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Tax refunds are down this year, but not for Louisa.

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Tax refunds are down, in fact they have dropped by 8.4 percent, down to a 2019 average of $1,865 from $2,035 last year. This drop has some workers who usually get a refund paying out of pocket in addition to what’s already withheld from their paychecks.

But not all working people are taking a hit. An acquaintance who’s a UX developer at a design firm, and also operates a side hustle trading crypto under an LLC, told me she found a way to hang on to the money the Trump tax plan would otherwise pilfer from her earnings. Through a membership with a financial research platform, Louisa (not her real name) has been able to tuck the money away where it’s counted as a business loss, and she still has access to it for later.

Stumbling across a tax trap door

Louisa dabbles in crypto, although she doesn’t describe herself as an expert. She uses a financial research platform called the Pareto Network, which connects investors on a peer-to-peer basis. There are other platforms like this, but Pareto turns out to have a uniquely beneficial glitch.

It caters to entry level dabblers like Louisa, while also providing more advanced tools for higher volume investors. One of these tools is a subscription giving members unique access to more exclusive trading intel. And that’s where she found a trap door that would keep her money safe from Trump’s tax plan.

How the trap door works

In an effort to up her crypto trading game, Louisa signed up for the premium level subscription. To qualify, Louisa first had to build up a score on her Pareto investor’s profile. This was simply a matter of purchasing PARETO Rewards, the platform’s native points system, similar to airline miles. For now the company doesn’t sell rewards directly, but they’re available from resellers such as Netcoins, and various wholesale markets such as KuCoin and CredoEx, which trade digital assets. Once she had enough of these rewards points, she qualified for the subscription and its premium features.

The subscription itself, she found out, is a business expense because it is for financial research. So all the money she spent ‘buying’ her membership by accumulating rewards counts toward her business losses for the year because she just paid for access to the financial research platform.

Scaling this for a bigger investors to protect income as losses

These kind of digital rewards points are not yet regulated at a federal level as their own kind of asset, so the IRS tentatively considers them property, like a car. But while a car depreciates, these rewards stand to accrue value, because unlike airline points there are a limited number of PARETO Rewards. She told me she spent about $1,200 on PARETO Rewards over the second half of last year. It’s a modest sum, but it was enough to cover the 8.4% drop in her tax return.

And she’s essentially saving the money for later to sell at a profit. According to Pareto Network, there’s no limit to the level of access you can purchase. You could put aside $10,000 this way and it would all be tax deductible, as long as you actually access the Pareto Network with them at least once. It’s still yours, in points form, and you can liquidate it after tax season potentially for a net gain. Louisa kept her taxes, and made a little extra pocket money to boot. It’s a loophole, and it’s legal.

Keeping your income while keeping in good standing

Putting it another way, Louisa simply discovered an asset that’s also a loss—something that’s not really supposed to exist. But it does, and whether by accident or by design, Pareto has pulled a fast one on the IRS. So for now the joke’s on them, and investors using the Pareto Network are sitting pretty in good standing with the law.

As long as the investor’s subscription package is a relevant expense for your business, even unincorporated sole proprietorships that exist in your mind, you can swing this to shelter your income. The new tax plan is costing Americans a lot. But there are still ways to keep our earnings safe, and this is one of the most interesting I’ve heard about in a while.

Disclaimer: We do not provide tax, legal or accounting advice and this information is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Crypto Queen

Top 7 AI and Software Development Companies For Startups and SMEs

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Top software development companies are tasked with proffering digital solutions to practical problems by producing innovative software programs, apps, and websites. The industry has grown into a huge force and with a revenue of over $481 billion. While some companies focus on certain software solutions such as web development, mobile app development, artificial intelligence, etc., others are all-purpose. 

This is a digital age, as you already know. Therefore, the success of your company would depend a lot on digitizing your services and providing your customers with high-quality software and websites. 

Today, it is much easier in that you can simply outsource your software needs to a custom software development company. You have a lot of options to choose from, but the best firms are reputable and experienced, have a highly skilled workforce, and uses the best processes and tools to ensure maximum satisfaction. 

This list contains some of the best software development companies you can find around, especially those focused on artificial development needs for startups and SMEs.

TopDevz 

TopDevz is a multi-award winning software development company that has rightly earned its place as one of the fastest-growing companies in the US. Its unique model is flexible, cost-saving, on-demand and easily scalable and the company has a 96% retention rate. With…

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Crypto Queen

Top 3 Trends in the Crypto Space Right Now

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With the price of Bitcoin on a tearing run, it’s hard to say we’re all in this for the tech. However, luckily for the advancement of the space, beyond the speculators, there are plenty of blockchain companies building, innovating, and pushing the envelope. With that in mind, here are the top three trends in the crypto space right now.

1. IEOs (Initial Exchange Offerings)

ICOs are dead. Every man, woman, and their respective dogs know that the SEC pretty much killed that phenomenon. The downward pattern from 2018 that continued into this year shows an almost uncontested freefall.

ICOs are dead

Perhaps it was a good thing, considering that more than $1.2 billion of crypto funds were stolen through scam projects and inside deals in the first quarter of 2019 alone.

But while many people in the space predicted the rise of STOs (Security Token Offerings), that particular phenomenon is still waiting at the gates. Many company’s hands are tied or they’re halted by the regulators.

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Crypto Queen

These Are the Crypto Influencers to Follow in 2019

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Last year was supposed to be the year of blockchain. But bitcoin’s belly flop put a damper on public interest and mainstream adoption remains elusive. But blockchain pioneers made some important strides in 2018, and people are now using it to vote, deal in fine art, and microfinance entrepreneurs in refugee camps. Crypto evolved and even became a national currency for the first time.

The rough year for bitcoin and cryptos was offset by the hard work and creative developments from some very bright minds. These are the leaders and influencers taking crypto into the future this year.

Amber Baldet

Baldet left a high profile job developing blockchain for JP Morgan so she could launch her own dapp platform. She made Forbes’ 40 Under 40 list, and advocates for building bridges between the public and private sectors when it comes to blockchain implementation. Now she’s forecasting a dark vision of the future under surveillance capitalism, and giving us the keys to navigating it by thinking about our personal data as the new money.

Laura Shin

As Forbes’ senior crypto editor, Shin was the first mainstream journalist to cover crypto…

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