Crypto Megathread v25 - Fortune favors the HODLrs

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Reading a thread from biz and it's true, the market is dumb and immature. The 4th biggest hack in crypto on the Solana blockchain and Sol dumped the same as every other token is dumping now. Why? Because people don't care/know about fundamentals. This is why you have projects with the best fundamentals in the entire space performing so poorly compared to the rest.
 
Purely hypothetical question to the experts.

Anyone buy crypto on behalf of their company, LLC, corp, etc.?

Pass through entities (like an S-CORP), the company is not taxed on its income. Rather, any left over profits are periodically distributed to shareholders. The shareholders then report that income on their personal taxes and pay their personal tax rate.
So let's say rather than distribute those profits to the shareholder, the company purchases crypto.. That's an expense/investment by the company, and the company therefore does not have any profits to distribute. Am I understanding the situation correctly?

I know the outcome is that the tax obligation can is just getting kicked down the road, but I'm still curious.
 
Cooz said:
Purely hypothetical question to the experts.

Anyone buy crypto on behalf of their company, LLC, corp, etc.?

Pass through entities (like an S-CORP), the company is not taxed on its income. Rather, any left over profits are periodically distributed to shareholders. The shareholders then report that income on their personal taxes and pay their personal tax rate.
So let's say rather than distribute those profits to the shareholder, the company purchases crypto.. That's an expense/investment by the company, and the company therefore does not have any profits to distribute. Am I understanding the situation correctly?

I know the outcome is that the tax obligation can is just getting kicked down the road, but I'm still curious.
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I’ve not explored it but as tax codes have changed for future years reporting it might be worth looking into
 
meauneau said:
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Hopefully we drop another 40 percent. I want to get the cost average way down.
 
Got some nice gains from Immutable X today. Annouced GameStop as well as Open sea using their layer 2 blockchain.
 
Cooz said:
Purely hypothetical question to the experts.

Anyone buy crypto on behalf of their company, LLC, corp, etc.?

Pass through entities (like an S-CORP), the company is not taxed on its income. Rather, any left over profits are periodically distributed to shareholders. The shareholders then report that income on their personal taxes and pay their personal tax rate.
So let's say rather than distribute those profits to the shareholder, the company purchases crypto.. That's an expense/investment by the company, and the company therefore does not have any profits to distribute. Am I understanding the situation correctly?

I know the outcome is that the tax obligation can is just getting kicked down the road, but I'm still curious.
Click to expand...

I'm not familiar with US tax law but I'd say it wouldn't be considered investing since crypto purports to be currency not a security. Would putting the money into foreign currency have the same effect? I doubt it.

Seed money for crypto start ups might be another story.
 
Fantastic OP. I haven’t had the chance to read it all and check out the links, but I’m definitely going to. - I find it really tempting to try buying and selling some of the crypto I’ve got, like a day trader. Chainlink I had was up like $4-5 from when I bought it. It keeps going up and down.
 
axion said:
I'm not familiar with US tax law but I'd say it wouldn't be considered investing since crypto purports to be currency not a security. Would putting the money into foreign currency have the same effect? I doubt it.

Seed money for crypto start ups might be another story.
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In the US crypto is property (but not the type that you can depreciate).

In 2014, the IRS issued Notice 2014-21, 2014-16 I.R.B. 938 PDF, explaining that virtual currency is treated as property for Federal income tax purposes and providing examples of how longstanding tax principles applicable to transactions involving property apply to virtual currency.
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Source:
https://www.irs.gov/individuals/int...d general tax principles,, see Notice 2014-21.
 
SugarKrok said:
Fantastic OP. I haven’t had the chance to read it all and check out the links, but I’m definitely going to. - I find it really tempting to try buying and selling some of the crypto I’ve got, like a day trader. Chainlink I had was up like $4-5 from when I bought it. It keeps going up and down.
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I had success using bots to automate trading, grid bot is perfect for sideways chopping market. I think it was garbageguy who introduced 3commas.

I did some "day trading" way back when but for that I'd suggest you try a simulation first and only move on to real money when you have a method that is consistently showing gains. I had mixed results.
 
axion said:
I had success using bots to automate trading, grid bot is perfect for sideways chopping market. I think it was garbageguy who introduced 3commas.

I did some "day trading" way back when but for that I'd suggest you try a simulation first and only move on to real money when you have a method that is consistently showing gains. I had mixed results.
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Seems to much of a pain timing the day trading for me. Added stress and felt like work for me I admit
 
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