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  1. Blog URL: https://xrpcommunity.blog/a-tale-of-two-economies/ In today's blog I describe how the crypto market exists in parallel with traditional markets, and then cover all the news affecting XRP! 𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐂𝐫𝐲𝐩𝐭𝐨 𝐍𝐞𝐰𝐬: The UK receives tax guidance for crypto-assets. 𝐑𝐢𝐩𝐩𝐥𝐞 𝐍𝐞𝐰𝐬: Cebuana Lhuillier signs on as a RippleNet member; The National Bank of Kuwait releases a new remittance app called NBK Direct Remit; Hot Chips releases a tutorial about the XRP Ledger; A computer science major from Stony Brook University creates an app that rewards people in XRP for exercising; and Ripple Drop Episode 8 is released; 𝐗𝐑𝐏 𝐍𝐞𝐰𝐬: CZ announces XRP's elevated status as a base currency on Binance; A decentralized exchange, CryptoBridge, adds XRP trading support; Neteller, a UK-based money transmitter and crypto dealer, adds XRP support; BTCEXA, an Australian crypto exchange, adds XRP support; EO.Finance, an Estonian-based crypto exchange that allows deposit via credit card, adds XRP support; and Voyager, an exchange set to open in January of 2019, has stated it will support XRP out-of-the-gate. I hope you enjoy the read: Please feel free to share my blog with a friend or share it on any other platform - and thanks for doing so! My blog announcement links on other platforms: Twitter Reddit r/Ripple Reddit r/CryptoCurrency Reddit r/CryptoMarkets Reddit r/xrp Reddit r/RippleTalk Reddit r/alternativecoin Bitcointalk - alt coin sub forum Bitcointalk - XRP speculation thread
  2. Maybe some good comes of this when they try to settle this estate. As someone that knows a thing or two about estate transfers and the financial implications this one will be fascinating. I wonder if the divorce he was going through was finalized and WHERE are those private keys...... https://pagesix.com/2018/04/16/banking-heir-matthew-mellon-dies-in-rehab-facility/?utm_source=maropost&utm_medium=email&utm_campaign=nypdaily&utm_content=20180417&mpweb=755-6599133-711672763 Warning to others. Be very careful with wealth. Your health is far more valuable.
  3. Any American bitcoin investors who were hoping to avoid paying taxes for their profits this year by trading them for altcoins are in for an unpleasant surprise. New regulations have been tailored specifically to make sure U.S. taxpayers can’t use this method to avoid giving the IRS their cut. Bitcoin to Altcoin is Not a “Like Kind” Exchange Until today a crafty tax attorney or accountant could have tried claiming that trading bitcoin for another cryptocurrency is not a taxable event, but U.S. authorities are now moving in fast to plug this loophole. The latest tax bill contains clarifications which make this a non-valid tax-minimizing strategy going forward. The issue arises from the IRS categorizing bitcoin as property, which can be argued makes crypto to crypto trades “like kind” exchanges under Section 1031 of the Internal Revenue Code. The new tax bill defines “like kind” exchanges to pertain only to real estate deals. To make things as clear as possible, this means that if you trade bitcoin for tether (USDT) for example, that is a taxable event. “Some people think, ‘I’m taking my bitcoin, which the IRS has deemed to be property, swapping it for another property and doing it for investment reasons,’ so it sounds like it could be a 1031 exchange,” Evan Fox, tax manager at New York accounting firm Berdon, told CNBC. “I think it’s a stretch.” The Current Framework According to the current tax framework, Americans need to self report their bitcoin trading profits and calculate their dues according to their tax brackets. Selling after holding the asset for less than a year qualifies as a short term investment and is taxed between 10% to 39.6%. Selling bitcoin after holding for over a year is qualified as a long-term investment and taxed up to 20%. Conveniently, if you traded over $20,000 with Coinbase the IRS already has your records. “If you put money into the cryptocurrency space, and you decide to buy (an altcoin), and you one day monetize it and show up with a $2 million house, the IRS is not stupid,” Fox said. “Money doesn’t just appear out of nowhere.” The IRS can also decide to audit someone’s tax going up to three years back and is known to use the services of Chainalysis, a blockchain analysis specialist, to hunt down bitcoin users for evading taxes. “If a few years from now the IRS is able to decode what happened, and you made a significant amount of money in 2017 and didn’t report it, you’ll face interest and penalties that have been accruing,” Fox explained. “It might be a risk some people want to take, but there are some bad consequences if you get caught.” http://www.altcointoday.com/trading-bitcoin-altcoin-wont-shield-irs-anymore/
  4. If I wanted to sell some XRP on Coinbase to FIAT, I would need to trade it for BTC, ETH, LTC (whatever Coinbase trades ect...). I have held XRP over 1 year I should only need to pay long term gains tax not short term which is much higher tax, my question is does trading XRP for ETH ect.. reset the clock to short term since i now have only held this ETH for less than a year?
