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Crypto Tax Returns for 2018 May Be Lifted If You Live off Crypto Only: Report

  • Yuri Molchan
    📰 News

    A crypto tax consultant says on Twitter that traders under a certain income level do not have to pay taxes on crypto operations for 2018


Crypto Tax Returns for 2018 May Be Lifted If You Live off Crypto Only: Report
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Good news comes in despite the bearish wave that dominated the crypto market all throughout 2018 and seems to continue now.

A crypto tax advisor that goes by the name CryptoTaxGirl on Twitter has announced that people with crypto being the only source of income and under a certain level of monthly profits back in 2018 will be allowed to not pay taxes.


What caused the loophole

The loophole on crypto taxes this year has appeared owing to regulatory measures regarding long-term capital gains. CryptoTaxGirl says that tokens stored for more than a year are considered to be long-term gains – this fact increases the minimum amount of taxes to be filed.

Digital tokens stored for a time period smaller than a year are now referred to as short-term gains/losses. Single payers have to pay taxes for gains over $12,000, married ones – from profits over $24,000. But, considering the heavily bearish crypto market that dominated last year, even these figures can be all that these people have to live on.

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There are caveats, though

As for caveats, there are a few in this particular case, as is with any loophole. First of all, users must have held their tokens for more than a year.

The second one is that the loophole does not apply to tax filings related to all states. Every US state uses different methods of filing gains and losses from crypto trades. Some consider long-term gains as simple income, which means that a tax return is expected for any filing with such income on it.

The third one is that the loophole works only for those for whom crypto is the only source of income. Those who make a living from other sources as well must submit a tax return anyway – for reporting their income from that particular non-crypto source.

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Bitcoin's April 2 Breakout Was Reportedly Orchestrated by One Trader


Bitcoin's April 2 Breakout Was Reportedly Orchestrated by One Trader
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It’s been over two weeks since Bitcoin’s astronomical surge on Apr. 2, but new theories about what might have caused this bullish uptick continue to pop up. According to crypto-oriented analytical firm CoinMetrics, that epic surge was causes by a single trader.

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Mammoth-size trades

CoinMetrics claims that ‘a single committed trader’ concocted a plan to push the BTC price, and he successfully managed to do that by picking the time of the day when the global liquidity is at its lowest level.


(Source: CoinMetrics.io)

(Source: CoinMetrics.io)  

The report also suggests that the trader started to execute his plan on HitBTC (500,000 USDT were traded for Bitcoin prior to the price movement). After that, large trades were observed on Coinbase and Bitfinex.      

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Focusing on the future

Meanwhile, as reported by U.Today, another theory states that the rapid price surge was triggered by the expiration of the CME futures contracts and heavy spot and over-the-counter buying. One expert went as far as claiming that a simple April joke about the Securities Exchange Commission (SEC) could do the trick.

While no one is quite sure about what could have triggered the short-living rally, there is even a bigger disconnect when it comes to Bitcoin price predictions. While some share their bullish predictions for 2019, another report states that it could take 22 years for Bitcoin in order to match its current ATH of $20,000.

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