The IRS taxes income from whatever source derived, and income includes any net ascension to wealth. On August 1st Bitcoin forked, and I magically had Bitcoin cash. There are a few tax problems, and I haven’t seen any solid guidance on this issue.
- Record scratch: I’m a lawyer, but not your lawyer. I’m explaining my own thinking on Bitcoin Cash and not giving any advice. And there are a lot of Internet experts out there saying that no one has to even pay taxes on Bitcoin cash, because it was free money. PLEASE hire an actual accountant.
On the day of the fork, what was Bitcoin Cash (BCH) worth? As Bitcoin cash was volatile, there’s no way to determine the exact amount. I’ve logged mine at $300 to be safe, as the IRS would love to make an example out of someone to crush Bitcoin, and that someone ain’t gonna be me.
But even a $300 estimate has problems. I didn’t have access to my Bitcoin cash on August 1st, as my hardware wallet didn’t immediately support it. Does that change the analysis as to the date of my net ascension to wealth?
Even honest taxpayers are going to have some complicated conversations with their accountants.
And how does Coinbase’s decision to wait until December 19, 2017 to give people their BCH apply to taxable losses and gains? Coinbase gave people access to their Bitcoin Cash at a cost basis of around $1,889.
Will Coinbase holders be forced to pay income taxes on $1,880 per BCH basis?
This math has real implications.
Let’s say someone had 100 bitcoins on July 31st. On August 1st that person would have realized a net ascension of wealth of between $30,000 and $40,000 (depending on how you price the BCH). Will this be taxed at ordinary income tax rates?
If that same person had his Bitcoin in Coinbase, then she would have a net ascension of wealth in the amount of $188,000. At ordinary income tax rates, that’s a tax bill as high as $73,000.
And how does one calculate the long-term and short-term capital gains tax rates for Bitcoin cash? In the U.S., the top short-term capital gains tax rate is 39%, and the top long-term capital gains rate is 20%.
The Bitcoin cash fork occurred on August 1, 2017 and my BCH are priced at $300 per coin.
If I sell my BCH on August 2, 2018 for (say) $1,200, is my rate the long-term capital gains tax rate on the $800 gain?
What about the BCH Coinbase handed over on December 17, 2017. Must investors wait until December 18, 2018 to sell their BCH in order to take advantage of the long-term capital gains rate?
These are complicated questions, and the IRS has yet to offer any guidance.
One tax accountant suggests that Coinbase users will be taxed as follows:
4. What should I use as the date of the BCH?
The date you had control. This will often be the date of the fork, 1st August 2017. For instance if you held your coins in your own local wallet, e.g. Bitcoin core or Ledger, then you were in control of the BCH private keys on that date. If you held your BTC in an online exchange, it would be more likely the date they were available to you. With Coinbase, for instance, that will not be until 1st January 2018.
Although I can’t vouch for that website, their analysis is consistent with my research and understanding of tax law.
Anyhow, these are complicated issues and the IRS would love to destroy some people.
Please hire a competent tax professional and pay your taxes on cryptocurrency.
Read now: Exodus Wallet Review.
Will Mushrooms Save Humanity?
Are “magic mushrooms” for filthy hippies who have checked out of life, or is there more to the story? Fantastic Fungi suggests the answer is yes in a wide-ranging documentary on psilocybin.
Loaded with mainstream, normie voices like Michael Pollan (as opposed to say Eckhart Tolle), Fantastic Fungi succeeds as a documentary for skeptics.
All plant medicine faces intense discrimination and bias, with claims ranging that medicine like psilocybin and ayahuasca are “demonic” or will “send you on a bad trip,” despite a lack of scientific evidence that supervised, responsible use of plant medicine has few downsides and updates that include
- advanced creativity
- freedom from alcoholism and opioid addiction
- higher ability to empathize with others and love more
Microdosing psilocybin has been used by names you’d recognize yet never expect, and indeed many people are shocked to learn that I have a decade-long experience with 5-MeO-DMT, ayahuasca, and psilocybin.
The stereotype of course is that people use plant medicine to check out of reality, when in fact the proper use of psilocybin enhances your ability to experience reality.
People wrongly believe that using plant medicine puts your physical body on a spiritual journey, inverting the truth, which is that your spiritual body in on a journey in your physical one.
We are spiritual beings having a human experience.” – Pierre Teilhard de Chardin
Fantastic Fungi will be enjoyable watch whether you are experienced in these matters or remain a skeptic. To those who are skeptical, grab a cup of coffee or beer (totally not drugs unlike the stuff other people use) and learn about the magic underneath your feet and within your heart.
You can watch Fantastic Fungi here on iTunes.
Bill Clinton on Jeffrey Epstein Island, Victim Claims
Former President Bill Clinton was seen with two women on Jeffrey Epstein’s “pedophile island,” according to Virgina Roberts.
The relevant except says:
When you say you you asked him why is Bill Clinton here, where was here?
Roberts: On the island.
JS: When you were present with Jeffrey Epstein and Bill Clinton on the island, who else was there?
Roberts: Ghislaine, Emmy, and there was two young girls that I could identify. I never really knew them well anyways. It was just 2 girls from New York.
JS: And were all of you staying at Jeffrey’s house on the island including Bill Clinton?
Roberts: That’s correct.
He had about 4 or 5 different villas on his island separate from the main house, and we all stayed in the villas.
JS: Were sexual orgies a regular occurrences at the island of Jeffrey’s house? Roberts: Yes.
You can read the document implicating Bill Clinton with Jeffrey Epstein here: pic.twitter.com/5igNwmjM4y
— Epstein Files Unsealed by Cernovich (@Cernovich) July 31, 2020
Bill Clinton is directly implicated by an eyewitness in the Jeffrey Epstein sex trafficking ring.
Six references to Bill Clinton in Virginia Roberts' chat with her lawyers on April 7, 2011:
Asked about Epstein boasting "Bill Clinton owes me favors," Giuffe said:
"Yes. I do. It was a laugh though. He would laugh it off… I didn't know if he was serious. It was just a joke." pic.twitter.com/InugMgHOz5
— Adam Klasfeld (@KlasfeldReports) July 31, 2020
Jim Jordan Sells Out Conservatives to Big Tech (Read the Confidential Memo in Full)
Labelled “Confidential,” the Jim Jordan Memo is something you’re not supposed to see.
Cernovich Media has obtained this Memo and is posted it in full.
Read the Jim Jordan Antitrust Memo here:
Highlights of Jim Jordan’s Antitrust Memo
- The Memo gives Republican talking points needed to defend Google, Apple, Amazon, and Facebook.
- The Jim Jordan Memo is clear. Zero antitrust action against Apple, Google, or Amazon will be supported by the GOP, and the memo is loaded with talking points defending Big Tech’s monopoly power.
- “Even if this hearing suggests that Google, Amazon, Apple, or Facebook have acted unlawfully, that would not necessarily mean underlying antitrust law needs an overhaul.”
Watch my Video Report of the Jim Jordan Antitrust Memo here:
I obtained the GOP’s confidential antitrust memo for tomorrow’s hearing. It’s a direct betrayal of conservatives. https://t.co/i3S5VfSW66
— Reclaiming My Time Cernovich (@Cernovich) July 29, 2020