How can I avoid paying taxes on Cryptocurrency?

You're the one who will be trying to kill yourself when the IRS comes for you.

Fuck off nocoiner

So how much money did you lose?

Im up about 10k on the Year

LMAO fucking NEET, No you don't have to pay tax with THAT KIND OF MONEY lol

Listen to this guy user. I have a friend who was evading taxes on 100,000/yr and the IRS reamed him just for keks. He's now a felon living in a cottage and in massive debt. A long fall from living an easy productive life in a major city. Every legal professional he's talked to can't understand why the IRS would push a case when they lost massive money pursuing him, but my guess is that it was just to prove a point.
I'd at least report the gain if not every trade

Because they want to make sure your not trying tojew then

You shouldn't have to worry about it unless you convert it to your country's currency. Then it's generally considered income. Just keep an accurate order book, dates you exchanged for your currency, etc.. just in case the tax man asks you exactly how and when you acquired the money. They may think you're a drug dealer otherwise and put you under a microscope.

>playing around on coinbase making sure everything works transferring to indexes
>end up making a $7 profit

Are they really going to make me report all that shit just for a fucking dollar?

actually someone already has done that.

FBI looking for tips

Sauce?

What if I am a poorfag making less than like $15,000 a year? Do I even need to pay 25% capital gains tax?
>To pay for a social contract I did not sign

The IRS pushed guidance saying crypto was "Property", but do they even have the legal authority to do that? Sounds like the cook telling the bartender what to do, desu

Aren't crypto coins only taxable once you cash them out? And while they're in their crypto form, they're basically pieces of bytes?

If one withdraws money from exchanges to his bank account, shit is obviously taxable

Yeah, but I mean the goal with crypto is to cash out. No one actually thinks that bullshit is going to be a viable means of currency

Every single coin revolves around the value of the US dollar

so then what the fuck is the whole point? If it will eventually wind up back in dollar form, this whole argument that cryptocoins are the decentralized future is fucking moot

What field was your unfortunate friend in? Can he get back?

There is no point, outside of convincing redditors and other saps that "crypto is the future!" in order to pump up the price and cash out into real money.

Every coin is a variation of this

Not true. The USD is traded for something of value. Pizza was bought with Bitcoin. Please take a break outside and breathe some air.

so... one way to avoid paying taxes would be to avoid converting it to dollars altogether... but where the fuck could you spend the bitcoin? What are the largest reputable businesses which accept it? Does Amazon accept it?

Also, did you read Satoshi's paper. USD has inflationary/deflationary aspects... AKA RTFM.

Just find businesses that take the Bitcoin/coin. It's a slow process and BTC has yet to take out fiat. But there is the possibility of buying stuff with Bitcoin.

What's scary is that in 20 years, we might be in a situation like in the movie Equilibrium (rent it).

>Pizza was bought with Bitcoin.

Holy shit it's an economic revolution! One neckbeard buying a meat lover's supreme is going to turn all of finance on its head

Currency inflates, but at least it doesn't rise and fall 700% over a year

That's zimbabwe-tier

I can understand what it is to tax your income from coins.. Just like from stocks.

But how the hell is one supposed to tax TRADES made purely in cryptocurrency? That's ridiculous to say the least

Whether you want to use it as a currency or not, how else would you compensate for example the people providing the processing power for a decentralized network to function? Or do we simply not need or want decentralized networks?

If you have enough BTC, you could buy other things from the restaurant each day (breakfast, lunch, dinner).

It's a process of moving away from government-based monies.

I think reading and understanding Satoshi Nakamoto's paper should be required before someone gets into cryptocoins.

I know you can exchange bitcoin for real cash, just by meeting in person (this depends on location, may be not present in the U.S.)

In that case, there's no record in your bank account, and if you do it small scale (don't buy cars and property), you pretty much get free untaxable cash that the tax guys won't know about

As I've considered, decentralization is bad under one issue:

1) Asteroid comes to earth.

With all that decentralization, how are people going to come together to shoot the asteroid?

just keep your fucking mouth shut and move your wallets around they cant look for what they don't know exists

To answer OP, yes, it's avoidable. But "We the People" and such may as well have it as illegal, which is stupid and contradictory. However, for how Bitcoin works, Bitcoin acts in science jargon as a "control" against inflation. As such, even if you were to pay the capital gains, it would decentralize back out into society (just not your pocket, thus accomplishing its goal of decentralization at a, perhaps, faster rate).

I'll take your retarded hypothetical and raise you this one:

One of the several NEETS that became trilliionaires on Veeky Forums will launch a recreational space nuke from their own private military base in the pacific.

And my response

It was my understanding that you don't have to report tax at all unless it's over $600 gained and they probably won't care anyway unless it's over $1000