A MILLION HIVE GIVEN TO ME || WHAT WILL I DO WITH IT?
@starstrings01 made the same post, listen to it here
You can actually win a delegation from @starstrings01, by checking out this post
I want to disqualify myself from the winnings, since other people could use it more than me.
A MILLION HIVE GIVEN TO ME || WHAT WILL I DO WITH IT?
I like thought experiments like these, but they are also quite easy for me to answer. I don't really need to take the money out of hive and not sure when or if I ever wanted to do so. It really depends on what happens to crypto in general in Denmark, I am not going to pay fking 57% tax on crypto x)
So if I received 1million hive I would properly just power it all up and use that as my baseline, I do think I would delegate like 100k to crypto projects on here, so I could get a bit of Liquid Hive aswell, which would be go to projects on here or to sponsor contests.
Wanted to make this post, to promote it :D
57% Tax? That is insane.
Yeps.. Its totally fucked and way higher than taxes on Stocks x)
I am honestly thinking about moving to another country x)
Come to Poland, at least there is normality here and no tax on cryptos.
Covid19 went straight past here and missed us out. :-)
Also very cheap to live.
No taxes on crypto is appealing, but Germany also don't have any tax on crypto yet :p
Netherlands have 30% and I just like Netherlands, magic truffles are legal there :p
Its normal in Denmark aswell, no more restrictions at all xD
But yes. Its cheaper to live in Poland then any of the other countries I listed
Where did you hear about the 30% for Netherlands? I'm pretty sure that's not how crypto is taxed here
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Just from google. It could be wrong though.
interesting, I'll have a look.. from what I gathered at the source ("de belastingdienst") it's mostly considered under wealth tax for individuals as a speculation investment. which means it's a box 3 tax and the first 50k (100k with partner) is exempt from this particular tax. After that it's just a few percent that's considered profit and on that part you pay income tax, the tax you pay over income is in the 30 range or close to 50 when you earn over a certain amount.
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I trust you more if you live there :p
But thats still way better than Denmark where I live, the tax is 57% flat for gains and stimm a 26% tax on losses.
Ok the rate you pay over the income generated through your wealth is indeed 30%, lower than the usual income from work which starts at 37%.
However, it's not the actual interest/profit gained from the wealth but a percentage from your total wealth. Here's the table (in dutch sorry, hard to find on the english page which is a total mess):
what it means is up to ~73k they assume you have 67% savings and about 33% stocks or other income producing assets. they then assume you make 0.07% on the savings and 5.28% on other assets. The more wealth you have they'll assume you have less savings and more assets so you're rate increases. Last row is two rates combined and that percentage of your wealth will be taxed at 30%.
It's kinda complicated with many assumptions, but actually not that bad when you consider the actual gains in crypto and their assumptions :-)
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So if I have a normal fulltime work with 37% tax and I sold 1 BTC (35000 Euro) I would pay 30% on that?
Or is it hard to do like that since it depends on your wealth(or assets)?
x)
Ah no it's not like that, there's no specific taxable "event" it's just paying tax on the assumed profit you make from the wealth you have.
So let's do an example, say you just have that bitcoin on January 1st 2020 (and no other savings, stocks etc to simplify). You'd actually pay very little tax because you're just over the threshold for wealth tax, first ~31k was exempt from taxation in 2020 and that figure is actually increased to 50k in 2021.
So you'd only pay tax over 4k euro (35k-31k), the assumption on that is you have 67% in savings and 33% in stocks etc. And the combined total yield on that would be 1.789%. so 4k*0.01789= 71.56
You'd only pay the 30% over this assumed 71.56 euro profit.
Now this is progressive as you can see in the table and the amount and assumed profit gets bigger with more wealth but it's not too bad actually.
The most you'll pay is 30% over the highest assumed gain which is 5.28% so 5.28*.3 = 1.584% tax on your wealth and only the part above the threshold..
Now keep in mind I'm no financial advisor so dyor yada yada, don't make any big decisions based solely on my input, but I'm pretty sure this is how it works
Its sooo confusing haha xD
I cant wrap my head around the "assumption" part xD
Oh ye for sure, no financial advice here :p
wow, that is really a great question that is asked , may I will get a heart attack on first I will have that much hive 😉. there is no tax in my country yet but. people feel scared of crypto not all but who have no idea what is this.
thanks for sharing I will try to make a post today on that 😄🙏
Haha, ye properly xD
What country do you live in Brother? :D
It was @starstrings01 who asked the question for the Nigeran community, I just liked the question and wanted to answer it :p
I am from India sir,
Cool hehe.
P.s, you don't have to call me sir xD
ok Mr @cwow2 😉, been busy with the post. just finished that will post soon 😄
this is insane
Haha ;)
Perfect! You can tag me if you want to :D
actually I did that , I should change the sir to mr in my post too 😄. That is so kind of you
Ahaaa I always love how straightforward and brief you make your posts and this is just one of them.
Many entries I've gone through all point to powering up their Hive for more rewards as they support and grow the community through projects and initiatives.
You have a great plan if you were given such an opportunity and I'm hoping you have such opportunity, I know I'll be part of those who would enjoy it too 😊
Nice entry but you are disqualified by me and you 🤣🤣
I find question like this easy xD
I think about random things like this all day long though xD
Yeye, I am 100% disqualitifed I know, just a fun question to answer :p
😂 It's cool to think of stuffs like this and I'm hoping some of our good thoughts come to reality.