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RE: Crypto Taxes, Prison, Murder
Thank you for this informative piece - as I'm pretty new to the investment/finance world, this piece really helped me understand the difference between capital gains tax and income tax. It kinda sucks that the 1031 loophole doesn't work anymore, but I was wondering if the IRS can actually track the amount of time we've held on to a particular asset and how much profit we've gained from it?
By the way, I also wrote a piece similar to this, which is about the taxes involved in cryptocurrency and I would really appreciate it if you can give it a read and provide me with some feedback! Thank you!
P.S.: Loved the Men In Black reference!
The blockchain is inherently transparent. so yes they can track where you coins have moved.... IF they are tethered to you originally in some way. Most people bought on Coinbase or an exchange that verifies your identity. From there it's easy to see every place the coins move.
Now if you were to buy them from a tumbler or send them through privacy coins and shed the trail, that is a different story.
But then it becomes illegal if they prove you've intentionally tried to conceal your movements.
or maybe you only made a few grand and they will never take notice because they are so busy...
I've dealt with the government before. My main goal in all of life is to stay off their radar.
Ahh, I see. So would you say that if we made less than $10K in profits they will usually leave us alone?