Tfw you have to report every single transaction for taxing

>Buy 1BTC for $2k
>Year later it's worth 4k
>But you have 10k because you traded it for alts
>But Bitcoin price doesn't increase that much user :^) t. IRS

I probably don't have to do this anyway since I'm not actually an American. I live in Poland and from what I've gathered you only have to report trades for fiat here. But it's still fucked up because you have to declare the costs of buying all your coins in the same year you bought them even if you haven't sold, or else you won't be able to substract it from the taxed amount (you'll pay taxes from the revenue and not the profit) when you finally do sell.

Also I'm not sure what happens in the case where you sold part of your coins for fiat with a profit but reinvestment them in shitcoins again and haven't sold before the end of the taxation period. Do I have to report the profit/cost because I sold, or not because the money has been frozen again?

just don't cash out and they will never prove anything

This.

Never cash out and then just buy things with your cryptocurrencies.

What if one were to use prepaid btc visa? How to pay taxes?

Q-12: Is a payment made using virtua
l currency subject to
information reporting?
A-12:
A payment made using virtual currency is
subject to information reporting to the
same extent as any other payment made in
property. For example, a person who in the
course of a trade or business makes a paym
ent of fixed and determinable income using
virtual currency with a value of $600 or more to
a U.S. non-exempt recipient in a taxable
year is required to report the payment to
the IRS and to the payee. Examples of
payments of fixed and determinable income
include rent, salaries, wages, premiums,
annuities, and compensation.

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

The fuckers even want from miners to record the "fair value" of every coin or fraction they mine at the time it's mined and declare for taxation. It's like they have no fucking clue what they are dealing with.

Its literally free, you mong

Just calculate how much profit you made by subtracting your initial investment from how much you have at the end of the year and then calculate the tax from that amount.

Apple avoids paying billions in taxes they can suck my big fat cock

Tell it to tyrone in prison before he sicks his dick up your ass.

>never even convert to fiat
>STILL try to make you pay taxes

Lemme guess, all those Pokémon cards I traded are taxed too, and when I traded my gushers for a fruit roll-up.

Fuck this noise, I might as well just fill out a 1039 and if I get audited start a go-fundme for a decent lawyer.

I'm sure there's a ton of wealthy people in the same boat who'd like to see this bullshit overridden and float me a few bucks just to see what the law REALLY says about crypto.

1031*

I'll go out in a blaze of crypto glory faggot

>all those Pokémon cards I traded are taxed too
I agree. A friend of mine made a similar comment the other day that by this logic, all of that gold earned in World of Warcraft should be taxable income too.

>muh taxes
why are americucks so obsessed with paying taxes?

Because if you don't the IRS will bankrupt you and throw you in prison for 40 years

#3 is major key here
i literally don't even think about paying taxes on this bullshit

same with runescape lmao.

*sells santa hat*
*required to pay taxes on "capital gains"*

>he didn't give 20% of his fruit roll up to uncle sam

lock this guy up

Law fag here. I'm not reporting shit. Going to nurse it as petty cash for the rest of my life.

As a lawyer, can you elaborate on why this is okay or why it will work out? I don't want to get fucked by the IRS but I don't want to pay taxes on this shit

...

I hope you only have first lvl of verification on alt coin exchanges, senpai cuz otherwise that genius thought doesn't work..

government cannot do anything about it. Nobody sane is going to pay crypto taxes

>suddenly enough money to buy a lambo
>thinks the IRS won't notice

good luck with that

HODL until the #fiatcrash familia. i actually really hope trump dissolves IRS

either way it doesn't actually matter, it's near possible to enforce.

You can't force someone to pay tax if they are still holding onto cryptos, only if they want to sell

In which case,pay 15% capital gains if you've made 6 figures or whatever and get on with life

>tfw I'm a developer in finance and automated everything
I truly feel sorry for all of you

Why does everyone think fiat is gonna crash? Unless the petrodollar becomes worthless, fiat is going to stick around.

