Question: What's stopping me from cashing out "without cashing out" with SALT to avoid high taxes?
>Personal loans are legally non-taxable in the U.S. >Say for example, I have $75,000 tied up in crypto >Take out a loan for $25,000, money that I would like to cash out >Put up another $25,000 as collateral >SALT, who is backed by banks, will deposit USD into my bank account for me, as agreed to in the "loan." >Once the money hits my account, immediately pay back the loan + or - 10% interest, and take back my collateral. >The money in my account from "cashing out" is loan money and thus not taxed, and 10% interest is much lower than the usual 30-40% tax rate for huge sums (if I were pulling out more).
Can some anons familiar with tax loopholes point out any flaws in this logic?
>Too complicated to understand >Why is the price JUSTING me
We are the SALT marines United we hodl, divided we sell
Jackson Harris
dumped the rest of my bags earlier today, feel better already. it is going to take them WAY too long to continue manually processing their 300 mil loans
Cooper Robinson
Patience is key, do your own research, once you understand why the price is staying so low right now, there is so much misinformation yet the team is legit as hell.
Doing your own research is the only way you will ever make it.
Thomas Bennett
What's the current FUD with SALT? I bought in at 3 bucks but sold at 14 a while ago. Always wanted to use it though.
Jace Baker
that's the point of it faggot
Ryder Sanders
Impatience and all the normies in crypto right now who dont understand how actual businesses operate, the uneducated thought it would go straight to $27.50 at launch, actually giving loans requires a lot of legal work which takes time and Salt have only given out loans to the whales so far.
Because of all the misinformed people who bought in hoping to get a quick buck the whales are able to shake these weak hands until Salt starts giving out loans to the average person.
Who knows when that will happen, could be one day, could be two weeks, but you can bet as soon as it is posted on reddit and the average person learns about it then it will skyrocket, by which time it will be too late to buy.
You cant trade off the news in this game.
Lucas Perez
TLDR; You're basically paying SALT to put cash into your bank account, and paying them 10%, instead of 20%+ in taxes.
Nice FUD, but this shit is going to pick up within the next few weeks. I'm honestly expecting a free x3, instead of a x2 now. SALT has not adjusted to the recent alt market cap growth because of price manipulation.
If so, this coin will be worth easily $100. That's fucking huge if this can be used to avoid taxes, literally every crypto millionaire will utilize SALT while they can to cash out.
Parker Myers
>If so, this coin will be worth easily $100 Yes
>Erik Voorhees >SEC compliance >Already funded loans to whales >Lack of competition >Always under promised and over delivered
The main one though is watch the charts for a while, you will see very obvious bots and price manipulation if you know what to look for
Dont take anyones word for anything though, do your own research and you will find gems.
Brandon Ramirez
What the fuck is keeping the prize down. Should be $20+ now. RREEEEEEEeeeeeee.
James Sanchez
Check their twitter boys
moon time
Isaac Morales
Nothing. It’s a good idea.
Also, to everyone in here that wants the Salt price to go up. Please don’t encourage that. I’d really enjoy paying off my loans at half price for a while
Cameron Foster
So. Can I get a Loan from salt right now as it stands!?
Aiden Watson
You can but as with any legit business loan it takes days to process, hence all the fud
Elijah Long
Yes, I believe they are open to all loan application as of today. Processing time is 2-3 days though.
Andrew Rodriguez
Tbh I don’t know why anyone would expect anything different. That’s completely understandable.
Anyone have a link!? Thanks again!
Chase Moore
>Tbh I don’t know why anyone would expect anything different You must either have a lot of filters on biz or can immediately look over poo threads, if you have actually been watching the market these past few days shitcoins have been mooning left and right, the market is complete insanity right now.
Double check that this link is legit. It should be but always DYOR.
Colton Ward
So let me school you, and you can copypasta this into the next SALT thread or whatever.
I'm in corporate (((banking))), I'm not a tax lawyer or an accountant but have enough knowledge to explain this.
So you are all correct that when you take a loan out against your collateral (BTC in this case) you do not create a taxable event. It's tax free fiat.
The problem comes in when you default on your loan, and your collateral (BTC) is liquidated. When collateral is liquidated by the lender, the borrower owes taxes for the collateral liquidated.
So: >you take out 10k loan against your 1 BTC >yay you have 10k untaxed fiat, nice! >you default on the loan and never pay the 10k back >your btc gets liquidated (TAXABLE EVENT) >you now owe the taxes for the liquidated collateral.
This is exactly why SALT didn't sky rocket to $25. Because people honestly, don't give a fuck enough to bother with all of this, and rather just sell their BTC. You're opening yourself up to taxable events at the hands of an unnamed lender.
I'll stick around itt to answer scenario questions for the brainlets
Bentley Long
also obligatory: this only applies to burgers
Hudson Morgan
well said faggot, this concept will never break 100, too much fuckery afoot, i can see the scam headlines now
Jaxson Bennett
Why would you want to default on the loan ? Just pay it back with SALT tokens for half the price...
Caleb Morgan
That's all well and good for btc but do you really think ETH is going to fall in fiat value over the next year? Also you don't have to let them liquidate your crypto, you can repay the loan with fiat if you think your crypto is just in a dip.
Mason Anderson
np np brainlet. This is why I stuck around.
>10k loan against your 1 BTC >yay you have 10k untaxed fiat, nice! >loan becomes due, uh oh, you need to pay! >you pay loan with SALT at 50% the value you normally would have paid >you just used an untaxed asset to pay off a loan (REALIZED GAIN, TAXABLE EVENT)
Gabriel Thomas
Yeah sure, I mean people who are really trying to get loans and don't want to liquidate crypto, it makes sense to use the SALT platform. It's just not worth the tax fuckery if you accidentally get liquidated imo.
Kayden Reed
Ofcourse it is worth the 'fuckery' to avoid 30 fucking percent capital gains tax if you are a whale. There is no one in their right mind who would bet against Ethereum gaining 10% in the next year.
Jaxson Brown
>implying whales actually pay 30% capital gains kek.
Jonathan Carter
You know who I mean, there is a market for it and it is large, there are a huge amount of 'average' people who will become increasingly desperate to cash out some of their gains as they start to reach into the multi millions
Angel Walker
...
Andrew Myers
there is so much FUD going around about salt now, this is a massive bullish sign
Caleb Fisher
>implying whales would be able to avoid those taxes
Eli Smith
This is what I was wondering about so thanks for posting.
If you pay back with BTC (without defaulting) for the full amount due, is that a taxable event?
Sebastian Morales
SALT is a good project. The coin actually has a purpose, and it will be an ongoing project. There is no end date after which the developers step away, unlike some other projects where there is simply a roadmap for a year or so. It also makes serious cryptocurrencies more valuable and useful. We'll see what happens, but I think anyone who believes in cryptos and want them to have a real future would do well to invest in this and other similar projects which helps cryptos cross over in the real world.
