Wow, I just had a realization, if you buy Bitcoin, then to buy buy gift cards and use them to pay for things, you technically wouldn't have to pay taxes on it right?

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No, they get you on the spending of the bitcoin

That's retarded

How?? You buy gift cards. How do they know??

They don't necessarily know, unless you use an exchange. But still illegal

What's illegal is that you're not filing capital gains tax

Yeah, wether they ever find out is up to chance, but still technically illegal

Agreed. If they ever follow your money trail, you're screwed

Besides they would be like "Hmm, this person makes "blank" money every year, they buy all Bitcoin and are somehow still living without selling 🤔" 😂

I can always send you a bum invoice from a shell company

*wink wink

Not even that, if you come under scrutiny, they'll simply ask you where's the Bitcoin you bought on the exchange?

"Lost it in a boating accident"

😂😂😂

Lost the keys. GFY. but yes you have it correct. they can also change the laws on a whim and demand 99% capital gains taxes any time they want. So best thing to do would be to establish future-looking privacy with coinjoin or layer swaps, and attempt to build a "kyc-free" stack, which to my knowledge, the only real way is to mine the bitcoin yourself. however, then they can get you on unreported income, so the best thing to do is actually just abolish the fucking state.

Not that complicated. Launder money Al Capone style. Create a shell company in a tax haven like Singapore. Send yourself invoices. Pay. Pay low taxes in Singapore. The money is now laundered

They can ALWAYS ask you, "so, mister, where is the Bitcoin you bought on the exchange?" Then you're screwed and will have to fly to a non-extradition country 😂😂

Is El Salvador non extradition? Asking for a friend

Sometimes I think about just moving to a tax free country like the Emirates

Singapore is more Westernized

Lmao 😂

Keep it hush hush 🤫

It's a major loophole

You can offramp your #btc from exchanges to hot wallets like WoS and then just buy gift cards on Bitrefill or the Bitcoin Company

The exchange reports that you bought it tho

But they can't report capital gains till you sell it!

True

I believe that's the case, in Australia at least. It's not taxable if you buy it and use it straight away.

There's no capital gains tax on crypto in Singapore

In the US apparently there's no tax till you dispose of it, which includes selling, spending, trading, ect

That's everywhere, Uno. Till you hold it, there's no capital gains tax. This tax comes in only on realised gains, i.e. when you sell/trade it

Yeah

The key question is, is income tax lower than capital gains tax in the States?