Crypto to crypto trades are too difficult to track for the IRS due to its decentralized global nature.
Therefore, lawmakers will rule that only crypto to USD is taxable. That crypto to crypto trading is considered like-for-like.
All you idiots paying taxes on all your trades for 2017 are fucking yourselves.
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>Crypto to crypto trades are too difficult to track
They're easier to track than cash transactions.
Banks are trying to get rid of physical tender
Crypto is quite easy to track. All your taxes are on an exchange, dumbass.
I'm not willing to make that bet. I think the government hates me and will steamroll me if I give them a reason.
The IRS logo there looks like a gondola holding up a scale.
What about crypto to a foreign currency? That's how I operate, only spending my crypto gains while abroad.
And is EVERY trade from crypto to USD taxable?
i must remind you that you are in biz. Where you can get 1% accurate information
Is usdt taxable?
>Implying people don't use at least 6 different exchanges
>Implying people don't do the bulk of their trading on yobit under a false name
>Implying people don't just cash out by selling XMR for USD
>Implying people won't just memorise a brain wallet than cash out and retire in some third world country
>Implying people don't use at least 6 different exchanges
The vast majority of people absolutely don't
Normies aren't people, they're cattle.
>That crypto to crypto trading is considered like-for-like.
This is actually even worse. en.wikipedia.org
>Implying people don't use at least 6 different exchanges
just more work for you when they come after your ass, they'll track it eventually.
Crytpo to retail goods and services is taxible.
If you buy a $1500 on new egg with bitcoin report your gains of that sale as if you were converting Bitcoin to USD.
>Therefore, lawmakers will rule
The IRS already determined cryto to be property.
Investment property to Investment property exchanges are not taxable.
For most everyone ,with the exception of people who work in the Crytpo industry (miners, promoters, work for an exchange ect), Crypto is Investment property.
Final step is using etherdelta to convert ETH to XMR, then split into a dozen paper wallets (or brain wallets).
Nice try FBI.
Normies pay taxes on crypto lol
the tax guidance I got from a specialist in investments, crypto, and gambling is that we must pay capital gains taxes in the USA using the FIFO model for each transaction from USD or back into USD. For example you deposit $100 into Coinbase. You buy some BTC, you trade that BTC for ALTS 50x. Your account is now valued at 10,000 BTC. You withdraw $1000. You will now have to pay capital gains taxes on the 100x profits you realized, but you will only pay capital gains taxes for the 10% you converted to USD. The important thing to note is that profits can be realized anytime you convert to USD, even if you do not withdraw. USDT is not considered to be USD at this time.
So if I just convert some BTC into XMR then I don't need to report or pay taxes on it?
Correct. You pay when you go back to fiat. Always keep records though. If they ask hand them over. But you don't pay until you make a USD round trip and you pay for you USD gains.
You will still have to declare those trades to get like-kind treatment, if you get it at all. Every. Last. One.
can you recommend an exchange?
This is when double citizenship works wonders. Thank god for that (otherwise shitty) Colombian passport.
I was told that these records do not need to be submitted to the IRS unless they request it, similar to a professional gambler’s log which much exist for every session but the log is kept by the gambler in the event of an audit. A non-professional gambler must separately note the total wins and the total losses of all sessions, but each session for a gambler is a taxable event which inflates gross income and in turn could trigger AMT - but investing in crypto would not have the same issues, even though the logging requirements are the same.
Whichever follows the law and executes your trades well. I use bittrex but ymmv.
Isn't it the other way around for Americans? Don't they always have to pay US tax even tho they live in another country with a second passport?
Quick google search;
Double taxation: The United States imposes taxes on its citizens for income earned anywhere in the world. If you are a dual citizen living abroad, you might owe taxes both to the United States and to the country where the income was earned. Income tax treaties are in effect, however, between the United States and many other countries that reduce or eliminate a U.S. citizen’s tax liability in the United States. A treaty between the United States and New Zealand, for example, overrides the income tax laws of each country to avoid double taxation. Even so, dual citizens may be required to file U.S. tax returns. Because tax laws are complicated and can change from year to year, be sure to consult with a qualified tax accountant.
dual citizenship for win
This is incredibly relieving.
Who did you talk to exactly?
If I first bought Bitcoin over coinbase two years ago, and have bought a few alts since then and haven't cashed out more than a few thousand dollars, would that mean when I finally do cash out I'll only have to pay long-term capital gains tax? Apparently in the US if your income as a single filer is under $37,950 a year, you don't have to pay any long term capital gains taxes.