Currently have about 250k from crypto gainz. Yea nobody gives a fuck im a larper lulz...

buy gold with your crypto then sell for cash

>held past the rise and fall of s2x , the great china exile and the return of bch: chink hijack episodes
>wants to cash out
user you just weathered the greatest storms in the cryptospace since mt gox, the greatest obstacles btc has faced. the path ahead is completely clear for btc to moon out of the galaxy. if you cash out right now you'll 100% regret it a year from now when it's 20k

yeah, you have proof of purchase with gold, not what you used to pay for it.

its called an audit you retarded minor

Here's my advice. PAY YOUR TAXES. Seriously. You might not like it, but it's the only way you can 100% guarantee your investment without being audited and pink wojak'd by the taxman. And don't do it yourself, hire a professional, get an accountant who's experienced with crypto (Yes, they exist, ask around) and give them fucking everything you've ever done involving crypto, every transaction you've ever made, every shitcoin you've ever purchased and then sold 4 minutes later for a 2% loss, every time you've sold something for LTC/ETH just to move it to another exchange, fucking everything. Download the data from every exchange you've ever put coins in, and let them sift through it. Accountants get paid for this for a reason, they'll minimize your taxes as much as possible and they'll let you know what else you can do in order to minimize your taxes even further, like holding onto the asset for another few months so you get tax discounts. This is not a fucking game, the IRS knows about crypto and they know it's making a lot of people rich tax-free, they're going to be coming down on crypto investors like a tonne of fucking bricks in the next few years. The best thing you can do is lube your asshole up nice and good before the taxman fucks you.

Anyone how if the tax reforms they are trying to pass affects capital gains? I gotta pay some tax this year too.

fuck the rules. withdraw it all into a offshore account.

That's not enough for a US citizen since you'll only get to keep at most half that, 125k. Which honestly is easy enough to make and keep on a couple years wagecucking.

Just keep most of it in crypto and it'll be at least double in a couple more years

If you want to live the NEET life that's enough money for a house and 10 years of food and bills and a mediocre car. I would get out of burgeristan asap.

Adding onto this, you're not smart enough to get away with tax evasion, don't think you are. Getting too big for your boots is how you get burned. Especially because the IRS is aware of how many crypto traders will be trying to evade taxes this coming year.

>250k
whoosh, you got lucky
got any btc to spare for a fellow larper who isn't quite so lucky and who'd be eternally grateful for any jumpstarting money? ;w;

19cxLhwoVYX33ndLsyqXGYKDyCeVhQCfBw

As bitcoin exchanges are not currently required to report the trading activities of their users the government cannot know what you may have earned or lost in trading bitcoin.

buy gold directly with bitcoin earnings or put in a offshore bank account.

I definitely don't plan on pulling out right now but it's good to start thinking about it now and planning ahead for the years to come instead of at the last second especially since crypto will surely become more mainstream and the government will figure out how to squeeze every last dollar out of us.

Withdraw it where? Into a bank? Good luck not raising any flags.

Into your pocket? Good luck selling all those coins face to face. Then what are you going to do with 250k in pocket money? Buy a car? Maybe if it's cheap. Buy a house? Not without raising more flags. Groceries and gas are all you can buy.

>paying taxes to this Jewish playground.
Pieces of shit won't get a single penny

OP you are fucked because you are a burger. The IRS will want what you have, doesn't matter if you go to Denmark. You'd have to renounce your us citizenship first and then cash out elsewhere.

I have heard some stories about anons that gifted BTC to their relatives overseas and cashed out that way but I'm not sure.

im waiting for my btc from enough exchange to come, but its still pending!

HURRY UP!

bitcoin.tax/

I basically use this website as "record keeping". Some of my transactions are done on exchanges like EtherDelta and I don't have a fancy table to record it all for me. I was a bit careless with recording my stuff, but today I went through and tracked down all my transactions and their worth and put them all into bitcoin.tax. They do charge to put in more than 100 entries, but I think its only something like $20 a year or something small - not much to help with taxes on huge earnings.

