My profit incurs 43% tax. That means any re entry needs to surpass the tax loss? This must be taken into account before any attempt on selling takes place.
You are viewing a single comment's thread from:
My profit incurs 43% tax. That means any re entry needs to surpass the tax loss? This must be taken into account before any attempt on selling takes place.
This is the part most new people trading don't understand. You can't just jump in and out without thinking about the tax issues surrounding those trades. So if you have taxes you then need to know how they are taxed.
For example you need to be very sure if your taxing body looks at your buys and sells on a First In First Out basis or allows you decide which coins you sold. This means if I bought some BTC at $500, then more at $5000, then more at $10,000 and I sold if it's a First In First Out I would be selling the $500 cost basis coins first and paying massive amounts of taxes. If I can choose then the $10k coins would naturally be sold first and the tax issue isn't as bad.
Anyways way to many people running around making statements as fact that don't understand all the tax laws out there. Heck I'm well versed in the US, but know nothing about anywhere else in the world so just the limited bit I just gave may not even be close to how it's taxed in other countries...for all I know some countries don't care about your cost basis. My state doesn't care about losses when you win at gambling which is insane, so who know maybe there are countries that tax the entire transaction.
Then lets add in that some governments are talking about treating different crypto as different asset classes as they are used in different ways. This will really confuse things if it happens.
They are not passing FIFO, so no need to worry about that.
In the US that was not included in the current bill, but readers are from all over the world so talking about that issue is important.