family member talked to a tax consultant today.
consultant said that every time I traded from bitcoin to cash this year I owe income tax on its value.
I started at 1.9 bitcoin, and over a several dozen trades i went, up, down and am now at 2.1 bitcoin
I have only withdrawn $150 worth of btc to a bank account to keep.
Tax consultant has to be bat-shit crazy if she thinks I owe $250k+ in taxes on $25k bitcoin.
Or am I pic related with the IRS?
US taxes on Bitcoin Earnings
family member talked to a tax consultant today.
this is why women should be in cages. make an appt with a man accountant. no you dont owe 250. just pretend you bought, held a year and then sold.
There is no fucking way you need to pay taxes on transactions between fake internet money. That makes no fucking sense.
You're so fucked lmao
Would be capital gains tax not income tax anyway.
Your account is literally a retard
If the money received from interim trades is taxable income, shouldnt the money spent to purchase BTC be treated as cost of business, and thus deductible, making my total taxable income for the year just $150?
Crypto is classified as property not currency
Tax consultant is a con
Yup, that's the way it works. Taxes on every bitcoin/fiat trade profit. Good luck.
You owe on what you cashed out. That accountant is literally fucking retarded holy shit.
Wrong. Selling to fiat is taxable, even if you don't withdraw your money. That's why people use tether.
WTF are you trying to say? Where did $250k come from?
You pay taxes on your gains only. If you put $1000 in and you cash out $1500, you pay tax on $500. The rate that you pay depends on if you held it for longer than a year. If shorter than a year, the tax rate is higher.
If you put $1000 in and you took $800 out, you don't pay any taxes. You actually get to write that $200 off as a loss. So, if later that year you managed to make that $200 back and cashed it out, you pay $0 tax because you are back to where you started.
It gets more complicated when you trade BTC for alts and then back to BTC. You are supposed to pay tax on any gains you made by trading. It's going to be real hard for anyone to track all that info down from all these exchanges.
But how the fuck would the taxes on his profit cost $250k if he only has 2.1btc
this is literally what I think. every time I exchange BTC to USD it is taxable income. Everytime I trade USD to BTC it deducts from my taxable income, cost of doing business basically, and my final taxable income at the end of the year should be the net profit.
Technically selling to tether is that same thing. Harder to track down though.
If you have a smart accountant you can use individual bucket method for accounting and you will owe only the amount you traded with.
Dpendibg on how much of ur stash you traded with you will only owe taxes on 10k or 15k income
tether is literally imaginary internet money tho USD is not
Buy btc at $5000 -> sell at $6000 -> buy at $7000 -> sell at $4000
You made a loss, but you still owe the jews $250 in taxes. That's the way it works. That's why people call it theft.
every time I exchange BTC to USD it is taxable income
Only if the USD is worth more than what you put into BTC that year. If so, you made "capital gains" and you pay taxes.
If bought BTC at a high price and then it crashed, then you sold for USD, you pay no taxes because you didn't make any "capital gains"
Because he's either bullshitting, misunderstood, or the tax accountant is actually a larping janitor.
TECHNICALLY if you trade any coin for another coin (or USD) AND you made a profit, you owe taxes. Good luck to the IRS tacking down all the crypto to crypto trades though...
this is literally what I was told.
she told me as far as taxes go 'they're like trading stocks'
If you did all of that in a single year, you made a $2000 loss and owe no tax.
How to solve tax problems with crypto:
1. make ATM that allows cashing out of crypto with capital gain fees already deduced
2. force all banks to adopt it
Why all governments are so fucking stupid.
Wrong. Even reinvested capital gains are taxed.
This is totally wrong. You declare 13k in cost basis and 10k in proceeds, thus a loss of 3k
12k* this is why I'm a retard, not an accountant.
Whether its USD or Tether it ain't backed by anything...
Good luck to the IRS tacking down all the crypto to crypto trades though...
This. All of those coinbase records they're getting? They'll probably only pursue the top 20% earners and leave it at that to scare everyone else.
The IRS loves intimidation tactics. Wesley Snipes is a great example.
Just fund these. should answer everyones questions.
document on virtual currencies:
Im not a tax accountant, but it does indeed seem like the one I talked to was batshit crazy.
It looks like what matters is the net profit/loss, not the gross profit. Its treated as a good, and if you are a business that has purchased product A for $1000, sold it for $2000, and purchased two more product A's for $1000 and they have not sold, your net gains do not exceed the cost of doing business, and thus there is no taxable income from it
seems like it anyway
https://Saltlending.com launches this month user. Bypasses capital gains tax completely. Made by the same guy that made Shapeshift.
on the gains, not on the value
She's right about that, but are you SURE she didn't say $2.5k instead of $250k??????
What kind of retarded system is that?
Here you put 10k in. Do what the fuck you want. Let's say you got 12k now.
You take out those 12k, BUT you pay tax only on those 2k gains. Not 10k, because it was investment, thus it's not taxable. They took some of it from platform fees when operator got taxed.
If you had a loss and take out only 7k, it's not taxable. But you have to prove it showing operator's issued statement and transaction copies that you no longer have cash on platform and thus you committed loss.
