Ivan
@ivanz
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Ivan
@ivanz
Let's do it! Even with 150ms ping, it'll still be fun.
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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
Never sell is a common tax strategy. Some investment firms are able to lend you against your crypto, and potentially earn yield on it to reduce the interest expense. That's what a lot of founders/executives with sizeable stocks already do. A prime example is Elon Musk borrowing against Tesla stock to fund other initiatives. On the flip side, that's how lots of crypto funds blew up in 2022. It's has its risks.
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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
Here's what we do: 1. Xero for bookkeeping. 2. Find someone to bookkeeping for you on Upwork. 3. If you do a lot of crypto, it may be a headache to track that. We built our own infra and offer it to others as a service. 4. Aggregate data for crypto and journal it periodically. 5. Hire competent accountant for taxes.
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Ivan
@ivanz
Indefinitely if you just tape it again using electrician's tape.
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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
Which one is it? Looking for recs
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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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