Crypto and Taxes

When I file taxes must i keep my crypto gains in mind? Are crypto profits from alt coin trading tax applicable in the USA (capital gains I assume)?

Other urls found in this thread:

investopedia.com/articles/00/102300.asp
irs.gov/pub/irs-drop/n-14-21.pdf
findingdulcinea.com/news/on-this-day/September-October-08/On-this-Day--Al-Capone-Is-Convicted-of-Income-Tax-Evasion.html
youtube.com/watch?v=23DNe0cJhcU&t=530s
twitter.com/SFWRedditVideos

You only pay capital gains when you cash out.

Thank god, so if I bought X coins at 1000 dollars and sold those coins for say 2000 dollars, then I would take my 1000 dollar profit and only file that as taxable after the sale?

So if I have a portfolio of coins I don't have to worry about tax until I trade them and cash them to USD?

don't be so sure lad

ok smart guy what do you report as your cost basis and acquired date once you have changed through a few altcoins?

Yes dumb fag. You only pay capital gains when you cash out.

"As a general rule, you don't pay any tax until you've realized a gain—after all, you need to receive the cash (sell out at least part of your investment) in order to pay any tax."

investopedia.com/articles/00/102300.asp

so are you claiming all coin to coin transactions as like kind exchanges then?

if your initial investment was 1 bitcoin and is now worth 3 after altcoin trading, when you cash out what do you report as your 1) acquired date for those 3 units, and 2) what is the cost basis for those 3 units?

Bitcoin taxes my nigga

I thought this too... does crypto Altcoin even get taxed, will the IRS/tax man know if I made Shekels?

I assumed if u bought bitcoin but traded it for altcoin, it would be a weird profit scenario

No tax laws in the us that pertain to crypto

it's still up for debate but given the current vague guidelines the most likely scenario is a normal trader won't be able to qualify their altcoin transactions as like kind exchanges (which would carry the acquired date and cost basis for the initial transaction), so the lowest risk thing to do right now is report all transaction gains including coin to coin. if you have a good CPA/tax attorney then you can explore more financially preferable scenarios.

So just keep a tab of all coin transactions I assume.

yes, but you need to make sure to keep track of the USD value of each coin you're changing too

Are u certain?

irs.gov/pub/irs-drop/n-14-21.pdf

Why are you faggots so anxious to pay taxes on your bitcoin?

The whole point is to avoid taxes, why the fuck should anyone get a % of your bitcoin profits?

You took a risk and it paid off, now you think you're obligated to give the IRS a dime? Lol cucks

Btw have fun buying more Bitcoin when the price is $2500 and you realize you got doubled cucked:. You paid taxes on your gains and sold at what you thought was the top

Somebody's a non paying nigger

>HURR PAY YOUR TAXES!!

I don't understand why people act like paying taxes is some sort of moral imperative.

findingdulcinea.com/news/on-this-day/September-October-08/On-this-Day--Al-Capone-Is-Convicted-of-Income-Tax-Evasion.html

What's your point

fucking exactly

that it's a not out of moral imperative, it's because if you don't they take the money anyways. sure the 5% of people here that used localbitcoins will be fine, but the other 95% not so much.

Reminder this is the system you're perpetuating when you pay your taxes. The system crypto currency was created to destroy and replace.
Skip to 17:30 for quick run down.
youtube.com/watch?v=23DNe0cJhcU&t=530s

REEEE JUST TELL ME IF I NEED TO GIVE UNKLE SAM MY SHEKELS

Fine. Go to bitcoin.tax Import all your trades. Automatically calculates all short term and long term capital gains according to your tax bracket.

i saw that captial gains tax on gold in going a way in AZ and ID could i drive there cash out gold from BTC avoid capital gains tax on gold. and go home or do you need to live in those states to qualify? any answers for this loophole????

if you sell bitcoin or any other digital currency, presumably at some point you're putting fiat into your personal bank account

any transactions (especially recurring) over 1000 dollars or so will get flagged by your bank and potentially reported to the IRS, FBI, etc.

this isn't a bad thing as long as you pay your appropriate taxes (income, cap gains) but if you autists really think you're going to go from making nothing but min wage or NEETbux and suddently put 10s of thousands a year into an account without uncle sam noticing you're an idiot. these are the types of transactions that are regularly investigated for money laundering, drug sales, terrorist activity, etc.

you probably wouldn't get caught if you just sold bitcoin locally to anons but at this point you're basically no different from a drug dealer selling shit for cashing and thinking they're awesome because they're getting away with it. you'll never be able to cash in more than pleb-tier bux safely locally.

just don't be retards and pay your fucking taxes.

christ just give me a tl;dr because that's srlsy tl;dw

that's only for STATE tax. each state has their own way of deciding what you owe in income tax, capital gains, etc. Even though AZ and ID may not charge you cap gains doesn't mean the federal government doesn't. Just like some states dont charge income tax for themselves doesn't mean you dont owe it to the feds.

also note you would have to be a resident of that state for the majority of the year to file taxes there. you can't just take a day trip and sell them and consider that tax free.

do what this guy says. irs is no joke when they come around to look at your asshole. they will make your life hell for the keks.

And all coin to coin transactions are taxable events since all cryptos are seen as commodities. HOWEVER, if you have a loss on any trade, you can use that to offset your gains. It's not all bad...

tl;dr use bitcoin tax calculator