I AM REMOVING ALL COIN TRADE WEBSITES FROM MY BOOKMARKS
I can not understand how I will pay the trade fees and taxes. Not only will I have to pay 1/3 income tax when I make my final withdrawl, the IRS is already asking me about how many trades I have made and the FEES ARE OUTWEIGHING MY GAINS.
how the FUCK are you supposed to make money off of this? This whole board is full of wallstreet shills that are just chewing on their cigars watching cucks buy their own tickets to community service/jail.
Other urls found in this thread:
Or you could just hold your coins, dipshit
Don't worry, Trump tax cuts coming your way
don't ever cash out, just buy bitbeans and sprout bitbeans for life
What's the point of trading coins then?
It's not like crypto has any real use. Barely good for drugs and firearms, and I'm not so retarded I need any of those.
At the end, it's all pretend money 90% of us use in the hope of some quick gains.
If I was living in the US or Europe, I'd rather go with stocks or funds or anything else that is not so useless, volatile and difficult to cash out. Only losers and rejects trade crypto in the West when they are so many investment options with 20%/year gains out there.
Just buy GAFA stocks you idiots.
Crypto is literally just a penny stock market for teens to larp as suits. Even if alts explode, most people here only have 1k USD in their portfolios. You'll totally be able to solve your life's problems with 10k USD... and that's after maybe 2 years minimum.
but every time I trade a coin, the IRS fees me MORE THAN THE COIN WAS WORTH
>the FEES ARE OUTWEIGHING MY GAINS.
what fees?
>Not only will I have to pay 1/3 income tax when I make my final withdrawl
You owe tax as soon as you sell, not when you withdraw.
Also, if fees are material to your trading strategy, you need a new strategy.
You are paying out for each bitcoin you sell, and you are paying cap gains tax for the final cash out.
Am I incorrect about this? Please tell me they count the cap gains tax into the trades, instead of doubling it over when I cash out.
Please make this whole thread null to me.
Is this why coinbase fees are so high or is this a seperate thing
what? You know that if you're trading at a loss you don't pay taxes, right?
coinbase fees are for coinbase to make money. After what said I think I might have misread the whole thing and have given myself a tantrum.
>count the cap gains tax into the trades
Not sure what you think this means
but
Say you buy BTC for $10,000
Price goes up, you now have an unrealized gain of $1000.
You sell. At this moment, you've created a taxable event. You now have a REALIZED gain of $1000. When you file taxes, it will be phrased as a cost basis of $10,000 and proceeds of $11,000.
Say this happens 50 times in a year. 50 different trades. At the end of the year, you will owe (tax rate) x Total Net Profit, which in this case is $50,000 * 33%(or so).
It does not matter if the money statys in the exchange. It doesn't matter if you withdraw. It doesn't matter what you do with it after you sell. But as soon as you hit the sell button, you owe taxes on any net gains. Losses are applied as a credit to your total taxable income for the year.
>20%/year gains out there
kek
so if, in total, I have only lost money: I do not owe any taxes?
Correct. If at December 31st, all your trades for the year add up to a net loss, you owe $0 taxes for that activity. Not only that, you can actually claim the loss and offset tax you owe from say, a job.
So say you make $40k working. At the end of the year, TRUMP wants $800 more dollars. If you've lost $800 trading, you can use that as a tax credit, and pay no tax.
>paying taxes
What are you, a fucking socialist?
you don't pay taxes on negative money earned you fucking retard
thank you!
The problem with documenting every trade is that it defeats the purpose of "crypto"-currency
God im so happy im not an americuck
If you are holding the coins year after year can u write off as losses if it drops within the year when taxes are due or only if u bought in that tax season.
It's your own stupid fault for cashing out. Plus how can you say you can't afford a 1/3 of your profits unless you already spent your money which is another case of your own dumbass fault.
Why would you cash out when you can buy pretty much anything with BTC anyway?
If you don't cash out, you won't have to pay taxes.
yeah i get that, and it's going to be a huge pain in the ass. But the SEC and IRS sure don't. lol
>holding the coins year after year
If you hold an investment for over a year, it is no longer classified as a short term position. At the 366th day, the investment would then be classified as "long term".
Long term investments are subject to different tax implications. For instance, Long Term net gains are taxed at 15%, instead of the 30%+ you'd see with short term gains* ( depending on your normal tax rate).
I think the answer to your question is yes. If you're holding coins that you've been holding for multiple years, and then you sell them in 2017, the loss can be claimed in the tax year in which you sell them, 2017 only.
however, if you had a really bad year and ended up with a net loss of more than $3,000, you can carry forward the leftover portion to next year’s taxes. The unused loss can be applied to next year’s gains, as well as up to $3,000 of earned income. A big loss can be used as a deduction indefinitely — another important reason to keep good records.
Excuse me friend can you clarify something for me. Is it considered Prophets when you sell something for profit and the money is on the exchange and reinvested, or only when you withdraw it.
Read if you haven't already
Related scenario: I trade stock. Every year for the last 6 years I've made a net profit. I've only withdrawn once, occurring in year 3. However, every single year i owe taxes on my net gains.
Withdrawing funds is 100% irrelevant. Hitting the sell button is what creates a taxable event.
Also, reinvesting doesn't matter in terms of avoiding a taxable event.
Buy -> sell -> taxable event
It does not matter what you do with the money after you hit the sell button, what so ever.
Buy something with bitcoins you moron.
Can't people just keep everything on tether?
Europe isn't as stringent on crypto as the USA
which IRS agent is going to shift through the cryto-ledger to see how you sold what and where.If you were start you'd have used Tor to do all your trading. The whole purpose of crypto is to bypass the system
Depends on the country.
Some requires you to have a one man company if you aquire above a certain about with trading.
Or pay a percentage of gains anyway.
And some countries have no regulation whatsoever about BTC, so the IRS can rape you if they want to, because "well it's like trading, innit".
Long story short, invest in BTC, if you cash out, only cash out the amount you invested, and the rest, simple spend the BTC you have. You can buy amazon cards after all.
And don't tell the govt that you trade.
>You can buy amazon cards after all.
That's technically a capital gains taxable event, bro. That transaction is identical to selling for USD. I'm not telling you to report it as such, just layin down the facts.
>That's technically a capital gains taxable event, bro.
True, but not really traceable.
I don't know enough about BTC to completely disagree with that. maybe, less traceable.
Technically speaking, you using your BTC from you wallet to buy an Amazon card is untraceable.
You spending your card on Amazon is untraceable.
But, you delivering products to your home is traceable and the goods can be a liability. If the IRS comes to your home and ask "With what money did you bought this computer? Where's the bill?", you can be in trouble.
I know people buying food with BTC that being said, and since the goods disappear a week after, it's trouble-free.