Crypto taxes

I've only ever put in 500 and taken out 1000, the rest is still in cyberspace.

I honestly doubt it. Odds are actual IRS guidelines are coming out next year and they are likely to be favorable.

The IRS is trying to track down wallets but ultimately it's a pain in the fucking ass for them. They are going to get more tax revenue if people willingly pay taxes on their gains which means making the process easy.

People fear monger but the IRS wants money. Whatever the most effective way of getting it is they will use. If it requires favorable legislation to get the ball rolling then that's what you get.

I'm not selling my LINK, XTZ or WAN this year (too many gains for an instant 42% tax).
Meanwhile I'm realizing as many losses as possible.

Umm... Yes.

About 1,2% over everything I hold on 1 januari.
Except over the first 50k euro of what I own.

t. Netherlands

Protip: Pay some taxes.

There are these people that get all uptity and go "I aint't paying dah IRS shiet!"

And then they get fucked in the ass by the IRS.

And then fucked in the ass again in prison.

The ruling now is that Crytpo is considered property and if you exchange it back to USD then you pay capital gains on it.

Not that hard and not that bad.

I lost my crypto coins and my fuckin guns in a terrible tragic boating accident.

When exactly do I pay taxes? That's the only part that's still confusing.

Why do you think Bittrex has been so cautious lately about adding new coins?
They got the SEC and Feds breathing down their necks.
Your right the IRS wants their money and to do that you don't think when tax time comes the IRS isn't gonna ask bittrex for trade histories of US traders?
Or they will just randomly audit people they know are traders and have to subpoena the records from bittrex.

I'm saying that the IRS is going to actually take a stance on it next year. If they start slamming people who were trading on Bittrex with fines for not paying on each trade it would set their efforts back years.

People would instantly start moving to decentralized exchanges and they would NEVER get their money.

Right now it's a mystery how they handle things. Attacking traders wouldn't be worth the potential revenue loss.

Well as it stands now you have to go by the current tax code which as you know sucks.

You are absolutely right that people will flock to the DEXes so hopefully they do come out with better laws. But bureaucracy takes time so they better get moving. I think most people will move to DEXes anyways so they can avoid taxes. If there is no history of trades how can they prove you made a profit?

There is no history in mining either. Even though people think it is wasted money to go into mining, there is no records on exchanges amd that is the beauty of crypto mining. IRS/SEC does not govern people outside of the US. Tell me how they will trace cryptomining?

It's more likely they will just accuse you of money laundering and seize your assets if you don't give them your entire trading history.

But again this would drive people underground. Literally the best thing they could do is give trading deferred capital gains until it's converted to fiat. Everything else is a giant cluster fuck for them. Draconian methods won't work here.

...

>taxes

Taxman wants his money, he's gonna take it all

Wait, so Etherdelta might have some worthiness after all?

10% and only because I have a company and tax fags are keeping a close eye on me.
Most people from my country simply don't pay tax.

Canada here. Half of your realized capital gains are taxable (at your tax rate)

Man, how could i tell you that... I am Brazilian, i buy crypto in P2P and i hide it. I'll never pay a dime in taxes.

P.S. Some even steal government electricity to power their mining rigs with 1000+ graphics cards, lmfao.

I myself used a dorm room with free electricity to mine shitcoins in 2013-2014

1,2% Tax.
That is a tax rate i would willingly pay
The tax here is 30-40% (and 60% in imported goods, if you buy a $100 product you will have to pay $60 in taxes.)

Be smart. Report gains. *This is not tax advice, just a copy and paste.* Short term capital gains (held less than one year and one day) are paid at the same rate as your regular income tax rate.
Source: fool.com/retirement/2017/03/21/short-term-capital-gains-tax-rates-in-2017.aspx
1 of 2 Long Term Gains in next post

Why would you pay taxes for knowing the private key to an address on a blockchain?

If you do this kind of thing then you might be interested in fin-dom.

A-are you serious? So, in 50 years you lose like 30% of your money just by paying taxes? People should be taxed on gains, but not on something they own, that's a straight up robbery.

Long term Capital Gains - Investments held longer than one year and one day. *This is not tax advice* copied from fool.com/retirement/2017/03/21/short-term-capital-gains-tax-rates-in-2017.aspx

Be careful because the 0% rate only applies so long as your total taxable income — including the capital gains!

>only trade crypto to crypto
0%

if you don't think government agencies have already hired panjeet to make scripts to parse tx receipts from popular smart contracts you're a mong

Forgot to mention that the income tax rates are after your standard deduction. *Not tax advice, just stuff found on the interwebs.

I initially bought into bitcoin over a year ago and I have not cashed out yet. I have made a lot of money from trading alts but does that mean I'm disqualified from long term gains? Or am I only disqualified from long term gains if I cash out before the year is over? If I have to pay short term I'm fucked because I made six figures and my state will make me pay 13% as well fuck man.

I don't know. There is as much information out there that says only after you actually cash out for fiat, as there is other information that compares this to trading stocks where you must report proceeds from each trade. It is unclear at this point because stocks trade into fiat only then you buy back in fiat. Crypto trades crypto to crypto, so there is no fiat gained. If someone has a source for this answer, please let us know.

