Kill me

You're fucked.

Going to contact track1099. fuck that jew site. coinbase too.

What the fuck? You're gonna have to pay millions in taxes from trades?

This is a pretty important thread. More anons need to take a look at this shit. OP day traded coins on GDAX like the NEET he is, they send him tax papers for millions of dollars in transactions. He only made $150k total but has millions he might possibly owe.

Listen you dumb fucks.

You pay money on your profits, not your investment. OP is freaking because of the high volume of payout. What was your input? It doesn't show profit/loss.

Lol not only in USD, you have to pay that for any trades, you trade a coin for another coin and made a profit? Pay up buddy.

Also not clicking on the email can be interpreted as tax evasion.

>he
>he doesn't declare himself a church to evade taxes

Well, no wonder why everyone is fleeing us based exchanges for non us ones, see polo, bittrex, and soon gdax as Americans are fucked over as the volume flees

>email them that I do not consent to them sending it, as it instructs you to do in the email for some reason.

prepare anus boy. soft firm buttocks for the muscle men. squeal and tense once they are in and it will be over quicker but you will be more popular than the one that play dead and moan. You are going to the big house/ If you get incontinent make a diaper from a towel and exercise your prostrate. Don't give up you can make it out again and hiv is treatable

its a throwaway email and i'm an expat abroad. fuck it

That is not how it works, you only pay tax on profits.

>its a throwaway email and i'm an expat abroad. fuck it
how'd that work out for borris Johnson?
Oh.
You owe tax to the US and the country you are in. That's so clever. Airport, ferries are not for you anymore. Consider taking something that will make your skin brown and working in delivery. It is a good identity to hide as..

Like the guy above says, you'll pretty much be butt fucked raped come tax season and they see this tax evasion going on.

The thing is, when companies send you these papers, they also send a copy to the IRS. If they don't see the same numbers on your own tax papers, you'll have lots of explaining to do.

Wrong. OP only owes taxes on net profit.

Example: Right this moment crude is trading at $64.77. If I was to buy & instantly sell 1 crude oil WTI contract, at 64.77, making $0 profit, I would owe no tax. I would however have a transacted volume of $129,540 (1000 barrels per contract * price * 2 for buy/sell).

Quit spreading FUD.

>That is not how it works, you only pay tax on profits.

The onus is on you to prove what is not taxable.

I can't believe those motherfuckers didn't calculate net for us. It's trivial to calculate and you have to report all the trades anyway but come the fuck on.

All you fucking retards talking about how OP or anyone on coinbase is going to get raped by taxes shouldn't be trading anything.

A good lie about what my cost basis was clears this right up though. this isn't particularly difficult to do.

You don't understand that half of us arbitrage between multiple exchanges? Counting net is literally impossible when you're buyign purely on some exchanges and selling on others only you colossal retard.

Gdax thinks my cost basis is 0 and I've made hundreds of thousands in profit. It's not that at all, not by a very long shot.

It's literally revenue - cost = profit. If they want you to prove it you show them your buys and your sells, and your net gain. The IRS isn't retarded.

The IRS will assume a cost basis of zero and the onus is on you to prove otherwise. With taxes you are guilty until proven innocent.

Oh just FYI for all you brainlets who think not clicking the link and saying you "dont consent" - No ones fucking asking you. They are delivering it to the IRS. The link is just to agree to have your copy delivered electronically. I would recommend you do it and pick up a book on taxes. Or maybe cry to your mommy that you need help

don't tell me what i need to pay attention you faggot

How is it impossible when you buy at price X and then sell at price Y? It doesn't matter which exchange you used to do the actual transactions, retard.

when being a poorfag finally 'pays' off. You guys dont use localbitcoins or paxful?

It's not impossible but it's hard as fuck keeping track of all the trades. Especially if you buy / sell HUNDREDS OF TIMES A DAY as neets do (often at a loss too)

Yeah but none of my money has ever returned back into my bank accounts, I don't even use a bank account abroad (I use a friend's), and I have no assets, at all.

Like I said, fuck them. Let them try. all my US exchanges and bank accounts show a balance of $0.00.
How the fuck is Coinbase supposed to know what price I paid for my Bitcoins in USD on Golix.io exchange? Yes there's a USD option and I've used it there.

Not too many millionaires willing to buy from me on Paxful.

>You risked it all. Now give us OUR CUT!!!

>Especially if you buy / sell HUNDREDS OF TIMES A DAY
literally nobody does this
after 4 trades you'd realize you lost money every time and stop doing it

>literally nobody does this
I do dumbass

there will always be a trail from your Fiat (in this case USD) -> crypto exchange to whatever non US exchange you do P2P or something

Wow man, inter-exchange arbitrage? Real high level concept right there. Literally no one has ever thought of that. I wonder if it could be automated in some way? And then maybe.. maybe we could co-locate our instances to servers around the world so that we could get access to margin... then our arbitrage would be neutral.

