You are going to be reporting your gains for every single transaction this year to the IRS, aren't you?

Nope because you don't have to regardless of what overly paranoid nerds say
IRS refuses to clarify so it's safe assume that gains should only be logged when moving in and out of fiat

some cpa guy says its like 15% capitals gains on /r/bitcoin

Jokes on you, IRS, I'm a Linkmarine. You gonna reimburse me for a % of my losses?

Not an American but isn't it enough to just declare total profit without going in on each trade? Also losses are not tax deductible where I'm from.

why the fuck would a loss be taxible lmao america doesnt do that

Wishful thinking wont help you, the rules are clear when exchanging capital assets for other capital assets, you owe 40% of the gains realized at the point of trade. If you enter the market and exit in one fiscal year, then that is easy, 40% of gains. If you bought one coin with the gains from another, and didn't sell to fiat, you STILL owe the 40% and the IRS doesn't accept bitcoin.

Please note: tax deductible

Did you know we have machines called "computers" that can do tedious calculations, and records for us?

It's ironic how this board is all about advanced computerized blockchain technology yet everyday there's a thread like this where people can't grasp how to do simple arithmetic, or how to hire a CPA.

Clam down. You don't owe 40%. You do owe after you run your trades through a spreadsheet program to determine your net gains.

These charts will tell you what you owe if you have net gains for the years.

You may owe nothing depending on your income. You have to add your short term gains to your income to determine your net income for tax purposes.

fool.com/retirement/2017/03/21/short-term-capital-gains-tax-rates-in-2017.aspx

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

UNCLE SAM WANTS HIS CUT

yes, if you are a cuck

Interesting. Had no clue the % was tied to income. My point was individual trades are taxable events.

So if the irs doesn't accept bitcoin you don't have to give them anything :^)

what happens if someone throws their private keys away and you have no other seizable assets?

if they can prove you owe taxes you can face jail if you dont pay

Either you calculate once when you cash out everything to fiat, or you calculate on each token transfer. You can't mix the two and both methods use regular income tax rates unless you've been holding a single investment for over 6 months.

Definitely don't listen to this guy

I don't know where the fuck he's from that he's paying 40% taxes on gains. You pay according to regular federal income tax rate + your state income tax unless your state is red pilled and doesn't take income tax

doesn't matter cuck, the IRS will come knocking on your door and you better pull up your bootstraps and pay your compounding debt

It dosent matter if you withdraw or not senpai.

Every transaction has to be counted as short term capital gains unless you wait a year between each move.

um sorry i didn't mean myself personally i was just worried what would happen if someone burned my house down or just took my stuff.

>need to pay taxes on every shitcoin to shitcoin
>need to pay taxes on short term gains
>have no fiat to pay government so cash out shitcoins
>cashing out is also a taxable event
land of the free they said

who gives a shit, nobody on this board is making enough for the IRS to give a shit anyway.

>Either you calculate once when you cash out everything to fiat

This seems the most logical thing a Tax Authority can do. What are you going to buy with 1 Digibyte? Will they measure every trade in fiat and not satoshi's?We do not get the privileged of using tax deferred/free investment accounts, so I think the TA's are cautious of implementing wholesale tax regulation.

BTW, the SEC, IRS and FINRA are in the regulation business, and they have fresh meat

Im making to many gains to keep track off ill just let it ride the chad way

Yes for short term gains you add your net realized gains to your personal net income. I am not happy about it,but I don't want to pay penalties and interest when they decide to come after everyone.

>atomic swap into another blockchain without leaving any footprint
>claim it got stolen

This.
And if you do make it just hire a tax attorney.

i duno if that feature is available yet

Like Hillary said, you have to have both public and private positions.

Do you understand that when you cash out any crypto it is information that the IRS will have access to. They can go back for ten years. You could have to pay a penalty, taxes and interest on the taxes you owe. If they decide you evaded on purpose you will go to prison.

Remember they come after you for up ten years after you decided you don't owe taxes. Don't be stupid and think that there won't be tax laws that will be retro-active regarding the requirements to report crypto gains. Why do you think that Bittrex is requiring enhanced verification??

REMEMBB

All my coin were lost in a "hack"

Also I plan to move to Hong Kong after I made my first $5 million

you retards are hilarious

>he cashes out into a bank linked to his person and not one linked to an offshore llc controlled by another offshore llc itself in a cook island trust
lmaoing at your life right now

Why can't I just buy gold locally and sell it for cash later?

ok where did this meme come from? does anyone actually know of anyone who was put in prison or even got anything more than a letter in the mail for some missing taxes?

thanks for the replies everyone, I was sure a passive aggressive statement would bring in more people.
anyone have any good read ups on how to go about calculating everything without relying on a third party?

What do I report if I lost 3 BTC (100%) this tax year?

>ODN
>Link

Sold at loss, threw everything into Confido and went on vacation. I came back and I can't even sell.

I can't even afford a pistol to kill myself with.

I think you can claim them as stolen

because the place you sell it to will ask for all of your identifying information before buying it from you. You will have to report your gains on the gold.

....Or I can post an ad on craigslist?

You get a great deductible.

No. I will keep everything. Fuck the clammy hands of the taxman, kiss my ass nigga.

It is called tax evasion. You purposely avoid paying taxes. You didn't just forget or mess up, you tried to hide the fact that you had realized gains and didn't report them. This could be a number of ways, but it is tax evasion if you knowingly hide money so it is not taxed.

I havent done my taxes in 12 years, Fucking shit not about to start now. What are they gonna do? Garnish my XMR withdraws?! Hahaha

You can offset your income tax by a maximum of $3000 a year with net losses.

I made six figures this year from crypto, I know other people on here that made seven.

