Unfiltered

How The F*ck Do Crypto Taxes Work? Is Bitcoin Tax Free?

The stupidest thing that the world had was dictators and then the world came up with taxes. Taxes make sense, yeah, we can not blame you, we are raised this way, we love our countries, we love the spirit of doing something for it, because, well, we enjoy it, use it, live in it and hope that it gives us back so much more.

So yes, as much as we feel like it is being used on the wrong things, it is not being used at all and the revenue is being wasted or left unproductive, we end up not fighting it and paying it in good spirit anyway.

But, this ‘we’ are a really small group of people. Or actually well, it is the mass population of any given healthy country, the 1% on the other hand, is a bigger and far more intense money loving chunk that could do without taxes but still loves all the subsidies it could get for itself.

In our simple world, money buys money and power buys power. And for a lot of us, this was changing, this was being challenged by the advent of cryptos because blockchain is fair. It is easy to stack up even on the blockchain, you are free to stack your wealth here. But, the currency really does it for everyone than for everyone with money.

Breaking Down Taxes For Crypto

Classifying cryptocurrency trades or exchanges as like-kind exchanges might be a manageable, yet controversial, future solution. The Internal Revenue Service (IRS) mentioned this topic under IRC Code Section 1031. This means yes, cryptos are still taxable, they are money after all, and the system finds a way to punish people for the money they earn, especially when they have smaller amounts of it compared to others.

The section says:

Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange.”

No one evades taxes as no one gets away with eating their veggies, doing their squats, paying their bills and washing their clothes. At least not the like of us get to.

Khunsha Javed

A Filmmaker, PR enthusiast & Editor of BlockPublisher-Unfiltered. I like things that make my brain tingle. Email: khunsha@blockpublisher.com or editor.unfiltered@blockpublisher.com

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