Anyway, coinbase counts a transfer out as a sale for reporting purposes you twat. They can calculate your net on their platform just fine.

i'm so high and you calmed me down, thank u

LARP more user, "LITERALLY NO ONE DOES THIS", the past like 30 minutes I've had 50 or more trades alone

I probably have thousands of trades on some days

I blocked out the price cause I don't want pajeets increasing the price while I accumulate

>1099K

This makes no sense, why would coinbase send you a 1099-K? that's if you were running a business and accepted payments.

omg dude i had about a million and was having a heart attack. makes me feel good to know others are getting more JUSTed than me

Taxation is theft

After reading your responses all around this thread it's clear if anyone is fucked it's YOU. You have no idea what coinbase is sending to the IRS, and you're going to get rolled fucking HARD. Have you ever even traded securities/commodities before? Have fun looking over your shoulder for 6 years until the audit window closes.

so what can I do to fix this...?

>get raped in taxes
>dont even have free healthcare

your country is such a joke

pay up

OP, I have an online business that does 6 figures a year in gross revenue and I get a 1099-K related to that revenue

I've also been trading stocks for years and get a 1099 form for that showing my profit and loss (just a 1099, not 1099-K)

Getting a 1099-K from Coinbase doesn't make any sense unless you were using Coinbase for payment transactions, such as accepting Bitcoin payments on a website.

I think OP just found this shit online, otherwise he would know what the difference is between a 1099 and a 1099K

no I just checked mine's a 1099-K too. Not sure why since I'm just an unemployed NEET.

wew lad
i would unironically shit myself if i got that in the mail. fucking coinbase

Many people got the same email as OP that use coinbase/gdax or gemini. I got one as well, saying I owe millions of dollars when I've only made a few thousand profit. OP isn't bullshitting.

I also got pic related from Gemini. kek I'm literally off the fucking grid though and don't use banks anymore.

Also Gemini didn't do shit and it's been over 2 weeks since I got this. my account was never frozen or anything, but I also emptied it weeks ago so that could be why.

The email is sent by Coinbase.

I got an email from Coinbase you retard. What part do you not understand?

It fucking says "by clicking the link above you consent to us providing this form to the IRS. If you don't consent to this, email us."

Unlike OP, I didn't click the link. It's just a throwaway account anyway.

pay your share faggot

You get an email saying something like "We will send you Tax documents, please verify this is your address" and you click the link and they mail it to you

(I never actually got this email so I'm only assuming that's what email they got)

Did we fall for the "you only get taxed on profits" meme? Do you only get taxed if you cash out or do trades on GDAX? I only bought things and only traded coins once, I have never cashed out before.

I should only be taxed on my GDAX trade right?

At a bare min you need to report every single trade you did on GDAX along with net and all of the other relevant information for IRS form 8949. If you're in the hundreds of thousands in profits, find a good accountant and work with him. Lower and you can probably use bitcoin.tax or cointracking.com -

Since rule 1031 was amended in 2018 you can likely still treat crypto-crypto as like kind, however, jury is still out on that one. Regardless, you're going to end up with some unmatched trades on GDAX when you have deposits/withdraws to other exchanges. You have some options here: (1) get all your trade histories from the other exchanges and decide to do like-kind or not, and report them. (2 - 'illegal') say "yeah thats totally the amount of coins I have still alright" and you will report the unmatched amount as property at the prevailing market rate. You will have to report that amount of coins as a capital gain/loss depending on their market rate going forward.

If you actually made a lot of money I highly recommend searching for a knowledgeable accountant. He will help you have a lot more money than those fucking websites.

I use a different exchange but I'm closing the account this month. If I need to buy eth I will purchase it in person. We can't trust these institutions to protect our privacy.

kek citizen of US of fucking A with their muh freedom get more monitored than people in nazi germany. grats.

I think you meant Stalinist Russia, ever heard of the KGB? No? Gulags for you.

But our police officers have such nice tactical military gear to use on us if we get out of line!

My trading is so much more complex that if I describe it to you you'll just say "you need to find an accountant." In fact we've probably talked in these threads before.

Do my net capital losses balance out my net capital gains for the year?

90% of my trading was done in other people's names and with other people's money and often with my money on other people's accounts, in foreign currencies, and on decentralized exchanges with no records. It gets really complicated.

