Trevor Lawrence asked to be paid in Crypto currency

[DasNootz]

9 hours ago, Sammy Watkins' Rib said:

Are any of them not down at least 50% from their highs less than a year ago?

USDT and USDC are at least two that meet you criteria.

[DasNootz]

8 hours ago, KzooMike said:

I'm not a CPA (seems like this needs to be stated in todays world). That said, Crypto is not considered currency in the US, it is considered property and is subject to capitol gains taxes if not held for a year. So if you elected to be paid in Crypto you would need to hold for one year and not convert it into fiat currency to avoid paying capitol gains. Further, any additional gains that you accrued from your initial payment, such as the Crypto currency rising, would also be subject to taxes in the same fashion as your initial payment.

 

So hypothetical, say I'm paid $10,000 in BTC. If I convert that BTC to fiat inside of one year, I will pay standard income tax on the 10k in accordance with my tax bracket and I will pay capitol gains taxes as well. If I wait one year, I will just pay taxes in accordance with my income tax bracket. If my original $10,000 becomes $20,000, it's the exact same process. The additional $10,000 is subject to potentially both income and capital gains should I not wait a full year prior to converting to fiat. That is the event that triggers the tax, the conversion to fiat currency. So if any of these guys flipped the BTC right away and avoided the down turn, they also paid capitol gains to do so. Fortunately you can deduct as much as $3,000 per year in losses, but I don't think that will be very comforting for them to hear.   

 

 

I don't believe this is true.  You are taxed income tax based upon the cash value of the crpyto (as of the moment of transfer) paid by your employer.  Your capital gains or losses are calculated based upon that price and the price at trade or sale.  Short term capital gains taxes are paid if you sell or trade within 12 months, long term if over one year.

If I give an employee Bills tickets, large gift cards, a vehicle etc - they claim the cash equivalent of the tickets on their income taxes - crypto would be no different.  
 

[Dr. K]

Besides being a libertarian fantasy, Crypto is a playground for scammers and fools. It exploits the desperate and vulnerable.

 

I post this as a public service. It is long, but it says it all: 

 

 

 

 

[brianthomas]

In the past 20 years the US Dollar lost more than half its value. I'll have to revise that number as the pace of this has changed. But now theres a scam

 

Amazon's stock at one point lost 90% of its value. If u saw it drop 90% you'd probably think it was a scam, i know i might've.

But whoever held thru that or bought the fear, reaped the rewards.

 

Bitcoin is down 61% this year, still up 431% since 2019 from 1/2019 to 6.22/22

S&P is down 24% this year, still up 48% since 2019 same period.

 

Since bitcoin moves in 4 year cycles, the thinking is you make your 5-10x+ during the insane bull runs & that's more than enough to withstand the downturn.

Diversification is key, education paramount, & only investing what u can afford to lose is wise, as its a highly speculative asset class.

 

It remains to be seen if BTC will succeed in its intended vision & there's many scams in the space & sensible regulation is desperately needed/wanted. But Bitcoin has outperformed every other asset since its creation. Gold, the DOW, beans, socks u name it. I dont look at crypto as currencies per se because most arent intended to be currencies but as digital assets, tokenized real world assets (as the world is moving more digital & not less) or investing in software & AI & networks. Its such a diverse space its difficult to generalize what it is haha.

[RoyBatty is alive]

16 hours ago, Rigotz said:

 

.... not recently. They have all gotten smacked the past 6 months.

That is true but It is all relative, I would much rather lose 50% on Bitcoin in the past year than 99% in a few days like some others.

[DrDawkinstein]

2 hours ago, DasNootz said:

I don't believe this is true.  You are taxed income tax based upon the cash value of the crpyto (as of the moment of transfer) paid by your employer.  Your capital gains or losses are calculated based upon that price and the price at trade or sale.  Short term capital gains taxes are paid if you sell or trade within 12 months, long term if over one year.

If I give an employee Bills tickets, large gift cards, a vehicle etc - they claim the cash equivalent of the tickets on their income taxes - crypto would be no different.  
 

