Getting a break as the crypto earnings will be exempted from income tax for a limited period

I might have finally caught a break as in my country they just amended a law that will have the crypto earnings exempted from income tax for a limited period of 6 month. While the income tax might get exempted, you would normally still need to pay social and healthcare taxes. But this are capped to a specific ceiling and on top of that as I am a freelancer I think I am already at that ceiling. Every income sums up in the end and with the capping I might end not having to pay taxes if I sell my crypto assets by middle of 2025. And if the bull run continues and the assets that I hold will reach those levels, I might be able to do some exists here and there.

For me to get some earnings on the crypto assets in 2025 would assume to have the current uptrend continue. And even in that context it might be not enough, but it could get on the levels that I am set to do some selling. So, let's see through the below bullet points what's my strategy in taking profits from my crypto earnings and the surrounding of such events.

Bull run needs to continue in 2025

The context of me finally existing some of my crypto assets that I hold since 2017, is if the bull run will continue also in 2025. There are the premises for that, but you never know. Also there are some question to what will happen to Bitcoin in case of a supply shock if US and other countries will want to make it federal reserve. I hope that the effect of that would be for the big investors to take a closer look also at some alts. We just need to wait and see how that unfolds I guess.

Sell high and buy low

While I am planning to sell, of course I intend to buy afterwards when the market moves to bear cycle. And with that occasion I will probably do some serious cleanup between the assets and I will be buying a rather small number of them, up to 5 crypto assets. This should allow me to focus on those and make the most of it by being anchored in those ecosystems and making the best decisions.

Taxes clarity is still in a cloud

For me just thinking at taxes was a hard thing. Why? Because it is missing the clarify on how that should work. For example if I need to pay taxes when I sell my assets and apply that on the profit OR if any transaction that's happening from my assets incurs tax at that moment. Many blockchains don't have like a summary you can simply export and you also do a lot of moves between assets and converting them, thus it would be a nightmare to track all those movements and differences.

A last step for the tax exemption to have an effect for the set limited period is the fact that the the law is sent, for promulgation, to the president. The promulgation of the law is done within 20 days at most from receipt. That means that between December 2024 to July 2025 I could trade and take the profits without the need to pay the taxes for it. And while this is a great thing in itself, I am more excited about the fact that I don't need to do any micro accounting for that. I will just report that the income is for cryptocurrency trading and that should be it.

Posted Using InLeo Alpha