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MisterRipple

Price increase due to Xrapid going live?

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It's a step in the right direction.  The infrastructure is being built and IMO price will appreciate soon.  The entire crypto space is continuing to build without price moving if you are mining you know this.  My miner was operating at a loss two months ago and operating at 3x that loss now.  We will see another dramatic rise, not sure when but i'd say at least 20x.  

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4 hours ago, RedRocket said:

So in other words you are happy with the decline?

So I spoke specifically to not expecting us to double our price in 12 hours, and you somehow walked away with "you are happy with the decline"?

Edit: This isn't rhetorical.  I honestly want to know what your thought process was to come to such an asinine conclusion.

Edited by BurtMacklin

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4 hours ago, ManBearPig said:

It depends where you live and how long you have been Hodling, and your marital status.  Assuming the USA example as someone who files their taxes as single:

 

If you live in the San Francisco, CA:

-Hodl less than one year subject to ordinary income tax = You go home with $530,749 ---  Hodl for longer than one year subject to capital gains tax = You go home with $623,094.  Deduct another couple percent for withdrawal/settlement. Still can't afford the median housing price in San Francisco!  Lets not get too complacent or greedy here, the average person is struggling in the real world and this money would be life changing if budgeted properly even for someone in this example.

 

If you lived in Miami, FL:

-Hodl less than one year subject to ordinary income tax = You go home with $639,090 ---  Hodl for longer than one year subject to capital gains tax = You go home with $764,380. Deduct another couple percent for withdrawal/settlement. Three bedroom single family home in a decent neighborhood, college education paid for future kids, a long international vacation, and some extra change to spare into a long-term retirement fund (possibly reinvested back into crypto).

 

 

Thanks for the post. Can you explain a break down of how taxes are calculated for those living in SF and selling less than and after 1 year. Thanks

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4 hours ago, ManBearPig said:

It depends where you live and how long you have been Hodling, and your marital status.  Assuming the USA example as someone who files their taxes as single:

 

If you live in the San Francisco, CA:

-Hodl less than one year subject to ordinary income tax = You go home with $530,749 ---  Hodl for longer than one year subject to capital gains tax = You go home with $623,094.  Deduct another couple percent for withdrawal/settlement. Still can't afford the median housing price in San Francisco!  Lets not get too complacent or greedy here, the average person is struggling in the real world and this money would be life changing if budgeted properly even for someone in this example.

 

If you lived in Miami, FL:

-Hodl less than one year subject to ordinary income tax = You go home with $639,090 ---  Hodl for longer than one year subject to capital gains tax = You go home with $764,380. Deduct another couple percent for withdrawal/settlement. Three bedroom single family home in a decent neighborhood, college education paid for future kids, a long international vacation, and some extra change to spare into a long-term retirement fund (possibly reinvested back into crypto).

 

 

20,000x100 = 2,000,000. Are you saying taxes are going to deduct around 1.3 million?? I have not seen a % this high for holding over a year. Thanks in advance. 

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15 minutes ago, camxrp said:

20,000x100 = 2,000,000. Are you saying taxes are going to deduct around 1.3 million?? I have not seen a % this high for holding over a year. Thanks in advance. 

No, not that high. It's basically 15% up to $425,000, 20% on anything after that for long term. Then whatever your state charges. I just ballpark it at 25% (this is state dependent though.)

ETA: Just to clarify 25% ballpark for total taxes, not just for state. Most state rates are 5%ish.

https://www.bankrate.com/investing/long-term-capital-gains-tax/

Edited by jtusa
clarity

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1 hour ago, bayarea510 said:

Thanks for the post. Can you explain a break down of how taxes are calculated for those living in SF and selling less than and after 1 year. Thanks

Let me restate this, as I had a momentary brain malfunction of dyslexia.  The previous example was for 1,000,000 in profits.  San Francisco specifically speaking for 2,000,000 in profits would result in:

Hodl Less than 1 Year as taxable income = 2,000,000 taxable income - 765,570 Federal income tax - 249,627 state tax = 984,803 take home pay :(

Hodl longer than 1 Year as capital gains income = 2,000,000 taxable - 436,475 Federal capital gains - 249,627 state tax= 1,313,898 take home pay :)

You would save $329,095 (32%) by waiting more than a year before selling this investment.

The only difference between Florida and California is there is no state income/capital gains tax. The difference between short term capital gains (under 1 year) is that it gets treated as ordinary Federal Income taxes (the same amounts they take from your paycheck) which becomes graduated tax rates, the more you make the higher the tax rate goes in segments.  After 1 year it does not get taxes as ordinary income, but rather a capital gains tax which varies between 0-20 percent depending on how much money you make.

 

46 minutes ago, camxrp said:

20,000x100 = 2,000,000. Are you saying taxes are going to deduct around 1.3 million?? I have not seen a % this high for holding over a year. Thanks in advance. 

Golly, my math had failed horribly, maybe I shouldn't do calculations while at work!  That is for 10,000 XRP @ $100 assuming 1,000,000 profit.  So you would take home a little less than double the amount in the previous examples.  I apologize for the error, I don't want to imply any false information at all.  Refer to this website, it will calculate it for you if you are in the USA: https://smartasset.com/investing/capital-gains-tax-calculator#uzBNzFzUtG

Edited by ManBearPig

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33 minutes ago, jtusa said:

No, not that high. It's basically 15% up to $425,000, 20% on anything after that for long term. Then whatever your state charges. I just ballpark it at 25% (this is state dependent though.)

https://www.bankrate.com/investing/long-term-capital-gains-tax/

Keeping a 25% figure in your head that will need to be saved for capital gains taxes is an easy calculation and probably a safe bet for most people.  Thanks for helping in  clarifying.  If someone sells something that they have been holding for less than one year, then they should be prepared to sacrifice up to 50% of their gains it will be treated as ordinary income.  In this instance there is many more variables to predict so it is more specific to each person's position.

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