If Coinbase loses their ongoing battle with the IRS summons (which they inevitably will), will they be able to use Etherscan or its equivalent for BTC and LTC to track down the history of all the crypto that you purchased on Coinbase and then sent to a private wallet or other exchanges? I'm pretty ignorant of how sites like Etherscan function.
Basically, once the records are turned over will the IRS be able to say "so here's all the evidence showing that you bought this much on Coinbase and then made all these taxable transactions that you never reported"?
Or does the paper trail just end at the IRS just knowing that you bought X amount on X dates and then sent it away from your Coinbase wallet?
Honestly I would just be happy if something like this happened. It's extremely difficult to figure out how to pay taxes and exactly how much after crypto gains. If national tax offices would up their game and make clear rules and encourage transparency, that would be pretty cool. I don't want to be told 2 years later that I actually should have payed 2 gazillions - after I spent it all.
REMINDER TO Y´ALL MOTHERFUCKERS we are the times ahead of any goverment right now. They dont know shit how to deal with it. Especially about taxing. Most goverments started working on it only at the end/december of 2016 (confirmed in germany) and still haven´t managed any rules. I bet if you go to your next tax consultants they wouldn´t even know about cryptocurrencys. It is still new regardless of it continuing immense growth.
All I do is waiting till somebody cash out and report the results after tax. The tax stemp is between 0% and 45% in germany.
Connor Robinson
Does anyone know if you need to report anything if you trade between cryptocurrencies on an exchange and thus increase your btc holdings? Or you only pay if you cash out into local fiat?
Juan Barnes
I´m not sure what the duties are for the average american but it is best to record everything. Buy from fiat to coin, the transactions to other coin within exchanges and back to cashing out in fiat. Kind of action - Date - Amount of coin and current price at that time - wallet address
consultants dont know how to weigh it so they will ask for as amuch as possble on data.
Jaxon Powell
The IRS hasn't formally declared yet but any attorney or accountant is going to tell you that you sure as hell better report all crypto to crypto transactions as taxable events. No one is going to advise you not to report it and just cross your fingers and hope everything works out.
Dylan Price
Thanks!
Jacob Myers
Anyone interested in the topic of the thread or know anything about this?
This wasn't really a general tax thread. We all know we're expected to pay taxes on this shit.
What we need to know is how much will the IRS will know about us when they gather all the records from US. fiat to crypto brokers. If someone moved all their crypto out of Coinbase or Gemini does the IRS just have to take your word on where it went?
Charles Adams
guess we will never really know until the next annual tax return commence for everyone of us
Carter Cooper
Just pay capital gains taxes on whatever you cash out and you'll be fine. Technically every trade is a taxable event but the IRS has no clue how to deal with crypto. NEETs have been cashing this shit out en masse for years now and just saying "lol! taxes? no thanks."
The IRS has their hands so full with trying to track down people who paid nothing, they'll be happy to just take whatever you self-report and move on.
Dominic Nguyen
Bump.
Alexander Hall
Extra Note: If you trade on poloniex like I do and many others, under the section Trade History you can export/download the withdrawal,deposit and the c.o.m.p.l.e.t.e. trade history on your computer. Makes the work enourmes easier.
I have so far over 600 lines the tax agents would have to evaluate. oh boi
Parker Ramirez
and I do not even day trade
Cameron Martinez
No one knows anything about how Etherscan works and what it can tell you?
Adam Wilson
crypto to crypto is NOT a taxable event!
The only taxable event is when crypto gets exchanged for USD fiat.
Crypto to crypto must be reported because they need to know how you grew your crypto property.
When you exchange a baseball card for a comic book, its a trade of property. When you sell the comic book or baseball for cash, you have to report it.
Just keep track of every deposit, withdraw, and trade made along with all the fees so you can write those off!!!
If you hold on to a property for 1 year or more its considered LONG term capital gains tax which is less tax than short capital gains tax which simply gets added as an income tax which will put you at a much higher tax bracket.
I hope this clears the air!!!
Learn excel, it will make your life much easier.
Landon Adams
Can you withdraw your initial investment tax free?
So say I bought $3,000 worth of BTC from Coinbase and later daytraded/pumped into shitcoins and now I just want to play on house money. Can i just cash out the $3,000 I put in from Coinbase tax-free for now?
Easton Scott
This doesn't clear the air at all dude.
Until the IRS actually declares the they can be considered like-kind (which they have zero reason to do because this equals less revenue for them), no tax professional is ever going to tell you to assume that someday the IRS will.
He's right about keeping records but don't listen to this guy when it comes to what needs to be reported.
David Harris
No. It doesn't work like that because you're now cashing out a smaller number of coins that equal 3000. SInce that number of coins is now worth more than they were when you bought them, you have gains on them.
