Following up on yesterday's tax tip...
You might have heard about tax lost harvesting. Selling bitcoin and then buying it right to recognize a loss for a given tax year.
But would you ever want to harvest a tax gain? Maybe if your gains are taxed at zero percent.
Let's walk through an example.
You are retired/didn't have any income for the year. You have 1 bitcoin purchased over a year ago at $60k. Bitcoin goes up to 100k. You could potentially sell, buy it right back. Realize the $40k gain taxes at zero %. And your new cost based goes from $60k to $100k
Hard to say what position the IRS would take. I'm not aware of any active cases to reference. I would say it doesn't have to tie back to an individual UTXO, but ideally some record of activity either from a wallet or exchange.
Correct, those amounts are taxable income, which is after standard/itemized deductions.
Did you know that the lowest rate for long-term capital gains is actually 0%?
If you earn under $47k as single filer or $94k as a married couple, your gain on bitcoin held over one year might be ZERO!
Tax Tip of the Day.
Bitcoin Tax Tip of the day.
Bitcoin held over a year is taxed at a lower rate in the US.
Even the IRS wants you to Hold.
Satoshi Pacioli wrapped up another successful tax season this year (with an few non-profit still to go next month).
We completed 125 returns between individuals, partnerships, S & C Corp. A humble 4X from or first year of tax services last year.
That's for 4 times as many bitcoiner we got to connect with and establish a long-term partnership with the goal to minimize the amounts they have to pay the IRS.
We haven't done a deep analysis, but can safely say that collectively we've saved our clients $100k plus in IRS payments. And this is just the beginning.
Special props to nostr:nprofile1qqs88hajw9x3wqr4h6tg8m532eyxadw7356d6wdg089d4e29rpjkg4gpz3mhxue69uhhyetvv9ujuerpd46hxtnfduq37amnwvaz7tmwdaehgu3wv45kuatwv3a8wctw0f5kwtnnwpskxegur4wzj who lead the way and spent more time talking to the IRS than any one human ever should.
Do you know where your accountant is?
Because ours are at bitcoin meetups.
nostr:nprofile1qqs9mus73mq3ug08kug2cltvj3p8gpawd85n5l70p59rach6cn7usjcpr4mhxue69uhkummnw3ezucnfw33k76twv4ezuum0vd5kzmp0c9303a celebrated Open House #21 tonight. The same night that nostr:nprofile1qqstfkyq0m0l5v2ddqnft8paccmgrmzeea2l87nj0846rerdzgla98cpz9mhxue69uhkummnw3ezuamfdejj7qg4waehxw309aex2mrp0yhxgctdw4eju6t09uq3wamnwvaz7tmjv4kxz7fwwd6x7mn9wghxxmmd9uqy7lfp in Denver opens its doors. Congrats to everyone involved in building these communities!
nostr:nprofile1qqs88hajw9x3wqr4h6tg8m532eyxadw7356d6wdg089d4e29rpjkg4gpz3mhxue69uhhyetvv9ujuerpd46hxtnfduq37amnwvaz7tmwdaehgu3wv45kuatwv3a8wctw0f5kwtnnwpskxegur4wzj, nostr:nprofile1qqsd45ynuwhqqzwjqs6qnzguh2xudqc4u64tsa30ja7mcx07xywk4hgpgdmhxw309anrgcted93xg6m0x3a8sdtydumn26r5dd6nvats0yexvun6wpnxudntd95kjetd0f4826t5va3kc7npw45k5ep409jzummwd9hkuqg4waehxw309ajkgetw9ehx7um5wghxcctwvsq3wamnwvaz7tmxv4jkguewdehhxarj9e3xzmny9u0chlxk, nostr:nprofile1qqsrgjpq6kaadn0dahp4hthqyn0vjz3fn7w4nkj8apmx5aftn3kae8gpp3mhxue69uhkyunz9e5k7qguwaehxw309ahx7um5wgkhyetvv9ujuamvweejuumsv93k2qguwaehxw309ahx7um5wghxy6t5vdhkjmn9wgh8xmmrd9skc3mdw06
Taxes are terrible, we try to make them less terrible.
Thanks nostr:npub1sk7mtp67zy7uex2f3dr5vdjynzpwu9dpc7q4f2c8cpjmguee6eeq56jraw and nostr:npub1guh5grefa7vkay4ps6udxg8lrqxg2kgr3qh9n4gduxut64nfxq0q9y6hjy for the shout out!
#Bitcoin may be decentralized, but taxes are still a reality. Our team of experienced accountants is here to guide you through the intricacies of #Bitcoin finance, ensuring compliance, and minimizing stress. Reach out to us and enjoy the peace of mind that comes with strategic tax planning with a #Bitcoin Focus.
#accounting #tax #bookkeeping #CPA #CFO https://video.nostr.build/8bcc8835b4c7aa29b4b9ac948e729a845ba0016f07e7f587689c3b1c91e90bf7.mp4
Anyone with Proton Mail need an invite to try out Proton Wallet?
Just message us. 5 invites remaining.
We are pleased to announce the addition of nostr:npub1x3yzp4dm6mx7mmwrtwhwqfx7ey9zn8uat8dy06rkdf6jh8rdmjwsq4t5gr to the Satoshi Pacioli team as a Senior Advisor! Michael is a passionate bitcoiner, CPA, and experienced fractional CFO.
Welcome nostr:npub1x3yzp4dm6mx7mmwrtwhwqfx7ey9zn8uat8dy06rkdf6jh8rdmjwsq4t5gr!!!
https://satoshipacioli.com/satoshi-pacioli-adds-senior-advisor/
Appreciate the shout out on nostr:npub10uthwp4ddc9w5adfuv69m8la4enkwma07fymuetmt93htcww6wgs55xdlq. Open source devs reach out for free tax support!
https://cryptpad.fr/form/#/2/form/view/1dVWf1mRDC3SLJbzTsQXzOcCxnzq+s-AMELaOYrt7II/
Very cool!
Its going to be a great week in Nashville! We wanted to kick off the week with a little announcement. Exclusive to Nostr until tomorrow morning.
We are pleased to announce a new program to provide pro-bono tax support for open source bitcoiners developers.
If you are a bitcoin open source developer we invite you to reach out to: bitdevsupport@satoshipacioli.com, or fill out the form linked in the full announcement.
Full announcement:
Our Nostr clients are our favorite clients (don't tell anyone on twitter) 🫡
OH ONE MORE THING B4 I GO ----
CONSIDER WORKING WITH nostr:npub1drlw0wmu9tq37usx4qt3u6u4zj44mrf3zsfa6xhcdyrh3n4wpmgqr4rfg0 , nostr:npub1w00myu2dzuq8t05ks0hfz4jgd66aarf5m5u6s7w2mtj52xr9v32s0qwa8u and JOE FOR ALL YOUR TAX NEEDS. THE BOYS DO A HELL OF A JOB.
I APPRECIATE THEM.
AND GO VISIT nostr:npub1theparkprcs70dcs437ke9zzwsr6u60f8flu7rg28m30438aep9sd94dha IN SMASHVILLE TN
U R WELCOME
I LOVE U
Appreciate the shout-out nostr:npub1s54cshfy6sgp7gajt97zpgdgxjcpumzwgu3x5zmhqa05krfxqrtsdl74y9! We need to be spending more time on Nostr to find the real bitcoiners.
Going to be a tough series. Hope you didn't double down on tonight's game.