Replying to Avatar micahcmiracle

Taxes on short-term gains are based on income and range between 10 and 37% of your gains at the time of disposal (when you spend it).

So if you buy $1000 of bitcoin on Jan. 1st at $100k per BTC and bitcoin goes up 10% before you pay off your credit card on Feb. 1 (let's assume you pay off $500 on your card and BTC is now 110k) then the 50 bucks of gains you made (simplified here) would be taxed at your income rate. If your income puts that rate at say, 24%, then you owe $12 to .gov.

You still did much better than paying your $500 in fiat when it was due. In fact, you end up with reducing what you've paid by $38.

If you have bitcoin that you've held for more than 1 year in Strike (or you transfer some to Strike), you could use that and pay less taxes.
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🇩​𝔢𝔠𝔢𝔫𝔱 🇼​𝔦𝔰𝔡𝔬𝔪 1y ago 💬 2

Also nostr:nprofile1qqsx0z3s3evuynhpkdptpl56hhm0m7jaenps46e8tffhu8ml5psfl0qpzpmhxue69uhkummnw3ezumt0d5hszrnhwden5te0dehhxtnvdakz7qgawaehxw309ahx7um5wghxy6t5vdhkjmn9wgh8xmmrd9skctc3e570t has good info nostr:nevent1qqs9878chp6s5tz9sdqg9j2aam2wtm3g6uc7dlkzrgh96jutxea520qpz4mhxue69uhkummnw3ezummcw3ezuer9wchsygr83gcgukwzfmsmxs4sl6dtmahalfwuesc2avn455m7ral6qcylhspsgqqqqqqs2vlacg

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micahcmiracle 1y ago

Thanks for the shout out. I plan to start this journey on the first of the year.

I noticed that (with Strike) you can save on fees with recurring purchases, scheduled after pay day, rather than direct deposit.

My plan is to live off of a credit card for everything, and use Strike purely to make payments only to my credit card.

That way, I have a month to realize gains before paying off my bills (most credit cards won't charge any interest if paid in full each month).

I also get a small amount of cash back and other benefits from using my card.

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micahcmiracle 1y ago

I hope to pay the card off in full on months when bitcoin us up, and make minimum payments when bitcoin is down for the month.

I figure I have almost three months of credit available before I'm maxed out.

I should say that I am starting this journey with enough corn to cover my card if I max out and can't cover it with new purchases, but I really don't see that being an issue this coming year.

It's real easy to back out of recurring purchases, or adjust the direct deposit away from bitcoin when and if crypto winter arrives.