Anyone else realizing how incredibly fucked up their taxes are this year?

>Unless you cashed out $10k+ into your personal checking account.

literally how much I cashed out

but I only made 5k at my job this year

am I ok?

If I sell BTC for fiat on gemini but don't actually send it to my bank account, and instead use it to make more crypto, does this count as "cashing out"? I converted it to not get fucked in August by the fork

Just don't do anything

You need to report every trade, the IRS doesn't even see your cost basis on your basic tax return, but if they audit you need to have records proving when you acquired each coin/token and how much you paid for it.. otherwise they will automatically assume your cost basis is zero and you're going to get royally fucked

Hire a fuckin cpa. Jesus you fuckers are stupid

How do you even report thousands of trades? Upload a spreadsheet?

What about random shitcoin investments from icos? What about sending people crypto as a "thanks for the advice" or whatever the fuck? How is this something one can honestly keep track of

bitcoin.tax

So whats going to happen when the IRS crypto tax bubble bursts. I can't see how this is even remotely enforceable especially for people who never cash out.

> Expect to keep records
> Expect to file
> Exepct to pay 35%

And in the end you get audited, accounts frozen and assets taken. Next thing you know you're being labeled a drug dealer, don't have a lawyer to defend you cause no $$$ and you're gonna have to file bankruptcy.

The IRS offers you a "deal" to make it all go away. Which you take, since you have no other option. Now you're back to square one with a bad reputation.

It has happened. Google is your friend.

Or

Headge everything in crypto, renounce citizenshit, and go to Japan.

Ez

you dont need to report EVERY SINGLE trades morons. you can summarize it.

Good thing Bittrex keeps a record anyway

>the secs face when they see i buy high and sell low a million times before i got lucky and made 3000%

...

This thread, sometimes I love you Veeky Forums

>my face when IRS gets hold of data from shittrex and wants to know why thousands of trades aren’t claimed

I just leave it in crypto and never cash out. Never trade USD to BTC. When you do cash out, never cash out more than 9k in one year.

This year I've cashed out 3.5k, not enough to trigger any alarms.

>mfw I'm not even sure if they government has my info properly on file because GDAX repeatedly rejected my registration info, as did Bittrex, and HR at my job told me they couldn't even find me as existing when they did a criminal records background check

Considering I'm a young adult who engages society and not a fat middle aged fedora lord living in his moms basement, I need more than 3.5k a year to function. I quit my job and am enjoying my life

whats the best way to log trades?
also should I even bother reporting the last 4 months when I'm currently under my initial investment? I'm a retard and fucked lost all my gains

yeah what do i do if im actually a drug dealer can i just say i got it all from trades and pay capital gains tax?

Who cares?

How do I buy drugs with crypto? I have a ton of it and I want high quality drugs and am willing to pay top dollar

Install Linux and buy drugs on the deepweb bro!

idk, i'm not a drug dealer.

install tor and hop on over to alphabay

Newcoiners everywhere it's hilarious. We have this same fucking thread every week for years.

Why don't you tell us FBI user?

But you better have good records of every buy and sell order, and follow a consistent accounting practice, such as first bought-first sold for calculating cost basis. Just like us guys who deal in securities.

>alphabay
user, I have some bad news for you

Ugh technically in burgerland you have to report each individual trade, BUUUUUUTTTTTTTT that is practically impossible so just evade your taxes user.

The best website is bitcoin.tax
and if you're under your initial investment, you'll probably be able to save some on the rest of your taxes. You can write off up to $3000 in losses

Not a shill - but I just updated each transaction I do onto bitcoin.tax/

Even though I am trading at a slight loss at the moment, I don't want to be caught with my pants down when the tax man eventually comes knocking if I ever /make it big/

nope

I was one of them and I automated the whole process because im a dev that works in finance

this is smart. I lost a few thousand the first few years and claimed the losses, but this year I've already had to pay $4k in estimated taxes and the year isn't even over yet. but it's no problem since all my records are complete.

