BitcoinStu on Nostr: That's correct. It's important to understand the tax brackets on long term capital ...
That's correct. It's important to understand the tax brackets on long term capital gains. The first $47,000 of long term capital gains (in the US) is taxed at 0%. So by selling that amount of bitcoin, you realize a gain, but it's a 0% taxed gain. Then when you buy back, your cost basis is set to the new purchase price. When you eventually sell you are taxed from the new tax basis.
It's a way to protecting $47,000 a year from taxes, every year.
Published at
2024-11-05 03:13:28Event JSON
{
"id": "7e82227638d86689e73ae4caf070329b9af7322504d17b2e7b2ae38926e39152",
"pubkey": "e75960285a603026fbca0ff2f0bed5acf12c1994fa2b00686fd17bd4307dafb8",
"created_at": 1730776408,
"kind": 1,
"tags": [
[
"e",
"77a40c72c912e463a1b194b9bb7978eda7731535861680bc64e4cc3143a9bdd7",
"",
"root"
],
[
"e",
"b3c9e1118f47bc8aee4f0ffaea88529175cf618dd8bdb87dbefbd67fba8898b9",
"",
"reply"
],
[
"p",
"8398119563e54302c5449ac34c94be43a2ff5ccbce47bb3745d67722a6a27185"
],
[
"p",
"e75960285a603026fbca0ff2f0bed5acf12c1994fa2b00686fd17bd4307dafb8"
]
],
"content": "That's correct. It's important to understand the tax brackets on long term capital gains. The first $47,000 of long term capital gains (in the US) is taxed at 0%. So by selling that amount of bitcoin, you realize a gain, but it's a 0% taxed gain. Then when you buy back, your cost basis is set to the new purchase price. When you eventually sell you are taxed from the new tax basis.\n\nIt's a way to protecting $47,000 a year from taxes, every year.\n",
"sig": "fa485045a906776aa8fe3ee9ffeedbfa7deb0e8f53770771473e2368be1f637dbdada35f214ec70e05c19fdd2ee7bd36bd111ef02be4249f2e677b26b073bf63"
}
