gain range. But in this case, $17,200 would be taxed at the 0% long term cap gain rate, and the reminder would be taxed at the 15% long term cap gain rate.

-https://www.greenbushfinancial.com/how-to-pay-0-tax-on-capital-gains-income/

[Anonymous No.16746844]

So is "Income" the same as Capital Gains?

[Anonymous No.16746864]

>>16746844
checked and I was going to ask this, but I believe capital gains is only a part of income. Income would also include something like salary for working a job I think

[Anonymous No.16746866]

>>16746694
>top notch
Top kek