A new technological solution finds a smart way to save on your crypto taxes.
By now everyone knows that IRS treats cryptocurrency as property, whenever you trade, sale or exchange you need to pay gain-taxes for it. The most important number in your taxes is the cost-basis, the initial price of your coins.
So here is the trick, let’s assume you have an apple shop and you except crypto as a form of payment. For each transaction to your wallet, you need to remember the cost-basis. When you spend your coins, later the week, you need to pay gain taxes. Because let’s face it, crypto goes up and down but eventually, it always manages to set a new high record.
No more! Decentralized Trusted Party(D.T.P) is a new technology that allows you to have 0 tax, yes ZERO tax! It’s powered by Confidence Coin(Coco) and here how it works.
D.T.P is a company that performs the transactions on your behalf, the smart technology of Coco allows D.T.P to access your wallet without you having to reveal your private key. The D.T.P transactions are instant as they are made off-chain. But once a month(every first of the month) there is a special D.T.P transaction over the chain that matches your balance in Coco to your balance in D.T.P, in other words, the D.T.P is aggregating all your monthly transaction to a single day.
So here is the taxes trick. The cost-basis is calculated from the day the transaction was made over the blockchain, with D.T.P it’s always the first of the month.
Let’s get back to the apple shop. Since all the transactions are coming in at the first of the month and all the expenses also made during the first of the month, the cost-basis of buying and selling is the same! Meaning that you don’t need to pay any tax(or remember every transaction you made)
D.T.P is the perfect solution for the crypto world. The transaction fees are small since all the monthly transactions aggregated to a single day. And the best part is that you don’t need to pay IRS taxes anymore!
With D.T.P you can perform instant micro and macro transaction and enjoy the freedom of the REAL cryptocurrency world.
Transaction aggregation also means that only your final balance is revealed, the information of who you sent your coins to or who you got them from is not recorded in the public ledger. D.T.P is increasing your privacy.
You can find more details about D.T.P in the links below.
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