Let’s Talk About Taxes

Rising inflation. Energy crisis. Soaring electricity bills. Hapless governments who seem helpless to the world spiraling out of control. Times are getting tougher than ever before. That’s why we take our financial future into our own hands and invest in crypto.

The bear market still wraps its deadly paws around us, so we are used to seeing red and redder these days. Green is as rare as the unicorn. The only consolation is that these losses could be useful when it comes to tax loss harvesting.

Just when the macro environment is hit by a deluge of unsavoury elements, we still have capital gains taxes to contend with. India hogged global headlines this April when it increased its capital gains tax to 30%. But if we compare tax rates across countries, we will soon realise that 30% is actually the norm. In fact, people in some countries pay more than 30%. In Ireland, capital gains tax is 33% on all profits after the first €1270. Denmark tops the chart, not because of its happiest people, but because it is the country with the highest capital gains tax at 42%. How can crypto investors make profits when they are expected to pay so much taxes?!

What is the capital gains tax in your country? Does it weigh heavily on your mind and influence your behaviour? Are you stressed out by taxation - such that you find yourself making more conservative moves than you would ideally want to do? And how do you factor in taxes during these wild times?

Originally posted on r/cryptocurrency