Non Footy Chat Thread II

[strider]

Which makes me question (again) the benefits of crypto trading. If you are in a top tax bracket you're getting slugged 40-45%.

So a tip might be to put your bitcoin in a trust and distribute profits to your student children's names to take advantage of tax free thresholds.

YRMV

you can also work it in with a SMSF (ie super) - but you need to do all that upfront and declare it properly

there is also an ATO concept of investor vs trader - whereby as a trader you operate more like a business instead of CGT .... but that all looks as grey as you could imagine and if you aren't legitimately trading regularly then good luck with the ATO

 

[hindy111]

I think I will use my money I have saved for a holiday instead.

 

[strider]

I think I will use my money I have saved for a holiday instead.

but you might be able to make enough money for 5 holidays ???

if you make money - just realise that a reasonable % of it will go to the tax man .... eg depending on your tax bracket, if you make 10k in gains, it might only end up 6.2k

 

[Gronk]

but you might be able to make enough money for 5 holidays ???

if you make money - just realise that a reasonable % of it will go to the tax man .... eg depending on your tax bracket, if you make 10k in gains, it might only end up 6.2k

All true, but like anything with CGT, the tax is only payable when you dispose of the asset.

 

[hindy111]

but you might be able to make enough money for 5 holidays ???

if you make money - just realise that a reasonable % of it will go to the tax man .... eg depending on your tax bracket, if you make 10k in gains, it might only end up 6.2k

Yeah I understand the tax and it's the same as shares or if made money on an investmemt property. The same style of tax applies. Crytpo is interesting if can be bothered with it. But would you invest a large amount of money? I feel like a lot of people are throwing under 5k at it. Small time investors will eventually take their money and run. That's when I'd feel prices would collapse.
Unlike an investment property where people would risk 500k+
I know quite a few people with very little money who invest in crypto. But most people I know with a lot of money invest in property. Why its more stable I guess.

 

[Gronk]

Yeah I understand the tax and it's the same as shares or if made money on an investmemt property. The same style of tax applies. Crytpo is interesting if can be bothered with it. But would you invest a large amount of money? I feel like a lot of people are throwing under 5k at it. Small time investors will eventually take their money and run. That's when I'd feel prices would collapse.
Unlike an investment property where people would risk 500k+
I know quite a few people with very little money who invest in crypto. But most people I know with a lot of money invest in property. Why its more stable I guess.

My brief foray into crypto learns me that to make any money a) you need to have a decent amount of cash invested and b) you need to be a day trader. Buy n hold might not be the best strategy because of the profit takers.

To be a day trader you need to be smart enough to ignore social media or at least read through the hype and trade based on the same strategy you would playing the ASX. Of course the problems associated with being a trader is that coinspot take a cut in every transaction as does the ATO*.

* you need to keep records and your P&L will be assessed at end of financial year so make sure you have the readies to pay CGT

 

[Poupou Escobar]

How do I take my money back out?
I am looking at a wallet like Coinspot to put some spare $ into and to buy and sell crypto for some fun, but I might want my money back someday. Is it easy to cash out?

You don't ever sell otherwise you'll miss out on massive gains that smartarses will endlessly tell you about, except when the price drops. Then you won't hear from them.

 

[strider]

You don't ever sell otherwise you'll miss out on massive gains that smartarses will endlessly tell you about, except when the price drops. Then you won't hear from them.

its funny cos its true

 

[strider]

you don't need to be a day trader to make money in the long run ..... you can trust that something like bitcoin (and other solid cryptos) will continue to go through cycles where it will increase in price over time ...... like buy apple shares 30 years ago

day trading would require lots of time and effort .... and as gronk says you'd have to accept the tax and commission implications

you could even do medium term trading - a handful of trades a year to get good buys and sells and you may do better than buy and hold forever .... would require some effort to understand the ups and downs and there are some decent youtubers etc out there you can learn from (though everyone seems to get caught out at times)

if you want to hold for any period of time you have to learn to ride out the pull backs - cos it is volatile

 

[eels81236]

How would crypto be used as an everyday currency if CGT is calculated every time I spend it? It just opens up a world of hurt especially for the less educated and under privileged. Whilst ever governments treat it as a security it cannot be classed as a currency.

 

[strider]

How would crypto be used as an everyday currency if CGT is calculated every time I spend it? It just opens up a world of hurt especially for the less educated and under privileged. Whilst ever governments treat it as a security it cannot be classed as a currency.

ATO lets you use it to buy stuff with no CGT - its one of the exemptions .... f**ked if I know how you prove it tho - lol

 

[strider]

the thing is, I don't think you would want to use it to buy stuff - not when its price is potentilly increasing

I think its still very early days and there is a f**k tonne of water to flow under the bridge ..... there will probably be digital currency widely used one day but what that is and how it will be controlled is anyones bet

people liken crypto today to what the internet was when everyone thought all you could use the internet for was emails ..... they might be right???

 

[eels81236]

ATO lets you use it to buy stuff with no CGT - its one of the exemptions .... f**ked if I know how you prove it tho - lol

As far as my limited research tells me you have to obtain the crypto for means other than investment.
If I sell my car for 1 Bitcoin I can then spend it tax free? What if I have a percentage of my salary paid in crypto? Does that count? I guess so.

 

[eels81236]

If I save my crypto salary, when does it turn into an investment?

 

[Avenger]

You don't ever sell otherwise you'll miss out on massive gains that smartarses will endlessly tell you about, except when the price drops. Then you won't hear from them.

I always think long term, you miserable dribbler.

#dogecoinboy

 

[Gary Gutful]

Just picked up $100K worth of these.

 

[hindy111]

Just picked up $100K worth of these.

View attachment 55409

You have 100k spare?
Motherf**ker

 

[Poupou Escobar]

I always think long term, you miserable dribbler. And I'm ahead, way ahead. Just like in real estate when you sensationally tipped that the Sydney market would fall on its arse. It didn't. You had no idea, like now.

Congratulations smartarse. You had money to invest during a period of massive inflation and low interest. What a genius you must be.

My real estate and crypto have also increased massively. Did I time the market right? f**k I'm smart. I only bought the house so f**kwit real estate agents couldn't stop me having pets. If I had kept my money in stocks it would've done just as well. But let's pretend we're smart for having spare cash to invest. Look how smart we are Avenger. f**k all those deadshits who couldn't afford to buy assets, you f**king peasant.

 

[Avenger]

Congratulations smartarse. You had money to invest during a period of massive inflation and low interest. What a genius you must be.

My real estate and crypto have also increased massively. Did I time the market right? f**k I'm smart. I only bought the house so f**kwit real estate agents couldn't stop me having pets. If I had kept my money in stocks it would've done just as well. But let's pretend we're smart for having spare cash to invest. Look how smart we are Avenger. f**k all those deadshits who couldn't afford to buy assets, you f**king peasant.

I actually didn’t have the money you dribbler. I borrowed. I’ve just got larger balls than you. And what’s wrong with peasants? My grandfather was a peasant.

#pissant

 

[Avenger]

@Poupou Escobar

Did you buy Shiba when I told you? It’s just hit it’s all time high. You listened about doge now listen again or just say thank you.