>mfw bitcoin earnings are tax free in italy

Put all your shit into bitcoin.tax

Or just hire a professional.

Or do both. Wouldn't cost much considering the amount of money you will have.

>form charitable trust
>gift bags to trust
>enjoy reinvesting tax free gainz into tangible assets
But seriously, don't fucking cash out you retard. I'm in nearly the exact same position as you and i'm hodling for at least 5 more years. And even then i'll only be collateralizing my crypto, not fucking selling.

fake your death move to angola pretty simple bru

hey amerifats just a reminder that tax on fiat is a meme, your gains are realized regardless of whether you cashed out to fiat or another shitcoin. your IRS pulls exchange tx histories so be careful, they won't be interested in how /biz has decided it should work

I made 90k from ETH. can I just print out the tax sheet from coinbase and give it to one of the people at HR block when I do my taxes? They usually only charge like $100 to do taxes.

not true. kys

which part of this is not true?

Was there a lot of trades going in and out between alt coins etc? Or was it just a "buy a fuck ton of ETH low and then sell it high"?

Convert it to monero
Convert that to cocaine

>muh blockchain
>everything recorded
>ip address
theyre gonna fuck you when they find the biggest balanced youve ever held theyre not gonna do math just tax you with fines to oblivion

irs doesnt pull exchange histories

it's not true because you aren't taxed on the increase in value of your crytpos unless and until you sell. You have to "realize" the profits with the "taxable event" of selling into fiat. If the value of your crypto goes up but you haven't sold anything you don't owe any taxes.

well they've already been through coinbase

The issue isn't them catching you before you cash out to fiat, it's what happens when you eventually do. You want to make sure you record everything solidly and report your capital gains. Sooner or later, you will want to convert it back to fiat, and if there is massive gains, that's when the red flags will raise and then they could possibly go back through your shitcoin trading history after that and find undeclared gains.

selling to another crypto is a fucking taxable event, this fiat thing has been out of control here all year

No it's not. It's like swapping two stocks.

How do you expect to be able to use the money to do anything such as buying property or a car, dumbdumb?

>broke NEET suddenly puts down $50k on mortgage
>IRS becomes erect

It does depend on the country, but I think you will find that a trade event (converting one coin to another without any fiat involved) is actually considered "disposing" of your asset, and acquiring a new one - which raises a tax event. Like I said in my post here , normally it wouldn't be an issue because they aren't going to watch the block chain for every shit coin out there, but if you do eventually cash out and the IRS do come after you - you don't want to be caught having undeclared gains in your coins.

thats ridiculous, if it were true irs would go after exchanges

i'm not going over all over this again today, you are talking about like kind exchange, it isn't explicitly granted to crypto, you apply for it with this form

irs.gov/pub/irs-pdf/f8824.pdf

you fill this form out for every trade you want to apply for it on

ignore the reality all you want, if you get picked up though they won't give any fucks what you thought it was like, the wojaks are going to be fucking monumental if there's a crack down on this shit

Ok, idk about other countries, but the IRS has specifically said that it will treat crypto gains like capital gains, which means you aren't taxed until you sell. It's the same with stocks. You aren't taxed when your stock portfolio increases in value, the taxable event is when you sell.

Here is the official IRS statement: irs.gov/pub/irs-drop/n-14-21.pdf

Not that user, but, what if there were a lot of trades?

Here in Australia, crypto is also treated with capital gains tax like stocks - but it is also with "barter laws". As far as I can tell, If you barter from one coin to another, you're technically disposing of an asset and if that asset has appreciated in value since your time of acquiring it, it too is subject to CGT.

If there were a lot of trades it might be work asking around for an accountant who has experience with crypto. If it was just one one big fat buy low sell high, then any accountant should be able to work out capital gains tax stuff for you.

