Is crypto taxed everytime you sell? Or is the sum you deposit into your bank account taxed?

Is crypto taxed everytime you sell? Or is the sum you deposit into your bank account taxed?

I.e, if i sell but keep my fiat on the exchange, and then rebuy, am i taxed for that transaction?

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irs.gov/pub/irs-pdf/f8949.pdf
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why would you ever cash out?

Shut the FUCK up you literal piece of human shit

Fuck off IRS I'm never paying taxes on crypto until you start making Apple pay taxes

the rules are still up for interpretation, the lowest risk way to do it is to treat it like stocks, every trade is taxable

the high risk method is to only claim the gains when you cash out, but it would be extremely easy for the IRS to tell there were trades in between but simply looking at the numbers

Each transactions should be taxed

but don't worry they really cannot prove you anything if you trade on exchange that does not force id verification also don't send money to your bank account

>the rules are still up for interpretation, the lowest risk way to do it is to treat it like stocks, every trade is taxable

Eat shit and do even 1 second of research, crypto is not taxable at all until you cash out.

In germany, if you hold your coins for one year before cashing out, you don't pay taxes at all

not in the mood to argue with you, but I have done my research every year and have filed like this for 3 years.

you can do it however you like, that's why I said it's still up for interpretation.

>but it would be extremely easy for the IRS to tell there were trades in between but simply looking at the numbers
????
what numbers? you deposit for instance $1k from your bank account, cash out $10k, $9k taxable profit.

this is the form it goes on
irs.gov/pub/irs-pdf/f8949.pdf

so you'd need to omit the number of shares and lie if you cashed out in a different coin, and using the date acquired with your gain % you could be caught as well if it doesn't match up with the sold date.

like I said, high risk.

Can't you just go to a bitcoin ATM and get fiat?

If you want to withdraw more than $2500/day you have to show ID verification. If you make a habit of visiting the ATM every day to withdraw that much money, you're begging for a run-in with Tyrone.

Assuming I'm a millionaire in 5 years, could I just download my transactions from CB, kraken, polo, bittrex, etc. and just have a CPA fill this shit out?

I heard that you don't technically own the coins on an exchange, is this true? If so you can just pay taxes on fiat and have an excuse if the IRS tries to buttfuck you.

you best start now or else you'll be paying a pretty penny later

if you think that's true, I have a bridge to sell you

Alright, fine, where I do start recording this crap?

so where to send it?

the 2014 memo basically says what you need to do is record the USD value of everything @ the time of the transaction in a consistent manner. do that wherever you please, excel or something like that, then then load it all into an accounting program like quicken and it will do all the tax shit for you. it's easier than it sounds.

Am I still taxed if I cash out directly to something like my money wallet on Coinbase instead of sending it to the bank?

holy shit this is unbelievable
what retarded brainless moron came up with the duty to document every transaction
time to never sell for fiat ever again
what if someone is daytrading

The IRS would love to put an anti-semite like me in lockup, so I should record even alt coin to bit coin transactions? god damn, I hope the folks over at that hellhole enjoy the task of flipping through the transactions of a bunch of autists day trading fucking memes.

hah, I guess at 22, I had to get around to filling out more than a dozen lines on my tax forms, lol

> every trade is taxable

That doesn't make sense..

What if I make 5k on one trade and then lose 5k on the next? I still have to pay taxes on the trade I made the 5k on?

yes, I'm a developer by trade so I found a way to automate everything, others aren't so fortunate though

the IRS has really backed themselves into a corner on this one, they are going to have to spend a fortune on software to track it all

Jesus good thing I don't live in Murrica

You can just sell bitcoins for cash you know

no, you can claim losses as well so it would cancel out and you owe nothing, the only upside to this bullshit

you think those jews at the IRS gonna let you off easy? You have to pay tax for each crypto transaction, not just to fiat.

this is why I'm fucking skeptical of having to report eth or btc/alt parings.

you're literally unable to cash out even the most popular alts for cash, it's basically just paying quadruple taxes to go ->fiat->btc->alt->btc->fiat.

it seems so fucking unfair

You are a retard

trading crypto to crypto is not taxable

That is called Like-Kind Exchange

make sure you fill out 1031

welcome to the land of the "free"

don't forget the fees on each transaction in most exchanges... we're going to the moon though, right?

this is a valid argument.

however, a word of warning. if you are in the business of trading cryptos, then you will most likely NOT qualify for a 1031 exchange. if you plan on doing this, i would HIGHLY recommend you hire a tax attorney.

>he thinks the irs will ever be able to see the trades you made on bittrex or poloniex
You can make up whatever the fuck you want, and as long as the numbers match up they will never be able to prove or even suspect anything different. You can literally just say it was one trade you got lucky on that gave you a 50000% return and that's it.

you do know completing 1031 is basically asking for an audit right? that shit is a huge trigger for those IRS cunts. Also when they audit you they go back 5 years. have fun paying a lawyer and cpas to figure out that shit

>It's not crashing
>everyone asking for tax advice

you think those fuckers running polo and bittrex wont fold the minute the IRS comes knocking? Once the IRS has your records enjoying bending over as they audit your ass

>as long as the numbers match up
yes, this is key

as long as the numbers match up

but they know what the price of bitcoin was every day so it's going to be pretty hard to sell a large discrepancy

So this isn't crypto, but rather, completely jewed? Fabulous, looks like I know where capital flight will end up come the global currency reset -__-

>trade crypto
>lose it all
>cause you failed to inform the irs of the millions a trades you did.