Exporting the files from the exchange is free. I think bitcoin.tax is like $15 per year and you can also export a file from that for turbo tax to use.

Is there any way a layman can do this? Or is there a paid service? Please help me user I'm buried in transactions to report

Good luck auditing my cat IRS faggots.

there are paid services, google them

True that. I feel that when I finally decide to cash out all my crypto profits - the 15% capital gains tax would be the least of my worries. I'm just saying that the IRS is getting totally out of hand.

In order for the IRS to be dissolved, the Federal Reserve would need some heavy reforms. I like Trump but I don't think he can take on the central banks alone unfortunately.

Sell the code and instructions on how to use it or post it somewhere for free and leave a donation address.

Use the sales/donations to buy more shitcoins.

>Bundle your software
>sell it
>make even more

Who told you this bullshit?

How the hell is anyone going to know where the Bitcoin you just sold came from?

too much work, i can't be arsed to provide support for normies

>that sweet feel when you have an old bittrex account with no kyc requirements and unlimited withdrawal abilities

> Set up a company in a tax free region like the BVI.

> Call it NEETGains Capital.

> Employ yourself as a trader for NEETGains Capital with a salary of $1.

> NEETGains Capital pays no tax.

Do you even know what percentages are?

unlimited? I have a legacy account but a 100BTC daily limit

Apparently not, judging by your comment. Please explain to me what percentages are.

literally just read about it
thankfully in my country it's only crypto-fiat that's taxable

Oh.. well, to me 100BTC is pretty much unlimited

>still no responses

kek me as well...for now

M8 just pay any gains you make at the end of the year.

If you cash out $500 profit. But then lose $500 profit before the end of the year is up. Don't pay shit nigger, you're retarded.

>no fucking clue what they are dealing with
Civics 101

except when you start cashing in shitloads of money in your bank and the gov sees it you're fucked

if you don't plan on actually using your money you're also a cuck.

Why are you fucked if you want the money in your account, pay the 15% tax, to the government and keep it in your account

???

Are you retarded

not sure how taxes work in USA but p sure that 15% withholding tax isn't the only tax you'd pay.

That's just a preliminary tax, a lot of your gainz will still need to declared as income, with the 15% tax deductible.. iunno..

what did he mean by this?

in the USA you pay income rate on short term gains (25-35%), and 15% on long term gains

you have to declare mining income as "other income" on the 1040, if that's what you're referring to

good luck senpai

He meant that you can't be expected to pay a tax if you haven't cashed out yet. Good luck paying $20k tax on the $30 you put in on a 1sat coin that made you $80k, with your fucking $100 net worth bank account.

He also meant that there's nothing stopping you from just saying you "found" 20btc.

And also saying that you can just tell the IRS your exchange of choice just got "hacked" and did an exit scam.
Remember bitfenix?

>land of the free

>He meant that you can't be expected to pay a tax if you haven't cashed out yet
isn't this common knowledge, that you only pay taxes when you sell? I guess you shouldn't overestimate the masses

>He also meant that there's nothing stopping you from just saying you "found" 20btc.
I guess so but why have a permanent red flag on your tax file for the rest of your life

he could have just labeled the post "tax evasion methods" if this is the case. it's a valid strategy but I'd rather pay and use my money freely without lying to the IRS.

>saying you "found 20btc on a long lost pc"
I think they would actually see through this one quite easily. If you've be stockpiling BTC in cold storage and decide to cash out - the IRS can do a blockchain audit and see clearly that you've been receiving a steady flow of BTC from exchange addresses.

co co co, przecież w polsce to w ogole nie jest regulowane, nie moge po prostu wypłacic sobie bitkojnów z bittrexa na bitmarket a potem na konto? jak je wyprać?

home of the slaves

>pay taxes
>get to live in a developed country

>don't pay taxes
>live in a third world shithole

hmmm

I don't mind paying taxes, dude. I think we can both agree though, that the US government's taxation structure is nothing short of corrupt and the IRS is operated by cash-grabbing jews. How many gorillion in debt is the US in now? Who's fault is it and who has to pay it?