Thanks. Sucks because it's only 10% of my total portfolio. I'll see what my normal taxman says. There aren't like hundreds of trades, but there is probably 12-15.

talk to an account before you cash out, and be prepared to move, 9 states have no income tax while CA has a 33% capital gains rate

Sorry, but you are just wrong. The IRS statement specifically says that the taxable event is exchanging crypto for an asset that is NOT a capital asset--so because all cryptos are treated as capital assets, trading one crytpo for another is not a taxable event. USD, of course, is not a capital asset, it's treated as a currency, so selling into USD (or some other fiat) is the taxable event. This makes perfect sense and aligns with the way the IRS treats stocks. I know it doesn't matter on this anonymous board, but I'm actually a lawyer.

it's the same deal, difference is the states can apply for like kind exchange treatment although success has yet to be reported. aus as far as i know explicitly cannot

source

Define “serious gains”

I live in hick country, how am I going to find an accountant that knows about crypto?

I actually googled around earlier about like-kinded exchanges in Australia and couldn't find anything about it. It seems tax agencies all over the world are still catching up on a lot of this. A lot of it is about as clear as mud. The ATO (Australian Tax Office) page about Cryptocurrency looks like it was written by 4 different people without seeing what the others wrote.

I already linked to the PDF. Digital currencies are "like-kind" property with other digital currencies. So even if you bring in barter laws, exchange is not a taxable event. The capital gains tax is deferred until its sold into crypto or exchange for some not-like-kind property (like if you bought a house with BTC).

When the FBI seized the BTC-e.com domain did they get their hands on the trade records? J-just asking for a friend.

Even where governments haven't clarified, it seems almost certain that they would consider all cryptos "like kind" property. It's of course possible that they would say BTC and ETH are not "like kind," but doesn't seem likely. Of course, as I said, if you buy almost anything else with crypto (a house, a game on Steam, any other goods), that wouldn't be "like kind" so the appreciation on your crytpo could be taxed.

How does buying gold help you with taxes?

the like kind argument is being made everywhere, but there has been no clarification from them on this one way or another

real estate for real estate, stock for stock. It would seem crazy if they didn't treat cryptos like that. But fair enough. So what is your plan, pay extra to Uncle Sam just in case?

WHY CAN'T THE GOVERNMENT JUST LET ME KEEP MY MONEY!?
I DONT WANT TO PAY TAXES FOR SOCIAL PROGRAMS THAT WILL LITERALLY NEVER HELP ME CAUSE I HAVE MONEY!
>but muh roads!
PRIVATE COMPANIES ARE GOING INTO SPACE NOW I THINK THEY COULD PAVE SOME FUCKING ROADS

OP listen to me, DON'T REPORT IT, a FALSE report that you are engaged in "TRADE or BUSINESS" is all they have to connect you with the excise taxable activity. >SEE USC 26 7701 (a) 9,10,26

no im ausfag, ive only been through the amerifat system to see how they handle it as our guidance has been pretty vague as well and the same situation where nobody is reporting anything, our materials don't even really consider that there are other virtual currencies

Isn't it a good idea for US investors to us a non US based exchange like cryptopia? The IRS has no authority to ask such exchanges user info like it currently is trying to extract out of Coinbase. If you really make it big in crypto, renounce your US citizenship and get Singapore citizenship like the Facebook guy did.

>what does he mean by this

I'm not a legalfag so I don't get it, pls explain senpai

>user hasn't figured out you owe taxes worldwide if you're a us citizen
>user hasn't figured out the IRS already contracted out blockchain scanning
>user hasn't figured out the above
>user HAS FIGURED IT OUT

>The IRS Has Been Using Bitcoin Tracking Software Since 2015

>The Internal Revenue Service is using bitcoin transaction tracing tools developed by startup Chainalysis, according to a new report.

