Re: How do I avoid tax on crypto

If I make money on crypto currencies. How do I avoid as much tax as possible?

Bitcoin is a currency, not some solution to avoid paying taxes. The moment when people start using Bitcoin or any other

Crypto currency as a method to avoid paying taxes, then the government will step in and ban it. I would much rather pay the

taxes and be done with it, than sleeping with open eyes, waiting for the Police to raid my house in the middle of the night.

That is no way to live your life... rather pay those taxes. Wink

Crypto is not a currency but i believe and its more of a commodity that needs to be regulated. It sucks when the government will taxed everything but as a citizens we must know our obligations and what is our role in the society. Lets not forget to help our government to grow, because if we hate taxes it can be a hindrance of our crypto growth.

You're one of the first people I've heard agree with me about this! My thoughts are slightly different in that I think cryptos can be broken up into three classes: (1) currencies (bitcoin; monero; zcash; ltc; ripple; other 'store of value' coins); (2) commodities (ETH; some other ones; anything that gets 'consumed' when using the platform; and (3) utility (factom; storaj; espers; etc.; tokens that don't get destroyed and serve some sort of functional purpose but which are built upon a different cryptos platform).

Ideally, in this system, btc and the like would be classified and taxed as foreign currencies, ETH and the like would be taxed as commodities (60/40 rule), and utility tokens would continue to be taxed like property.

Too bad the IRS will never get their shit together enough to figure this out!