>deposit 20k link into aave
>take out loan of 30k USDC
>transfer to coinbase
>exchange USDC for BTC then USD
>cash out
>buy car at 5% interest instead of 12% with jewish financing
>don't pay capital gains tax because loans are taxed, and keep linkies
Are there any issues with this? Is this cheating?
try it
loans *AREN'T taxed
Each of those crypto to crypto trades or exchanges is also taxed 30%. Enjoy the IRS fucking your ass.
Get a loan at nexo and dont use coinbase
>loan 30k
>bought btc at 30k
>sell btc at 30K
how much is 30% on that?
12%? Lol. My car loan is under 2%.
>nexo
>putting a single cent into a gypsy scam
Sloppy job, simian
Like 27k
30% of the gains
you'll probably lose money if you're not quick
ok i may have worded that wrong, CGT is based on profit. You took out a loan for 30k u bought btc for the full amount and then u sell it immediately, there are no profit on it so applying 30% is near 0
You’re an idiot who doesn’t understand what he’s talking about.
I have no idea if taking a loan is cheating or not but buying BTC to sell it immediately isn’t going to result in a tax of 30%.
DUMBASS ALERT. Where’s the profit that he’s paying tax on?
>any issues with this?
Why even buy BTC in that scenario just cash out usdc to USD
Coinbase will report this to the IRS, just be ready to explain how defi collateralized loans work to your accountant or the government if.yiu get audited
>30% of the gains
ok, so $0 then. Unless I make a few bucks in between trades, which would still leave me surprise money that I wasn't asking for anyways.
>Coinbase will report this to the IRS
While I don't really give a shit and plan to pay the taxman anyways, this is primarily what I'm worried about. I've heard of people on here getting an attorney for a few hundred bucks to unlock funds though since coinbase likes to fuck around with your $$$.
It absolutely does, usdc to btc is a taxable event, unless he sells at a loss. It's volatile enough it's a coin flip whichever one it is. But taxman wants to know how he got a car so he'd be a fool to not report his $0.02 gain or loss considering how pissy they can be in audits.
can you cash out USCD to USD on coinbase? Coinbase pro doesn't have USDC listed as a USD pair
Yeah you can can sell straight to usdc on coinbase.
cool, one less step then. Guess I'll just have to go through coinbase and not coinbase pro
And to answer your question, it’s not cheating because you are placing your trust in AAVE’s success in keeping your LINK safe.
I’m using it myself but I wouldn’t put 100% of my stack in. Definitely a powerfyl tool in its early days but always hedge your bets.
No problem there is like stupid high fees associated with it but it’s worth it for convenience and actually getting your money.
Most banks know what Coinbase is now.
Also be aware it’s a smart contract loan you can possibly be liquidated also so you have to be conscious of that.
But a small % like that you’ll likely be fine.
Gl fren.
The IRS doesn’t audit people over $0.02...
How do you repay loans on AAVE?
Fixed rate? Payment frequency?
Do they take your stack as collateral if the price moves against you?
We’re not arguing whether it’s a taxable event we’re arguing about 30% tax claim. There should be 0 tax.
They do after buying a $30k with cash though
I haven't taken one out, but I'm pretty sure the number just goes up. I can literally see the interest accumulating over my collateral every second. You can just repay it however you want, just can't let it touch a certain number that is a percentage of your collateral number.
Not capital gains stfu newfag
When the IRS comes for me I’m going to call them newfags and then they’ll have to leave me alone.
A taxable event occurred, it's either capital gains or loss. This is indisputable. You might get away with not reporting it but why risk it over a two cent gain?
That's what he's saying you inbred faggot. He's just arguing that the amount will be so fucking miniscule that it literally does not matter. It would be silly not to report it, but at the same time, even if you didn't, the letter they send you in the mail would cost more than the amount they would recover in fees.
It's taxed on net gains/losses dude you clearly have no fucking clue what you're on about.