How much in taxes gets taken out when i sell my bitcoin and report it on my tax forms? Let's say I make 10...

Its the most conservative approach but not the most beneficial one. I've figured my taxes both ways for the year. If I made no other trades and used like-kind exchange treatment I'd pay $450 in taxes, if I instead did taxes like all conversions were taxable I'd owe $4400. As you can see its a substantial difference and would be even larger for those in a higher tax bracket(I'm only 15% bracket) or who have made more in crypto than me.

i dont understand y it matters to the irs tho, because its gonna be the same as money in / money out for your portfolio as a whole; you cant somehow get taxed on more money than u take out, because losses should be deductible and u get your overall outcome which is much easier to calc tax on. do they just want the transaction history to tell if youre buying monero or not?

That's not true at all you brainlet. It depends on where you live. If op is a burger, then he is fucked in the ass

Long term gains in the 15% bracket is 0% tax, unless the tax code was recently changed?

You'll be laughing when you read a bunch of threads here in 2 years, when the feds catch up with people, and want paid with interest.

It's been made public that the FBI already has unlimited access to the personal information of the users of a couple exchanges. It's only logical to assume that the IRS does, or can, too.

.
>same as money in / money out
If you adopt the thought that you only pay when when you "cash out" to USD, then the two "methods" are not equal at all. Anons could easily not "cash out" for a long period of time and pay long term capital gains rate instead of short term, which is a material amount of money for the IRS.

Losses don't save you nearly as much as wins cost you. So trading a lot results in much higher taxes.

If you make 100k+ and live in California your income tax could be >40%.

I was assuming short term gains on the 10,000

You're correct on the LT rate

What's it like in the Uk? Does anyone have any info?

If you're in the 15% tax bracket including your sales (or lower) and you held longer than a year, your federal tax on the gains will be zero. State income tax is another story

Treat every sale as a taxable event. Pay the gains and record the losses. Report it all.

Selling BTC to get OMG you need to pay gains you made on the bitcoin at the time of the sale. You owe nothing on the OMG to the IRS until you sell it.

Say you hold the OMG for 2 years, you still owe nothing even if it is now worth 1000x what you bought it for.

The second you sell that OMG to ETH or BTC to cash out, you owe capital gains tax on the money you made.

You pay less in tax if you hold it for a year or longer.

Cashing out then re entering the crypto space on the dips will screw you tax-wise.

Anybody know about how bitcoin is taxed in Aus?

I looked it up
>-Disposing of bitcoin acquired for investment
>If you have acquired bitcoin as an investment, but are not carrying on a business of bitcoin investment, you will not be assessed on any profits resulting from the sale or be allowed any deductions for any losses made

I'm also interested

>paying taxes
What are you, a fucking socialist?

Sounds like the aussie government is bearish bitcoin lol. I wish the US would take that kind of Hands-Off approach.

Fucking americucks. Paying taxes on crypto. You poor bastards. Nothing in life works for you guys.

Want an education? Sure, just go into debt for 10's of thousands of dollars.
Need healthcare? Just pay ridiculous prices on insurance and if you can't, well fuck you. Since you're poor we shall take even more away from you! Broke a finger? That'll be 10,000$.

Want to make some extra $ on crypto? Sorry but no. We even tax you on your intra-trades from crypto to crypto.

Fucking hell...

Such is life in an oligarchy...

>Such is life in an oligarchy...
Implying most countries aren't an oligarchy.

this is why I havent fucking day traded. I would need to like 10x or 50x my money on the daily to make it worth my while tax wise. Fucking US, land of the free my fucking ass.

Yeah most Americans don't even realize how much they are screwed

They eat up whatever their favorite politician or media outlet tells them "we have the best healthcare in the world period" yeah if you can fucking afford it.

I wouldnt be laughing at my fellow bizbros for getting fucked by the IRS.

Goddamn bloodsuckers

Say you go on a holiday for a tax year, go be a resident somewhere like switzerland that doesn't tax bitcoin.
Could you cash out and legally avoid paying tax in your home country since you weren't a resident for that year?
Might actually be cheaper than paying tax if you've got a lot

Anybody know if this is a legit way to dodge taxes?

are there any examples of someone going to prison for not paying crypto taxes? are we 100% sure we have to? or are people just doing it to be safe? can i get sources on this stuff

> make millions of dollars in crypto
> Dec 31 2017. i "accidentally" sent my crypto to the wrong address
> write down loss of initial investment $300
> get a check back from IRS for overpaying taxes this year

the system just "works"

So basically you have to flatten everything down into USD terms for every transaction? I assume there is historical exchange price data to work off of but man that's a lot of work for a frequent trader.

lol then you live the rest of your life under a government microscope. gg.

