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Showing 8 of 8 results by eschades
Thanks for your response using quotes to follow easily. I’m not that sophisticated yet on here to do that.
The most important issue is your premise that “exchanging” is the same thing as “investing” - I don’t think that’s true. I’m not saying that BTC would get exchanged into membership interest. It would be invested as BTC into the LLC. I know you would be getting membership in “exchange” but your asset denomination is still BTC.
The most important issue is your premise that “exchanging” is the same thing as “investing” - I don’t think that’s true. I’m not saying that BTC would get exchanged into membership interest. It would be invested as BTC into the LLC. I know you would be getting membership in “exchange” but your asset denomination is still BTC.
I'm not sure why the same "asset denomination" affects anything. If I "invest" USD into an LLC, and get a membership interest, by your logic I would still have an "asset denomination" (of the LLC membership) of USD; and this is obviously a taxable event despite that perspective. I don't think tracking whether the "asset denomination" is usually relevant to this type of discussion.
That’s what I mean about investing in that currency. Exchanging would be going from BTC to ETH for example (different currency). If it stays BTC and gets invested as such into the LLC, I really don’t think that’s a taxable event. Although, it might be. That’s the key though. If it’s not than you should be able to invest gains tax free given it would be like kind. I’m asking CryptoTaxGirl right now - https://cryptotaxgirl.com/
No, unfortunately I don't think your chain of reasoning makes sense. By your logic if I "invested" USD into a LLC and then "invested" USD into a different LLC this would not be taxable.
I’m asking CryptoTaxGirl right now - https://cryptotaxgirl.com/
That's the right path. Interested in whether she say's it's not taxable on its face (I mean, if it's a tax-advantaged entity doing the "invest"ing, then something is different, but even then it's still not at all obvious there would not be potential gains / transfers).
I see a huge opportunity to INVEST THE COINS AS CURRENCY especially in vehicles
that assist in diversifying, creating more stability and generating income
streams (like real estate).
that assist in diversifying, creating more stability and generating income
streams (like real estate).
Not really sure what "invest the coins as currency" means. People don't need to "invest EUR as currency", per se, right? Do you mean build up reserves of BTC, etc., in order to be able to provide liquidity in a given (crypto-)currency (to a group of shareholders) without the fees associated with exchanging crypto for fiat?
The biggest advantage to this would be for those that have realized huge gains from appreciation to potentially avoid a capital gains tax.
From my read of things, you get taxed if you 1) exchange crypto into a fiat
like USD, 2) trade one crypto for another, or 3) buy goods or services with
it. You get taxed on your “cost basis” depending on your bracket. But this
doesn’t seem to cover “investing” the crypto you have into investmwnr vehicles
in the same crypto.
From my read of things, you get taxed if you 1) exchange crypto into a fiat
like USD, 2) trade one crypto for another, or 3) buy goods or services with
it. You get taxed on your “cost basis” depending on your bracket. But this
doesn’t seem to cover “investing” the crypto you have into investmwnr vehicles
in the same crypto.
Yes, it does cover that. That "investing" is the exchange of (crypto-)currency/asset for another asset, like membership interest / equity...
I’ve raised USD in a special purpose entity (SPE like an LLC) multiple times
in exchange for membership interest to develop real estate projects.
in exchange for membership interest to develop real estate projects.
...just like this.
I think this could be done in the same way just raise a fund or for a specific project. I think once I raise the crypto then I can convert that into cash without a tax trigger given that the LLC cost basis would be set at what’s raised. Does that seem right?
No, that's wrong. If I swap a house for someone else's LLC membership interest, it's a taxable event (IANAL non-accountant but I've paid enough to lawyers and accountants to know the answer).
I would ideally like to purchase the development opportunity in Bitcoin or
Ethereum
Ethereum
This is a different business proposal, if you'd still be willing to do that despite it being a taxable event. I'm sure you could find people to do this; PM me.
[but sellers] would be accepting “personal property” in exchange which doesn’t
have the same tax benefits like real estate for examples doing a 1031 exchange
have the same tax benefits like real estate for examples doing a 1031 exchange
There are other ways besides 1031 exchanges. Opportunity Zone funds & businesses (QOFs/QOZBs); anyone interested can PM me.
The other challenge is that I would have to develop the real estate project without the use of a lender (thank god!) but it would not lever the same sort of returns. Unless we have already come up with crypto lenders, have we?
Not sure about that.
My real estate project in mind is a boutique hostel / hotel in a historic brick building in Philadelphia that would use crypto currency at the heart of the ecosystem to start getting more use cases out there for people actually using it daily.
If it would make money regardless of the crypto aspect, I bet you could find plenty of investors.
only Ukraine comes to my mind
Thanks -- getting visas and such might be a challenge, but interesting.
I guess a smaller "farm" (50kW) would be easier to get up and running in light commerical areas (say in the US).
Okay you are USA based correct?
Yeah. I would suggest a mixed farm
A few L3+ rigs to mine LTC and Doge.
A few gpu rigs and maybe a few BTC rigs.
Go for
32.0k in gpu
7.0k in ltc
7.0k in btc
hold 5k for fuck ups
you could buy 1 or two of these cases.---- my 2 arrive on Friday I will setup a build and see how they do.
https://bitcointalk.org/index.php?topic=5330379.msg56774805#msg56774805
https://i.imgur.com/I1Vhgft.jpg
Thanks for the advice! How'd the new rigs turn out?
⭐ Merited by vapourminer (1)
only Ukraine comes to my mind
Thanks -- getting visas and such might be a challenge, but interesting.
I guess a smaller "farm" (50kW) would be easier to get up and running in light commerical areas (say in the US).
> 2x GTX1660 Super 62MH @ 880$
Where are you seeing these prices?
Where are you seeing these prices?
Where I live 1660 super are being sold for 600 usd each
Me too. Agree if I could get 1660 supers for $300 I would buy them all.
Where would you guys recommend getting started with small (<0.5mW) mining if you guys had your choice of locations (but had to live with local electricity suppliers)? I have a a small amount ($100k) to invest in a location and rigs and want to get an idea of what your dream place would be...