I like not living in a shantytown with people shitting in the streets. Also keeps out the poors - gotta pay to play.

i am from austria. try again third world nigger

I did the same sort of. I got my coinbase account suspended back in like 2013 or some shit, so I was out of crypto for a looooong time. Then 2017 came, my asshole friends (they're assholes because they now have more money than me) started talking about Bitcoin a lot, so I got back in.

How did I get back in if my account was suspended? I asked my dad to make a coinbase account, he got verified, and I would just give him thousands of dollars to buy coins with. He gave me one of his bank cards and I deposited money into it and bought coins with his account.

How does this complicate my own taxes? Does it? I have never cashed out any money from it ever. Will my dad have to pay taxes or will I?

The lesson everyone should take from this is don't use Coinbase. Avoid it at all costs.

People should only be buying crypto using cash deposits from localbitcoins, you get a far better rate there anyway.

The fact that they are sending 1099-K forms which is normally for businesses accepting credit card transactions is extremely bizarre. You can literally see the form says "Payment Card and Third-Party Network Transactions".

Bump. I'm very curious about this too.
What happens to us in this case?

what kind of volume did you move to trigger that? cash or cryptos?

We haven't talked in a thread like this before. I'd be willing to bet our complexity is about even. I run a fund on most exchanges that pass some due diligence. I don't do decentralized yet but FairX is a likely candidate. Hundreds of thousands of trades (MM activity, inter-arb, ML, long/short portfolio, etc etc etc)

I have accountants/legal that will be taking care of the intricacies, however, I can tell you that we would not report from a decentralized (thats the point...) - We would also take a look at what is provable (ie who sent 1099s or who has the information to do so) and compare what our reported net V actual is, and adjust from there (this will in all likelihood give us a nice gain in coins that drop "off the radar" )

To be honest, I was a little caught off-guard by coinbase issuing a 1099 for 2017. I was under the impression they had just turned over 14/15 and would work their way up. I was running our GDAX operation off my personal account (institutional verification delays...) and I will likely have to file for an extension on taxes and coerce coinbase to transfer those trades to the institutional EIN. Either way, I was ready to report all trades on GDAX. You better figure out a way to do it too if you've got big bux.

Wired about $400,000 into the exchange over a few weeks (this was all other people's money). All of that money was used to buy crypto and then sent out to other exchanges in other people's names, never my own.

So am I responsible for that money as a tax liability or what?

I'm almost definitely going to get audited...despite living abroad, but what the fuck do I say? how do I explain any of that?

If you own the coins, you can do the taxes on them yourself and tell your friends to fuck off because those purchases were under your name. 400K!?!? WHAT THE FUCK.

That's a shit ton of money.

I was under that impression too about Coinbase only turning over 14/15. Had no idea what to do about decentralized trading from ETH addresses I no longer have the private keys for (this is mostly just from spamming airdrop signups and selling). Anyway thanks for the information.

>that's a shitton of money
Being able to arbitrage at 58% between the US and Korea repeatedly with a small army of Koreans sending me money tended to help.

AMERICA LAND OF THE FREE THEY SAID

HAHAHAHAHAHA THE BEST JOKE EVER HAHAHA OH WOW YOUR MASTERS SURE DO HAVE HUMOUR HAHAHAHA

>Do my net capital losses balance out my net capital gains for the year?

Losses can only be reported up to 3k per year and then rolled over for some number of years (perpituity?), claiming too many losses is a good way to get audited.

>90% of my trading was done in other people's names and with other people's money and often with my money on other people's accounts, in foreign currencies, and on decentralized exchanges with no records. It gets really complicated.

If by "other peoples names" you mean you made accounts under their SSN - then those people need to do what I've discussed here. PS You shouldn't do this as you are legally liable. There are many situations where you could end up fucking everyone involved with or without the tax bill and everyone will sue. You'll probably get collared for illegal MSB - among other things.

>i am from austria. try again third world nigger

lol, europoors pay a much higher tax rate than the US does.

You probably just aren't familiar with your own country's tax laws.

I always found it strange how people seem to be more concerned with the USA's tax laws instead of their own country's

Well the other people's accounts are in Korea so it's not really with SSN and they're mostly close family members who won't sue but ok.

The fact I can only deduct losses up to $3k bothers me considering I messed up and made a sale on Gdax of about $150,000 at one point into USD before buying back into crypto and transferring off the exchange, but ok.

ttlc.intuit.com/questions/3401803-how-to-calculate-short-term-gains-from-losses

Doesn't this go against that though?

Yeah if you're doing 400k purchases on Coinbase, the IRS is going to want to know what the fuck is going on

How you're going to explain this shit to them... That's another problem entirely...

