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replied 1611d
That's not how capital gains taxes work.
replied 1611d
I have no clue what you mean. If I buy a hamburger and a soda with BCH, I am not paying capital gains tax. I am paying sales tax. If I cash out 25,000 of BCH I pay capital gains.
replied 1611d
Unfortunately, ignorance of the rules isn't a defense if prosecuted. Look at the IRS's FAQ here:

https://bch.gg/irs

especially Q15 in this particular case.
replied 1611d
If I have a 1.00 and it goes to 100 in BCH. And then I go buy a 7.00 meal. Technically I should be paying tax on 6.30 in Capital gains. So lets say 25%. 1.57. You can't even pay that.
replied 1611d
You think the IRS is going to allocate resources if it was even 10.00, 20.00 or even 100.00? I highly doubt it.
Fnuller15
replied 1611d
I would shuffle my coins and then spend them without reporting. It would be extremely unlike that the IRS would be able to prioritise going after you for such a use-case.
replied 1611d
Even if you didn't shuffle, I doubt the IRS cares on small goods. If you are buying a large good like a car and that there is paperwork, I would report something like that.
Fnuller15
replied 1611d
Yes, I will try to fly under the radar of the tax authorities as the tax rules are neither fair nor manageable. Buying lambos and bling bling that draws attention is probably not wise.
replied 1611d
The rules will change to if you make a 600 or 1500 purchase or more. Whatever they decide. Most people don't make that many large purchases in a year.
replied 1611d
We were all hoping for exemptions for small amounts, but the IRS said no. If make 1,000 small purchases but it adds up to $5K and it's gain, must report and pay tax.
replied 1611d
It;s political leaders that decided. I know 600 or more purchase has been brought up by some politicians. IRS of course is going to say know because nothing has been decided yet.
replied 1611d
Decide and no(not know) I must be drunk today.
replied 1611d
But that can go in your favor too. If BCH went down and you bought a car, you can report a loss, and get some money back. So it's a two way street.
Fnuller15
replied 1611d
I view BCH like travel currency. If I have some dollars while living in Europe. I won't report if I spend these and the dollar has gained or lost vs EUR from when I bought them.
Fnuller15
replied 1611d
Problem is, then they require documentation for your loss. Then you have to prove where and when you bought that exact BCH amount. Can be tricky and will expose you holdings to them
replied 1611d
Well if you use coinbase, it's a bit easier. Because it's based on FIFO.. Coinbase logs all your purchases.
Fnuller15
replied 1611d
I've bought most of my holding without KYC to not be registered by the authorities. I don't have full records. Some from p2p trades. I will try to fly under radar.
replied 1611d
In April most of my holdings will be long term capital gains..My tax rate is 0 because I am on disability. So my capital gains tax will be 0 anyway.I could buy a lambo and not pay tax
replied 1611d
You probably are still legally required to report the gain or loss, even if you don't owe tax for other reasons. I don't like it either, but that seems to be what it is.
Simon Van Gelder
replied 1611d
I didn't think the RIAA would sue individuals for > $50,000 per song, but sometimes making an example is worth the extra work. People are still too scared to torrent.
replied 1611d
How many people are doing that? You are talking millions spending BCH. IRS barely has enough people to file your taxes these days.
replied 1611d
They are already collecting the KYC & trading info from places like Coinbase, and they can use automated systems to trace transactions on BCH (it's not anonymous). Throw in some AI
replied 1611d
& pretty soon they have lots of people caught in the net. I'm not sure if they can tell if you participated in a shuffle. If they can, then even though they don't know where the funds
replied 1611d
Wesley snipes got 3 years in prison for not filing tax returns to avoid millions. Max penalty is 5 years and 100,000 fine.You really think the IRS is going to do something for 1000?LOL
Simon Van Gelder
replied 1611d
It wouldn't be for the 1K, it would be for the optics. Squash one bug, and make it very visible, and the others scatter. Fear works, unfortunately.
replied 1610d
You think that works? You think everybody stopped tax evasion because Wesley Snipes went to jail? LOL. And that is large amounts.