Why can you just sell your BTC on Localbitcoins to people who pay 500% premiums to buy without ID verification and shit?

Its cash straight into your Paypal or in the form on Amazon gift cards.

Why wouldn't they take some profits after a x10 appreciation in some cryptos? I know I did and I'm still bullish as ever

you need to know 2 things for crypto:
How to get in and
how to get out

Have not consulted my tax guy yet, but that's correct.
To add to that:
It's FIFO, so, you buy 1 ETH 12month ago and 1 ETH 11 months ago, you can cash out 1 ETH now and 1 in a month.

Read somewhere that mined coins get 25% tax regardless though.

It was hard not to make money actually. I just didn't realize within the exchange that transactions were something substantial that needed to be recorded for future taxation, so I was putting in 5 dollar orders, 10 dollar orders, etc. just to play around. Guess I know now to have a bit more skin in things before I test the waters. This also concerns me on a personal level just in terms of my perception of future growth, but whatever, maybe things will modernize, dunno.

How do you calculate price of btc for day?
High?
Low?
Time of exchange?

If these fuckers try to come and take my shekels for my fucking Bitbean to Mooncoin transactions I am NOT GOING DOWN EASY. What the fuck are they going to do next, tax me on my neopets item trades when I eventually sell someone some high level petpets for real money?!?

any sale you make is already taxable you faggot

>all these newfags making daily threads asking about crypto taxes

1. The whole point of crypto is so you avoid paying taxes.

2. If you sell your bitcoin and didn't absolutely need the fiat, you'll regret it later and probably buy back in at a higher price

Obviously if I'm converting from internet meme coins into real US dollars. I mean if they're trying to tax me when I'm selling a bunch of feathers for gp which I eventually use to buy a dragon scimmy that I sell for some real money. TAXING FEATHERS TO GP

I came in just expecting to hold and put in cold storage.... but the highs and lows were too tantalizing not to play with. With taxes and transaction fees, it's clear now that just staying in would've been the best bet (for me), so I'm just planning on buying dips and holding long-term in the future.

This is how I feel... I've done arbitrage on MMO marketplaces between servers... is the IRS going to audit me for that, too?

I'm trying to do this shit legally faggot. I'm going to get out at some point. Not going to hold them forever and I'd like to know how sooner than later. I've already made a fuck ton of money I'd like to use it for other ventures not just let it sit in a wallet

how do you keep track of every trade? are you just using your histories online?
and when you file it, do you just include it like "lol here you go a bit list of what I did"

I guess I better report to the IRS every time I sell a Dota2 hat for steam shekels.

>jagex gave gp a real world value
>irs jews catch on

stop giving them ideas man

>any sale of 1millgp and higher is now taxed by the irs

Does the IRS even really know how to decipher all this BS themselves? I get the feeling they'd just feel shocked you actually paid them and if you give away your typical 25-30% bullshit tribute of a USD cashout that will make them happy.

steam shekels are crypto currency,and thus capital gains taxable.buying any item with them is taxable

Guess I'm fucked then. never recorded anything I sold on the steammarket... Hope I get less than 5 years in jail.

just has to be in a "consistent" manner according to the IRS. take that as you will.

I am in a unique position, I am a developer in finance at my day job. I created a a database that stores prices from multiple exchanges every minute and a front end to enter my trades, and the cost basis/USD values are automatically calculated by querying the database.

my recommendation to the non-developers out there is to keep detailed records in excel or something of the sort and just make sure what you're doing is consistent. set aside an afternoon a few saturdays and you should be able to to input a few hundred at least each time.

it would horrible for me the first couple of years because I was losing money, not making it, but you can still claim losses, and when you start making money you can sell 100k to fiat in the blink of an eye and still sleep like a baby because all your records are in order.

the FEMA camps were built for microtransaction tax evaders

enjoy being buttraped by Royal Pumpkin Knight who is serving 15 years hard labor

comic relief is one method to brush off the anxiety of tax evasion, but we all know that the IRS is going to crack down on cryptos at the end of the year.

no one gives a fuck about the steam market, and they never will. however, the government is fully aware of how many thousand and millionaires were made in the crypto space in 2017.

they will buy software to track our data, they will pressure exchanges to give up records to continue operating in the US. unless you are buying/selling your coins via localbitcoins 100%, then you really need to protect yourself.

Are the camps going to be filled with autistic chartwatchers like me?

Actually I don't care, since we don't have capital gains tax in Europe. I just need to keep bitcoins for longer than 1 year before I cash out.

that's great. I'm truly jealous. my biggest problem right now is when to cash out of my shitcoins because I'll need to either pay a 30% tax or a 15% tax. this is why Veeky Forums needs flags enables.