How do these two comments work together? How can you be off the grid not using banks and depositing 400k? If this is not a larp (I highly suspect that it is) it is extremely likely that you are about to be in serious trouble. You need to find professionals to help you get out of it if you ever intend to re-enter the US, earn a wage, or interact with any financial system outside of the eastern block.

I have bank accounts in the US. They just all show $0.00. Maybe that's not "off the grid," fine, I just never closed them. I used them when I was transferring the money around.
Now abroad I use other people's bank accounts only so I still don't have any bank accounts or exchanges in my name with a balance in them.

man you shouldn't have done that

>ttlc.intuit.com/questions/3401803-how-to-calculate-short-term-gains-from-losses
You can use your (GROSS) losses to offset your (GROSS) gains, and then that turns into a net capital gain or loss. Once again, your story of a complicated trading scheme is dubious since you don't seem to understand what net is, how trades are reported, etc.

If you're just using a korean rat hole to execute an inter-exchange arb and all those other exchanges to get those (coins) back to USD, just report your GDAX.

That looks and sounds a lot like money laundering. You just stepped up to federal pound me in the ass prison. What is your AUM? How many people (clients) are involved?

oh shit. why would you ever do that. tax liability is a bitch

So a believable enough story about going all in on Bitconnect, or losing my addresses? Maybe....?

What I mean is, are there not a thousand ways to manufacture a fake net capital loss?

I ended the year with Gdax and Gemini at $0.00 despite having used both to put in money in January 2017. Any way to explain that away?

I moved money for 6 people. I don't have records of how much. I basically just sent them the maximum they were willing to send back to me via their foreign exchange accounts. Then they cashed out and wired me the cash, and their own cash on top of it (usually 80% mine and 20% theirs) or something and I made trades and gave them back the money with profits. No records of any of it, it's a tax nightmare.

Lots of money was made for everybody involved. Hardly any good records were kept. Accountants are all greedy jews and I'm already fucked.

We have evolved to deal with niggers. Europe is still learning, thats why so much rape

you can also apply for your loses

>he cashed out in May

ouch

Every time you traded out (at least on a 1099 exchange) you realized a gain. You owe the taxes on that gain, even if you lose the money later. You need to set aside your expected tax burden so you don't put it at risk - at a certain $ threshold the IRS starts requiring quarterly expected payments for this (and other) reasons.

>I moved money for 6 people. I don't have records of how much. I basically just sent them the maximum they were willing to send back to me via their foreign exchange accounts. Then they cashed out and wired me the cash, and their own cash on top of it (usually 80% mine and 20% theirs) or something and I made trades and gave them back the money with profits. No records of any of it, it's a tax nightmare.

Ok, 6 people is good. Means only 6 counts of illegal MSB and 6 co-defendants on an international wire fraud/ML charge.

When I asked AUM, I mean how much is it all worth right now - just guess.

There's probably plenty of records on the Korean side, since they were either under 50k to you last year or they had to go through all of the AML (which requires a tax declaration.)

If you really did manage to pierce SKs AML, try to make a guess at the total volume of trades that you made. With that and AUM I can maybe think of a way to point you toward a solution.

I would seriously higher an accountant... You're going to get a lot of shit for this, but who knows, you could be in the clear for a couple of years, and then once the IRS does further investigation just like they did for 2014 - 2015 Coinbase trades over 20k, you might show up on that list for people in 2017. Then how the fuck are you going to explain the situation then, if it's been several years since then?

Better to solve this problem now than let it steam up into some impossible to solve shit later

Ok realistically they sent me about $350,000 in total and I have about $180,000 of that still on different foreign exchanges in one of their names, while the rest has all been arbitraged at about 40% average and given back to them, so about $490,000 total. In addition I have about $20,000 left in airdrops and genesis addresses (mostly ELIX) despite this current bear market that brings the total to about $510,000, but that last $20,000 is still unrealized.

Total realized gains are about $320,000, $150,000 of which is sitting in cash in an exchange in somebody else's name but which I control right now.

The Korean exchange, very strangely, decided to delete all records after a certain date back and I cannot get them back.

I didn't break the 50k rule, but as soon as the new year started a few people sent another 50k because they could. Did not break AML laws.

When it's family sending money, or my wife's family, the banks were more lenient. My bank in the US called me and I said it was "just a christmas gift" and they said ok.

What's the 50k rule? What is AML?

I'm going to submit my taxes with a believable story covering almost all of this but with minimal to no tax burden on me, doing the best I can to explain what records they will inevitably have, and I fully expect to fail and be audited. When they do and they tell me I owe X amount, I'll just have to pay it.

This is $400k in monies

>Bank calls
>"H-h-hey I ju-just got a chr-christmas gift of 400k"
>"Yeah that's not going to fly this time buddy."

What is a search engine? What is google?