if bitcoiners are gonna lobby for one thing and one thing only, it should be getting rid of capital gains tax. forget strategic reserve. focus on killing cap gains. think of a business running at 5% net profit and there are hundreds of thousands like that. after all the hustle, opex, stress, they barely clear 5% and still get taxed. then they discover bitcoin averaging 30% a year with tax-free gains. imagine what happens.
Discussion
This is the biggest thing for Bitcoin mass adoption that NOBODY is talking about. Big-blockers used to complain "nobody can use Bitcoin to buy a cup of coffee because of confirmation times." ....
Now with Lightning that's no longer a problem... But you know what is? Capital gains. We're STILL required to account for every single purchase. NO de minimus exemption. Technically, every Zap is a reportable event.
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I'm not reporting this zap. (Or any other)
It’s entirely because it’s not yet considered a currency. Simple as that. Blah blah store of value, blah blah digital asset, blah blah. Cyptoasset blah blah. Asset = CGT. Currency = no CGT.
There are many ways to fix this. De minimus as I said, or simply declaring "it's a currency." It's not like you have to report capital gains if you pay for a coffee in Euros in Paris. It's ludicrous that USA'ans are expected to do the same with BTC.
But until this is fixed, it's like cannabis pre-legalization. You're going to have all the "cool kids" skirting the regulations because they've got their dealer hookup or grow their own... which is fine... But it doesn't scale to the masses.
Brits have to report too “officially”. You are “meant” to report all realisations (which includes spending Bitcoin for a coffee) entirely because it is classed as an asset and not a currency. And yes until that definition is changed within a legal framework, people will still transact.
Very beneficial for people who trade . I don’t trade . I hold .
I agree 100%. It would encourage people to sell to the government too.
They will always take taxes. And the capital gains too. We have to get over it or go live in Dubai with the shitcoiners 🤣🤣🤷♂️
Absolutely!!!
Missouri just passed a bill to remove cap gains and we are waiting on the governor's signature.
If the federal government does the same, then everyone who has no cap gains requirement can fully use Bitcoin in any way they wish, fulfilling the goal of having a sound money.
In Switzerland, capital gains are already tax-free for private individuals
In Portugal, if you receive bitcoin as payment, hodl for a year, then there is no cap gains. Adoption has really taken off. Small businesses are happy to take some bitty for some portion of their sales- and then plan to hodl for at least a year. I heard multiple stories- but one stood out about a dentist that was offering discounts if people pay in bitcoin. He did the math and it made sense to him to do this. Would love to see cap gains ditched altogether.