You retards seem to be completely unaware that the taxman is going to rape your crypto bungholes. If you live in the US, and you're making thousands of dollars off crypto, they're going to find out. You're going to be audited.
lol, how dumb could you be? "Bitcoin isn't taxable reeeee!" LOL. God you coiners are dumb.
pic related, mfw being a no-coiner. pretty comfy desu. don't have the stress of worrying about the IRS eventually ass-raping cryptocurrencies to death.
Other urls found in this thread:
forbes.com
irs.gov
irs.gov
irs.gov
bitcoin.tax
news.bitcoin.com
twitter.com
delete this please
should coiners be considered people?
Bitcoin will get taxed 30% if/when you exchange to USD, I'm pretty sure everyone knows that. Only what you gain is taxed.
So if you get $1000 to $11000, the $10000 that you profited will be taxed 30%. And this is ONLY if you exchange to USD through a bank.
You can use the bitcoin to make purchases on various sites without having to convert to USD to avoid the tax. You can easily buy gold for 2% above spot price and sell at a jeweler or pawn shop for cash.
you only need to pay taxes when you convert between FIAT and crypto
show me one example who was audited for only crypto trading (i know the one who got arrested, but he was regularly exchanging between BTC/USD, nobody ever had any problem for exchanging between crypto/crypto)
What bitcoin? I don't know what you're talking about
I cashed out for the first time yesterday and will pay taxes on what I earned happily. umad
>You can use the bitcoin to make purchases on various sites without having to convert to USD to avoid the tax. You can easily buy gold for 2% above spot price and sell at a jeweler or pawn shop for cash.
Purchasing stuff with Bitcoin is a taxable event.
No. Hang all coiners.
Also, as another option.
>Not cashing out and spending the money on a beast computer, and then claiming for the computer as business expenditure, therefore not having to pay taxes on it
I'll just flee to Panama
>Purchasing stuff with Bitcoin is a taxable event.
For the person who receives the bitcoin. You don't pay anything (unless it's a standard GST which the seller marks up on their original price)
Don't you pay taxes on the value of the item you bought? I think you need to look into it desu.
If what you were saying is true, everyone with Bitcoin would just cash out into gold and be like 'wew no taxes'.
wait am i supposed to be paying taxes on this myself? i thought it was automatic? could i get in trouble when i sell my crypto for usd?
lol, you are so wrong here its sad. Exactly what I was talking about, you coiners are unaware of tax laws. Every single trade you make with bitcoin or any shitcoin is a TAXABLE event. If you're not keeping these records and reporting them and paying taxes on them, you're going to get fucked by the long dick of the taxman. They will get their shekels that you owe, silly coiner.
WRONG. ^ read above. Every trade is a taxable event.
Not at all, good for you. You're still going to get fucked when they audit you when cryptos are cracked down on hard by the IRS, and everyone who used them is investigated to find out if they did anything illegal with them.
The taxman will find out :) you've been warned. Enjoy your freedom while it lasts.
You gotta pay tax desu. As long as you are earning above the non taxable threshold overall, you gotta pay tax on your profit.
No, it's definitely taxable. You're purchasing something of value with bitcoin that hasn't been taxed, you're gaining something. Capital gains tax bro. Goodluck, I hope you're not too deep in purchases and I hope you have your records.
>The taxman will find out :) you've been warned. Enjoy your freedom while it lasts.
Lmao lad, you didn't read my post. I AM GOING TO PAY THE TAX LMAO. I will just hand my bitcoin sales records to my account with the rest of my earnings and I will pay the tax. Though I will probably buy a beast computer and add it as a business expense, therefore meaning I won't have to pay tax on a lot of it.
AHAHAHHA. Like I said. You coiners are so dumb.
You're SCREWED.
I'm a nocoiner but I made 34k trading stock this year, in addition to my to the 30k I made working for the first five months this year, for which taxes were payed.... RIP $7k+ tax due in April
oops, that was meant for
>lol, you are so wrong here its sad. Exactly what I was talking about, you coiners are unaware of tax laws. Every single trade you make with bitcoin or any shitcoin is a TAXABLE event. If you're not keeping these records and reporting them and paying taxes on them, you're going to get fucked by the long dick of the taxman. They will get their shekels that you owe, silly coiner.
Lad. The taxman will be happy with taxes from any sale of Bitcoin I make. I will not be hiding my profits into cash, I want to be straight up and pay the tax. They won't care about small trades on now defunct crypto exchanges. They are getting the profit in the end anyway. They will just be glad that I am not one of the majority that sell their coins under the radar and don't pay any taxes.
>i didn't fall for the shitcoin meme
feels good boys i don't make many good choices but this one i nailed
>have a brokerage account with etrade
>make 10k profit
>etrade dissolves
>ayyy no taxesssss!
coiner logic
ahah burger we live in Acapulco
Anyways you can't tax profits made with currency trading. Is Bitcoin not considered as a currency in US ?