  5. The Plan Create a tax free vehicle that allows you to buy cryptocurrency and trade it in real-time if desired. Alright I figured I would share my experience with you on "avoiding taxes" For 2017 There isn't much I can do about it except choose to commit federal crimes....not saying I am. There is a long term plan to circumvent taxes and that is a Roth IRA. People have generally been disgruntled about the like kind exchanges even if many did not bother with a 1031 exchange. the assumption of not cashing out and still paying taxes seems like a low blow for majority of investors. There is another way. Self-Directed IRA LLC In short this is an IRA that is managed by you under an LLC. Fidelity, DT Ameritrade, Charlse Schwab, These guys have nothing to do with it. You manage the money in an account you directly own via the LLC. You invest in assets of your choice whether they are physical, virtual, business, etc. Doesnt matter. there are a few rules to what you cannot do. Alternatives http://bitcoinira.com These guys use a 3rd party to manage funds and it is still a 3 day settlement period just like public stocks. 3 days is a month in crypto. There is no way I would trust another company with my coins and wait 3 days for them to settle the money. Some Restrictions With S-D IRAs https://www.biggerpockets.com/blogs/1123/7902-what-you-can-or-cannot-purchase-with-a-self-directed-ira Sound complicated? Not really. There are a few parts to it which may appear to complicate things. The process isn't all that hard. Entities Involved 1. LLC Management Company - Checkbook IRA, LLC - http://www.checkbookira.com/ 2. Kingdom Trust - https://www.kingdomtrust.com/ 3. A private bank - Friendly to Self Directed IRAs. (Solera Bank is one) http://www.bankrate.com/banks/solera-national-bank/3397233/ Cost - 1500.00 The cost is a bit up there but its the general price for doing all the work below. However as we are in a dip and if you had one setup and bought in now with the day trading you may or may not do then it is totally worth it. No taxes - Remember that! Process 1. Find a company that manages Self directed IRAs. The one I chose is https://www.checkbookira.com 2. Checkbookira will create the LLC for you in any state you choose (You must have a physical address in most states or use someones physical address as reference.) This is so that inside the state in the event that the state must mail documents to you they can send them to that address. 3. They then start the process with Kingdom Trust. KT is a custodian for the IRA. You may do a cash contribution, rollover/transfer and IRA from another custodian like Fidelity. 4. Kingdom Trust sends you documents to sign and where the money is coming from whether its cash or another custodian. 5. In tandem Checkbookira creates the LLC. Once the LLC is complete you may open up your bank account under the LLC. This cannot be a personal account. 6. You send over documents from Checkbook ira telling Kingdom Trust what the LLC EIN # is and where to send the money to. (This is your LLC Checking account) 7. Create new accounts for your crypto exchanges. Remember if you mix LLC money and personal money you are "piercing the veil" This may cause huge tax implications. Piercing the veil basically means to not follow corporate law which may include mixing personal and LLC money. 8. Once the money settles then you are now ready to buy up all that crypto and day trade like a whale all tax free! Noteworthy articles regarding Kingdom Trust and Crypto https://www.coindesk.com/bitgo-acquires-kingdom-trust/
  6. Seems like there was much confusion about reporting FBAR Forms. This Article is dated of Jan 9, 2018 (Forbes) https://www.forbes.com/sites/kellyphillipserb/2018/01/09/what-you-need-to-know-about-taxes-cryptocurrency/#7c9dae80605f Towards end of the article it says: So what if I invest in cryptocurrency outside of the United States. I know that I have to report brokerage accounts and other assets on an FBAR. Does that apply here? Nope, you don't have to report your cryptocurrency on your FBAR. In 2014, the IRS issued a statement, saying, "The Financial Crimes Enforcement Network, which issues regulatory guidance pertaining to Reports of Foreign Bank and Financial Accounts (FBARs), is not requiring that digital (or virtual) currency accounts be reported on an FBAR at this time but may consider requiring such accounts to be reported in the future." The IRS has confirmed that position for this year. Here is another Reporting Tip page from an attorneys website I found interesting: Golding & Golding - Attorneys at Law (Read under November 2017 & Personal Wallet Section) Many of you had questions about this. https://www.goldinglawyers.com/fbar-bitcoin-2017-2018-important-cryptocurrency-reporting-tips/ Both articles will clear up some of the questions & concerns you may have regarding FBAR. Important Note: This is not professional legal advice, just sharing articles for forum members.
