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If a business only ever has expenses and no revenue, they'll figure out what you're up to. If the process can't withstand an audit, you'll probably pay much more in fines and late fees. Sucks. The human farming that is government is still alive and well in the world. Maybe some day we'll move to more voluntary solutions which benefit everyone.

Of course. Hence the need to be diligent and structure well - and keeping revenue (crypto cashouts) and expenses pretty close to on par.

And yeah, hopefully better solutions on the way. Or, they might already be there with trusts and private foundation arrangements, just need to figure out...

That would be amazing. If we HAVE to pay stupid taxes, at least we could choose where it's going - or more importantly where it's not going!

Other problem with making your expenses and profits equal out - if you ever do need to borrow money to get a mortgage or loan - you won't qualify with 0 income.

I love this post though. In the US self employed people are taxed to death (thanks Reagan, you dead douchebag!) at 15% PLUS state and federal tax - like you pointed out - when it's all said and done, it's anywhere from 30% and if you're making good money 45% isn't unheard of. Oh right, then we have Obamacare which is another tax (giant myth its healthcare - it's health insurance you pay $300+ for a month and can't use cause deductibles are $5k+.Talk about theft!)

You got me all fired up with this post. I HATE TAXES!

You have my eyes and ears open. Thank you for post rok-sivante

Agree and also like to add that a hobby with an intent to make a profit is defined as a business. And this idea fits well with this new hobby of many of us called steem(it). If we keep track of steem revenue when exchanged to fiat through some fiat account, then we may be able to deduct "business" (hobby) expenses. This may even potentially include travel, computer, and other expenses related to the steem hobby / business. Surely food for thought t considered that may benefit many of us when properly thought out and exercised.

Great information and breakdown. Thanks

"Of course, one other option that has been suggested by others on the topic is to merely load up your crypto onto a debit card and then make purchases with that - not reporting it at all
However, such a strategy may be risky."

YES ITS SUPER RISKY , DON'T DO THAT !!!

When you use a debit card you are entering the banking system and the U.S. tax system. Same goes when you cash out of Coinbase to a bank account.

The only way around it is to spend crypto directly .

If you blog for a living you can of course create a business entity and get some tax deductions but also beware that it increases your chances of getting audited.

Very interesting, thank you for your time spent and all the information given.🕉

Interesting post.

best way is to claim the max of your tax back and if you get audited ask friend's who clearly aren't being audited for their receipts (new laptops, pc's, navigation, tablets, phones, etc., that'll add up). EASY DONE! Yes it's tax fraud, but they aren't gonna find out!

I'd rather keep everything legit.

as much as I'd prefer not to give the government money, it's not that scarce that it's worth the risks.

HAhahahah!!! "Moral of the story? I dunno. Taxes suck?"
I became an expat to reduce my income taxes and love reading ways to legally limit tax exposure. Thank you for this article.

Awesome
Upvoted

Thank you so much. Great advice.

like the list ...txs

Excellent post. You are right on the money! That is why I have an eBay & Etsy store so I can write off expenses. Love your Epic Cheat Sheet of Self-Employment Deductions!

Can't take credit for that - only for snatching it off Google Images... :-)

Great post & great advice. I bet most people don't care about taxes at all, especially not on their earnings on Steemit. - But the truth is, that it could be a living hell in the future. - Taxes suck, and I hate them.. But I still pay taxes.. From time to time. ;)

Thanks for the great post!

Your welcome

There are ways of de-taxing or not paying tax in Canada. It's a rabbit hole you might like! Technically it is Illegal for the gov to tax us on income tax. Yet they still do it because we sign on paper that they can. With changing our crytpo into fiat. How would they know how much to take in taxes based on what we put in and what we take out? Or is that up to us to figure out and tell them in case we get audited. Will have to ask me pa as he is an account and can't stand the CRA thieves.

Would much appreciate if you checked back in and shared once you find out more...

Years ago my dad and friends were looking into it and it can be done. I have no idea what avenue they went down to get there but it IS illegal for them to tax a Person. They tax the paper person not the actual person. To get around it is a SOB! and you will be most likely be on a watch list!

Probably. I'd rather just try work the loopholes as much as possible and conventionally-acceptable, staying off the watch lists...

good call.

Sounds like your Dad and friends were investigating a change in status. Here in the US, I have stumbled on to information about removing the burden of being a "US CITIZEN" and returning to the pre-Civil War status of State National. It is here that taxation ceases and freedom truly begins. I think you are correct in stating they cannot tax a man/woman, but the legal terminology will always bite you if not well-versed on the topic- i.e. they can tax a person. In law this is a corporation. When your birth certificate was recorded a franchise was created in your name and it is represented with all capital letters (just look at your COLB or drivers license).

Here is a good presentation to point you in the right direction: http://www.blogtalkradio.com/wbnslope/2016/08/13/ken-cousens-on-correcting-our-death-status-to-step-into-the-land-of-the-living

Yes that is also part of it. The all caps thing. That makes since about returning to before or changing status. It would also mean getting no gov benefits.

You must have already been thinking about this.

Nobody types that fast, or do you? ;-)

This is a great read with valuable information worthy of serious consideration. It's no surprise that those with lesser financial resources are usually the ones that end up paying the most on almost everything.

That is the moral of the story. Taxes really do suck and the more you think about it , the more you get upset and pissed about it. It's just really a lot taken out of your hard earned money. It really is unfair, if you think about it. It's a rat race and we seem to be running on quicksand. Is it any wonder savings is so low. The majority live paycheck to paycheck.

informative! up-voted and followed :)

RightWithin

Wow man this is what i was waiting for! Solutions for the upcoming financial revolution! Let's all become anarcho-capitalists a la @dollarvigilante style :)

To be clear: I want nothing to do with that guy. That is not at all what I was suggesting with this post.

Ok

One hell of a guide to understand .. However simple it is.

Up Voted and ReSteemed. This is pretty good. I think the government needs to have votes on the actual budget. People should be able to directly vote using an app if they choose to do so to allocate forced taxes around. The system we have now especially in my country Australia is not democracy it is theft and its terrible. We give most of our taxes to a welfare criminal class.

yep. proper blockchain integration could allow for such, as well - wrote about that here:

Government On The Blockchain: An Evolution In Taxation Allocation And Democratic Accountability...?

This is a great post, I learned a lot. Thanks for sharing and keep on posting ;)

Great post and followed. I have had my own business for the past 6 years but I went back to being an employee this year and what I pay for taxes is completely insane!

  ·  7 years ago Reveal Comment

I have been watching yours posts and comments @rok-sivante. I would like to work with you on this project I am offering you an invitation of free ongoing access.

You have been invited to STEEM (SBD) Trading Bot Growth Hack Project, https://steemit.com/bitcoin/@jordanlindsey/i-think-i-ve-built-something-incredible

You must be the genius of the people Thank you for post