Is there anyway to get away with paying little to no tax?

Do not ask your "regular" accountant. They will make assumptions unless they are extremely educated about crypto to fiat gains.

>taxes

not planning on paying uncle fag any of my earnings

And how would they prove that a certain TX or wallet is yours?

Use localbitcoins.

The government assumes your wealth grows by 4% per year. And you pay 30% taxes over that. Which is why you pay 1,2% taxes.

Your real capital gains get ignored. So it can be positive or negative for you. If you trade in cryptos and get 100% profit then it's a blessing.

How much taxes? Exactly the same as for my WoW auction house gold profits.

>database of all known exchangers
>their address appears on your chain of tx's
>they email them and ask for your name, address, gender and skin color
>shoot you in the face during a raid and then take the money from your estate

Can you sell all your shit on New Year’s Eve to buy 2 days later or is your cash taxed too?

If you sell something your wealth wont increase or decrease.

But if you give your coins away for a day then you legally won't get taxed over it.

Thats why I said decentralized exchanges are the future. There is no centralized entity for the govt to ask for info on customers, trade history, etc.

Just trade coins on the dex or from your own wallet via atomic swaps. Enjoy your profit and fuck uncle same.

ok genius where did you get the funds to start trading on the dex? that's how they fuck you

So if you spend everything on food and smokes before 1 Jan, you won't have to pay?

That's correct. You don't have to pay over your main house with a mortgage either. So you could also just move to a bigger house.

Or you could buy a nice car from it. Whatever.

this is the worst larp i've seen in some time

Straight from the website of the Dutch IRS

belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/individuals/tax_arrangements/living_abroad/non_resident_taxpayer_status/income_in_multiple_boxes2/assets_in_box_3

Not american, will only need to pay taxes here if I deposit a very large amount which I don't fucking need to as I'm not a retard.

If you rent out a property in the Netherlands you also don't pay taxes over the rent you receive.
You just pay 1,2% over the value of the house minus 50k.

That information is for foreigners. Dutch people also have to state what's on their bank account. :(

Buy BTC on localbitcoins if you are worried about staying anonymous

So what's up with all these people saying fuck taxes? Are you just assuming nothing will happen when that money eventually goes back into your bank account? Or do you only have a small amount of gains?

If you have any significant amount you will get fucked as soon as it goes into your bank account

Then how does anyone get rich off this shit?

You have a good point.
Usually you need a bank account to pay for shit and if you try to pay everything in cash people get suspicious.

By paying taxes. You aren't instantly fucked like he says. It's totally legal.

The IRS tracks your money and knows about any large deposits. They won't come after you until tax season is over and you still haven't paid.

There is no instant fuckery. It's just assured if you withdraw money and don't pay taxes when due.

Yes, any amount over $10,000 must be reported (in the US) due to anti-money laundering legislation. If a series of deposits or withdrawals equal that amount, it is also reported. Pay your taxes.

So if I cash out into my bank account, exactly how long do I have to pay taxes before I receive a letter and get ass fucked?

how much?
if i transfer 20k into my bank account what happens?
im guessing i just file it into my taxes at the end of the year?

You might not receive a letter for years. In the mean time, they will add penalties and interest to the amount that you owe. Pay taxes on your gains the year that you realize them. *Not tax advice, just common sense.

Who knows but it will happen and with interest and penalties. State your gains and pay your taxes and they won't give a shit.

From what I've read anything $10k or over the banks notify the IRS.

Sounds ez enough, thanks.

Yes, that is what you should do. Is there a record of your having transferred cash into Coinbase for example to make your original purchase? Let's say you deposited a total of $10,000 into your Coinbase account. You have gains and you decide to trade your crypto for fiat. You transfer $20,000 from Coinbase to your bank account. Your records will show your original investment, so your gains are $10,000. Pay taxes on the $10,000. Either short term or long term gains, depending on whether you held the crypto for a year and a day or less time. *Not tax advice

Be sure to pay your state taxes, as well. The IRS will report this information to your state and if your returns don't match you will have to pay, plus you will be on their radar.

I've looked into bitcoin.tax and I think it calculates both federal and state.

lel

Interesting, thank you. If you use this site, be SURE to pay your taxes. They have your identity through email or your google account.

Yes, and just under, as well. Also a series of deposits or withdrawals that appear to try to avoid the reporting laws.

>Exchanging your crypto for fiat

Gotta pay the bills somehow nigga. What places accept chainlink for rent and food?

Unless you only ever bought Bitcoin you have to pay taxes.

Purchasing any altcoin with bitcoin IS a taxable event.

>Putting your rent money into crypto

In theory sure. However I've never encountered a single instance of the IRS claiming owed taxes for altcoin trading.

On paper you should but in reality literally nobody has had trouble over not doing so. When the legislation actually comes out odds are it will be deferred capital gain.

If you want to be safe report it but you are fine if you don't so long as you aren't trading to fiat. The legislation hasn't been updated to deal with crypto and they aren't chasing down anyone who pays their taxes.

>Purchasing any altcoin with bitcoin IS a taxable event.
I can value both the alt and btc at zero at time of purchase. Then its not a taxable event.