The IRS Is Coming for Crypto Investors Who Haven’t Paid Their Taxes

Re:The IRS Is Coming for Crypto Investors Who Haven’t Paid T... by dkarras on Friday May 14, 2021 @11:29AM (#27155301)

So I have 730k in bank account, but instead of using it, I borrow 730k and spend that money (how do you even decide "which" money you are spending anyways, it's all money) and pay interest on the loan? Why would I do that?

[ Parent | on HN ]

Re:The IRS Is Coming for Crypto Investors Who Haven’t Paid T... by rawtxapp on Friday May 14, 2021 @11:46AM (#27155491)

Not sure I understand what you mean, you only have 1 730k which you've borrowed. Interest rates are a drop in the bucket (~4%) compared to ~25-40% tax rates and that's ignoring asset appreciation (BTC averages ~300% YoY). If you use something like makerdao, you won't even have to pay a single cent of the debt back as long as you borrow conservatively and don't need your collateral back.

[ Parent | on HN ]

Re:The IRS Is Coming for Crypto Investors Who Haven’t Paid T... by pinkfairy10 on Saturday May 15, 2021 @09:54AM (#27165262)

This assumes BTC goes up every year tho

[ Parent | on HN ]