0% Capital Gains Token

All of the pieces are in place for creating a trustless system on ethereum that allows you to legally declare 0% in capital gains tax every year. It’s also complete and ready for use. Let me explain.

The idea is simple, create a token that people could roll their capital gains for the year into before declaring their taxes that would allow them to book a complete loss on all their capital gains for the year (thus owing nothing in capital gains taxes) while not actually losing anything.

How It Works

In short: Trade into the token (using the dead simple steps below) with your capital gains before the new tax year, get liquidated for a 100% loss (automated rug pull), then get airdropped your wealth back after the new tax year. Rinse repeat (while having all tax year to continue to hyper accumulating this capital in-between).

The trustless system works in 2 main parts:

1. Right before the tax year is up the Generation_A tokens (which users buy with capital gains) are rug pulled (funds remain in the smart contract structure)
2. New Generation_B tokens are airdropped automatically to holders of the Generation_A tokens during the new tax year (Generation_B tokens can be redeemed for your capital gains back)

The smart contracts are built to take advantage of a few key tax law decisions made by the IRS regarding cryptocurrency (main one being the IRS treating locked airdrops as property with a cost basis of $0 instead of as ordinary income). Legal avoidance is achieved by complying with how the law is written. When the law adapts so will the strategy.

If you want to know more or read the source code for yourself check out the github pages link https://github.com/anonymous0004/project_circle/blob/gh-pages/index.md