Hmm I've cashed out ~11000 usd and paid no taxes. What's the worst that could happen to me?

How are they logging every trade i make anyway?
Im guessing this is for people making big money trades not someone profiting a couple 100$.

WHAT

that cant be right

you get a letter requesting back taxes, plus interest due immediately

qz.com/198915/yes-the-irs-will-negotiate-but-you-probably-wont-like-the-outcome/

No you still have to pay taxes in both countries. Giebe shekel

Any bongs around?

Does the £10,000 personal allowance apply to capital gains?

I cashed out $1900, will they come after me? srs

Hire an accountant so you don't get arrested and so save as much money as you can.
A good one, not some random Google.com accountant.
*Reccomending this if you have 100k+, anything else just read

CA is a shitty state to live in if you're a taxpayer.

in burgerland btw

Then you move to another country and revoke your USA citizenship gg.

you're low on the list. anything over $9,999 will be higher priority.

but eventually you will get a letter. probably not for at least half a decade though.

10k of capital gains = 2k in taxes

for that little hell no

You should only take out the exact amount of money you put into coins in a calendar year (and ever really if you want to avoid taxes indefinitely) everything else you should keep into coins and none will be the wiser.

Fuck the IRS. Buy monero and stash your money there forever

>How are they logging every trade i make anyway?

What in theory should be happening is that these exchanges would be operating legally and in accordance with the laws they would reporting your income/trades to the IRS.
When you trade stocks, its not just you filing taxes about your earnings, it is also whomever you trade through that sends this info up to the IRS.
Filing your taxes is a huge waste of time for tens millions of people, the IRS knows what they made how much they owe or how much they get back already. Life would be simpler if the IRS just sent you a notice of payment or a check instead.
And let people either do their own taxes (IRS fucked up and forgot about x,z,y deduction) or accept what they owe/get back.

Depending how you treat your bitcoins or other coins, it gets taxed in different ways, but with 98% of cases here it would just be under regular capital gains.

does anyone know how mining works for taxes? Everyday I get coin and generally trade it for other ones I want to hold. Because I dont buy coins directly m i just fucked all the way around this

irs.gov/pub/irs-drop/n-14-21.pdf

Q-8: Does a taxpayer who “mines” virtual currency (for example, uses computer
resources to validate Bitcoin transactions and maintain the public Bitcoin
transaction ledger) realize gross income upon receipt of the virtual currency
resulting from those activities?
A-8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value
of the virtual currency as of the date of receipt is includible in gross income. See
Publication 525, Taxable and Nontaxable Income, for more information on taxable
income.

Strictly speaking yes, you might be able to write off some asset depreciation/cost of electricity/gpu but a proper accountant will know that.

>generally trade it for other ones I want to hold.
If mined at coin and got it in your wallet when it was worth $25/coin and then traded it when it was worth $30/coin you realized a $5 profit in the eyes of the IRS.

i meant like today i mined 1.6 coins and traded it for another coin that I can't mine

Buy gold retard

>i meant like today i mined 1.6 coins and traded it for another coin that I can't mine

When you mined those 1.6 coins what were they worth at that moment you received them ?

When you traded those 1.6 coins , was was their worth ? Did it go up or down ?

If we exaggerate their worth, maybe it will be easier to understand.

Let's say when you received those 1.6 coins their worth was 1,600 US dollars.

If they were worth 2,400 USD at the time of the trade - you made a potentially taxable profit of $800
If they were still worth 1,600 - you made no money, nothing to tax.
If they were worth 1,000 USD - you lost money and have a capital loss.

In the IRS eyes, every time you trade one coin to a different coin it treats it as a sale with profit or loss that could be made.
Just because coins cut out of the middle man of cash, doesn't mean there is no profit made or that profits/losses can't be calculated.

You're that same faggot that was in here last week being a good goy and pitching a fit that everyone was saying how ridiculous it is pay taxes on each trade. Which, it is ridiculous to think that. Capital gains tax is what you pay. Not on each fucking trade you cuck faggot.

Yes, the exchanges keep track of each trade, but they don't keep track of the USD value of each one at the time. It would be absolutely fucking asinine for the IRS to spend that much time, energy, money, and staff to sort through all of the 6 gorillion DGB trades all these fucking retards have made.

If a whale gets audited though, then they might do that. But all these fucking neets trying to avoid getting a job by making a little bit of internet money are not going to cause the IRS to waste their time tracking them down.

IF someone gets audited, then print out your trade history and give to them so that you can show that you actually are trading and not doing anything shady.

Kys.

what if u cash out a total of like 20k? assuming i put in 30k? i would buy in and cash out at random times but as a whole that was my total?