You reminded me of this. Itâs interesting if youâre bored. People are dumb. Maybe especially people tossing money into black holes.
so I was reading a thread on YOSPOS and it turns out that, because of the timing of the Bitcoin bubble, people may owe Capital Gains taxes on millions of dollars worth of bitcoin that are now worth hundreds if that.
So thatâs super interesting. But Iâm gonna guess likely wonât happen. Regulation, in addition to being slow and largely non existent at present. I think in some cases, in principal CANâT exist.
How will they collect my capitol gains on the ~10 bitcoins I âhaveâ when I destroyed the wallet years ago? How will they even find me? The registrar went under. Did the government of⌠some place in europe demand the records of that registrar so they can see my creditcard transaction form 2008? (hell at the time I was still playing wow so likely I would have been using greendot cards which you used to be able to give cash to a CVS and get a debit card for the value of exactly that cash, so theyâd have to find the cvs and review the tape from that 2008 day I got the card for cash)
Find me, somehow prove I still have those coins (difficult as I lost the entire wallet and donât know how many I was able trade for meals at the Commons) and charge me for whatever value I have?
Not likely.
You forget that a lot of these people arenât using hypersecret triple-passworded wallets; theyâre using shit like Coinbase, which tracks all their transactions, including real names, and passes them on to the IRS for auditing.
Yeah, itâs probably much easier with like coinbase and stuff. Even to do retroactively.
Though worth pointing out, I wasnât using triple secret hyper passsworded nonsense. Just whatever software was available at the time. If I recall correctly that was pywallet and I got the coins through the only registrar at the time MtGox. It wasnât spyops stuff, just a punk CS kid with more money than sense.
Oh, I wasnât refering to you. Just to the generic paranoid bitcoin dipshit.
With respect to losing coins: I suspect the IRS wouldnât care what happened to them. If you make a million dollars at work and light it on fire, Uncle Sam still wants his cut.
I donât believe that buying coins and then losing them would subject you to a tax.
if you buy a stock and the value goes up %10000, you donât pay any tax on that. As soon as you sell the stock, then you have to pay capital gains tax. If the value went down and you sell, you actually get to deduct that from your taxes!
I, perhaps wrongly, believe that only people who will be fucked by this are people who sold their coins and then spent all the money, and the government knows about it.
Ok but say you make a million dollars, divvy it up among your friends and then light it on fire? And no friend seems to remember how much each of you had.
This is purely theoretical because if I thought those coins could be traced back to me I would have already done so. I have exhausted every possible method I could think of to get them back. Those couldâve been a down payment on my NY appt.
My understanding of the tax law jives with @Aprecheâs statement.
Duh, youâre totally right. Itâs clearly not income, even though calling it an investment feels generous.
Yes, itâs the opposite of how Roth IRAs work.
Instead of paying tax on the money you make when you sell the investment, with Roth IRAs, you pay tax on the money when you put it into the IRA so you donât have to pay taxes when you withdraw it years later, when hopefully itâs appreciated in value.
In my personal opinion, Roth IRAs are almost never worth it. I have a traditional 401k plus my more liquid direct investments.
Chris keeps trying to talk me into a Roth.
Why?
I plan to draw much less money per year in my old age than I spend now. Iâll pay a lower tax rate treating it as income, while Iâll grow my wealth faster by investing MORE now when I make more money.
On the one hand, a Roth IRA might be good if youâre optimistic. If we successfully push towards more socialisty policies like universal healthcare, taxes will be higher in the future than they are now. That would mean paying taxes now is a good idea.
But on the other hand, if we donât succeed, then a 401k is a better idea.
The reason I choose 401k is because
a) That is what my jobs offer, with the matching dollars, and such.
b) The non-taxed dollars will earn ROI, hopefully greater than even a future socialism tax rate.
c) Keep all my money in one account for simplicity.
d) Low fees by choosing index funds.
e) If I do lose out tax-wise, it will be ok. WIth things like universal healthcare, I wonât need as much money to begin with.
f) No matter which kind of retirement plan I have, I have more saved than most anyone, so I should be fine.
I agree with you, thus I havenât done it.
A relative of mine has been investing in bitcoin through an investment firm called Mirrox Crypto. I was tagged in his first post for this. The post look suspicious so I messaged him. Told him I donât know a lot about bitcoin. Other than itâs a dubious investment at best and or can be just an outright fraud. He said he was aware of the risks and that the account manager who he invested with was legit. He has also posted screenshot of his earnings on his investments. Making up to weekly 1000 withdraw from the account. It seems to good to be trueâŚ
Images of earnings.
