Taxes

please tell me i will only have to pay taxes when i cash out

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yes. and fuck ever cashing out. this is all about that BTC and the crypto future baby

Nope, swapping between altcoins is taxable
Just pay your fucking taxes and enjoy the fact that you won't have tip toe around the IRS for the rest of your life like a retard

It's actually not taxable as far as I know.
It's like-for-like.

Damn right, user.

I'm doing everything I can to get it so that I can buy tobacco, gasoline, and alcohol with crypto in my city.

Lots of folks are interested, especially now that I said "watch the price of BTC, it's going to take a huge shit a week or two before August 1, but then it'll go pretty nuts afterward. I'm going to be buying all the way down and I aint selling til 20k if there's even a reason to sell at that point. Here I was about to give you $35 in BTC which will be worth 100$ in no-time, but because you're a nocoiner faggot, you're missing out."


Gained me some street cred. Fuck yeah, user, we're doing it!

what if i just pay capital gains when i pull out for my lambo?

it's taxable, but only if you cash out into fiat. if you never cash out, there's nothing to fucking tax.

Like kind exchange noob

so as long as i keep it in crypto i wont have to pay taxes

>Buying all the way down
You're supposed to go in at the first sign of an uptrend,you'll gain more profit if you dont FOMO

>So as long as I have no gains I wont have to pay taxes
hmmm

Yes, see section 1031 like kind exchanges. Though Im pretty sure if you buy something different with bitcoin rather than an altcoin/blockchain thing, you'd have to realize the gain then as it's fair market value of what you bought etc etc. Those arent like kind exchanges

So if ypu buy a lambo with bitcoin, youll have to realize your capital gains and be taxed on that

No shit sherlock,do you think the government doesn't check for loopholes?

Wrong.

I'm just mentioning that in case people think they can get away with buying things with bitcoin and not pay taxes just because they didnt switch back to fiat, you FUCKING FAGGOT

What's your argument dipshit. IRS treats it as capital asset/property, so section 1031 like kind exchanges would apply

What about USDT??? Please post proof. Is it taxable?

Have you had success with this?

I'm only paying taxes on my Coinbase activity which is like 2 Eth purchases, 1 Eth sale and a bunch of BTC sales. If that's not good enough then I'm fucked, I've got 4 bots trading 24/7.

literally just cashed out, made $10 profit today. will i have to pay taxes on that? srs

no

shut up, faggot. you are the one who is wrong

Even if you can pull off the 1031 scam you're required to record and report. Whether you do that or not is up to you, just know what your doing and play it properly either way. If you can't afford professional advice you're probably not going to be much of a target anyway.

Lol. Do you have an exchange coordinator? Where do your exchange funds go between transfers?

Do whatever the fuck you want man, but just believing whatever suits or whatever your own logic suggests will not stop the taxman ramming his cock down your throat if he feels like it.

No, but I'll be an official CPA next January. I'm paying my gains that I cashed out this year as it was my first year selling something (ETH)

>he thinks section 1031 of the Internal Revenue Code is a scam

Stop talking retard

So no need to argue for 1031 treatment as you failed to report.

Report what you genius? That's what April 2018 is, reporting

If you mean form 8824, then yeah, that's reported in april 2018 for tax year 2017. My stuff I sold was short term from fiat to eth and eth to fiat

Just make a half assed attempt at paying. Then when they audit you act retarded.

You NEED to file somthing though, unless you like being in jail with niggers.

OK fair enough then. So do you have any confirmation that 1031 is a go? Because there's nothing explicit and I wouldn't go so far as to call it a dangerous assumption but potentially a less than ideal outcome.

Hey annons, retard BTC gambler here.

Can I write off my losses in my tax return? I lost a lot unfortunatly.

you dont have to pay any taxes if you take all loses like me lol

I think it'd be safe enough to assume so as long as you're being honest. The shit that sucks is having to keep track of it all to convert it to USD prices when you traded for them, which is why its important to keep good records

money.stackexchange.com/questions/74789/do-altcoin-trades-count-as-like-kind-exchanges-deferred-capital-gains-tax

"If the IRS believes any property transaction rules should apply differently to virtual currency than to other types of property, taxpayers will need additional guidance in order to properly distinguish the rules and regulations.