You'll probably be ok, as long as you made an effort. Good luck.
There is no capital gain though. You've exchanged 0.015BTC for something worth 0.015BTC. The person who then receives that currency pays tax because they've realised a net gain
If your earnings are only enough to buy a "beast computer" and negate most tax, you're a small fish
>tfw cashed out 100k usd of eth
Gonna pay almost 25k in taxes but I feel like I can make that before years end anyways.
>you can't tax profits made with currency trading
What the fuck. user, don't drop the soap when you land in federal prison.
ty desu. When it comes to taxes, believe me I am scared into paying for my profits. But all those tiny insignificant trades on exchanges? Impossible.
Uh, did you make 100k profit? Or was the position worth 100k when you sold it?
Two different things user. You don't pay tax on the balance of the liquidated position, only the balance less cost basis.
>If your earnings are only enough to buy a "beast computer" and negate most tax, you're a small fish
Yeah in terms of btc I am quite a small fish so I am probably safer in that regard also. I am thinking about buying a computer around $4500 btw.
It's still something that has to be taken into account and reported.
"Americans also trade Bitcoins or leveraged Bitcoin contracts on Bitcoin exchanges, and they should report realized capital gains and losses on each trade, even if the trader doesn’t convert underlying Bitcoin back into U.S. dollars."
forbes.com
Read the whole article, coiners.
Invested $6600 USD when eth was in the 20$ range and sold it around $340-350 a piece
when i cash out millions in 5 years in the cayman islands and i somehow still have to pay taxes let me know
>Every trade is a taxable event.
It still comes out to the same amount. If the IRS wants to go through 1000s of transaction, fine make them earn those tax dollars
Doesn't your country have a tax threshold or something? Usually it's around the $20k mark.
I don't report every single thing I buy at the supermarket to the government. They can fuck right off if they expect me to document mundane bullshit like that when it won't even net them any tax revenue
Good job man.
>Doesn't your country have a tax threshold or something? Usually it's around the $20k mark.
Yeah lad. The threshold is about £11K, but I go over that in my real work, this crypto stuff is a side earner.
Ok cool, you're correct in your tax calculation then.
&that's awesome.
Yes, they will audit you to earn those shekels. Have fun
Another nocoiner retard who thinks America is the centre of the universe
>ps, my country doesn't tax crypto gains
already cashed out 15k straight profit
lmaoing at your life brah
REEEEEEEE,
SELL
E
L
L
which country ?
wut? LOL. coiner intelligence strikes again. Cash isn't a crypto. Buying something with cash is not comparable. You pay sales tax, and if you have a job and earned your money legit you already paid taxes on the money you earned.
Doesn't apply to bitcoin/shitcoin, which have not been taxed if you've been trading on exchanges. Those have to be reported and taxed or not whether you made gains or losses.
Don't worry, they will
I was speaking specifically about the US, but where do you live? Hopefully you're well versed on your own tax laws and not as dumb as the average coiner.
>live in NZ
>get 300 a week to (((study)))
>0 capital gains tax
Americans btfo
>15% sales tax
Kiwis btfo
>save up a good amount of bitcoin
>create a charitable trust fund
>invest all that money into it
>the fund will then reinvest it into stocks, dividends, gold etc
There are many legal ways to fuck over the taxman
Big deal, being audited is nothing to be scared of unless you're laundering money. You're just a salty fear mongering nocoiner.
When you exchange one asset for another, a gain arises even if money is not involved. Capital gains tax will be payable.
t. accountant/auditor/tax adviser
Coiner here. Specifically for Burgers who trade shitcoins: (most of us)
If you made even 1 trade between alt-coins you could owe capital gains tax even if you never even touched fiat. I used to fall for the "it's only when you cash out meme" but it's just not true.
irs.gov
The IRS considers all virtual currencies property. If you trade between alts that is a property to property trade. For all property trades the IRS expects you to convert to "fair market value" of the items at the time of trade in terms of USD. They expect you to report the capital gain or loss for every trade using Form 8949.
>B-but how can they tax me? I don't even have the dollars?
You still owe them dollars. It's not their problem where you get it from. This is why people can't escape taxation by only bartering. You either have to use a second source of income to pay it, or liquidate a portion of your crypto portfolio, pay taxes for any capital gains realized for converting to fiat, then use that fiat to pay taxes again for your alt-coin trades.
>B-but what about like-kind exchanges?
You still have to report it. They offer no clarification if alt-coin trades qualify as like-kind. Also good luck sending them thousands of pages because the form for 1 like-kind exchange is 2 pages. You're asking for an audit if you do this and they might potentially reject like-kind treatment. I've never heard of anyone reporting their trades this way.
