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RE: Funding the future through crypto gains
Was reading an article today about avoiding taxes on crypto gains in the US. Donating is one option to a charity as we pay no taxes on any of the gains made and get the donation value as of the date we donate. So someone who bought BTC at $1000 and donates today at $10,000 would get a deduction on their taxes based on the $10,000.
This wasn't news to me as I have a strong accounting and tax background, but it's cool that they are putting that info out there. If you wanted to donate it would be much better to donate an asset which has appreciated vs cash.
Wonder if this tax treatment has helped spur added donations from those with some newfound wealth.
There are going to be many ways to 'avoid taxes' and as much as I dislike tax, some are necessary aren't they considering others 'must' pay for access to services? The changeover from tax to know should be somewhat smooth perhaps. Having said that, the tax on crypto here is 35% I think. That is ludicrous.
In the US based on tax bracket and what state you live in you could be over 50% on your profits. top tax bracket is around 39% for federal and California is around 13% at the highest. Most states fall more in the 5% range, but still this can really add up.
Each transaction is considered a "trade" and it's a taxable event.