Section 4, Q&A-1 of Notice 2014-21 states that “general tax principles applicable to property transactions apply to transactions using virtual currency,” which is guidance that is generally helpful in determining the tax consequences of most virtual currency transactions. However, if there are particular factors that distinguish one virtual currency as like-kind to another virtual currency for section 1031 purposes, the IRS should clarify these details (e.g., allowing the treatment of virtual currency held for investment or business as like-kind to another virtual currency) in the form of published guidance. Similarly, taxpayers need specific guidance of special rules or statutory interpretations if the IRS determines that the installment method of section 453 is applied differently for virtual currency than for other types of property."

by the time you have enough money that you *should* cash out, you should have enough to set up in a tax haven. If not you're doing it wrong and you use your crypto gains to do poor people shit like buy delivery pizza and netflix subscriptions.

Srs, if you're not in this with HIGH ambitions, just dont fucking bother. You will lose your money because you make the wrong decisions, and because you make the wrong decisions you will never invest enough to see serious returns, but you will invest enough to chip away at your savings on constantly short sighted emotional responses.

Sorry, but no. You may be able to justify 1031 like-kind exchanges if you're a casual crypto user w/the help of a tax attorney (you'd still have to report every transaction and would carry the cost basis over from the prior transactions), but if you engage in trading activity at all you are a professional trader in the IRS's eyes and you will absolutely owe taxes on every trade.

My accountant says moves with coins while in play in the market arent needed to be taxed, because theyre still in play, and most 'normal' people enter and exit with bitcoin..
So pretty much if u want to waste time and spend tons of money to file,every move u make, go foe it.

Coins are property, you pay capital gains

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Is California not the worst state in the country/worst place in the world?
>highest capital gains tax in the country
>high electricity rates -> poor crypto mining profits
>highest property costs in the country, some of the highest in the world
>pollution, congestion, shitty people, etc
Why would anyone live here?

This is all true and well said user.. You also forgot they will allow an undocumented cat or dog to register to vote

I like the warm weather and the beach. I hate everyone though. Everyone.

If you live in Germany and you hodled for more than a year then you won't pay taxes.

which is useless

You must be a nu-coiner. The game is about hodling, if you are in it for quick cash then go and start a scam or something.

Wait. So if you trade between crypto currencies without cashing out to USD between trades then you don't have to worry about paying taxes? So you can trade between ETH BTC LTC for years and wont have to pay taxes till you cash out into dollars?

>why would anyone live here?
Beautiful Asian sluts everywhere who are pathologically addicted to screwing wealthy white men

Well duh who the hell are you going to pay taxes to? It is literally impossible to associate you with your private wallets.
As far as i know tax only becomes an issue when you want to transfer your money to the bank and cash out.

much thanks senpai

I heard Coinbase/GDAX only reports to the IRS if your yearly volume is >$20k, is this true?

You seem new to the game, make sure to always transfer your funds to your cold storage wallets and never keep anything in the exchanges unless you wanna trade it actively.

Fuck commiefornia, I can't wait till it's nuked off the face of the earth

>

I am a newfag indeed. Thank you for that advice.

Another piece of advice is to never use third party wallets such as Myetherwallet, parity wallet, etc. If you must use them then use them with very small amounts. Your main wallet should always be the official one by the team of the respective coin.

See, I never would have guessed that. I'll be sure to do this since its safest. What exchange do you recommend for trading? It seems like a lot of people use Poloniex and Bittrex.

No, third party wallets are not safe at all. Myetherwallet steals your money (or it ends up in the void) many times. And you might have heard about the parity wallet hack. As for exchanges, Kraken seems to be a good one if you live in Europe and even better if you are in Germany because they have partnership with Fidor bank. I don't know about the other exchanges.

gg

Thanks for the heads up! Im in the US so just looking at options for exchanges before I dip in.

Glad to be of help, make sure to educate yourself thouroughly on the technology and educate yourself on the new crypto coin projects before you invest in them. Good luck!

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Can somebody answer this pls