Do you plan on reporting your crypto trades on your taxes next year...

do you plan on reporting your crypto trades on your taxes next year? I'm debating whether I should play it safe and pay the extortionists, or if I should keep quiet and hope I slip under the radar.

Currently none of the crypto exchanges report to the IRS or issue any sort of tax forms like a 1099-B, so the IRS receives no record of your crypto trades. The IRS has been trying for over a year now to get 2013-2015 info from Coinbase but as of yet have not succeeded. It's been reported that in 2015 less than 800 people paid any taxes on crypto gains and nobody was arrested. Given this, it seems highly probable that if you don't report any crypto trades the IRS has no way of finding out about it.

On the other hand, government thugs are tenacious when it comes to their extortion racket. The recent surge in crypto prices has certainly gotten the interest of tax agents and they are stepping up enforcement. Eventually Coinbase and others will have to give up their records, and the IRS will likely pursue evaders even from several years prior. Eventually, not paying taxes on crypto trades may catch up with you.

I imported my Bittrex trades into bitcoin.tax and it looks like I'll owe about $5000 in capital gains taxes next year. Of course, I'd rather keep it for myself, but it's not risking legal trouble for a measly $5000, so I'm leaning towards paying up.

How do you all plan to handle taxes on your crypto trades come tax season?

damn Mr. IRS man it really sucked when I lost my trezor in a boating accident

only a complete moron wouldn't pay tax

>implying I'm cashing out of crypto ever

only 800 people paid any taxes on crypto gains in 2015. There were millions of BTC users by then. Let's just say 1 million in the US. So, only 0.08% of BTC users paid any capital gains taxes in 2015, and not one of the other 99.92% were ever prosecuted for tax evasion.

If you trade one crypto for another, that's a taxable event according to US law.

By the time I want to cash out my Ark...

I won't have to.

I'm sure you'll find out, mr. IRS :^)

The Crypto gains in 2015 are nothing compared to what they are this year, dude. I don't like it anymore than you do but I think IRS will try to go down hard on people who don't report this year..

Can someone help me out?

I only made 4k from my regular job this year before quitting to continue college.

In March I sent 3k from my bank account to coinbase. I made 25k from ethereum, which I kept stored in my GDAX account. I had to withdraw 13k to my bank account for surgery, but the rest of the money stayed there. After I moved my money off GDAX I started trading hundreds of shitcoins on bittrex/polo/liqui etc. Right now I have about 50k worth of coins on binance.

My only worry is coinbase because they have my ID and they knew that I had 25k with them at one time.

What should I do? Like I said I only made 4k this year outside of crypto and that all went to my tuition.

forgive me if i'm wrong user but I thought profits from crypto were considered "unrealized gains" until you cash them out, at which point they become subject to capital gains tax. I wonder is there anything stopping me from say, travelling abroad, exchanging my btc for fiat via a series of private exchanges, then depositing the money into a bank account located in a country with favorable privacy laws.

Same boat OP. I want to not pay, but I'd rather just play it safe. Cant the IRS come after your for 5 previous years of un-paid taxes (+ penalties)?

you'll probably have to sell some more crypto to cover your tax. Though if you only made $4000 + $13000 you withdrew, your taxes will likely be pretty low after deductions and exemptions.

FUCK NO OP

never declare anything.

join the NEET club

crypto to crypto is a taxable event. start keeping track of all that shit or you'll have the irs sticking its fingers in your ass in a few years.

meanwhile, im comfy as fuck in Canada. Report gains, get taxed on half lel

you are wrong. When you buy one crypto with another, that's considered a "sale". Say you buy ETH with BTC. For tax purposes you'd have to convert the BTC into USD value at the time of the purchase, and then report any gains from that sale.

This is money now, goobs. Selling a stake in crypto is selling a stake in a stock. They are treated as securitues and therefore are taxed accordingly.

1.3% tax on gains after the first 50000.

Glad I don't live in the land of the "free".

Careful, if the CRA thinks you depend on your income from crypto investments to live (aka daytrading) they can tax you on 100% of the gains.

country ?

gibmedat seed