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48-nation bloc to crack down on using crypto assets to avoid tax

theregister.com

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Re: 48-nation bloc to crack down on using crypto assets to avoid tax

#31

Post by dist-epoch »

Roark66 wrote: post #18
noodlesUK wrote: post #12

I’m not a crypto person, but I have always been curious - how does the tax situation actually work if you don’t want to commit tax evasion? I know that on US tax returns you need to tick a box if you’ve transacted in crypto, and you have to pay tax on the realized gains/losses. How do you actually go about doing that accounting practically given the volatility and the number of transactions? Are there special pieces…

In Poland there is no checkbox on a tax forms to say "you've dealt with crypto", but every transaction over 10K EUR is reported to the gov, and when I was a UK tax resident with a Polish bank account my Polish bank asked for my UK tax info to send the details of any such transactions to HMRC in the UK. I suspect it's an EU wide thing. I'm not sure why these 48 countries single out crypto assets like this. You can eva…

> but every transaction over 10K EUR is reported to the gov

Those reports are not to find tax evasion. They are to detect large scale money laundering and to build aggregate money flow statistics (X billions entered/left country in the last year).

Re: 48-nation bloc to crack down on using crypto assets to avoid tax

#32

Post by rtkwe »

hiq wrote: post #24
suziemanul wrote: post #17

As for the stable coins, the researchers from the University of Chicago claim that their stability is a bit more nuanced. Especially, even a stable coin cannot defend against a run https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4226027

This doesn't seem to encompass stablecoins that are fully-collateralized, as many claim to be (which is disputable in a lot of cases). Getting money from users for a token on which you pay no interest and getting the full interest yourself does seem like a good business, it's just not one that would attract customers that have better options.

I'm still shocked Tether survived the whole saga of their collateralization being questioned.

Re: 48-nation bloc to crack down on using crypto assets to avoid tax

#34

Post by rangestransform »

amanaplanacanal wrote: post #21
not_really wrote: post #11

Earlier quoted context omitted.

This. Never going to happen though

You would never even get agreement on what more prudently means.

Not treating infrastructure programs as kickbacks or jobs programs, for one

Re: 48-nation bloc to crack down on using crypto assets to avoid tax

#35

Post by Analemma_ »

ljf wrote: post #5
roenxi wrote: post #2

> ... and a lousy store of value I expect this to be true eventually, but so far Bitcoin has been doing OK as a store of value. Unless people bought in the relatively short peaks, HODLers aren't losing crazy amount of money and one could reasonably anticipate that it'll reach $60k/bitcoin again in the near future. There seem to be people convinced that the crypto types are coming out a long way behind but I'm not rea…

I was talking to a very pro-crypto friend - part of my (sour grapes) issue with Bitcoin is that is actually a pretty impractical way to purchase items day to day - but he pointed out that this is more of a feature than a bug. He likened it to buying and selling physical gold as a store of value, I hadn't thought of it that way before. I am still stinging from not buying in when I first became aware of it (approx. $1…

> but he pointed out that this is more of a feature than a bug -- he likened it to buying and selling physical gold as a store of value

This is a lot of cope and ex post facto justification. "Store of value which can't actually be used for real-world transactions" was absolutely not the rallying cry for Bitcoin for its first many years of existence, and people only pivoted to that when it became undeniable that Bitcoin was not fit for its original intended purpose. If it serves the new purpose well enough, then great, but don't let your friend fool you that everything is going completely according to plan.

Re: 48-nation bloc to crack down on using crypto assets to avoid tax

#36

Post by djur »

rangestransform wrote: post #34
amanaplanacanal wrote: post #21

Earlier quoted context omitted.

You would never even get agreement on what more prudently means.

Not treating infrastructure programs as kickbacks or jobs programs, for one

Why shouldn't infrastructure programs also be jobs programs?

Re: 48-nation bloc to crack down on using crypto assets to avoid tax

#37

Post by zby »

noodlesUK wrote: post #12

I’m not a crypto person, but I have always been curious - how does the tax situation actually work if you don’t want to commit tax evasion? I know that on US tax returns you need to tick a box if you’ve transacted in crypto, and you have to pay tax on the realized gains/losses. How do you actually go about doing that accounting practically given the volatility and the number of transactions? Are there special pieces…

I wrote my own program to parse the logs I get from exchanges and compute the taxes.

Re: 48-nation bloc to crack down on using crypto assets to avoid tax

#38

Post by this_user »

roenxi wrote: post #2

> ... and a lousy store of value I expect this to be true eventually, but so far Bitcoin has been doing OK as a store of value. Unless people bought in the relatively short peaks, HODLers aren't losing crazy amount of money and one could reasonably anticipate that it'll reach $60k/bitcoin again in the near future. There seem to be people convinced that the crypto types are coming out a long way behind but I'm not rea…

> but so far Bitcoin has been doing OK as a store of value

No, it hasn't. A store of value is supposed to be stable, it's about volatility. By that same reasoning you could argue that Apple or Tesla stock, or even the stock market in general, is a great store of value. But nobody would ever call it that, because it is far too volatile on a daily basis.

Trying to argue that a vague long-term uptrend in prices makes something a store of value is just more intellectually dishonest cope by cryptobros who are desperate to defend this useless technology.

Re: 48-nation bloc to crack down on using crypto assets to avoid tax

#40

Post by fwungy »

FX is the largest market in the world. It's about 30x global GDP.

If BTC can take 1% of the FX market its value would be $1.5M, each. As the price of btc rises it becomes less volatile, which makes it more attractive for large transactions. Btc transactions settle without active third party involvement or approval.

Btc, in particular, should be very attractive for International settlements in the future. That's why the OECD wants a piece.

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