If you read the thread and the original thread, he says it happened because he made good gains on btc in 2017 but sold it within a year incurring the taxes for that year, his losses happened in 2018 and thus he is stuck with a huge tax bill. He'd only owe about 20k if he used his altcoins, so it's up to him what to do from this point.
I know what it says, however the article is NOT explicit about the taxable event.
I know about taxes and how capital gain taxes work. The tax rate that is IMPLIED in the article the only one that could cause his taxes to be so high did NOT go into law until after January 2018.
You will be more suprised if you try to understand more of it. I am actually concerned too for myself and being really careful now on how to actually trade cryto. Every transaction you make, you should consider the tax effect of it and encounter that in your profit/loss.. otherwise what you think may be a great profit can potentially turns out to be a great loss in tax. This scenario actually is one of the easy-to-deal with scenario where he can still sell some asset and be able to re-pay the tax. where some legit just spent the money on houses/cars... and when they see the tax bills, they are legit ruined... because even selling those assets are not enough to pay the tax bill.
If you read the thread and the original thread, he says it happened because he made good gains on btc in 2017 but sold it within a year incurring the taxes for that year, his losses happened in 2018 and thus he is stuck with a huge tax bill. He'd only owe about 20k if he used his altcoins, so it's up to him what to do from this point.
I'd suggest moving away. That tax bill alone can will set him up in Nicaragua for years. Sunshine, hot latin babes in bikinins....and no crypto tax.
I know what it says, however the article is NOT explicit about the taxable event.
I know about taxes and how capital gain taxes work. The tax rate that is IMPLIED in the article the only one that could cause his taxes to be so high did NOT go into law until after January 2018.
It's a repost of ZH on steemit, which was a repost of the original reddit threads, so what can you expect. I read it on the subreddit first.
the irs has been known to enact laws retroactively... maybe thats what happened?
You will be more suprised if you try to understand more of it. I am actually concerned too for myself and being really careful now on how to actually trade cryto. Every transaction you make, you should consider the tax effect of it and encounter that in your profit/loss.. otherwise what you think may be a great profit can potentially turns out to be a great loss in tax. This scenario actually is one of the easy-to-deal with scenario where he can still sell some asset and be able to re-pay the tax. where some legit just spent the money on houses/cars... and when they see the tax bills, they are legit ruined... because even selling those assets are not enough to pay the tax bill.