Tax season confusing with crypto? Have no fear! Tax free transfer methods are here!
Tax Free ways to Transfer crypto
It's that time folks! Tax season! And I'm sure alot of you are concerned and confused on what to do. Here are some options..
Disclaimer: in no way is this financial advice, passing along information in an article. DO YOUR OWN RESEARCH!
Contributing to a corporation or partnership
In general transferring of property into a business or partnership you have a say in is not a taxable event.
You can even transfer to corporations in exchange for stock according to Section 351 which generally allows people to transfer property to a corporation in exchange for stocks without a tax trigger even if there is a gain. This is however limited to S corporations and C corporations, with other requirements.
Give it as a gift
The law has a bunch of 'contingencies' of what a gift is, including it being limited up to $15,000, which would equire a gift tax return. But, you can transfer $11.2Mln tax free in your life or death.
Donation to charity
Instead of capital gains tax, instead you get a tax write off! Warren Buffet uses property income to give to charity to circumnavigate this as well. For example, if you bought bitcoin at $1k, and gave to charity at $10k you'd circumnavigate income tax on $14,500, and get a charitable contribution deduction on $15k.
https://cointelegraph.com/news/tax-free-ways-to-transfer-bitcoin-and-other-crypto-expert-take
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yeah but i dont get to keep it lol
lol..yea, that part still sucks
This may be helpful info for many people!
The tax system of each country is different. I should not forget this. Thanks for sharing @followbtcnews
and people say the rich are taxed to little.
I agree there are rich that tax dodge, but the rich that do pay their taxs @ such rates as high as 45% in the UK, are paying there fair way in society, and we shouldnt be so quick to judge them if they pay 450k out of every mill they make.
Let's all donate our gainz to charity and let's make World great again
I'm going to have to look into that a bit more. It's definitely been something I've been thinking about. I've even talked to some tax people that didn't know what to do. That's scary to me. I'm mean, it's your job and you don't know.
Things could get interesting. :/
Hi @themanwithnoname, I am a german tax advisor. It's some time now since I started having a look at cryptos and taxation of cryptos. At the moment some of us (including me) have some ideas about taxation of gains and losses of cryptos. But we have one big challenge: the tax authorities do not really know how to tax gains and losses from cryptos. They have written some articles but in fact, not everything is clear until now. So, for german tax law, I have my opinion on how taxation of cryptos should work. But you don't know if the tax authorities have the same opinion because in some points, they are not yet willing to determine their approach. In the end, whatever we say could be the wrong way. If you like to, have a look at this: https://steemit.com/tax/@taxguy/besteuerung-von-gewinnen-und-verlusten-aus-kryptowaehrungen-in-deutschland-taxation-of-gains-and-losses-from-cryptocurrencies-in
That's basically the situation here too. I don't think anyone know what's going on. That's ok. That's what penalties and fees are for...to penalize the people who weren't sure what to pay because the tax code wasn't clear. Ugh.
Hi @followbtcnews, thanks for your words. If I understand it correctly you have found some tax free ways to Transfer cryptos. But on the other hand side I think that the gains could be taxable anyway, isn't it?