>When you exchange one asset for another, a gain arises even if money is not involved
And what would that be exactly, if I bought a loaf of bread for instance?
>(Total sell value - investment) *[tax rate]
>pocket the rest
Wow that was hard
a coiner that makes sense.
well after you buy a loaf of bread there's no fucking way I'm buying it from you so I don't think there's a gain there bro
>well after you buy a loaf of bread there's no fucking way I'm buying it from you so I don't think there's a gain there bro
That's the point. You buy something for 1BTC, and it's still worth 1BTC or less. There's no capital gain there.
this
That's what I am going to do. The stuff with the exchanges is ridiculous. I would be surprised if 20% of the people trading crypto report their profits that way.
Bro trust me, purchasing stuff with crypto is a taxable event. Ask yourself, why aren't all crypto traders just cashing out into gold and not paying tax?
Good luck with that bros. See what happens. kek.
This guy knows what he's talking about You would do well to heed his advice.
The capital gain does not occur when you spend the money.
The capital gain occurs when you're trading. I assume you already know that though.
>purchasing stuff with crypto is a taxable event
nonononononono
The capital gain occurs when you're trading.
The capital gain occurs when you're trading.
The capital gain occurs when you're trading.
The capital gain occurs when you're trading.
Read 10 times for maxim understanding
Don't get shit confused with sales tax
Logically it all comes out the same way, so I don't see an issue. If they want it reported quarterly then fine. I don't see any reason to be audited unless they don't think I'm paying taxes.
Once I make enough in crypto for it to matter I'll ask an actual professional about it before I cash out rather than heed the advice of Veeky Forums but I appreciate the warnings.
I'll worry bout this bullshit in 2020 (optimistic) or 2025 (more realistic).
Not cashing out before then, so not worried about it... and once i've made my milli, it'll be bye-bye burgerland.
fuck the fedgov
What percentage of people do you think report every tiny transaction on exchanges (a lot of which get deleted at some point)? Mate, the taxman will just be happy that you are being upfront about your profits. The majority of traders don't even report a thing, we are being upfront.
The way you are talking about doings would mean that barely anyone would be able to trade crypto at all.
you just exchange currencies LOL
Do you declare your gains when you convert your pesos to USD when coming back from Mexico ?
GENIUS
So you're saying that me trading FX and making $10k profit is not taxable?
So if I open an FX account and trade the EUR/USD and make a profit, I don't have to report it because i "just exchange currencies"?
Holly shit dude. This is revolutionary.
>coiner logic
I know retard, you people need a better argument than IRS BOOGYMAN BE AFRAID OOOOOO THEY GONNA AUDIT YOU A WOO WOO
Our fucking president is being/was audited. Big. fucking. deal.
WRONG. Purchasing goods with bitcoin IS taxable. That fits into capital gains.
"8. Spending Bitcoins is like selling Bitcoins
For tax purposes, spending Bitcoins or any digital currency, is treated as if you had just sold them. If you bought a $100 gift card with Bitcoins, you effectively sold those Bitcoins for $100, and any potential capital gains must be calculated.
There is no threshold for capital gains. Everything is supposed to be included. However, typically these figures are rounded on tax forms, so any gains less than $0.50 are ignored."
bitcoin.tax
"10. The burden is on you to keep records
If you were ever audited and you need to account for any capital gains, especially long-term where the tax rate is reduced, you may have to show documentation to prove your position. The burden is always on you to keep documentation and perform recordkeeping.
If an exchange you were using suddenly disappeared and you can no longer obtain your records, you might having difficulty proving any gains from any trades. You could, for example, find those long-term gains get changed to short-term.
Keep records of all your bitcoin activity.
Periodically download your trading history from any exchanges you use.
Export transaction logs from any wallets you have.
Ensure you have records for each time you spend any Bitcoins."
bitcoin.tax
Don't risk it bro.
It doesn't always work out the same though. Are you planning on selling everything at once and report nothing on years you didn't cash out? Also the cost-basis get's real complicated and the tax rates change between long term and short term trades. Best thing to do is use software like bitcoin.tax where you can just import your trade history and it lets you export a Schedule D form.
If you report though, you're on their radar. If they spot one inconsistency you're done. I'd rather go full compliant than half. You're taking a gamble that they'll never find your name on a crypto-exchange. If they see any trades that you didn't report you're fucked because you actually misrepresented what you did. You didn't just buy once at a certain date and sell later.
Sales tax is not a capital gain. I'm really sorry.
>you effectively sold those Bitcoins for $100
>you effectively traded those Bitcoins for 100 USD.
The capital gain occurs when you're trading.
The capital gain occurs when you're trading.
The capital gain occurs when you're trading.
The capital gain occurs when you're trading.