And sell it to an undercover agent looking for people who are money laundering.

Dumb cunt

Me too..I am going to owe, but I will pay. Now I can convert that money to fiat any time and not have to pay again.

Stuff like this, and how they are trying to ban us from doing stuff with our own money, and how american citizenship is basically like having the curse of Leprosy around the world, etc, makes me actually consider doing something I used to think was too crazy like moving to a country that's not over it's head in debt and becoming a citizen there and dumping burger citizenship. just from watching the whole years state legislatures battle eachother over raising taxes because the state's massive budget deficit. And this is like a prequel of more to come that the local, state, and fed governments are way over their heads in debt and are going to shake down everyone they can for as much as they can and it's only going to get worse.

Go for it. I don't care. You have to be a special kind of stupid to think those sites aren't monitored constantly.

Yes, every person that will sell you gold for bitcoin is a LEO

You're the special kind of stupid

Not every person. Just takes one time. Not LEO. Agent. Watching you right now.

I already know I'm being fucking watched and don't really give a fuck.

I want to turn my crypto into a physical business so I can give people jobs and give more taxes on a regular basis.

I'm a good goy, and they know it.

I nonironically will when I cash out

Great. Pay taxes on your gains then open your business and all is well.

When I turn it into USD, sure...

I'm thinking of actually setting up a cook island trust, you know, to protect my assets from any gold-digging harlots who may come for my fortune

Shit taste detected. I bet you also lost money on Link.

Do you understand that you have to complete Form 8949 when you do this? That form will require information about the date of your trades. You can attach a spreadsheet, but if you show that the trades were made in a previous year, you will be required to amend or file returns from previous years. If you owed tax from those previous years you will have to pay a penalty and possibly fines. You can't report gains without completing that form. The form covers only the year you are filing taxes for.

How would I, if at all, calculate the gains from trading Ethereum into Link, that's it. No cashing out, no Bitcoin, just an Ethereum to Link trade. Do I pay a percentage on the amount I "gained" when I compare my dollar amount to the dollar worth of the Link when I traded it, or is it something else?

hmmm but I traded my currency for crypto..

Each trade I made in crypto was for another crypto. They aren't real currencies after all.

i'm not cashing out until they clearly define everything, so, i feel good about it

Also, my gains have no real dollar value, as I have NOT turned those gains into USD.

They are still within a computer somewhere, and technically not worth anything.

>A bunch of bureaucrat faggots think they're entitled to my hard earned money

the crypto standard can't come soon enough
fuck fiat. fuck politicians, fuck public sector employees, and fuck welfare scum

one last thing... The government cannot force me to pull out of my positions in order to pay them if I haven't yet pulled out of said positions.

this.

If you want to attempt to use like kind exchanges then you need to do an 8842 for every one of those trades for the tax year that you did them in. Note that the IRS will probably reject this and make you pay as if you'd cashed out and then bought crypto with fiat.

It is on realized gains. Did you have gains on the ETH before you traded for LINK? If so you need to report that even if you haven't traded out of LINK yet. Yes it is calculated in $US. Look up the price of LINK when you bought it and the price of ETH when bought the LINK. The difference is a gain or loss and it is "realized".

If you have a loss on LINK, you might want to sell enough of it by December 31st to offset any gains on your ETH.

If you have gains on LINK and you haven't traded out of yet, you don't owe taxes on the LINK until you do. Remember REALIZED gains and losses. If you are still holding the property (in this case an individual crypto) there are no realized gains or losses.

Tell that to the IRS when you cash out into fiat. The IRS considers crypto to be property like stocks, art, antiques, etc.

>8842
Meant 8824.

When you do you have to file form 8949 that tells the dates of your trades. If they are from previous years, you will have to amend or file taxes for those years and you will owe interest and penalties. Good luck.

>admitting tax evasion on a public forum

You future expats are gonna get hosed so hard once the entitlement programs start drying up and petitions need to be paid out.

No, and no one else is either

*I have identified another one.

thank you.

You're welcome.

Irwin Allen Schiff is also another famous one, got 13 years for not paying.

Also, so if I bought Eth, waited for it to be worth less than what I bought it for, and then buy Link, would that mean I have no gains and no taxes to file?

I have no idea how to do my taxes this year. Pretty sure my taxman doesn't either.

Wish I could give him something to read.

What do currency traders do? Like ones who buy euros betting it gains strength on the dollar and vice versa?

nope.

they can go and get fucked.

i've already bought gold bullion with bitcoin, and sold it two years ago for CASH, all tax free.

2 years ago? wtf.. i meant 1 week ago

Had nothing but loss this year soooo

thanks for the heads up, schlomo shekelstein

Yes. Then you would have a realized loss. If you have earned income you can deduct up to $3000 of realized losses per year from your income.

Example:
Bought ETH for $285
Sold ETH for $225 to buy LINK
Realized loss is $60 that you can deduct from taxes you owe. You are not required to report a loss if you aren't going to take the deduction.

>if I sell but keep my fiat on an exchange, does that count , or only if i return the money to my bank account?

correcting my terminology

Bought ETH with fiat for $285
Traded ETH for LINK when ETH's fiat value was $225
Realized loss is $60

Thanks for the clarification, really appreciate the surprisingly friendly help, I don't have anymore questions so I guess I'll be on my way, but regardless have a good one.

Also make sure to use the classic Hillary defense: "What? I don't know? Was that bad? Everybody else does it tho? I'm a girl btw?",

It doesn't matter where you keep it, you sold or traded so you have either a realized gain or loss.

Happy to help. I am not a professional tax advisor so please consult a professional. I do know how taxes work with stocks and since crypto is considered real property like stock, I understand how it should be reported.