Here you have to prove to the system how much you put in, how much you have in platform and how much you took out of platform.
she told me that I owe a capital gains tax EVERY time that I converted to USD
you owe tax on the profit you shit eating retard
not like it matters since you're a fucking poorfag who only made 3k
Can't you just trade the BTC to something else and trade that for cash instead? If the IRS is only looking at Bitcoin, you should be good with anything else, right?
What is this shit meme?
I traded my 4000 eth (originally purchased for 2BTC in 2014) for btc at ~0.05btc/eth then i sold 20 of those BTC. I bet none of you mouthbreathers can tell me what I would owe in USD taxes.
paying taxes = pic related
fuck it ill just invest in zimbabwe dollars so I become a quadrillionaire
A Croatian war "criminal" escaped a twenty year sentence by consuming poison within the UN courtroom after being accused of many things, including blowing up a bridge in which he had proven to not be his fault in an entire book that he wrote.
buy miners with btc, get them send to you, put them on ebay, get cash, if taxman comes, pay vat
That's correct, on the GAIN, not the gross.
Rule of thumb:
Yes you put your own money into it
No you never traded it
Yes you held it over a year
Capital gains tax is the most cunt act taxation scheme ever, how dare the filthy greedy fucks come try to wet their fat beaks in my crypto gamblin
normies are so scared of gubermint they actually go out of their way to pay taxes
Yes, but you only owe taxes on what you actually gained. For example, if you bought BTC at $1 and sold it at $3, you owe taxes on that $2 gain, even if you were to invest it right into Bitcoin again. You should have set aside a portion of that to pay the taxes. I don't know what the rate is, but let's say 15%. You should have payed the leeches $0.30, and put the remaining $1.70 into BTC again.
Don't let them jew you out of your money, though. There are some good ways to keep your money. Even if Coinbase reports how many BTC you bought, just tell the IRS that you are holding them and therefore don't owe any taxes. When you trade with them again, just say that they were bought from someone at nearly the same price (or slightly more than) that you sold them for.
Hahaha how the fuck are they going to know im cashing out my btc into fiat if im selling btc to individuals face to face with cash
he didn't pay taxes on his WoW gold
you're fucked m8
Nice. Don't let these fucking scumbags get a cent.
Cant I avoid this by depositing this stuff to a family members bank account in say, Poland, and then just having them send me the money over. Its assumed I can rely on my family not to fuck me over.
wrong, maybe on the profit of the trade at most, anyway just say u held it a year u fag
You do owe taxes every time you realize gains (cash out your chips) net of your losses of similar nature (LT vs ST). What's hard to understand about this?
But where's the Problem? These are the rules and that's why you have to pay. Someone needs to pay for all of this and this time the person is you. So everything is OK.
You get taxed on the gains, and it is a fucking crypto currency. Can't you just say you bought that particular bitcoin off some drunk guy on the street for $15k and then sold it at a loss for $14k, so you owe the jews nothing? Thank God you still have that bitcoin you bought from Coinbase and never touched to fall back on.
they would not. he's an idiot.
That is how it works. You owe taxes on the GAINS every time you trade. A simple way to figure this out is what are the net gains from the original purchase in fiat, assuming it all happened in one year. You owe tax on that amount. You add the gain to your income to determine tax bracket. For most people it's between 15-25 % That would basically be the sum of all your gains and losses. Technically you have to document each trade though.
RIP in peace, bucko.
you guys are all fucking dumb for the most part
1) depends on your jurisdiction
2) capital gains tax - do you speak it? Take 50% in most jurisdictions unless it's the sole source of your income and your'e then a day trader . Again, different countries have different rules in Canada for stocks if you make more than 5 trades a fucking year you are a day trader by practice.
3) the year hasn't ended, if you're holding something you can trade at a loss, do it and buy right back in so you can bank a capital loss to apply it to other capital gains throughout the year
I paid $300 for an hour to speak with an accountant and she was fucking dumber than most of you. Luckily I can read and use Google.
Lmfao this is the only person in biz that understands basic tax law
I am convinced biz is just a bunch of niggers and brownskin scum pushing bull shit to fuck with those who actually have money to invest into crypto
No, he's form some fucking EURO fag country and talking in general terms causing confusion. Those tax rules are completely different. For most normies we will be using capital gains rates on our gains for every trade. FFS guys.
You should probably die.
lmao taxman can ead desu
which he had proven to not be his fault in an entire book that he wrote.
and he would have gotten away with it too, if it weren't for those meddling witnesses.
Why even let the government know. This is a cryptocurrency, and it would be extremely expensive, if not impossible, for them to actually track down where you bought every BTC from. Can't you just say you bought those particular BTC that you sold for more than you sold them for, from some random guy on the street? If they bring up the BTC you bought from Coinbase, can't you just say that you are still holding those ones or that they were lost/stolen?
There is no nation on earth where you pay taxes on each individual trade. At least not yet.
It's all capital gains you filthy subhuman pajeet.
Prove me wrong faggot.
Because they can have this already + 25%
You're fucking them over or get fucked over
arrow book he wrote
arrow proof of anything
Either you misunderstood your accountant or she's fucking retarded. When you buy crypto and sell it for another currency whether that be fiat or some other coin, if you profited from the transaction, you pay taxes on that profit. If you sell at a loss, you pay a percentage of that much less in taxes.
So if you buy bitcoin at 10k and it goes up 11k and you sell it all, if you're in the 25% capital gains tax bracket you pay $250 in taxes because you made 1k profit.