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.
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.
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.
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.
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.
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.
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.
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.
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
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.
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
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.
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.
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
& 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
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.