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So when SafeMoon changes our lives, how do we handle the inevitable taxes?

Good morning SafeMoon army!

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As a Saturday morning coffee conversation, my wife and I are discussing the legal side of when SafeMoon brings large profits. We live in Canada and my wife has been reading through the Canadian Gov regulations on Crypto. From what it appears, we would be subject to being taxed on 50% of the total capital gain. So if we acquired 1000 dollars in profit, 500 dollars would be subject to taxation minus our original investment.

My question to the community is are there creative ways to pay less taxes on the amount? Open a business, donate to charity, put more in RRSPs?

I’m certainly no tax or financial expert but there must be ways to use the tax system and benefit, rather than taking it on the chin.

Any input is appreciated fam!

What do you think?

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26 Comments

  1. Transfer everything into Bitcoin then withdrawal from Bitcoin ATM’s. If the government thinks they’re getting even a dime of my tendies from something they don’t even remotely regulate they can suck my ape nut.

  2. Lot of money laundering being discussed in this thread. Lol

    The BTC atm idea is terrible. The limit is probably set to your account or social. Won’t change by driving to the next ATM. Even if it did… All exchanges are going to have AML analysts looking at these transactions. High volume of ATM withdrawals would undoubtedly trigger an alert which would potentially general a suspicious activity alert… Which is filed with FINCEN.

    The short answer is… Pay the tax. There has been no time in history where making money was easier than the days we live in now. Just pay the tax and say thank you to everyone that has bud all this leading to where we are.

    Long answer is you could potentially do some trade based money laundering. You might get away with a bit for a little while. But you do too much of that or at a high dollar value and you’ll get caught. Enjoy fines and/or prison.

    Best thing I’ve seen for some potential massive gains is a CRT. Look into it.

  3. When it does become life changing money…..dont sell anything, withdraw, or move anything. Do yourself a favor and go see a tax attorney and a CPA. There are plenty of creative and legal ways to limit or completely avoid taxes of the gains on an investment. The super rich have been doing it since the beginning of fiat.

  4. If you sell that’s a taxable event, about 28% fed + whatever your state tax is. If you make a lot of money it’s best to make a charitable remainder trust and pay yourself with an annuity. Not sure what percent the annuity is, think it’s like 6%. Also need to figure out how long you’ll be paid that annuity.

    It’s a whole process with a tax attorney and accountant to get it to work, takes about a month and like 5-10k.

    Biggest thing is you cant sell the asset. The trust has to sell it at a fair market value. The best thing is when that happens its tax free which is why people do it.

  5. I seriously don’t understand why you all even pay taxes to a government that doesn’t believe in what you’re investing is real money 364 days out of the year except for tax day.

  6. Hello from Winnipeg! I was actually looking at this myself and it’s a bit misleading. If you look on their website you are taxed up to 50% on capital gains. But my understanding is this is dependent on the tax bracket. The average Canadian would pay more like 25% on a capital gains. If you’re from Ontario you would need to make close to 300k a year to pay the 50%.

    A way to counteract capital gain taxes is capital loses. Take some of your money buy Bitcoin on the dip and sell at a loss. Then claim that on your income sheet in May.

  7. Biden is trying to get rid of capital gains rates here in the US. Meaning long-term capital gains will be taxed at the higher ordinary rate plus the net investment income tax. So if you cash out over 1 million your rate will be about 44%.

    Also in the US reflections are going to be taxable when receive. How the heck we are going to figure out the fair market value of every reflection received, I have no idea.

  8. Open a CRT charity remainder Trust. Then donate promise to donate $1 million to charity after your death or within 20 years. You can’t touch the $1 million, but you can live off the interest, that’s about $80k a year. From the $80k, buy a $1 million policy. Now you have a income of $80k a year for the rest of your life and $1 million policy for your kids when you did. Your kids will do the same with the $1 million. You have to put that instruction in a will and Trust, others they going to buy a Lamborghini, prostitute, and drugs. Also, because you donate $1 million, you will have a $350k tax write off for 5 years.

    Other option, buy stable coin that pays $70k a year in interest. That $70k, send it to coinbase crypto prepay credit car that offers 1% to 3% cash back. Now you can spend your money and withdraw from ATM.

    Other options, give up your citizenship and move to a country where you don’t have to pay capital gain tax.

    People, you don’t need to convert to cash or send money to your bank. Crypto is not your government business. This new money is no ones business. Banks are there to serve us buy keeping our money because it’s too risky to keep at home. Now we have options to keep our money now.

  9. Seriously consider moving to The Caymans. Depends how much you’ve got of course. Wouldn’t try that with just $5k profit.

    Who knows in 5 years a lot more places might take crypto as payment. You only pay tax when you cash out into fiat, if you catch my drift.

  10. Yeah, ummm, I’m going to go out on a limb and say that unless your a professional money launderer or a top corporation like Apple, Amazon, etc. Any “work around” to avoid paying taxes will either be extremely complicated, time consuming and eventually discovered by the IRS.

    No one likes taxes, that is probably fair to say. But everyone has to pay them.

    I’m on a 5 year plan for my crypto investments, so it’s going to be well over a year before I cash out…long term capital gains.

  11. So many bad comments with many people saying pay it or move it to trust. Dont sell it, period. If you’re only taxed on gains (pr unless you want/need to show loss) then dont create an action showing gains (or said loss).

    Move it to a high yield crypto bank and live off the interest alone. Alternatively convert “profited funds” towards another crypto project and repeat steps.

  12. You pay them. Tax laws will change annually so having a good tax professional is key. Save all of your buy and sell receipts. It will be hard to report SM because of its complexity. If we can’t track it how can the irs?

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