cryptocurrency taxes: avoid (2021) USA, UK all doubt clear

 Crypto taxes USA, UK for beginners 7 common question people asked 

so the crypto taxes of USA that you are not paying taxes in 2021 does IRS care in us if you aren't paying taxes on your crypto gains ?

yeah they do care infact they recently launched an initiative called operation hidden treasure and the whole point of this is they were working with the fraud department, trying to find those that have crypto gains that haven't paid any taxes 

so, if you think that you can avoid paying tax with the IRS then this gonna never happen

cryptocurrency and taxes can be a very complex and very confusing subject and that's why

 in today's article I will solve your all fucking problem that resist you to paying tax investment in crypto market every thing  

THE MOST COMMON 7 QUESTION THAT DEFINITELY CLEAR YOUR DOUBT ABOUT CRYPTO TAXES  AND CRYPTOCURRENCY  IN USA, UK

#1)  IF I SELL MY CRYPTOCURRENCY AND MAKE MONEY WILL I GET TAXED IF DON'T TAKE THE MONEY OUT OF MY ACCOUNT ?

ans-: so, if you leave your money leave whatever you made in your cryptocurrency account 

that you don't have to pay taxes but this is not a Roth IRA there is no tax free money in this

 situation so, yes you have to pay your tax

#2)  IF I BUY BITCOIN OR ANY CRYPTOCURRENCY WHETHER IT IS

 ETHERIUM, DOGE AND IT GOES UP AND I DON'T SELL, DO I NEED TO PAY

 TAXES ?

ans-: if you buy any cryptocurrency etherium, bitcoin and if you just hold it as it

 continuous  to go up so, here we are looking at you hodlers or holders, whatever you wanna

 call yourselves  if you are just holding and you've not done anything to trigger a taxable

 event or a taxable consequence, then there is nothing to report that this is no different than

 if you were to buy a stock and just hold it once you sell it, that's when we start looking at is

 there some sort of taxable event so if you are a hodler and you are just holding, no tax has

 to be paid 

#3 HOW MUCH TAX WILL I OWE? / MEAN IF I HAVE A PROFIT, IF THERE IS

 A GAIN,  YOU'VE BOUGHT BITCOIN AND YOU SOLD IT AND YOU MADE

 SOME MONEY, HOW MUCH TAX DO YOU PAY ?

ans-: we are looking at cryptocurrency like an individual stock or any investment for that

 matter you're either gonna have short-term capital gains 

# short term capital gains

# long term capital gains

let's start with long term capital gains so the most that you can pay on long term capital

 gains is 20%, so it doesn't matter how much you make you're capped at 20% 

SO WHAT DEFINE A LONG TERM CAPITAL GAINS ?

that means that would have to buy or bought you cryptocurrency and have held it for at least

 one year so for 365 plus days , you can't buy it today sell it nine months from now 

you can't buy it tomorrow, sell it six months from now, and it count as a long term capital

 gains.

you have to own it at least one year  

if you're making over 441,000$ if you are single. you can pay the most 15% if you're in that

 income bracket when you are making between 40,000 to 441,000 so you can actually pay

 less than that 20% but the 20% is the most that you can pay 

SHORT TERM CAPITAL GAINS 

so any thing less than one year would be considered what's called a short-term capital gain 

so if you are buying and selling and one year has not passed, now you are looking at what's

 called the short term capital gains.

Demerits of short term ?

well, why the most people don't like that's the reason behind is that you don't get that

 favorable tax treatment  of paying that max 20% that you have  with the long term capital

 gains with short-term capital gains is all considered what is called ordinary income,

which basically just means that whatever tax bracket that you are currently in, that how

 much tax you have to pay so if you are in a lower tax bracket, so that's good if your tax

 bracket lower than that 20% that we mentioned with long term capital gains.

 but if say that situation in which if you were to buy something, if you were to buy bitcoin

 today, sell it a month from now, make 10 or 15000$, you will have  to pay with the

 currently tax rate is 37% on whatever profit that you made. like if you want to sell

 something which rate is going down in that case you have to pay 37% tax on a gain.

#4 WHAT IS THE TAX TREATMENT IF I AM LENDING OUT MY ANY CRYPTOCURRENCY / BITCOIN, DOGECOIN, ETHEREUM?

ans-:  let me explain with some example if  i am a  customer of  " A " (name) company

i have also account of company "A" and i am earning interest on my cryptocurrency 

that i have held with them or custodied with them, and the they are then lending out to other institutions.

so because i am "allowing" them  to lend out this cryptocurrency, they are paying me a

 interest rate on that. for example if you deposit your bitcoin with company "A"  and they

 are paying you 5%. if you have ethereum, they're paying you a four and half a percent.

if you wanna go the stable coin route, so for example, USDC or GUSD in those instances,

you are getting paid up to 8.6% interest. so this is treated as actually interest income.

that you are just add to your overall income and that add that to your tax bill. 

so that is how interest works.

