Ivan
@ivanz
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Ivan
@ivanz
How to leverage Portugal's crypto tax benefits? Here's the TLDR: Scenario 1: Day 1: Buy 1 BTC for $100. Day 2: Swap 1 BTC for 5 ETH. Assume the BTC is worth $150 at this time. Day 3: Sell ETH for $151. Swap BTC for ETH is not taxable since it's crypto to crypto, but you'd be taxed on day 3 ETH sale, it'll "inherit" the basis of $100, so you'd pay cap gains on $51. Scenario 2: Day 1: I buy 1 BTC for $100. 1 year + 1 days: I "swap" 1 BTC for 5 ETH. Assume the BTC is worth $150 at this time. 1 year + 2 days: I "sell" $ETH for $151. Swap BTC for ETH is not taxable since it's crypto to crypto, AND the ETH gets a new basis at $150 since BTC was held for more than 1year. You'd be taxed on 1 year + 2 days ETH sale, so you'd pay cap gains on $1. A safe way to ensure no tax liability is swap coins to a stablecoin since it still counts as crypto, and wait for a year to convert it to fiat. I'm not a tax lawyer or accountant, please consult a professional if you need personal advice.
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Ivan
@ivanz
For those that HODL'ed through the lows and are considering selling, or diversifying, now's a good time to understand about crypto taxes. Here's our first in the series on DeFi: Staking Income. https://www.pennyworks.com/article/liquid-staking-taxes
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Ivan
@ivanz
Looking for design partners to try out our crypto bookkeeping platform! If you are using an established service right now for your project, would love to get you a FREE second opinion. We provide the most comprehensive books in crypto. Period. Spots limited to 5! Cast or comment!
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Ivan
@ivanz
Forget the Fed. In Crypto land, we need to watch Crypto liquidity. This is the leading market indicator we need to watch: Its just the beginning. $500B into stables is not unreasonable. What does this imply for crypto risk assets?
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