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Charting the course of XRP


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1 minute ago, retep said:

I looked it up and i wss wrong and this is how it is:

Up to 100k you pay 0,54% and when you have 1 milion worth of crypto, you pay up to 1,58% .

 

How can they know exactly the value ?

Just based on what you declared ? or do you have to reveal your position ?

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7 minutes ago, Wolfaolyth said:

How can they know exactly the value ?

Just based on what you declared ? or do you have to reveal your position ?

the day i stepped into crypto's i had money on the bank that i used to buy crypto's so the irs knows

that i have crypto's. And then law says that i need to hand over a paper that says how much crypto's i have 

and what they are worth on januari 1. sure i could shut my mouth, but then i'm going to get into alot of trouble

and i sure don't want that, specialy when i only have to pay 0,54% up to 1,58% because that's just peanuts.

Hell i wish that i belong to the ones that are paying 1,58%, because that would mean that i'm a millionaire.

15800 euro's on a million euro's is just money for the parking meter imo!

Edited by retep
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3 minutes ago, retep said:

the day i stepped into crypto's i had money on the bank that i used to buy crypto's so the irs knows

that i have crypto's. And then law says that i need to hand over a paper that says how much crypto's i have 

and what they are worth on januari 1. sure i could shut my mouth, but then i'm going to get into alot of trouble

and i sure don't want that, specialy when i only have to pay 0,54% up to 1,58% because that's just peanuts.

Hell i wish that i belong to the ones that are paying 1,58%, because that would meand that i'm a millionaire.

15800 euro's on a million euro's is just money for the parking meter imo!

Okay, the tax isn t that expensive.

My point is i wouldnt  want them to know which crypto i bought

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27 minutes ago, retep said:

I looked it up and i wss wrong and this is how it is:

Up to 100k you pay 0,54% and when you have 1 milion worth of crypto, you pay up to 1,58% .

 

... I'll have to pay 47% (then -50% for hodl longer than 12 months). 

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30 minutes ago, Wolfaolyth said:

Okay, the tax isn t that expensive.

My point is i wouldnt  want them to know which crypto i bought

Well i'm sure not going to hide anything, because when i might get lucky to get semi rich,

then i want to buy a home and big boys toys, and i can't have that when i can't tell where the money comes from.

There are 2 things in life you can't avoid, and that is death and the irs. 

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19 minutes ago, retryW said:

... I'll have to pay 47% (then -50% for hodl longer than 12 months). 

i don't get it, first you pay 47% and after a year you get 50% off??

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5 minutes ago, retep said:

Well i'm sure not going to hide anything, because when i might get lucky to get semi rich,

then i want to buy a home and big boys toys, and i can't have that when i can't tell where the money comes from.

There are 2 things in life you can't avoid, and that is death and the irs. 

Yes even the Joker don t mess with IRS

 

 

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1 hour ago, retep said:

I looked it up and i wss wrong and this is how it is:

Up to 100k you pay 0,54% and when you have 1 milion worth of crypto, you pay up to 1,58% .

 

0.54 or 1.58% based on cash and investment position on Jan 1st!. It sounds like a tax free country to me :)

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21 minutes ago, retep said:

i don't get it, first you pay 47% and after a year you get 50% off??

Yeah if I hold for over 12 months they will only tax 50% of my profits, but still at 47%

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14 minutes ago, retep said:

i don't get it, first you pay 47% and after a year you get 50% off??

Ha ha I know what she/he is referring to. Careful @retryW, you are giving away your net worth a bit here.

@retep, the context is this. Say you're in California, U.S.A. If you are a high earner (> $400K per year), you're in the highest tax bracket that attracts around 47% including Federal and State taxes. Airdrops are considered "found treasure" which means they are treated as regular income at the time you receive the airdrop AND are able to trade it. Even though the 47% is a tiered taxation (i.e. no tax for the first USD 24k, and so on) since the airdrop is over the top of your existing income, it's fair to characterize it as an effective 47%. 

Carefully look at what this means. Say you got USD 10000 worth of FLR. You are expected to pay a tax of 4700 even if you don't sell your FLR. Your cost basis is now 10000 for whatever number of FLR that is. Most are forced to sell 4700 worth of FLR and the later you are the higher the risk of a dump, which means you have to sell more than 47% of your original stash just to pay taxes.

Now to the second part. The current administration is proposing that those who earn more than $1M in a year must pay a long term capital gains of ~40% Federal, up from 20% right now. Combine that with state taxes, and that's 50%. 

Assuming this proposal becomes law, take someone making around USD 400K worth and getting about 200K worth of FLR this year. They first have to pay USD 94K worth in taxes this year on the 200K worth of FLR. In another 2 years, say the 100K worth goes up from 60 cents (assuming @Seoulite's guess is accurate) to USD 6. If you they were selling it all off, 200K is now worth 1.2M and your long term capital gains profit is now 1M and combined with that year's usual income of around 400K, you're squarely in the newly screwed category. You'll have to pay around $500K in additional taxes.

So you get an airdrop of $200K and over 3 years you would have paid ~600K in taxes and made an effective profit of $500K :lol: One side thinks they are paying too much. The other side thinks - well you're getting $500k for "free".

Hope this helps.

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Just now, banistersmind said:

Dumb question...who is Jed?

Ex Ripple co founder.

He left Ripple to create XLM (Stellar).

But he had several billiard XRP just as Brad or Chris and he said he will sold everything no matter the price..

So he dumps everyday XRP on market, but he can t sell more than a % of the volume per day....to avoid a massive crash

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6 hours ago, billion said:

So with bitcoin dominance falling off a cliff, what's the general consensus around here on how long there is left in this cycle? Would you say weeks or months?

I know some people look at BTC dominance a little more closely than others…I think the general consensus is this cycle will last through 2021 and possibly into 2022? A lull/consolidation period in mid-2021 with a final run-up towards the end of 2021 early 2022? Curious what our friends think?
 

@JASCoder @Julian_Williams @Baka @Eric123

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