#5 CAN I REINVEST MY CRYPTOCURRENCY GAINS TO DEFER OR AVOID TAXES ?

ans-: well, this is a good question there are a certain investments where you can do a roll

 over i mean to say that there is very unbalanced conditions. most common would be rolling

 over a 401(k) into an IRA. in that instance you don't have to pay tax. 

there is also a certain transection that you can execute with real estate properties, where you

 can do a 1035, like to like exchange. In those situation, you can defer paying your tax. you

 can do the exact same thing with an annuity. 

so with cryptocurrency, is there a way to roll over your cryptocurrency investments? Is there

 way to do a 1035, like to like exchange?

Unfortunately, there is not. there is no way to avoid or now way to defer your tax.

So basically when you buy it, you 're earning interest on lending cryptocurrency, or you selling it and making a profit, that you gonna have to pay your tax.

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#6 WILL THE IRS KNOW ABOUT MY CRYPTOCURRENCY ACTIVITIES ?

ans-: well, 

IRS is the government why not they track your activities definitely yes 

#7 WHAT IF  I EXCHANGE MY CRYPTOCURRENCY FOR ANOTHER DO I

 STILL OWE TAX? MEAN IF I AM TRADING MY BITCOIN OR WHATEVER CURRENCY I HAVE INTO A ANOTHER CRYPTOCURRENCY  OR TRADING IT INTO A STABLE COIN, DO I STILL HAVE TO PAY TAX?

ans-: the answer is yes even if you are exchanging bitcoin into ethereum, if there is a gain in

 bitcoin, by transferring that to ethereum, you are not defering your tax, you are not

 avoiding tax that is a taxable situation. same thing happens if you exchange bitcoins into us dollars.

that there is, if there's a gain and you have to pay either short-term or long term capital gains so you can't avoid paying that tax 

                                                         CONCLUSION

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So i hope your all doubts has been cleared now There may be some changes in all the rules mentioned above, in the future, according to that we will keep updating the article, so in the first question

 IF YOU SELL YOUR CRYPTOCURRENCY AND MAKE MONEY WILL I GET TAXED IF DON'T TAKE THE MONEY OUT OF MY ACCOUNT ?

 

ans-yes you have to pay 

  IF I BUY BITCOIN OR ANY CRYPTOCURRENCY WHETHER IT IS  ETHERIUM, DOGE AND

 IT GOES UP AND I DON'T SELL, DO I NEED TO PAY TAXES ?

ans-: no in this case you don't need to pay tax

 HOW MUCH TAX WILL I OWE? / MEAN IF I HAVE A PROFIT, IF THERE IS AGAIN,  YOU'VE BOUGHT BITCOIN AND YOU SOLD IT AND YOU MADE SOME MONEY, HOW MUCH TAX DO YOU PAY ?

ans-: yes 37% tax in some condition read the article

WHAT IS THE TAX TREATMENT IF I AM LENDING OUT MY ANY CRYPTOCURRENCY / BITCOIN, DOGECOIN, ETHEREUM?

ans-: read the article 

CAN I REINVEST MY CRYPTOCURRENCY GAINS TO DEFER OR AVOID TAXES ?

ans-: yes you have to pay 

WHAT IF  I EXCHANGE MY CRYPTOCURRENCY FOR ANOTHER DO I STILL OWE TAX? MEAN IF I AM TRADING MY BITCOIN OR WHATEVER CURRENCY I HAVE INTO A ANOTHER CRYPTOCURRENCY  OR TRADING IT INTO A STABLE COIN, DO I STILL HAVE TO PAY TAX?

ans-: yes for  more details please read 

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FAQ

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>><<<<<<<<<<<<<<<<<<<<<<<<<<<<<

• do you have to pay taxes on cryptocurrency gains ?

     ANS-:  yes

      

• what happens if you don't report cryptocurrency on taxes ?

     ANS-: it will damage your Internal Revenue Service audit.

• short-term capital gains tax

     ANS-:  you have to pay 37% tax from your profit 

 

• cryptocurrency taxation india

ANS-: no there is no any rule or act to paying tax on cryptocurrency gains 

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that's it for today guys we will meet in the next session