  7. Hey everyone, this is more of a PSA than anything else. In a recent tax related discussion, I mentioned to another member about the important of finding a qualified tax preparer so that you're covered in the event of an audit. Having said that, I wanted to bring to light that CliftonLarsonAllen, a top 10 national CPA firm, recently joined the Wall Street Blockchain Alliance in an effort to gain the necessary knowledge to serve their clients. https://www.claconnect.com/media/cla-joins-the-wall-street-blockchain-alliance As a former employee of CLA, I can attest to the great work that their tax team does for their clients. So if you're on the hunt for someone that can actually sit down with you and help you navigate the crypto-waters when it comes tax time, I think this is a great place to start.
  8. There's some super gifted fundamental analysis and technical analysis folks on this board (and researchers (see the tinfoil hat club)). For my part though I think this current slow quicksand like sinking is due to taxes. With US taxes coming up and end of the year for so many other countries around the corner, it just seems to me that folks are taking a wait and see approach with some taking advantage of the opportunity. "Never let good crisis go to waste" or in this case tax season, and that's exactly what the big traders with their bots are doing. So what are they lunching on ? they're lunching on all the folks that FOMO'd at $3 and are now freaking out becasue they need to cash out and pay taxes, traders know this. Additionally (at least in my thinking) many people / companies made a lot of money in XRP and other coins and may need to close out positions for year end. Lets not forget that BTC is getting hammered in the press right now as inadequate and the spectre of regulation (think G20) are creating fear for the masses. Fundamentally Ripple (XRP) has established an incredible foundation and is quickly growing from that solid platform. Technically, in the XRP TA thread, @CaligulazBaby along with others have made some awesome calls along with logic behind the driving force. Is $.64ish going to stand out as the most recent bottom, maybe... maybe not. What I do firmly believe is that the next move (after taxes are over in the US and the new fiscal year begins for many Countries) will be to the upside and it will be very big, bigger than most people expect. For me these are buying opportunities and they are appreciated. *** caution though... avoid becoming whale food by not investing more than you afford to lose and or you wife won't freak out about 'cause remember nothing is certain except for death and taxes. #donotfeedthewhalebots
  9. I'm trying to backtrack my account transactions through XRPcharts wallet explorer or bithomp to get my balances on the beginning and end of 2017 for tax purposes, even though I'm of the opinion that swapping one IOU for another should be deferred like a like kind transaction. Does anyone have a better more direct way to get what my exact balance snapshot would have been Jan 1 and Dec 31 rather than pulling all the transactions in a wallet between dates in order to backtrack balances one trade at a time?
  10. https://www.ethnews.com/coinbase-sends-irs-summons-notification-to-13-000-customers I find that for those using coinbase AND in the USA to note this. I've also read somewhere in the past that Coinbase is sending transactions in excess of $5,000. This makes senses as it complies with money laundering rules. (I'm pretty up to speed on these issues). Above if just a funny statement. Also interesting that Credit Card companies are classifying as a cash advance I think we are getting into an interesting part of crypto not explored yet and that is the legal mess this is all creating [at least for USA citizens]
  11. I'm guessing this is going to be a HUGE problem..... For those in the USA I read that ANY transaction over $5,000. Coinbase is reporting to the IRS. (just saying....) 0.04 percent That’s the percentage of people reporting income or loss due to cryptocurrency trading, according to a study by Credit Karma Tax of the roughly 250,000 returns that have been filed so far this year. Essentially, a bunch of the people who made a lot of money off of Bitcoin may not be planning on paying taxes on it. https://www.cnbc.com/2018/02/13/barely-anyone-is-paying-the-taxes-they-owe-on-their-bitcoin-gains.html?ex_cid=SigDig
  12. So, to begin with, I looked back a few pages of topics and didn't find any Tax Topics My situation. (Hopefully not for long) I use Coinbase to purchase ETH. (Next line has been remedied, was learning the ropes about how to obtain XRP and wasn't thinking about triggering taxable events, now I buy BTC on Coinbase, transfer to Kraken, and exchange for XRP) I then send that ETH to Kraken and Exchange for EUR. And from EUR to XRP, then to wallet. Now, the taxable event - ETH to EUR. Here's my question. Since I made numerous separate transactions as I did not invest all my money at one time: would it be safe to say my realized gains/losses would be a result of the total USD Value of my exchanged ETH to EUR less the USD amount of ETH I initially purchased on Coinbase minus all applicable fees? Otherwise, I have no idea how I would work it out as it's near impossible to figure out each transaction portion since I didn't invest it all at once if that makes sense. Thanks for any help. Been reading up on the Tax Laws and I can't find this particular situation covered.
