Let's talk about Cryptocurrencies

[PsYcNeT]

Also, for those who are tired of ETH as a mining source, Conflux (CFX) passed it (for the time being) in profitability today, but the only "major" exchanges trading in it are Gate.io and Hotbit, so YMMV.

[Winsor_Pilates]

Anyone hold crypto in a corporate structure (Holding Company)?

[Leondros]

Originally Posted by Winsor_Pilates

Anyone hold crypto in a corporate structure (Holding Company)?

Why would you want to? Corporate tax rates are much higher than individual rates and the costs associated for incorporating doesn't make sense.

[karl262]

Originally Posted by Winsor_Pilates

Anyone hold crypto in a corporate structure (Holding Company)?

I wonder how the keys are stored for companies and government entities.

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[karl262]

Originally Posted by PsYcNeT

I've hosted 8-16 TB for Storj for the last 2 years and it's a similar deal as Burst. It's definitely greener, uses pretty minimal CPU and is more or less dependent on your up/down speeds and empty drive capacity.

Not a massive return (I've made a bit over 2000 Storj tokens in ~700 days of uptime) but it did jump this week so that's nice. Cost of HDD space vs video cards though I suppose from a hardware return, it's quite good.

Neat, I had never heard of storj. I like the idea of secure and encrypted decentralized cloud storage and a low max supply of their erc20 tokens is nice.

I think burst wants to be a platform to run dapps and such. If it can do that as good as any other type of blockchain while using far less electricity it sounds promising.

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[topfiverecords]

Originally Posted by karl262

I wonder how the keys are stored for companies and government entities.

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Probably on a post-it on a CRT monitor.

[Winsor_Pilates]

Originally Posted by Leondros

Why would you want to? Corporate tax rates are much higher than individual rates and the costs associated for incorporating doesn't make sense.

I'm already incorporated (X2) and make my living under a corporation. It's much costlier for me to pay myself and use after tax personal dollars for investments.

[Fuzz]

Originally Posted by karl262

Neat, I had never heard of storj. I like the idea of secure and encrypted decentralized cloud storage and a low max supply of their erc20 tokens is nice.

I think burst wants to be a platform to run dapps and such. If it can do that as good as any other type of blockchain while using far less electricity it sounds promising.

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Does max supply of a digital currency make sense? I'd be interested to see if you could get the value to remain completely stable(or aim for a % inflation) by using algorithms to adjust overall supply. Having a max supply causes all sorts of issues.

[Leondros]

Originally Posted by Winsor_Pilates

I'm already incorporated (X2) and make my living under a corporation. It's much costlier for me to pay myself and use after tax personal dollars for investments.

But your tax on investment income is almost certainly higher than your personal tax rate.

[topfiverecords]

If a corporation bought a large amount of steel rods and warehouses them until steel prices rose is that a taxable investment? Or is profit after expenses taxable as business income?

[Leondros]

Originally Posted by topfiverecords

If a corporation bought a large amount of steel rods and warehouses them until steel prices rose is that a taxable investment? Or is profit after expenses taxable as business income?

Was is it in the normal course of business that you bought the inventory and is that inventory an input for what you sell? Business income.

Holding it like any other precious metal in order to see an appreciation? Depends on the nature of your business and if you meet criteria that the CRA would deem you to be a trader.

[GGG]

Originally Posted by Leondros

Was is it in the normal course of business that you bought the inventory and is that inventory an input for what you sell? Business income.

Holding it like any other precious metal in order to see an appreciation? Depends on the nature of your business and if you meet criteria that the CRA would deem you to be a trader.

And we have discovered why Tesla allows you to pay in Bitcoin.

[Leondros]

Originally Posted by GGG

And we have discovered why Tesla allows you to pay in Bitcoin.

My US tax law is rusty but I think it would be a capital gain on investment and definitely from an accounting standpoint it would be mark to marketed.

Edit - looks like Tesla is accounting for it as an indefinite lived intangible asset. So they wouldn’t recognize any appreciation but would impair it if it devalues. Pretty punitive.

[J pold]

Originally Posted by Winsor_Pilates

Anyone hold crypto in a corporate structure (Holding Company)?

I do. My understanding is that the appreciation isn't taxed until you sell and I plan on holding my BTC for the long term. For me to take the income out of my corporation, get taxed on it and then by BTC doesn't make sense but then I'm not an accountant.

[Winsor_Pilates]

Originally Posted by Leondros

But your tax on investment income is almost certainly higher than your personal tax rate.

Yes, but I have more to invest instead of investing after tax dollars.
I only lose 12% to the tax man and can get more into the market instead of losing 40-50% and investing personal income and then investing the leftovers. Especially since crypto can't be under tax sheltered investments like a TFSA/RRSPs.


There's other things that apply too, it makes sense when my accountant talks to me, but this stuff honestly hurts my brain .

I'll call my accountant anyway, but was just curious if anyone else had set up a corporate crypto structure.

[Winsor_Pilates]

Originally Posted by J pold

I do. My understanding is that the appreciation isn't taxed until you sell and I plan on holding my BTC for the long term. For me to take the income out of my corporation, get taxed on it and then by BTC doesn't make sense but then I'm not an accountant.

Thanks.

Did you set up your accounts on the exchanges/wallets under your corp, or just made sure the money source was from that?

[dino7c]

Originally Posted by Raekwon

You can now buy a Tesla with Bitcoin

https://twitter.com/elonmusk/status/...446063105?s=21

The biggest piece of news here is that they also said they will also be keeping it as BTC and not converting to cash

[Leondros]

Originally Posted by Winsor_Pilates

Yes, but I have more to invest instead of investing after tax dollars.
I only lose 12% to the tax man and can get more into the market instead of losing 40-50% and investing personal income and then investing the leftovers. Especially since crypto can't be under tax sheltered investments like a TFSA/RRSPs.


There's other things that apply too, it makes sense when my accountant talks to me, but this stuff honestly hurts my brain .

I'll call my accountant anyway, but was just curious if anyone else had set up a corporate crypto structure.

You would have to run the numbers in your situation but yes, you are deferring tax on a personal basis in your corporation until a time you pay out your dividends. This is advantageous if you can wait for a tax year where you are in a lower tax bracket. However your gains will be significant and taxed at a higher rate. Have your accountant run through both scenarios for you on paper.

You actually can run bitcoin through TFSA and RRSPs now that there are ETFs. I have a chunk of my TFSA in these.

[Leondros]

On a somewhat related note the CRA is going after crypto holders in Canada. I bet there are going to be a lot of audits and ultimately the hammer will come down on these people.

http://https://nationalpost.com/news/canada/major-canadian-cryptocurrency-marketplace-must-fork-over-details-of-thousands-of-clients-to-cra-court-rules

[karl262]

Originally Posted by Fuzz

Does max supply of a digital currency make sense? I'd be interested to see if you could get the value to remain completely stable(or aim for a % inflation) by using algorithms to adjust overall supply. Having a max supply causes all sorts of issues.

There are stable coins that try to do that like tether. They just keep minting new coins to keep the value as close to 1 USD as possible, I would assume they can burn coins too but not sure.

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