Tax season is right around the corner for americucks

Anyone who knows about Aus law, do I need to declare every single trade or just trade that resulted in profit/loss? If I traded a coin into LTC/ETH just to transfer it to another exchange, or if I bought and sold a coin at the same price, do I still need to declare? I’ve been asking for months and nobody seems to be able to answer this.

I didnt pay my taxes laat year what makes you think ill pay them this year. If and when the IRS audits me ill just move to a different country and recover my wallets :^)

Also ausfag, have no idea. My approach is going to be money out of the exhange less money into the exchange, and then declare that as my trading profit. If the ATO wants to audit me they can be my guest

Either that or I simply become so rich that I can afford a Big4 tax advisor to do it for me when I cash in my gains

Why do you guys make such a big deal out of this. You literally do some simple addition and subtraction. Enter annual gains or loss through investing in 1 box on the tax form. Wow, so hard!

No, but I will estimate to the best of my ability and make a good faith payment to the IRS.

This. Am i missing something?

Capital gains only exist if I actual cash out. There is no fiat being swapped around.

Ausfag, but not an accountant

My understanding is that once the profit or loss is realised, that's when you count it. As long as it stays in the exchange as just coins, which are treated as like shares, it's not realised as gains. It'll probably also matter if you made the gain more than a year ago or not, which complicates the maths. But do check with an accountant either way.

Best part is if you have pink wojacked constantly, you can claim it as capital loss, and have it deducted from part of other capital gains. I believe it also carries over to the years after until it's balanced out.

>hundreds of trades between non-dollar-denominated cryptocurrencies on multiple exchanges
s-should be easy, right?

this

Use your bank account statement? Do you cash out every $5-10 dollar gain you make into your bank account? I only cashed out 3 times this year, so I just add up those 3 numbers.

It's based on individual trades, not when you cash out.

>cashing out

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

just fuk my shit up senpai

The exchanges do it for you. AFAIK every single exchange I've traded on keeps permanent logs of all your trades.

OP is a non-American who lives in a country with retarded tax laws.

You're only taxed on capital gains, not every transaction like a tax shithole such as Germany.

"Enter net gains or losses from investments here".

NET GAINS OR LOSSES. Does your brainlet brain translate "net gains or losses" as 'AHHH I GOTTA TRACK AND CALCULATE EVERY SINGLE TRADE AAAHHHAH AHAHHHHH HAHHHHHHHHHHHHH"

Every day must be difficult for someone so retarded as you.

Is it a safe strategy just to pay taxes based on you cashed out, plus a few percent extra, so that if it's actually even humanly possible to audit what you really owe they just give you a refund?

Yes it's always safe to pay more goyim

Read the tax code dumbass. It's based on the value at the time of the trade, so if you're using BTC to buy ETH you have to go back and look at what the dollar value of BTC was at the time of the trade.

top fucking kek

1-2% is negligible in the bigger scheme of things. It's better than getting pounded by Jamal in prison.

Ya sure good luck with that

Is that how you think it works?
You just get arrested one day?

Tell me more about how you can warn other people on Veeky Forums about not paying taxes from your prison cell. It's called selection bias retard.

This makes literally no sense. Please reread what you wrote.

And if you actually read them, you're keeping record of what your net gain or loss is at the end. You don't get hit by taxes for each exchange. People who made a 100 exchanges but have a net loss do not pay money in taxes.

That's me ;) pure loss this year lmao

This board is going to be absolute shit with all these tax threads for the next 5 months.

They can check if you are lying through the exchanges