  13. https://www.express.co.uk/finance/city/911424/Bitcoin-price-warning-dollar-Ripple-ethereum-bitcoin-crash "Bitcoin, Ethereum and Ripple are likely to be targets of "inevitable" regulatory crackdown" "adding that a tax crackdown could also hit investors"
  14. Does anyone know what the status on taxes is for money coming out of the exchanges and back into personal bank accounts in Canada. Or will it be better to follow a path of an offshore tax haven now that the money is out of the country?
  15. As a California resident, this is why I'm holding onto my XRP indefinitely: What are your tax strategies? Obviously only suggest legal tax avoidance maneuvers. I suppose it's ok to talk about "shady" tax dodgers as long as we don't advocate people doing it. My tax strategy involves moving to a jurisdiction with more favorable tax outcomes, but from what I hear the State of California has it's tentacles in you up to 18 months after you move. It also appears that the "like kind" exchange is about to go away. Any other suggestions? UPDATE: Alright I'd like to post an update with some additional thoughts. I know this is morbid, but what about gifting XRP to my grandmother and inheriting it back from her estate? As long as it's not worth more than ~$5million I shouldn't owe any estate taxes. Am I missing something or would this be a legitimate tax strategy? UPDATE #2 Confirmed that this is a legitimate/legal tax strategy if executed correctly.
  16. When I first intended to buy xrp it was at .25. I had planned on spending $2500 u.s. but the wife knocked it down to $1000. Fine. I have to live with her the rest of my life. The $1000 included $100 for a ledger nano s. This was early December. Finally got verified by the end of the year. I bought LTC on coinbase because they accept USD. Moved ltc to gdax, (read it was cheaper to use ltc than btc), moved ltc to bitstamp, converted to USD, bought xrp. Origianlly bought on coinbase with CC because I wanted to get in. Now after fee, fee, fee I had 300+xrp. I want more. Sooo, an order to get more without depositing more then its playtime. I start selling high, buying low. I'm doing like 10 transactions a day. (stay home dad and kids home for winter break). I did fine. I got some extra xrp. Nowhere near enough. Then I see some posts about taxes. UGGGH! Every trade??!? CMON. I can just see myself at the end of the year with hundreds of transactions to deal with. So now I'm a true HODLer. Still havnt received the nano s (coming from France), but as soon as it arrives and it is set up the XRP goes in, the nano goes in my safe and I'll be happy with what I have.
  17. https://www.coindesk.com/nevada-first-us-state-ban-blockchain-taxes/ Don't know if this was discussed before here on the forum, but amongst many of us Hawaii crypto investors here on my island (Honolulu, Oahu) are strongly considering it if/when we withdraw large amounts of USD. As some of you may know, there are already many Hawaiians in Vegas area (Summerlin, Henderson, etc.) We love Nevada.. as they say in Hawaii.. Vegas is our 9th Island Anybody here in Nevada state can confirm this is true? All of your capital gains being kept without tax issues? Respectfully with Aloha, -SamTheMan
  18. I need some help with tracking my taxable events for my cryptocurrency trading and think that many others struggle with how to record taxes with the new tax laws that went into affect January 1, 2018. It is pretty straight forward if you buy a crypto with USD and then sell the same crypto for USD. Where I am having trouble is if I buy a crypto with USD then trade that crypto for another crypto. For example, if I buy ETH on GDAX with USD I record that as a line item in my excel file then calculating the cost basis is easy. Now I send that ETH to Binance and Trade it for XRP. According to the new tax laws my ETH to XRP trade is now a taxable event. In the past, people could use IRC 1031 which allowed for deferred taxes on like kind exchanges of property. Cryptocurrency has been identified by the US government as intagible property for several years now. As far as I understand it, the government has changed IRC 1031 starting in 2018 to replace the word "property" to "real property" making crypto currency no longer eligible under this rule. This means all crypto to crypto exchanges are now a taxable event. I need advice on how to calculate the USD value of a like kind exchange. I want a way to get this exact and have definitive proof that my numbers are accurate if I was to be audited. Lets keep it simple with a hypothetical: I buy 1 ETH for 10 dollars (cost basis) on January 1, 2018 at 5pm and then trade that ETH 1 week later on January 8, 2018 for 5 XRP. Now I have to find out how much my ETH was worth after holding it for 1 week when I "cashed out" for XRP which means I have to figure out how much XRP was worth in USD at the exact second of my trade. So if my XRP was worth $4 each at the time of that trade that means my ETH appreciated from my cost basis of $10 to $20 (because I traded the 1 ETH for 5 XRP which are worth $4 each). In addition, my new cost basis for the XRP would be $20, so I guess I would have 2 line items for that one trade (A sell line item for ETH and a buy line item for XRP). Basically, I would have a taxable gain of $10 for my ETH and a cost basis established for my XRP of $20. So how do I capture the Fair Market USD Value of XRP at the time of my trade of ETH to XRP???? There is almost no way to be exact with the amount of fluctuation in price per second. Advice? Any advice on tracking this is appreciated.
