Road to Spending: Cryptocurrency

[Sarnos]

https://blog.dx.exchange/2018/07/03/road-to-spending-cryptocurrency/
 

Quote

 

One of the more significant questions surrounding cryptocurrency and its ability to attract a broad base of users is how and when digital assets will be able to be spent by consumers for goods in a widespread manner.

...

This question and dilemma, is still a major riddle waiting to be answered in the cryptocurrency world. And while a company like Ripple can claim that its XRT coin can be used a form of payment when banking services use its infrastructure to transfer funds and pay the fees for the service in XRT, the use for other cryptocurrencies on a day to day basis, including even Bitcoin for that matter are still not entirely feasible

 

Answer: ILP guess who is supporting it - Ripple the people who sell "XRT" coins (for real how can an exchange like that get that so many times wrong its xrp ....

[Guest]

You may find plenty of great company on the road to using XRP in everyday transactions. A recent announcement of the Wirex card will solve that problem initially and, I'm sure, there will be so many copy cat crypto debit cards that our problem of not being able to spend XRP will be short lived.

Crypto Eri did an excellent video just today on this subject. 

 

[Single_Malt]

Won't this present huge problems for governments in terms of tax evasion? If I can buy some XRP, wait for it to grow in value, then spend it directly, I'm not paying any tax on my gains.

How would governments react to that?

[Benchmark]

20 minutes ago, Craig_ said:

Won't this present huge problems for governments in terms of tax evasion? If I can buy some XRP, wait for it to grow in value, then spend it directly, I'm not paying any tax on my gains.

How would governments react to that?

They will always devise a way to get taxes. Don't worry about that. It may take some time, but the new rules will be implemented with retroactive effect. Or they offer holders a deal: either pay this or be taken into court and eventually jail.

I don't exactly know how they will do it, but I have zero doubt it will come. When there are transactions, you will become visible to tax authorities. Simple as that.

[Guest]

On 7/5/2018 at 5:33 AM, Sarnos said:

https://blog.dx.exchange/2018/07/03/road-to-spending-cryptocurrency/
 

Answer: ILP guess who is supporting it - Ripple the people who sell "XRT" coins (for real how can an exchange like that get that so many times wrong its xrp ....

Wait! XRT? You mean I've been buying the wrong coin this whole time? Well, at least I've got plenty of BLT and EAT coins. Bacoin and Eatherium are going to be worth gabajazallions. 

Edited July 11, 2018 by Guest

[Guest]

2 hours ago, Craig_ said:

Won't this present huge problems for governments in terms of tax evasion? If I can buy some XRP, wait for it to grow in value, then spend it directly, I'm not paying any tax on my gains.

lol no, you have to pay taxes on every spend, as it counts as a trade -- in such case one had better keep copies of all the transactions

ill give you an example, in say, the uk, you'd pay (to simplify things) 20% capital gains tax upon conversion to GBP fiat, but, if you just decided to spend it, say, on some kind of magic XRP bank card, well, it doesnt matter whether you are paying for your groceries in XRP direct (unlikely but still) or whether it "instantly" converts into GBP to pay for them, either way it's a conversion or aka "crystallizing a gain" at the point of purchase, and CGT is still owed, e.g. 20% (depending on a few things)

[Single_Malt]

1 minute ago, zerpdigger said:

lol no, you have to pay taxes on every spend, as it counts as a trade -- in such case one had better keep copies of all the transactions

ill give you an example, in say, the uk, you'd pay (to simplify things) 20% capital gains tax upon conversion to GBP fiat, but, if you just decided to spend it, say, on some kind of magic XRP bank card, well, it doesnt matter whether you are paying for your groceries in XRP direct (unlikely but still) or whether it "instantly" converts into GBP to pay for them, either way it's a conversion or aka "crystallizing a gain" at the point of purchase, and CGT is still owed, e.g. 20% (depending on a few things)

Absolutely, I realise that. But how traceable is this? Won't this rely entirely on the honesty of the person filling out their tax returns?

[Guest]

1 minute ago, Craig_ said:

Absolutely, I realise that. But how traceable is this? Won't this rely entirely on the honesty of the person filling out their tax returns?

absolutely -- and if you're not honest, and they catch you, you're screwed (really, really screwed)

[SamK]

2 minutes ago, Craig_ said:

Won't this rely entirely on the honesty of the person filling out their tax returns?

