been thinking about taxes lately

Asking in the US.

So, last year, apparently, I effectively doubled my income through crypto and stock sales, all of which were reinvested. As a consequence my taxes were also doubled and I had to pay the half not covered by withholding with my savings and credit.

I’m wondering, though, what to do if my crypto investments do suddenly make me a millionaire. My intention was to reinvest that money into stocks and live on the dividends. However, if I sell all at once, that’ll be a huge tax burden – even converting to a stable coin is taxable – but if I hold too long, I’ll likely lose my gains.

Am I just going to have to bite the tax bullet, or is there another way to ease into it?

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15 thoughts on “been thinking about taxes lately”

  1. If you’re made a millionaire with your investments, you’ll probably want to speak to a fiduciary financial advisor and an accountant. You’ll have the capital to afford them and they’ll have the know-how as to what to do.

    (edit: otherwise, don’t change your lifestyle that much, but spend your money to make money: start a business, invest in your retirement, purchase safe commercial property, etc.)

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  2. I mean If you eventually want to get back to fiat or stocks you’re gonna have to pay Uncle Sam. Best thing you can do is make sure you’ve held for over a year so it’s taxed at the lower long sale rate.

    That’s all based on the current standards. Who knows what fun things our government will try in the next couple years

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  3. * use a vpn
    * sign in into account
    * withdraw all crypto
    * send it to wallet
    * buy monero
    * and then send it to another wallet
    * and tell them that you got hacked
    * enjoy defi for now on

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  4. Better to consult this with a professional which can maybe help you **avoid** taxes and not **evade** it like what most people here will tell you jokingly to do

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  5. Just pay the taxes. Don’t be that guy. There’s no avoiding it unless you’re a corporation or billionaire. You can donate money sure but I’d hire an accountant under those circumstances because it’s gonna be hectic when crunching the numbers. When you sell just do the math and keep what you owe in your savings and don’t touch it. So many people reinvest all of their money just to owe big time and risk losing their assets

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  6. Just eat the taxes. They make it so you’re fucked if you do, and you’re fucked if you don’t. I’d rather pay taxes on a shit load of money, than claim losses on my next year’s taxes.

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  7. You’ll need to set aside 200,000 for taxes (20% LT cap gain rate currently), then reinvest the 800k you have left. No way around paying your liability.

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  8. Lets say you make a 1,000,000 and sell all of your crypto, depending on short or long term capital gains tac you’re looking at around 25%-ish percent.

    I know. Its. A. Lot. Of. Money.

    Take a deep breath and just know that it is going to be ok.

    Hopefully you are using are using an exchange coinbase or another one that will print off your tax form for you. Take 500,000 thousand and invest that (with that much money I would recommend Charles Schwab or another place where you get a personal account manager to handle your investment goals). Plan on around 250,000-ish thousand being burned with taxes, and finally 250,000 leftover to invest in whatever way your want (in addition to your 500,000 investment portfolio).

    “normally” the market doubles every 7-10 years so it’s better off to keep it invested vs paying all you’re debts off, but not always the case depending on your financial goals.

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  9. If you hold for a year you get that capital gains rate. But yeah when you sell if you are going to reinvest, hold out the taxes(15-20% for assets you held for a year or 25-33% on assets you held less than a year) and put in a stablecoin and stake. Make passive income on that amount you know will eventually be paid to the man. The rest do whatever you want with it. That’s what I will do…

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