How many of you are fucked when the IRS audits your coinbase histories?

IRS goes after people for less than 10k all the time, press will just laugh at you.

The coinbase subopena? That started last December. This is seriously old news.

Not true, my tax refund for 2016 was witheld because I never filed a return in 2010. When I asked why it hasn't been an issue for the past 5 years they had no answer for me. I think it's because I bought a Trump hat.

Anyway, my 2010 income was below the standard deduction, so I didn't think I had to file, turns out I did.

Thankfully it only took a couple months to rectify.

They wont know what the fuck you do with your coins once u transfer out of coinbase. On coinbase when you sell just pay capital gains and you will be cleaner then 99% of users.

Long term capital gains ( held for one day over one year) are taxed at 20%
Short term capital gains are taxed at whatever rate your income is and for the highest earners is 39.6% but you'd have to make 466K in one year to get that high.
Also those gains are only taxed when you convert them to fiat.
But yeah I did trigger a conversion to fiat hovering around ATH's then slowly bought more during the panic sells, I was hoping for more selling until the 1st but I did well enough, yes I'm going to pay taxes on it, beats the hell out of manual labor.

Long term gains are 15% for most incomes, 20% and higher only if youre a richfag

I'm reporting my capital gains, but I ended up converting back to BTC and putting in altcoins with a higher cost basis after taking out my initial. I'm dumb though, could have just went from ether to btc and it would be a like kind exchange...

I don't understand why are you Americans worried about taxes? There's limitless ways to make a shitton of money in your country. Just shoot for high 6 figures / low 7 figures a year then pay your 15% and have some peace of mind.

This isn't true, the IRS considers it "property", not a security.

I'm going to lol hard when I come up with a high fucking depreciation schedule that will loser my cost basis since they consider it "property".

Top kek.

Accountants always win

It's 'property' but treated as a capital asset. It'd be similar to reporting as a stock at fair value when you sell and realizing those gains then

>tfw corporate tax professional registered with and interacting with the IRS regularly

Really don't want to go to a "professional" tax preparer for this shit, but then again I don't trust myself enough to do this 100% right come tax time.

question for anyone who can answer

I'm new to crypto, I've never paid taxes before (never had a job/never made enough)

at what point would I have to pay taxes on any gains I make trading crypto currencies? would i have to earn over $10k?

I sell shit on foreign exchanges and then my friend in that country gives it back to me in cash for free.

>withdrawing from Coinbase to your bank account more than the allowed 600 tax-free bucks a year
You, people, are doing it wrong.

Bank accounts are already on their radar. If you're not paying taxes on what hits your account, you're making a mistake.

If you don't want to make mistakes, use trusted people on LocalBitcoins (without submitting your data) and also spend your bitcoins on gift cards of all sorts. You can also get an anonymous virtual card topped up with bitcoins and make purchases with it. Can use a VPN if you're paranoid. Anyway, in all of those cases IRS will NEVER find out about your gains, unless you literally spend it on lambos and houses.

I thought cryptos were treated as property like niggers. If you bought a nigger at $100 and it went up in price by $100 you paid taxes on the profit, when you sell it. Replace the word nigger with antique for a serious explanation

If the IRS audited my bitcoin, they would basically elevate bitcoin to legal tender.

What exactly is shapeshift?

shapeshift.io

its an exchange service useful for going from one coin type to another without having to go to bitcoin first

cuts down on your commission fees etc

I think you just need to remember how much you bought it for and how much you sold it for. Then you put that into your capital earnings, if you made any money.

educate yourself

>coindesk.com/20000-irs-exempt-casual-bitcoin-buyers-coinbase-data-request/

What never made sense to me is how you hear stories of people who mark down ALL their altcoin trades, yet then I have another crypto friend who told me he just reports what he bought BTC at, trades some alts, but only reports his final fiat cashout and not all the in-between trade shit, yet both tax returns get accepted. Does the IRS even follow their own standards?

Thanks user, seems useful. I'll check it out.

>When I asked why it hasn't been an issue for the past 5 years they had no answer for me. I think it's because I bought a Trump hat.
lol, buddy, they're government workers, you should have known what to expect when you literally reminded them of the sand in their vags

Jokes on them they owe me tons of money at this point with all the losses I've made.

I cashed out 100k USD of eth from GDAX straight to my bank account recently.

How much taxes am I gonna have to pay next year? I'm in Florida btw.

lol

100k profit? Fill out a capital gains return sheet. There's a chart

Salty nocoiner detected. Sage

Alright so I make about 55k a year so it likes like I need to hand the IRS about 24k. Kinda faggy but whatever. Hopefully I make more this year.

Boom

If it's fairly small amounts I doubt they'd do an audit to actually find out the specifics of someone's trade history. For all they know the history given is correct. Hell, the IRS is lucky to get anyone who bothers to include crypto transactions

That's sort of my thinking, I have a spotty re ord keeping history considering all the defunct exchanges or friends sending me money but I figure if I pay my tribute they will be pleased enough i seem to be doing the honest thing unlike 90% of everyone else they won't audit me.

OP didn't buy the crash and has now resorted to spreading fud in a desperate bid to affect the price.

Sad!

I'm going to report my trades to the IRS

Why?
Because all the losses I've had will cancel out my stock gains so I don't pay taxes on them.

I'm down $5,000 so they can feel free to audit my history because I will be claiming this as a net-loss on my income once I confirm it's legal etc.

Made this in MS paint don't grill me