 

I dont think that's right. I guess it depends if crypto is treated as cash or like a stock considering you have to sell it to realize any actual value.

 

Stock options arent taxed twice, that is why so many CEOs use them to skirt around paying full income tax. They just take heavy stock options, sell them a year later, and only pay long term gains which is the lowest tax rate.

 

It would make more sense to me if the crypto is not taxed as income when originally paid, and only taxed at sale.

[Fan in Chicago]

9 hours ago, NoSaint said:

also, crypto in general is up hugely if you stretch the timeline at all. 
 

ol Trevor hit at a bad timing but most investments look rough over his unfortunate timeline. 
 

it’s not impossible to see new ATH down the line either. Down now does not mean down forever 

 

Hedging would be a good strategy. Historically there have been lot of cases of shiny new toys whose luster wears off, sometimes too rapidly. 

IMO, his mistake was in going all in. 

[Buffalo Junction]

Could be worse…. He could’ve taken his pay in frozen orange juice. 

[nedboy7]

8 minutes ago, Buffalo Junction said:

Could be worse…. He could’ve taken his pay in frozen orange juice. 

 

Why?  Is FOJ down? 

[Buffalo Junction]

24 minutes ago, nedboy7 said:

 

Why?  Is FOJ down? 

JK

[SoTier]

18 hours ago, What a Tuel said:

Whats the advantage to being paid in crypto as opposed to being paid in usd and then buying crypto with it? Isnt it taxed as income either way?

 

Maybe the dude has abandoned all financial transactions based on USD.   Probably not the wisest move since crypto isn't accepted for most ordinary purchases.

[cba fan]

12 hours ago, KzooMike said:

I'm not a CPA (seems like this needs to be stated in todays world). That said, Crypto is not considered currency in the US, it is considered property and is subject to capitol gains taxes if not held for a year. So if you elected to be paid in Crypto you would need to hold for one year and not convert it into fiat currency to avoid paying capitol gains. Further, any additional gains that you accrued from your initial payment, such as the Crypto currency rising, would also be subject to taxes in the same fashion as your initial payment.

 

So hypothetical, say I'm paid $10,000 in BTC. If I convert that BTC to fiat inside of one year, I will pay standard income tax on the 10k in accordance with my tax bracket and I will pay capitol gains taxes as well. If I wait one year, I will just pay taxes in accordance with my income tax bracket. If my original $10,000 becomes $20,000, it's the exact same process. The additional $10,000 is subject to potentially both income and capital gains should I not wait a full year prior to converting to fiat. That is the event that triggers the tax, the conversion to fiat currency. So if any of these guys flipped the BTC right away and avoided the down turn, they also paid capitol gains to do so. Fortunately you can deduct as much as $3,000 per year in losses, but I don't think that will be very comforting for them to hear.   

 

 

ty but question.

 

if i was paid 24 million dollars worth of crypto(then got cold feet and had a change of heart) and then immediately converted it to dollars. Same day lol.

 

I only pay income taxes on a 24 million dollar of income value right?(crypto value had not changed. Yeah i was fast lol)

 

No capital gains tax as no capital gains made. Right?

 

 

[NoSaint]

1 hour ago, Fan in Chicago said:

Hedging would be a good strategy. Historically there have been lot of cases of shiny new toys whose luster wears off, sometimes too rapidly. 

IMO, his mistake was in going all in. 

yes, agreed that having a singular investment in your portfolio is a bad choice. 

 

though on this individual case we have no idea how much stayed in for how long. Or when the actual payments were disbursed either. It wouldn’t change the idea that a singular investment is incredible risk but for all this writer knows - he could’ve made a fortune with that risky choice if the payment was in a dip and liquidates at highs later in the year. Buying lottery tickets is a bad retirement plan but some people do win - and we don’t really know details in what he played.

[DrDawkinstein]

11 minutes ago, cba fan said:

ty but question.

 

if i was paid 24 million dollars worth of crypto(then got cold feet and had a change of heart) and then immediately converted it to dollars. Same day lol.

 

I only pay income taxes on a 24 million dollar of income value right?(crypto value had not changed. Yeah i was fast lol)

 

No capital gains tax as no capital gains made. Right?