There's a reason places like Abu Dhabi exist, user...

just keep track of your transactions in a spreadsheet

Cointracking.info also allows you to replicate steps 1-3.

Honestly this is why I'm not interested more heavily in crypto. Handling the taxes for my brokerage and IRA is far easier since Merrill just mails me the information I need.

isn't there a basis swap when you trade these shits so you don't actually recognize the full amount as a gain unless you convert to fiat?

in the governments opinion its worse than murder to not pay taxes

Such is the life of a US citizen.

or of any other civilized country

If I was a US citizen I would do exactly what Rodger Ver did, renounce my US citizenship get a St Kitts and Nevis passport and go live in Japan.

In literally no other civilized country do they expect you to report every single trade done on some crypto exchange.

Hell in the UK it's not even taxable if you write it off as gambling/speculation.

I honestly think capital gains on the base currency of HTC should be enough. It's unreasonable to tax gains made on alts since there's so many different transactions and exchange rates to account for.

Btc* not HTC

Lets say someone uses coinbase and move his coins outside to an exchange then just moves the same ammount of coins base into coinbase that he bought and cashes out. Would they even know you traded?

I'm not paying shit in taxes, a few years ago secret service was fucking doing stings on people just using bitcoins.

My plan? Local bitcoins, bitcoin depot, and bitcoin debit cards. I'm a college dropout with nearly no assets and no more than 2k in the bank. Irs want's to try getting at me let them on.

People don't pay taxes all the time, in the end if they get their money without wasting time and resources on shitloads of lawsuits they're fine.

Fuck the IRS, enjoy paying taxes goyim

They can track your BTC address on Coinbase and see all of your outgoing/incomming transactions. They can also track that you are sending BTC to an exchange address and request your trading history from the given exchange.

this

Not many people seem to understand that all transactions are public.

Blockchains would make money laundering impossible if properly enforced.

just report your final cash out, fuck them

Anyone on Veeky Forums been caught not reporting crypto gains?

Do you think they would go to such lengths If you just pay long term capital gains? I think this is too new for them they dont really even have an official ruling regarding crypto trading altcoins. Their last offical statement on bitcoin was ambiguous and back like in 2014 or something.

Also anytime you buy something with a bitcoin its taxable or even if someone gives you one. So theres too much to keep up

you can attempt a 1031 like-kind exchange and carry the basis of the 1st transaction but if you are in the business of trading cryptos (ie: a professional trader) then you will 99% not qualify for it

you would probably end up owing more tbqh even if you did do that

Coinbase on the chopping block, legit only 900 people reported last year.

There is too much of us, but if they get ALL account data then we're fucked.
fortune.com/2017/03/19/irs-bitcoin-lawsuit/

Non US citizens can follow this: theglobalcitizen.co/zero-bitcoin-taxes/

If I ever get audited I'm going to send them a 100 TB file containing every microcent I've earned staking an obscure high PoS shitcoin. In PDF format of course.

I posted the PDF link for that 2014 doc they released here I am certain they would go through such lengths especially if they think they can grab money from a lot of people in the process. Not saying they would be successful but rest assured - they will try their best.

thanks, that's what I was thinking of. Yeah, would they just consider that normal income?

no it would still be taxed as a capital asset, you'd just use the cost basis and acquired date of the initial transaction.

so I guess there would be a benefit if you can avoid short term tax rate (your income tax %) and pay the 15% long term once you do sell back to fiat, but you'd need a tax attorney to do it for you probably

>mfw staking 1.7mil RDD rn

lmaoooo cant wait to send them this shit

I had about 4.2mm rdd back in the day and was staking them. I wrote some scripts to get everything in order tax wise, but 95% of the total I bought across 3 orders on the exchanges. I couldn't pull the trigger on the ones I mined, it'd be thousands of transactions I'd have to enter into taxes once they are sold. I sold the 95% and am saying fuck it to the rest, those are staying in the wallet forever. not worth the effort.

just cash out in a different country jesus you fucks