Exactly the same as tax returns for any other earnings.
That's why the use of a good accountant is very helpful

[Delectro]

Okay, so could someone enlighten me on this tax thing.

My question is this,

1)I've paid taxes on my wage slave income, deposited that income into CB.  2)Bought BTC and sent to Binance, purchasing XRP paying all fees throughout 3) sent to toast and HODL.

I don't need to claim that on my taxes right?  Only when I withdraw correct?

Gotta pay capital gain tax before a year and less than that if held for over a year?

I've heard of a bitpay card.  Load up to 25k a day and withdraw up to 10k a day.

My bank let's me deposit up to 10k a day without notifying (guess I'm not supposed to know that) IRS.

Should I just assume I need to pay a nice round 30% after say a couple years on each deposit or???? 

I'd rather not pay any taxes however I am guaranteed that I will.  That and death.  Thanks ahead of time for what everyone does here on this forum...  You all ROCK!  See ya at the top 

 

[Delectro]

Just now, Delectro said:

Okay, so could someone enlighten me on this tax thing.

My question is this,

1)I've paid taxes on my wage slave income, deposited that income into CB.  2)Bought BTC and sent to Binance, purchasing XRP paying all fees throughout 3) sent to toast and HODL.

I don't need to claim that on my taxes right?  Only when I withdraw correct?

Gotta pay capital gain tax before a year and less than that if held for over a year?

I've heard of a bitpay card.  Load up to 25k a day and withdraw up to 10k a day.

My bank let's me deposit up to 10k a day without notifying (guess I'm not supposed to know that) IRS.

Should I just assume I need to pay a nice round 30% after say a couple years on each deposit or???? 

I'd rather not pay any taxes however I am guaranteed that I will.  That and death.  Thanks ahead of time for what everyone does here on this forum...  You all ROCK!  See ya at the top 

 

P.S. I have a CPA

[Lamberth]

4 hours ago, zerpdigger said:

lol no, you have to pay taxes on every spend, as it counts as a trade -- in such case one had better keep copies of all the transactions

ill give you an example, in say, the uk, you'd pay (to simplify things) 20% capital gains tax upon conversion to GBP fiat, but, if you just decided to spend it, say, on some kind of magic XRP bank card, well, it doesnt matter whether you are paying for your groceries in XRP direct (unlikely but still) or whether it "instantly" converts into GBP to pay for them, either way it's a conversion or aka "crystallizing a gain" at the point of purchase, and CGT is still owed, e.g. 20% (depending on a few things)

Unless it’s OTC which is hard to trace and prove. And here we are, one step closer to good old barter - I’ll send you some XRP and you’ll give me this nice fish you just caught and those shoes. Welcome to XI century, dear sir.

Edited July 11, 2018 by Lamberth

[Lamberth]

 

6 hours ago, Craig_ said:

Won't this present huge problems for governments in terms of tax evasion? If I can buy some XRP, wait for it to grow in value, then spend it directly, I'm not paying any tax on my gains.

How would governments react to that?

On a serious note, it is a classification issue and the real question here whether crypto will ever be recognized by goverments as fiat money and not commodity money? Hard to answer but e.g. Japan is not far from this after recognizing bitcoin as a legal tender in 2017.

https://seekingalpha.com/article/4133681-bitcoin-legal-tender-japan

Edited July 11, 2018 by Lamberth

[Single_Malt]

22 minutes ago, Lamberth said:

Unless it’s OTC which is hard to trace and prove. And here we are, one step closer to good old barter - I’ll send you some XRP and you’ll give me this nice fish you just caught and those shoes. Welcome to XI century, dear sir.

How about if I were to transfer my XRP wealth to a number of friends and family who would then convert into FIAT within their own taxable allowances? Anything to stop me doing that?

[Lamberth]

20 minutes ago, Craig_ said:

How about if I were to transfer my XRP wealth to a number of friends and family who would then convert into FIAT within their own taxable allowances? Anything to stop me doing that?

I consulted 2 legal advisors lately and they both advised me against exploiting existing legal loopholes because it can back-fire. Surprise-surprise! I mainly attribute this to the Code of conduct to which those guys stick to the letter but even with that in mind not sure if I want to take my chances.

Edited July 11, 2018 by Lamberth