Simon Van Gelder
replied 1610d
I think MANY people stopped torrenting because 1-2 people were made an example of. NB - They were targeted for piracy, but people fear Torrents entirely now as a result.
Simon Van Gelder
replied 1610d
If applied to crypto, it would take 1-2 whales ending up in prison for evasion (and all-over the news), and that might be enough to keep people from entering the ecosystem out of fear.
Dos
replied 1610d
And then big banks+central banks can take over it. IMO
replied 1611d
ended up, shuffling may be suspicious enough to get you looked at more closely. Again tax *evasion* is definitely a crime & can end up with more than just penalties & interest.
Simon Van Gelder
replied 1611d
They just need to make an example of one of them, and others will be likely to shy away from the practice in the future.
replied 1611d
If I spend 10,000 in BCH and lets just assume 100% is taxable at 25%. that's 2500. The IRS fines me for not paying 2500. I doubt that even gets advertised.
replied 1611d
There's a difference between mistakes, and purposeful evasion. Evasion does mean jail.
replied 1611d
No they will just stop making profit like I did. I have not ruled out communists infiltrating the IRS to make stupid rules that screw over the country.
replied 1610d
Why torrent a song these days when there are many other ways to get them or listen to them for nothing. Even the videos. I quit torrenting because I needed the bandwidth for games.
replied 1610d
How many fucking games you downloading lmao?
replied 1610d
Not downloading them playing them. I don't need lag caused by the torrents eating up the bandwidth.
replied 1610d
In my experience this is easily remedied by setting a upload/download cap on something like qbittorrent to about half your line speed. Good for passive torrenting while gaming.
replied 1610d
Something is screwy with AT&T. If I use more than about 300k upload my latency goes to hell. Working as designed they say.
replied 1610d
At least capping your upload to 150k or below might allow you to download and not shit on your games. Honestly seeding residentially is basically worthless anyway because of the plans.
replied 1610d
Yeah, providers are bullshit and basically giving the finger to an equal upload download plan. Are we talking 300KB or 300 kbits? Either way, even if it's a small number I'd cap it.
replied 1610d
kbit. It's also cumulative so if the game is using 250kbit up and that would only leave me 50kbit before lag is caused. Every torrent program I've ever used is bad at capping anyway.
replied 1610d
Wow, just 300 kbit. That's actually awful.
replied 1610d
In case you are wondering it's an issue called bufferbloat. Bad network design and they won't do anything about it. Even went through the FCC.
replied 1610d
Well 300 Kbit but yea still awful. Upload bandwidth doesn't matter either get the same issue on both my 1Mbit and 5Mbit up lines.
replied 1610d
The lag generally occurs when the upload and/or download line is being fully utilized. Cap at about half and your latency should be significantly improved.
Simon Van Gelder
replied 1610d
Exactly my point..."Why use crypto when there are so many other "safer"/"easier" options?" If you want lossless (FLAC/OGG/WAV), a torrent's still the way to go.
Fnuller15
replied 1611d
People should learn to use a VPN
replied 1611d
But you want mass adoption. So once you can spend 50% of your expendable income using BCH, it's going to add up.
replied 1611d
So what.? Does mean they will enforce. it.. LOL. Impossible for buying everyday goods. If you can afford a Lambo that's a whole different ball game.
replied 1611d
Should say Doesn't mean they will enforce it. I can give you a bunch of rules nobody enforces IRS only looking into accounts that have 20,000 or more.
replied 1611d
For instance, you can't trade a high value painting for a Lamborghini w/out determining if you've realized a gain/loss in the exchange, based on what you orig paid for the painting.
replied 1611d
Depending on your jurisdiction, buying a burger means you are selling BCH for a burger and so you pay capital gains as though you sold that BCH for the equivalent USD.
replied 1611d
The IRS isn't going to hunt you down over a few burger purchases but in the big picture these purchases add up to a lot of taxes not being paid and is a barrier to adoption.
replied 1611d
Just make sure you get sick on the burger so you can write off the medical expense.
Dos
replied 1611d
There will be less capital gain tax if properly invest to cash flowing real estate with debt. Ask Tom Wheelwright please