Read 10 times for maxim understanding
HAHAHAHAHAHAHA
THESE ARE THE PEOPLE GIVING YOU ADVICE
fucking retards
Oh no i have to pay 20% taxes for my 200k gains, what sver shall i do
Why did i invest in crypto?
I could have no money and i wouldn't have to pay taxes than
Weak beit m8 but made me reply
Netherlands.
True, if you have more than 25k you will need to pay 1.2% a year (this applies to all assets including crypto)
But anything like a mortgage or debt reduces your total so essentially you pay nothing if you know what you're doing
WRONG WRONG WRONG WRONG WRONG WRONG WRONG WRONG WRONG WRONG . Read 10 times for maximum understanding.
Buying something with Bitcoin is capital gain. Research it.
I plan on reporting so
(:
Yes, you're correct in saying "Buying something with Bitcoin is capital gain".
"buying" is literally trading when the thing you buy is priced in USD. Buying a $100 gift card is the same as Selling $100 worth of bitcoin at any time, with the same cost basis and exchange rate, the capital gains reported for each transaction are identical.
The Sales tax that you pay on an item however, is not a capital gain or loss.
Tendie tax for all the good boys, mummy takes away a tendie for the pack .. or if you've been Mummy's big 200kg boy , you lose some gbp.
TendieCoins are the fucking most retarded asset class, there are taxation laws and threshold dependant on country in which you will not have to report your tendy Wendy gains, but be realistic.. whomever claims to go to lambo land has really got themselves a box of frozen tendies and a Matchbox car.
How does it work with forked coins? Is the cost basis 0? Does the time of the fork count as a purchase?
I never said anything about sales tax, wtf. I said buying something with bitcoin is a taxable event.
>leave this shitty country and don't look back
that wasn't too hard was it user?
I am in the UK.
"In 2015, the European Union decided not to tax Bitcoin, and that situation remains unchanged to date. But things are a bit different in the UK, as there is a decree that would see Bitcoin transactions taxed by as much as 20%. "
"While bitcoins are not regulated, it has been reported that Her Majesty’s Revenue and Customs has classed bitcoins as ‘single purpose vouchers,’ rendering any sales of them liable to a value-added tax of 10–20%. This has been strongly criticized by those selling bitcoins as being a show stopper for the UK Bitcoin industry. There is no specific reference on Her Majesty’s Revenue and Customs site to bitcoins."
Seem a bit nervous there.
Your argument is retarded.
"Im a comfy no coiners because I dont have millions of dollars I have to pay taxes on, haha sucks to be you bitcoin millionaires, you have to pay more taxes than me!"
lol faggot.
WAGEKEK ON TILT AHAH
SPEND SOME MONEY, DECLARE GAINS AHAHHA
>>wagec_uck logic
Then why are you in this thread? I was specifically referring to US based cryptofags.
I'm know nothing of UK tax laws, though I do know many coiners are going to be equally dicked over when these other countries figure out how to extract the shekels that are owed.
Never said anything about having to pay MORE taxes. Most of you Veeky Forums coiners aren't even thinking about paying ANY taxes whatsoever. And THAT'S why you're fucked.
Hell, even if you do pay taxes, if you didn't keep records, you're fucked. Have fun coinfag.
Tell me more about how paying ~30% in capital gains taxes makes that other 70% of profit negligible.
>Most of you Veeky Forums coiners aren't even thinking about paying ANY taxes whatsoever. And THAT'S why you're fucked.
You're right however in your op you pretty much said "Filing taxes is a pain in the ass so why bother" you're not comfy, you're just making excuses to not take advantage of a once in multiple lifetimes money making opportunity.
>Then why are you in this thread? I was specifically referring to US based cryptofags.
>I'm know nothing of UK tax laws, though I do know many coiners are going to be equally dicked over when these other countries figure out how to extract the shekels that are owed.
ahh, i might be in a more cozey situation. So long American coiners, I wish you luck.
>live in socialist shithole
>crypto gains tax free
LMAO at you burgers
>t. Swedenstan
enjoy being culturally enriched by migrant hordes.
What about shapeshitft?
Forks?
etc...
Do they even know about things?
mfw I won't be audited because I'm not a coiner
BURGER BTFO
When did I say it was worthless? I stated the IRS will go through the trouble of taxing you for cryptos. You proceeded to chimp out and I said you seem nervous.
>mfw Amerifats get taxed 30% on crypto profits but no health care
>tfw we aren't taxed on crypto in Sweden and get free health care
kek
Meh what's stopping me from using a bit coin ATM? They are a couple in my city that allow you to BUY and SELL for fiat just at an inflated rate.
Capital gains tax must be destroyed.
Also I haven't paid a cent for my healthcare in years thanks to my employer funded insurance.
>He thinks living in a rapefugee infested hellhole is a good thing