Do I have to pay taxes on crypto at the end of the year...

This, every transaction you do in crypto is a "like kind" transaction, at the time of the transaction there is no gain to pay taxes on..furthermore if you do not cash out you are not making profit....imagine BTC going to $800 next april, you think the fucktards on here saying that you have to pay on each transaction know what they are talking about? they dont

If you're retarded enough to use an exchange, yes you should pay taxes.

I buy/sell crypto locally so I don't run into any issues. I do report a small amount on taxes just incase any authorities are involved in my transactions. I never do business with the same person twice.

Yeah I fully understand that concept for sure. But that's why I'm asking about it.

Humor me for a moment with this hypothetical :

I have 1000 USD in my blockfolio as of now. I cash out in January at 2000. November of 2018 I put that 2000 back into crypto. So I claim any of it? Just record the in and outs?

Locally? The fuck you mean?

If you're in the US, Bitcoin and other crypto are treated as property. This means that each trade is a taxable event. I wish it worked like you guys are describing, it really should but it doesn't.

Oof. Don't like the sound of that at all. Time to make some spreadsheets just in case I guess

This is what I've found so far.

you are retarded, "each trade is a taxable event" ok, tard, what taxes do I have to pay from buying link at 12k sats??

What makes that retarded? The reason I'm asking any of this is because of the very real possibility of this exact situation.

> Buy for 1k sat
> Sell for 10k sat
> Buy again for 30k sat
> Sell again for 1k sat

"Every transaction is a taxable event", does that mean I would now owe nose tax than I even have? Or can I deduct loss.

its retarded because every transaction you do is "like kind" ...think about it, when you buy link at 10k sats thats what it was worth at the time, when you sell link at 12k sats you now have more BTC, but BTC value is not set in stone and could have gone up or down, if you pay taxes on unrealized gains you are a fucktard..imagine starting with .1 btc which you paid $70 for, you trade shit coins all year long and get to 1 BTC, then you hold that.....for all you know BTC itself could be worth $70 in april, are you supposed to pay taxes on all the transactions that got you to 1 BTC when BTC itself made you no profit whatsoever once you cashed out?

You have to give the irs 50% of every trade, and another 60% when you cash out into fiat.

>this thread again

No one knows and we won't until regulation happens.
End of discussion.

I'm fine with paying taxes on my crypto, but they can only take payment off of profits and they can only take the payment in the crypto itself, there is no way I should have to wagecuck in order to support my hobby of trading crypto

another question for deluded taxcucks: If i bough digibyte at 50 sats, sold at 40 sats and rebought at 30 sats did i just make a profit in digibyte or did I lose capital

dont listen to this retard

Honestly op it doesn't fucking matter

It's still too early for the IRS to handle this shit.

They know only 15 percent of people are paying crypto tax the right wat

Transfer crypto in person for cash and pay cash for crypto. I make 5-10% per transaction. Always in a public place. I have a counterfeit detector, so I can't get scammed. Have more than tripled my money in the past year.

Just wait until the SEC has a crackdown on an exchange and massive tax penalties for everyone involved. It will happen eventually. Also exchanges can get hacked/delay your funds.

This guy must be retarded. KEK

lol this guy

Paying taxes on crypto? What are you, commies? How have you burgers managed to get so cucked by IRS? I thought you were the land of the free. Get your fucking shit together, you dumb cucks.

he doesn't understand.
Essentially, if you try to put the earnings back into your bank account, it should be declared. In America, it's called capital gains.

Yes, it actually does fucking matter. There's a lot of shit I take chences on but when it comes to Uncle Sam and his tax dollars, you don't want him to sick his irs pitbull on you. If you're audited or they find out you did it incorrectly, you can get a 20% negligence penalty or as much as a 40% penalty if the person understated their income by 10% or more. And that's just the penalty, you'll still owe the short or long term taxes.

Hopefully we get clarification before tax time if we can use like kind exchange rules or not.
It's a grey area because trading gold to gold coins=like kind. Gold to silver coins, not like kind.

you're not understanding, if you don't cash out into fiat its not a gain, how the fuck are you supposed to pay them if you dont cash out anyway???

asking for tax advice on Veeky Forums = LMFAO

how capital gains taxes works is that you pay tax on the profit made when converting an asset into fiat. You would pay capital gains on the 1000 you have earned. If you then reinvest 2k later or dont reinvest ever is irrelevent.

Cool

Say cuck one more time in your sentence so you summon cryptobeetlejuice please

crypto that has a value is not yours until you sell it.
drives me crazy when people say that they are $10k richer when they still have "their" money locked in crypto that isn't very easy to sell.

>muh taxable event
you stupid cucks, good luck gathering all the transaction history with the exact prices/ratios, timestamps and God knows what else, also good luck to those day trading, do you hav to pay taxes if you lose too? what the fuck is that? another fee for transactions from the government?

anyway, when decentralised exchanges come to play and most coins are anonymous the IRS can suck our dicks
anyone willin to pay more than just (cashed out amount-initial investment) is a total cuck and deserves to be poor

heh fuck off, you aint getting my cryptos

also what do you cucks think we have Tether for if every crypto-crypto tranaction is muh taxable event?
I guess the day you were all born was a taxable event too

This was my thought exactly

Get a job

Never cash out. Accumulate BTC.

A new anti-political movement of non-voting tax evading cryptocurrency users is looming

kek

>ID: qq
Fitting.

Yes, that's how it works.

>if you don't cash out into fiat its not a gain
Wrong, it is a gain. If you make a significant gain and cannot afford to pay taxes on it, then you HAVE to cash out at least enough to pay said taxes.

>also what do you cucks think we have Tether for if every crypto-crypto tranaction is muh taxable event?
To bypass waiting times from the bank and/or to make it so you don't have to send your Bittrex gains to Coinbase/Kraken/etc every time you feel you're at the top

Link to this? I have read many articles and only 1 I came across they said that this was the case.

Any chance we get IRS clarification this year?