Americans

Americans
Do i have to pay taxes for my alt coin trades (i.e.bittrex) this year even though i am not planning to cash out? i dont want to go to jail. also my portafolio is less than half a bitcoin

>portafolio less than half a bitcoin
just delete ur computer

>epin :')

You never have to pay taxes if you don't cash out. Never cash out. Problem solved.

yes

> trading between alts is consider capital gain

You have to pay taxes on all trades between alt coins. It's not about cashing into fiat.

I recently read something like less than a thousand people actually payed taxes on their crypto last year though and there are almost ten million coinbase users.

>my portafolio is less than half a bitcoin

L M F A O

stop wasting your time and get a job

>You have to pay taxes on all trades between alt coins. It's not about cashing into fiat.

wrong.

I'll just send the fed my bitbeans for tax purposes you dummy.

what if you boy high and sell low, do they give you cashback?

you have to go back

>paying taxes
lol

i have a job. Actually it is an internship.
I just want to be aware how greedy the IRS is.

and just by seeing this thread, this topic is still debatable. Even discussions in outside forums do not have a concrete answer. There is no definite guidelines and it s stupid to think i have to pay the taxman in nxt coins for my .00001btc gain likesaid

Yes you can claim loses on everything too

it's impossible for the feds to trace alt coin transactions right now (or ever)
but if you go from crypto to fiat, get professional help or the IRS will fuck you up

being so poor that you don't owe any taxes is nothing to brag about user

The IRS is greedy but have millions of people to shake down. They don't give a single fuck about a 0.5 portfolio, at all, ever. If you're wiring 10k+ to your personal bank account seek tax advice. Until then stop worrying.

You dont pay in altcoins retards, it has to be in CASH. Its a capital gain every time you make a trade between coins. People who deny this just dont want pay and I dont blame them, but that's how it works

>put all my fiat in altcoins and never cash out
>make profit
>dont have any fiat to pay the taxman


or
>have employer who pays only on crypto
>also never cash out

would the taxman force me to get fiat? that seems abuse of power

They won't force you but the money has to come from somewhere

is that true even for bittrex where you have to give a copy of your ID?

It's not an abuse of power, it's an outdated tax code that wasn't prepared for cryptocurrency markets to take off like they have, and a system that is too sluggish to respond in time.

Let me posit a scenario to you:

>I buy 100 Ethereum last summer for $1,000 total investment
>I sell 100 Ethereum 11 months later for $38,000 in btc
>I now owe maybe 30% on $37,000, or around $12,000 to the IRS
>I transfer this $38,000 in bitcoin to another bitcoin address
>I copy and pasted the wrong address and lost my $38,000 in bitcoin
>IRS doesn't care and I still owe $12,000 even though my total investments for the last year were really a loss of $1,000 because I lost ownership of $38,000 in bitcoin. So Invested $1,000 and got $0 back as far as fiat is concerned.
>Can't deduct lost ownership
>Can't afford to pay the taxes because I only have $5k to my name

This is one of many situations where people under the current tax code can be stuck owing way more than they could reasonably pay. It's a shame that the tax code won't change until it's way too late. Be careful when investing in crypto and keep all this in mind.

Very interesting. Thanks for the scenario.

Fucking IRS how come the rich get loopsholes and the little people get shat on ?

Well that is where the abuse of power comes in and you're 100% right about that. Honestly though it might be the best way. The way the system is set up now makes it so that only people who are willing to bust their ass beyond belief, people born with great genetics, or just insanely lucky statistical outliers will ascend to success. Is that such a bad thing? Aren't most of us just upset because we're on the wrong side of it? That doesn't mean it's bad for humanity though.

>being poor

winners keep winning losers keep losing
yeah i get that. But it s not like any of us is just gonna bend over and take it. I know i wont. Obviously i am not going to go "gibs me dat oh me it is so unfair" which sometimes might just be smartest but laziest solution in a system stacked against the new and the lowballer. like my other fellow Veeky Forumsnessmam, it only feels right to keep fighting for more , despite the odds.
gibs me dat