Well, after just reading tax code briefly, yup: all transactions for crypto are taxed.

Where in Europe do you live, how do you apply for citizenship, and can you own guns? I'd rather take my chances with suicide bombers than the IRS at this stage.

Does it work like this with stocks, etc...? If so, based germany.

Most Western EU countries don't have capital gains tax BUT, no guns allowed. And you might die to suicide bombers.

And if you want free citizenship, just have brown skin colour and say your name is Ahmed and you're a muslim from Syria. Worked for the other 20 million migrants.

This

the only problem is 95% of US anons use coinbase or an exchange that verifies identity. if only the mods would enable flags.

There's no where left that's safe for people aware of reality, is there?

We're all just slowly being eaten away at by people with more money and power than us no matter what we do.

All I wanted was to make my million in 5 years and pay 30% on cashing out. That's it,, now I learn that all this research, calculations, and stress might pay off to something like 200k.

Jesus.

Scenario 1:

Deposit $10k
Buy 1 coin
Cashout $100k
Pay capital gains on $90k


Scenario 2:

Deposit $10k
Buy 1 coin
Cashout $50k
Buy 2nd coin
Cashout $100k
Pay capital gains on $40k and $50k


How the fuck are these 2 scenarios any different to the IRS?

>tldr
why the fuck would they care as long as you pay capital gains on the fiat you withdraw. unless you're trying to pay long-term when you should be paying short-term.

I'm just slowly building a retirement fund through bitcoin, but once things get unsafe for me and my family, I'll instantly cash out and move away from Europe.

But hey, enjoy the party while it last. Should be another few years at the very least till the Eurozone collapses.

I'm okay with a Volvo instead of a Lambo, I just think I'll be back to stacking precious metals this summer over massive stacks of BTC. I'm too jew-wary to think they'd allow wealth to transfer to internet nazis and a middle class that wants them in jail, kek. I know they aren't omnipotent overlords, but fuck me, they've controlled capital this long and now they control data. Yucky.

what US exchanges don't verify ID?

>t. not FBI

...

No you pay taxes at the end of the year so assumi the gain and loss is in the same year, then you're fine.

I never wanted a fucking lambo, I just wanted a quiet, stress free life.

I'm starting a new job Tuesday, underwriter salaried at 42k, a job that I KNOW will be automated sooner or later, and the only thing that was keeping me optimistic was that my paycheck would fund my crypto trades.

Now I'm just fucked.

here's some depressing shit though

if you have a day job and aren't withholding enough on your W-2, then make some fat gains in crypto, you may have to pay estimated taxes quarterly on your gains. I just calculated mine yesterday and am only $39 short of having to pay this quarter. due date is june 15

Prepare that anal lube for when the IRS comes. You didn't think (((they))) just let anyone become rich, right?

Where can i buy altcoins with usd?

Hi I literally buy and sell at every up and down for several coins. I have tens of thousands of trades spread over close to 100 coins across 6 total exchanges.

How the hell are you telling me someone is gonna track that?

Good question.

When you sell their going to see you have way more bitcoins then you bought.

Makes no sense if I bought BTC but somewhere along the way years later turned it into ETH and cashed out in a different site than I bought in, and cashed out a smaller value than I bought in as well.

I used the bitcoin.tax website.

>How the hell are you telling me someone is gonna track that?

I SEE THOSE GAINS. GIVE THEM TO ME. I NEED THEM TO PAY FOR CRUISE MISSILES, USELESS BOOMERS, AND R-SELECTED GHETTO BABIES.

I have my doubts this could be tracked that easily.

Why do you need to buy other coins with bitcoin? Can't you just use cash or credit card to buy them. Bitcoin is so expensive how can i buy other cheaper coins with it if I can't afford to get bitcoin

i'm also wondering about this desu

What the hell are you talking about?

What you're saying makes no sense in this context, at all. If you don't fucking understand what a Bitcoin is or how to buy one, lurk more before posting here.

some of us have more than $20 to invest

With Stocks everything you make above 800~ yuros you pay 30% taxes on

this entire fucking thread

I can't even find what the consensus about Crypto and taxes for my piece of shit non-country (Belgium)
Some say I don't need to pay taxe, some say I need to pay 50% of taxes

Just log all of your trades within the financial year and the taxman will figure it out for you

what if i trade my bitcoin for dough and EXCHANGE it for a house before i have to do taxes, do they have to take a percent of my house

European court ruled crypto as an asset.

If you can prove you did not buy it for speculative reasons it is no different than buying and selling a car or closet. (So basically, 2 transactions more than a year apart and you won't get taxed)

This is literally autistic.
>makes $5,439,453 off crypto
>hasn't cashed out
>Hello Joe Schmo plz pay $1,000,000 - IRS
Not how it works.

>buy 20btc
>Make 732713 trades on Mt.Gox
>cash out 300 out to cold storage
>C ya u cuck
>no trade history for 732,713 trades
No losses to include just 2 trades.

>buy 7 btc
>do 432423 trades, who gives a fuck
>cash out total 40 btc
>tell IRS you found your 'long lost BTC' computer
Easy.

Taxfags will argue against this.

So I gotta HODL

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