Crypto Taxes

I am not sure if this question was answered but I have searched but yet still no luck so maybe someone could break it down for me. As we all know Crypto is taxable income which can be up to 37% if not held for a year. Being that Incognito transactions BTC, ETH and etc are not shown on blockchain how would the government know how long we held our crypto and how much we should be taxed when withdrawing it or spending it with crypto debit cards?

Thank you in advance.


Transactions & trades inside the Incognito wallet/network are private so no one would know.

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So basically we could claim that we held it for over a year even if we purchased a coin a week ago right? And one last question Jared when we purchase bitcoin from where ever and send it to our Incognito wallet are those transactions traceable?

It is incumbent upon each taxpayer to provide this information when completing your annual taxes.

It is also incumbent upon each taxpayer to be truthful when providing this information. Failure to do either risks audits, government civil lawsuits and/or criminal trials.

It is up to you to decide if those risks are worth lying to the IRS.


Ok thanks and one last question how is tax determined if for example you pay me for a service with crypto and I withdraw it who is responsible for paying taxes on that transaction?

I would pay taxes on my disposition of my crypto to you.

Receipt of the crypto is not a taxable event for you. Receipt only establishes the initial value at acquisition.

You would however pay taxes on the withdrawal/conversion of the received crypto to fiat.

Taxable events are disposition (selling, trading, conversion) of a crypto asset and receipt of crypto from mining, staking, defi interest or airdrop.

Non-taxable events are transferring crypto between addresses/wallets (without conversion) and simply holding crypto.

NB – None of the above is financial or tax advice.


Thanks for asking this kind of question @SEEMoRECaKE but I will like to tip in this crucial point:

Let it be known to us all that the Creator of this Incognito Community does not create it for the purpose of making anyone to be unfaithful to the tax laws in their individual judiciary or nation according to the whitepaper.

Therefore, if you make it here or elsewhere, we encourage you to be faithful to your country in the area of tax. Be a good citizen!

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Copy…I appreciate all feedback I wasn’t trying to scam the tax laws even though they tax us on everything even our money that they already taxed us for I just wanted to know how I calculate crypto taxes in general I know I’m not the first and probably not the last person who actually doesn’t actually keep track of their gains and losses being that this network is untraceable and un trackable I was wondering if I could pay less % on taxes since there isn’t a way for them to know how long my crypto was held for? I’m not trying to get over by not paying any taxes period I’m ok with paying taxes I was just looking for a loophole to minimize my tax rate that’s all

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