Just to add, when trading directly between coins using something like ShapeShift, I just use a "Sell" and "Buy" event.

So if I convert BTC to XRP, I just set a "Sell BTC" transaction then a "Buy XRP" transaction and specify in the memo for both that it was a shape shift, along with the shapeshift ID page.

do you want to give the government 30%?

what if you just cashed out at btc atms.

So what happens if I get caught with like 2 grand of unpaid in taxes? Will I just have to pay a fine or some shit

is there anything special I need to know about installing tor? do i just download it and start surfing? or do I need a vpn or some shit.

Depends on your country

How do I get Japan citizenship

if you're a nigger or spic then never. Japs are too smart to ruin their country.

Seriously what are we going to do? I'm a neet who has never filed taxes, I don't know how this works

Have you got a pretty solid history of it all somewhere on an exchange or wallet?

I'm still trading with profits I made using Cryptsy and other dead sites circa 2013. No records of that stuff.

>He didn't use local bitcoins.
>He loves serving the jew,

/thread

I've literally cashed out >80K on local bitcoins and haven't paid a cent of tax. I have used it to fund my personal expenses. Nobody bats an eye since the most I ever sell is .5-1 Bitcoin at a time.

then you can't use the money to buy anything. you need a record of EVERY transaction you ever made. you human prisoners are not allowed to just make money out of nothing. you are only allowed to suffer quietly and work the plantations like good worker ants.

>paying taxes on crypto
why are you even here. thats entirely the point, satoshis vision if you will

Literally what is this and how do you get around the tax man?

localbitcoins.com

it's like craigslist but for buying/selling bitcoins

you meet computer nerds at starbucks and exchange btc for physical bills, upwards of 10k at a time

completely anonymous

If you are retarded and don't qt azn girls then leave more for me and go to slovenia, they have hot girls, beautiful af, and they don't tax crypto.

Pic related

The only localbitcoins.com guy around me writes down every transaction I've made with him and my name...

Lmao, why the fuck would you tell him your fucking name?

God you are a cuck. Dont you remember the healthcare.gov clusterfuck? THAT is the level of technological intelligence you will be dealing with, with the IRS. I would love to see how the fuck a single agency could go after hundreds of thousands of people for their cryptocurrency transactions.

This. In my Eurocountry they start to shit their beds when they have to sync data with another branch.

Post your contact information please. Free bitcoins!

Fascinating. Thanks for the heads up, might try it out eventually!

Also, God bless cash :)

>tfw 60 grand USD sitting in my canadian bank account

i'm sure they wont ask, right?

50*

You are an idiot, you really think the IRS has the resources to track down literally hundreds of thousands of people and dig through each persons cryptocurrency transactions, on exchanges that have no paperwork or statements what so ever. Maybe if it was linked to money laundering or something, but joe schmo who made a 20k-50k by selling bitcoin will be fine. Also,TECHNICALLY bitcoin isnt mentioned in the tax code, so I think you would be in the clear. If they ask just say you lost it alland have nothing to show for it,and it was a scam.

This is kind of true. My father got audited (small business owner) and the tax man was nice but seemed overwhelmed and just wanted to be done with the audit.

Nice try special agent fuckface.

Just use SALT lending when the platform starts in the next weeks! No cashing out = no taxes. Just get a loan. Either don't pay it back (= you lose at most 25% or so; often better than huge taxes and the accounting nightmare) or pay it back with a part of the loans and the gains your crypto collateral is getting. Have your cake and eat it too. Seriously, look it up, people! As you can buy SALT tokens now for $4, you can even save on interest later, as each token has a retail worth if $25.

Exactly, let alone trying to track down trade records from multiple exchanges, and shapeshift. AND unlike a bank account most wallets use dynamic addresses so you literally dont use the same address twice making the task of establishing a record nearly impossible for even people who understand this stuff.

Quite literally a shit storm, just the way we like it!