Tfw even with wagecucking literally everyday and living as frugally as possible you can only put 4k into your portfolio...

( )

well at least the crypto gains will be all yours then

Bro I can only put 4k a year. If that.

its never enough

i need my 10mil NOW

>my 120k portfolio is all I have
>neet with no income
>still have to pay taxes on gains
>mfw

You have to pay taxes on gains even if you don't cash out?

humblebraggingfaggotpieceofshit

wait what, don't give me a heart attack anons wtf, Why can't I just cash out in BTC and sell the bitcoins and pocket the money?

google "capital gains tax"

I realise gains/losses with every trade that I make.

Yes but this is crypto not stocks, bonds etc, and I don't live in the US?

How could they catch you?

>I don't live in the US
then I have no idea how your taxes work. You dont need to pay US taxes. Its possible your local government levies capital gains taxes, I dont know.

> but this is crypto not stocks
in the US, crypto is considered a security just like a stock or bond. this might be different in your country

So what is stopping me from just selling my btc and pocketing the money? There are a fuckton of traders buying BTC on Localbitcoins for example

can i go to my bank and do that or do i have to sign up online

Assuming capital gains laws apply to you, realizing capital gains without paying taxes illegal. Its called tax evasion. If caught, you'll be jailed. If that seems like a reasonable risk to you, go for it.

But how is it taxed? New to crypto trading. Are taxes deducted with every trade or is this something that you have to disclose at the end of the year?

what coins do you have

Go ask your fucking banker. They'll be 1,000x as qualified as any user here to tell you that.

whatever they cant see they cant tax

CGT exists in many other countries than the US

they catch you when they see that you suddenly have more money than usual in your bank account

Lmao dipshit, where are you gonna cash out at? How are you gonna convert it to hard currency that can't be tracked? What shithole country do you live in that wouldn't pop a flag on your financial records the second you tried this?

just use local bitcoins and launder it into your business fgt

this

You have to record all trades you make ($ value of what you sell minus $ value of said coins when you bought them) and at the end of the year sum those up and report the number with your yearly tax report.

Technically, whenever you buy with the intent to resell (under which crypto trading falls) and you don't report the gain, it's tax evation.
Point is that this also holds for you buying shoes for 40$ on ebay and selling them each week for 60$. But in that case people would more easily argue that reporting garage sale gains sounds a bit absurd. Issue is the garage sales aren't tracable but crypto interactions are.

There's the general speculation in the crypto sphere that the tax beuros don't have the manpower to check (ask exchanges, who potentially have your ID) what you traded and the speculation that they never will come back to do so.

God man, this shit is complicated. I'm guessing you get taxed out of the fucking yingaling in march

If I had a100K I'd try a solar powered shack for mining somewhere sunny or starting my own business.

>$ value of what you sell minus $ value of said coins when you bought them
>tfw cant get money back from gov't when buying high selling low
feelsbadman

If you realize a capital loss, it can cancel out a capital gain at a later time.

stfu faggot. you don't know shit. you don't even know how to spell evasion.

well you can't get money from the gov, but if your first trade made you 12k and your second trade lose you 2k (gainsed you -2k), then
>>$ value of what you sell minus $ value of said coins when you bought them
is counted negative and at the end only 10k is taxed. Which may be 2.5k in a bad case.

These sort of laws are also fucking old and it's insane to apply it as they do now. If you have a trading bot, things get itchy

GOV isnt going to fuck people for not reporting each transaction... they care more about the whales than some guy who made 4k

Currently holding mostly LTC and some BTC, but shifting to BAT and XRP to take advantage of short term gains with the upcoming pumps next month. Looking to get some more VTC for long term hold after that and maybe syscoin for fun. Still on the fence with ARK.

I'm German, no hate plx. For Germany/Austria, the officals are here
bmf.gv.at/steuern/kryptowaehrung_Besteuerung.html

The counting is the same in America (IRS), but at least in Germany you actually don't even pay taxes for coins you hold for 1 year or if your yearly gain in 600€ or less.

>There's the general speculation in the crypto sphere that the tax beuros don't have the manpower to check (ask exchanges, who potentially have your ID) what you traded and the speculation that they never will come back to do so.
This is basically the most important part.

It just depends how much you're cashing out. If you cash out 1-2k a month you could probably get away with not paying taxes; better yet, use a crypto card to make most of these purchases.

If you cash out large amounts just pay them their 15-25% cut or whatever the fuck it is and they'll be happy

Its not. Here in the USA you only need to pay tax on gains made after a sale of Crypto into fiat. (Just like you bought AMD stock and then sold it for a profit. you would pay capital gains on your profit)

So basically keep track of capital gains and then report in tax season?

you can start here and climb up the jargon ladder

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

That would honestly make the most sense. It would be easiest just to go on coinbase and figure out how much you cashed in vs how much you took out.

I will admit that I didn't read all the IRS documents (as it doesn't apply to me), but for Germany I can definately say (see .at link above) that you need in principle report the sum of all gains of all traded (also LTC to Ark or whatever), in fiat value (even if this counting game is absurd for crypto on exchanges) and I'm relatively certain that the situation in America is actually worse (more taxes).
But people in crypto get extremely butthurt if you talk about taxes and the gov in general and so I'll leave it to you guys to double check.

I dont really understand how strict the IRS but most Veeky Forumstards are probably cashing out under 10k a year....the government wont look twice at that.

If you cash out 10-100k, just pay capital gains tax.
The more you cash out, the more you should have your shit straight. If you cash out 1 Million they'll take the time to audit you.

Even then, idk why everyone is so afraid of the government. Worst case scenario you just play it off like you're a retard and didnt know how to do your taxes, then you just pay them what they want and thats it.

For you to go to jail they have to prove you were purposely trying to evade taxes.

You've invested 100k into crypto?

feels comfy man when you cash out 100k every quarter when you trade with ETH and convert back to BTC and sell it on GDAX and only pay 15%.

4k/month is pretty good for anybody

Been a long time since I saw something innocent but sexy

do you guys typically invest/profit from ico's or from post-ico pumps (not necessarily p&d's)?