 

 

 

You would pay short term capital gains rate which is just a fancier name for regular income tax rate.

 

The savings is waiting for a year before cashing in.

[RoyBatty is alive]

2 hours ago, DrDawkinstein said:

 

I dont think that's right. I guess it depends if crypto is treated as cash or like a stock considering you have to sell it to realize any actual value.

 

Stock options arent taxed twice, that is why so many CEOs use them to skirt around paying full income tax. They just take heavy stock options, sell them a year later, and only pay long term gains which is the lowest tax rate.

 

It would make more sense to me if the crypto is not taxed as income when originally paid, and only taxed at sale.

No he/she is correct.  You are taxed at the "value" you are paid.

27 minutes ago, cba fan said:

ty but question.

 

if i was paid 24 million dollars worth of crypto(then got cold feet and had a change of heart) and then immediately converted it to dollars. Same day lol.

 

I only pay income taxes on a 24 million dollar of income value right?(crypto value had not changed. Yeah i was fast lol)

 

No capital gains tax as no capital gains made. Right?

 

 

Be taxed like regular short term income, same as if you didnt immediately convert it.  The taxable event was when the employer paid you the $24 million in crypto.  Then your cost basis is $24 million in perpetuity. if you sell if in a year for a loss you can declare a short term cap gain loss and vice versa pay taxes if it went up.

[PromoTheRobot]

3 hours ago, brianthomas said:

In the past 20 years the US Dollar lost more than half its value. I'll have to revise that number as the pace of this has changed. But now theres a scam

 

Amazon's stock at one point lost 90% of its value. If u saw it drop 90% you'd probably think it was a scam, i know i might've.

But whoever held thru that or bought the fear, reaped the rewards.

 

Bitcoin is down 61% this year, still up 431% since 2019 from 1/2019 to 6.22/22

S&P is down 24% this year, still up 48% since 2019 same period.

 

Since bitcoin moves in 4 year cycles, the thinking is you make your 5-10x+ during the insane bull runs & that's more than enough to withstand the downturn.

Diversification is key, education paramount, & only investing what u can afford to lose is wise, as its a highly speculative asset class.

 

It remains to be seen if BTC will succeed in its intended vision & there's many scams in the space & sensible regulation is desperately needed/wanted. But Bitcoin has outperformed every other asset since its creation. Gold, the DOW, beans, socks u name it. I dont look at crypto as currencies per se because most arent intended to be currencies but as digital assets, tokenized real world assets (as the world is moving more digital & not less) or investing in software & AI & networks. Its such a diverse space its difficult to generalize what it is haha.

 

Lost half it's value? Compared to what exactly? 

[Billy Claude]

Nice story but not true. Lawrence had an endorsement deal with a crypto app.  The signing bonus for the endorsement deal was in crypto.  All Lawrence's money from the Jaguars (and probably most of the money from the endorsement) were in USD.

 

 

[US Egg]

1 hour ago, Billy Claude said:

Nice story but not true. Lawrence had an endorsement deal with a crypto app.  The signing bonus for the endorsement deal was in crypto.  All Lawrence's money from the Jaguars (and probably most of the money from the endorsement) were in USD.

 

 

An inaccurate tweet?…..but, it’s already a fact.

 

Sorry Trevor, you’re deemed an idiot, regardless.

[Alphadawg7]

There is only one investment you ever put a large portion of your net worth into…and that’s real estate.  It’s forever, there will never be more, and it will forever go up in value, even after it dips during recessions.  
 

Why these dumb idiot athletes invest in anything else is beyond me.  He could have put $10M into rental properties, paid cash, let a company manage the tenants and renters, and collected easily be generating $60k-$80k a month in rents for life all free and clear with no mortgages while his property portfolio value would continue to climb over time.

 

Its so easy it’s sickening to see athletes go broke.  Even when property values decline, rents stay the same.  It’s the easiest mail box money in the world, and it’s why the 1% club of the wealthiest people mostly built that wealth on real estate.  

[Ralonzo]

To paraphrase Warren Buffet: when I buy crypto, I still don’t own anything.