>Documents obtained by Washington publication The Daily Beast show that the tax agency has been using the startup's software since 2015.

>The IRS states in the documentation that it's using the software to "trace the movement of money through the bitcoin economy," going on to explain:

>"This is necessary to identify and obtain evidence on individuals using bitcoin to either launder money or conceal income as part of tax fraud or other Federal crimes."
coindesk.com/irs-using-bitcoin-tracking-software-since-2015/

>Income tax fraud is the willful attempt to evade tax law or defraud the IRS. Tax fraud occurs when a person or a company does any of the following:

Intentionally fails to file a income tax return
Willfully fails to pay taxes due
Intentionally fails to report all income received
Makes fraudulent or false claims
Prepares and files a false return

>The IRS can usually distinguish when an error is the result of negligence or the willful evasion of the tax law. Tax auditors look for common types of suspicious and fraudulent activity, such as:

Overstatement of deductions and exemptions
Falsification of documents
Concealment or transfer of income
Keeping two sets of financial ledgers
Falsifying personal expenses as business expenses
Using a false Social Security number
Claiming an exemption for a nonexistent dependent, such as a child
Willfully underreporting income
>Attempt to evade or defeat paying taxes: Upon conviction, the taxpayer is guilty of a felony and is subject to other penalties allowed by law, in addition to (1) imprisonment for no more than 5 years, (2) a fine of not more than $250,000 for individuals or $500,000 for corporations, or (3) both penalties, plus the cost of prosecution

>Fraud and false statements: Upon conviction, the taxpayer is guilty of a felony and is subject to (1) imprisonment for no more than 3 years, (2) a fine of not more than $250,000 for individuals or $500,000 for corporations, or (3) both penalties, plus the cost of prosecution

>Willful failure to file a return, supply information, or pay tax at the time or times required by law. Upon conviction, the taxpayer is guilty of a misdemeanor and is subject to other penalties allowed by law, in addition to (1) imprisonment for no more than 1 year, (2) a fine of not more than $100,000 for individuals or $200,000 for corporations, or (3) both penalties, plus the cost of prosecution

That seems like bullshit
A litecoin is distinct from a bitcoin in the same way silver is distinct from gold
Exchanging them doesn't seem to be "like kind"

Put it all into Chainlink OP. This is your chance to never have to work again DON’T THROW IT AWAY.

>Excessive taxation ... will carry reason and reflection to ever man's door, and particularly in the hour of election.
Thomas Jefferson

Hey why would you want to? Just withdraw the max amount before paying taxes (on a 1 year basis so about $22k). That should cover your rent and utilities, and car insurance. The rest you keep in bitcoin and treat it as money buy buying gift cards and whatnot.

Solved!

SEDM.ORG
The Trade Or Business SCAM,
TLDR the tax system has remained unchanged for a very long time.

Since I am an Ausfag too, I am confused about something.

Since each "trade" is subject to CGT and my Crypto earns me over the tax threshold - every time I dispose of a coin for another, do I have to set some of value aside in FIAT for tax paying purposes?

I don't know how we are supposed to pay CGT on coin to coin trades when the value is tied up in the assets.

This guy fucks.

Pay the taxman like anyone else who makes money on equities faggot. This community is fucking retarded if they think they can avoid paying the taxman after making a little money.

I think most people are confused on how. The guidelines are pretty vague.

Living in France and I don't pay a single penny on crypto.
Cuck

I heard that in america the IRS counts how much calories you need and weigh you to figure out if you're dodging taxes by buying groceries

when we report to taxman, for example i put some money on cypto this year, but did not withdraw until 2019, so we have to report this year ? or only when we convert them to fiat ?

Normie wahe so 50k or more

What?
You should. Why is it different then stocks?

Fake and gay. Bye.

don't withdraw. then you don't owe shit. then you'll have multiples of what you have now later. They don't own you. They want your cash. They want you to be a slave.

>Don't withdraw

contact Marty Byrde