Tax Thread 2: Electric Boogaloo

Okay, thank you for the clarification user.

What tax form do you use? Is bitcoin.tax a good option?

article basically says that the irs considers them a taxable transaction but they dont have any guidelines set in place or any tax forms for it actually be a thing

Thanks again user. It seems like the consensus is thata crypto-crypto trades and tax events

bitcoin.tax/blog/filing-your-bitcoin-taxes/

>"Taxing Bitcoin

The first thing to know is what you need to declare. Here is the typical list of events that have tax consequences:

You sold some Bitcoins for dollars or any other foreign currency
You traded some Bitcoins for another crypto-currency, e.g. ETH, or vice versa
You spent some Bitcoins
You donated some Bitcoins to a registered charity
You mined Bitcoins or any other crypto-currency
You were paid in Bitcoins
You had some Bitcoins stolen

If none of these apply then you do not have to include anything about Bitcoins on your tax return."

use

How does paying tax on Crypto work for a bong like myself?

>he didn't give his crypto to an offshore charitable trust under the control of an offshore company
it's like you don't want to make it

Buying MAGAcoin with your bitcoin will exempt you from taxation.

What tax applies though? Capital gains, income tax? Both?

What do high frequency traders do? I'm a stemlord so I could probably whip up a script or Excel macro to calculate everything up. Hire H&R block to deal with it?

Yeah but I used shitty exchanges in the past like Mintpal and Cryptorush that went out of business and have no records for that, so what the fuck am I supposed to do.

>excel macro

How?? I know you can import the raw data of all of your orders from like bittrex, but how could a simple bizfag like me with only bb-tier html knowledge learn to do this?

How does the situation differ between EU and USA?

Lel, I should make a program and then sell use of it.

Most people should just hire a tax preparation service, I'm guessing.

I think different exchanges give different formats of csv spreadsheets.

Learn to program you.

I love how you can tell all the newfags are here.
These threads always happen when they do.

Also, there isn't anything clearly defined by the IRS right now about how to report crypto trading.
You can bet your ass they'll be rolling out huge guidelines by next tax season.

IMO Congress needs to actually pass a law concerning crypto, it's horseshit the IRS can just willy nilly make up rules when no laws exist on the book for it.

Ok smuggy McSmuggerson, what do you personally do about taxes?

The truth is no one knows, like said.
One person will tell you there's no taxable event since it's like-kind, another will say it falls under some obscure property law.
It's all over the place. The IRS went after Coinbase because less than 1000 people reported their crypto earnings this year.
When no one knows how to report it, what do they expect? The best advice is to hold until they define it or just hold, move somewhere else and cash out at this point.
IRS screwed up by not considering it currency to begin with.

That is what I never got, I've heard several people claim opposite things of how they reported, some report every trade, and others just the BTC in, USD out and that's it, and BOTH were successful and didn't get audited. I honestly think even the IRS doesn't know what to do and it just depends on which schmuck is handling your account that day and whether they want to audit your ass or just say "eh looks good to me, fuck it". They may be so thrilled you are just paying taxes period unlike most people and don't look too deeply into your records as long as it is a decent chunk.

Just because you do your taxes totally wrong doesn't mean you get audited that year. IRS is understaffed, they can't possibly go around making sure everyone did their tax forms correctly. It could be 5, ten years before it comes back to bite you in the ass hard.

But on the other hand, IRS agents aren't as litigous and hardassed as people make them out to be. They are generally bro's who'll work with people to correct tax mistakes in a reasonable way.