Re: Wall Observer - MtGoxUSD wall movement tracker - Hardcore
How do you deal with capital gains? Ignore it?
I would have some... but I lost most of my private keys in an unfortunate boat accident.
Also, not everyone lives in the US.
Some have special retirement accounts protected from taxation.
Other can deduce borrowed money when it's paid back.
I might have earn them with my business which accept Bitcoin and paid income tax then.
Really, taxation is a complicated game.
And as usual, those with the less money are those who will pay more.
I'm not living in the US either, but about 97% of my BTC value is pure profit. If I sold out now I would have to pay ~30% in capital gains. That would require one hell of a trade to just break even (ok, maybe no biggie if I had balls like you). I could technically ignore reporting it, it's kind of a gray area, but I donno, the tax man would probably eat me alive if I did that. Some have special retirement accounts protected from taxation.
Other can deduce borrowed money when it's paid back.
I might have earn them with my business which accept Bitcoin and paid income tax then.
Really, taxation is a complicated game.
And as usual, those with the less money are those who will pay more.
Oh well, guess I'm stuck holding, for the longest time.
If you are planning to transfer "for good" significant funds to your personal account to realize fiat denominated profit, it's always better to declare it and pay for it. Not because of some sort of perverted morality, just because you will avoid potential problems in the future.
As Frozenlock said, as usual those with less money are those who pay more. Everything depends on how big are the gains you want to "cash out". If those gains are big enough, you can easily build a structure that will make you save a lot of money. But if they are not, you end up paying more. You "cannot afford" to save on taxes