  19. So here is new type of IRA that i did not know existed. Everybody touts the standard roth and classic IRA but nobody talks about a "checkbook" IRA. This seems to be huge. Imagine rolling over an existing IRA into XRP while keeping your money in a bank account and exchange instead of Fidelity , Vanguard, etc. Would really like some further input from someone who has done it. https://www.broadfinancial.com/self-directed-ira/checkbook-ira/
  20. Now that Ripple has started to take baby steps with respect to the coin price I started thinking about the potential taxes we will have to pay in a few years time, if we decide to sell. I live in Australia and it seems I'll end up paying somewhere around 50% when I cash out and this got me thinking about figuring out a way to lessen the tax burden. I normally pay 30% of my regular income and I don't mind it but when it comes to say, paying 500k on a $million profit seems crazy to me I came across Nomad Capitalist http://nomadcapitalist.com and wondering if anyone used it or are considering exploring this aspect of living in different country to save on capital gains tax. I plan to travel and live in south east asia once I have enough gains so I can get out of the 9-5 work grind and potentially get back to Australia if ever needed.
  21. Hey, I first started buying coins this year and bought it from Coinbase. When I learned about XRP, I started to xfer coins to binance and bitstamp to buy, sell and buy more. I have sold LTC once to deposit it as USD in my bank account once to settle a debt. Most/all buying selling has been on bitstamp, coinbase and binance to buy more XRP and other coins for hodl'ng. What is the best way to report (if I do have to report) for the upcoming tax season?
  22. Any word on the latest in regard to crypto-currencies and taxes? is Uncle Sam going to start coming after us soon?
  23. As a follow up to another chat topic started this morning (US time), I suggest that the community keep this topic as active as possible so those who are interested in info, analysis and personal experience about US taxes as they relate to crypto assets can become smart about how to trade, hodl or leverage their holdings with a decent understanding of what the tax implications may be. Let the games begin. PS: I am not a tax specialist, tax accountant or other legal advisor re: these matters. I have had 35+ years of business dealings (successes and failures) that have had huge tax consequences. I have studied, I continue to read, I am forever curious, I have owned multiple businesses, consulted with others and worked in environments from sole proprietor to international Fortune 500 companies. I've likely picked myself up more times than most people have fallen so my foolishness over the years has stuck enough to offer a few ideas here and there. I wish everyone who's looking to make a decent return from their hopes and investments in XRP much success. Cheers.
  24. Okay guys, I just had a thought, and it wasn't pretty. Every transaction that we have completed on the exchange, given they are regulatory compliant, is reported to the government: the amount you spent and how much XRP you got in return. The government isn't exactly up to date on operating systems and protections for their computers. What happens when a bad-guy happens to get access to that information through some hole in the GOVT's defenses, finds your information, gets your address and cases you? Have you heard of the $5 wrench attack? Someone who knows that you have X amount of XRP can take that information, case your house or where you work, abduct you and beat you with a wrench until you tell them the information they want. You have your XRP stored on something like the Ledger Nano S, and you have it set up with your PIN, and hopefully a passphrase. Ledger has added the capability to use a Passphrase or "Duress Pin" to create a hidden wallet with some spare change in it. This passphrase is given to the attacker in order to let them have access to the hidden wallet (what we would see as a security/sacrificial wallet) that has very little XRP in it. Hopefully they don't beat you further in an attempt to get you to reveal more. My point: through regulatory compliance, our personal information regarding our investments is pretty much in a very worrisome predicament, where the GOVT forces you to disclose this information and could potentially be readily available to a substantially sophisticated attack on the database that stores this information. How do we protect ourselves from this scenario? I really wish there was a way to make these things private, without it being disclosed on our taxes! If the govt knows what you have, and you just pay your fair share of taxes, nobody else should even know what you have. Especially when it comes to something as potentially explosive as XRP. What are your thoughts?
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