Crypto and Taxes

>convert $500k worth of NEO to BTC right now
>lose private key
>owe $150k in tax
>literally cant pay it
>go to jail for 5 years for losing a private key

these laws are fucking stupid

As the other guy said, if you are poor then Investments held longer than a year don't get taxed

So whatever you invest in better be long-term if you don't want to pay taxes. But ignore you lose money then you don't get taxed

So if you want to pump n dump you gotta pay the big man

That's only for longterm

Yea but selling his btc for NEO is a taxable event so he owes on that.

this

Hey George

I am from a third world country. Will uncle sam tax my shekels as well??

If his only income is the 20k then hes in the 20% bracket.

long-term is 0% under $37k

What if I just take out small amounts every time I need it? Not at all once?

Not bad. But he still has to hold it for over a year. Just depends on if he can make more than the 20-35% that tax would hit him for if he did more trades. He also has to consider if his 20k is still going to be 20k a year from now.

As far as I know, that's actually illegal. Google Structuring.

>Structuring
What the fuck? So you're telling me I can't keep it in BTC, and just take out a little when I need to pay my rent? Dafuq?

Good fucking God we need a civil war in this country
Land of the free...

Sucks to be in US

????? what??? are you just being alarmist, or is this really something I should be concerned about? It seems totally plausible that I want to KEEP MY INVESTMENTS IN and only take out what I need. The rationale is not immediately avoidance, because it makes goddamn sense. I want my money to keep growing.

thats really only if they notice that you're taking out just below the amount they have to declare to the irs.

say your bank has to declare deposits greater than 10k, and your bank notices you keep depositing amounts just under (think 7k, 8k. 9k) multiple times a month - or even monthly probably -- then they could potentially accuse you of structuring

Legally you need to report every trade and pay applicable taxes

I'm not even going to be doing that though. It's going to be more like 5k at once. Then 1k whenever I need it.

Also, it looks like the IRS doesn't care about transactions under 20,000

fortune.com/2017/07/10/bitcoin-irs-coinbase/

everything you take out short-term you get 20% off. doesnt matter if you put it in your bank account or not, it's a taxable event even if you make $10 and move your money to a different shitcoin

if you are putting money in short-term it is not worth the consequences of tax fraud

dafuq? They're gonna hunt me down for moving $200 into a shitcoin? Lol you're being rediculous now.

>everything you take out short-term you get 20% off.

quit spreading this nonsense. it's taxed as regular income, not a flat 20%

yes they likely wont know about ANY of your 2017 trades for another 2 years unless you volunteer that info. so you can use that to your advantage.

you havent realized anything unless you move the money totally out of crypto... meaning cash btc for fiat

The IRS is in a pretty crappy state at the moment. Republicans cut major funds in retaliation to them targeting conservatives. You might actually get away with it.

Can't I just put it in a bitcoin wallet and cash out using a bitcoin ATM? Who would know?

This is wrong and anons who actually believe this are in for the wojak

I think that's only for cash deposits.

So if you deposit 5k 3 times to avoid depositing 10k at once. But banks have some type of way of tracing it and reporting it

Should be OK as long as you don't have a lambo in the driveway

How it actually works is you're responsible for tax on however much you withdraw to make a payment. Take out 5k to get a car, taxable. All those little payments for rent and necessities add up.
Anything not withdrawn, left in Bitcoin, is untaxed.

>NEET
>have made more money this year on shitcoins than I have ever made working as a wageslave
>reap virtually 0 benefits from society as an incel NEET
>government wants a fat cut of my shitcoins

FUCK YOU FUCK YOU FUCK YOU FUCK YOU
why won't the norms leave me the hell alone

So what the fuck am I supposed to do?

If you are under 37k and don't hold a single coin for a year are you looking at the normal 20% or so?

always keep your dosh in btc unless you desperately need an acceptable quality of life
even then.. use localbitcoins under an alias and take a big tough looking friend with you just in case

Does any one know the tax rules on crypto gains for UK fags?

This is how the general wageslave feels, idiot. Welcome to real life.

let the weak hands take their paltry profits

>third world education

tax is to pay the financial advisors for keeping track money. You only have to pay them if you use the currency they keep track of.

If you sell your coins for US cash, you pay the US financial system a tip. This happens when you sell coins at an exchange and put them back in your bank account.

In this case, keep whichever capital gains amount your country charges and don't spend it. Then, when the IRS talks to you at the end of the year, you can just hand it over and no problems are had.