Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

🇨🇿 Czech President signed a law removing the capital gains tax on #Bitcoin after 3+ years of holding.
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https://x.com/BitcoinMagazine/status/1887495804224495968?t=M7ORkYO_5_qIfkaaUSRI2w&s=19

The Czech Republic just made hodling a national sport.
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None of any taxes after three years, plus zero tax below hundred grand is better than what we currently have, thats all! Forcing people to hold for more than three years is damn already bullish. Therefore, anyone in the Czech Republic who chooses to do this will more than likely be in profit or at least close to it, this should encourage more people who do choose take advantage of this new policy to better understand Bitcoin and increase adoption. Afterall, I can sense a solid progress that what the government did.

If I am mistaken, the first country in the EU to pass such a law was Germany, where that period is 1 year, in Croatia it is twice as long and amounts to 2 years - while there was a lot of talk about how Portugal and Slovenia are very friendly when it comes to laws on taxation of cryptocurrencies, but I am not sure if that is still the case.

Yes, you are right. Here is the details of each regions on crypto taxation. Few countries data were not published here but last update was four weeks ago, probably we will be able to see Czech info here soon.

The graphic is wrong for Canada (7.5% to 16.5% is not correct). The tax rate on cap gains for "crypto" ranges from 0% to 27.4% of your total gain depending on your total taxable income. If your only income is from your "crypto" gain (and you aren't considered a day tarder), you would potentially pay 0 tax on up to ~$31400 of a capital gain if you live in the right province. Worst case scenario [until Jan 1, 2026 when the inclusion rate goes to a diabolical 66.6% (2/3 inclusion rate)] is currently 27.4% on your gains. Essentially and regardless of which province you call home, 50% of your capital gains are yours and the other 50% are subjected to the same taxation rate as income so you'll be taxed at your top marginal rate. It's straightforward but not simple.

US data is also only approximately correct.
For US, if you hodl for less than 12 mo-it would be anywhere from 10% to 37+3.8%=40.8% tax plus state tax (if you are living in a state that has it, but Texas and Florida do not have state taxes).

For longer hodl (>12mo), tax is 0-(20+3.8%) aka 0-23.8%. When you get 0%? When you have no or lower income and your cap gains+income are less than about 47K (individual) and about 94K for a family. Then, there is a "nice" 94K-583K area with 15% tax and then it goes up to max 20% when it is over 583K. At above $250K for a family and 200K for individual, 3.8% additional NIIT is added, resulting in 23.8% max cap gains.