Taxes n shit

if you live in America, anything above $600 must be reported to the IRS. Even illegal income such as drugs, arms dealing, and prostitution must be reported to the IRS. That's why 90% of kingpins go down from RICO, and tax evasion instead of being caught in the act or with massive amounts of contraband.
If you don't report it, IRS probably won't find out if it's a small amount, but anything over a couple thousand will be red flags, especially when you deposit into a bank account. The penalties are severe no matter the amount of money, if you commit tax evasion. If you're making "serious gains" and actually spouting lambo memes irl, expect to spend 3-5 years in prison.

legally you are obligated to pay IRS, regardless if you cash out, because its still income. You're just pacifically reinvesting. This is a big deal for online poker players, because they often have a false belief, that as long as they don't cash out, they don't have to pay taxes on their winnings. Sometimes, their winnings can be tens of thousands of dollars, but they rationalize it by "not cashing out." They then get fucked hard by the tax man and get felony charges.

hint, if you ever make actual income, and get an audit (around 15% of filers do every year on random), those bread crumbs are still there, and they will notice them, and a handy dandy irs agent will gladly flag you so their performance record has good marks.

you cant cash out though

I actually just learned about this

First remember the IRS is taxing as property.

If you buy and HODL Crypto, no.

If you exchange that crypto for other crypto, yes. Less than one year is short term capital gains. Longer is long term capital gains. But this is not actually clear even to accountants because if the transfer of property can be considered ' like type' then technically this can be considered tax free property exchange. I. E. Tat for tat

It isn't completely clear yet because no one is sure if the government will say two virtual currencies are inherently different, like the code from Monero is different than a Litecoin.

My thinking is, they will have a tough time getting enough employees to really value and penalize based on whether two crypto currencies can be considered like type, and I'd reccomend trying to file as like type property transfer... Because they can't say you didn't file your taxes just that they think you did it wrong and need to do it again, and you could say Buh Buh Buh I didn't know.
If you send it to a friend, technically yes, but you can gift multiple people I believe up to 3k.

Crypto back to. Fiat, obviously, see crypto to crypto.
Taft oakleaf

remember when bitcoin was $10 a coin and was memed as an anonymous taxless currency, and 95% of use was for drugs?

buh buh buh i didn't know has never been a legal excuse to breaking the law. pretty much every tax criminal uses that excuse at first

If you trade it for Fiat
yes you got to pay taxes
If you are trading Crytpo for Crypto
then
no
It is still investment property job or no job.
You have to be employed by Crypto, work for an exchange, payed shill, release an ICO that sort of thing, for it to be considered stock of your trade.

How much crypto are you holding?

That's not breaking the law, that would be an error and there is a difference. That would be considered good faith. The like kind argument has never been accepted for crypto, but is common among day-traders. I suspect the rules will mature soon enough to reflect that, Either way, not illegal.

Oh yeah and mine crypto
If you mine and also trade cyrpto for crypto those exchanges would be considered exchanges of stock not exchanges of investment property and therefor taxable.

fuck the IRS I'm not paying taxes on shit until my earnings are in my bank account. Imagine how cucked you would be if you paid $10,000s in capital gains taxes and then the exchange that had all of your buttcoins and fiat went under.

At the moment 20K. Cashed out my seed money to make filing more manageable by treating it as a no cost gain.

Are you a CPA or something or have you talked to a CPA?

I am not and I haven't. I've just done my own research and kept good records of my trades. If I "make it" I'll probably be handing it over to an accountant. Otherwise, I'll mail off my spreadsheets and hope for the best.

If you trade enough you qualify as a day trader. all fees and loses count as business expenses. phone used, computer, internet, company equipment, etc. I think you get the jist of it.

must pay taxes on tethers and cashing out. also, any lost or stolen currency coins as capital loses.

DYOR (DO YOUR OWN RESEARCH)
IMNYFAOM (I'M NOT YOUR FUCKING ACCOUNTANT OR MOM)

when you accumulate more than 20 litecoins then we can talk about selling it locally in about a year from now.

litecoin supply is pretty low, so maybe the litecoins you buy now will become scarce enough to sell them locally

if you transfer your crypto into monero you dont have to pay taxes. if you actually ever paid taxes on your crypto you have a serious case of cuckery.

How do i even go about paying taxes on this shit? I've thankfully only lost money on crypto in the year I've been trading so i assume the irs doesn't care for now but if I actually ever make any money how would I begin to pay taxes?

cash out to pay or use wageslave money

I can see what you're saying if you didn't file at all, but there wouldn't be anything criminal about misinterpreting their ambiguous tax laws regarding crypto coin status, and filing on good faith.

By filing they cannot say you've tax dodged, and until they clarify their true stance , it cannot be considered criminal as there isn't a statement saying "You shall file like this"

At best, accountants are saying the interpretation can be broken down to the conservative approach or the liberal. Conservative being to report each Crypto to Crypto transaction, which for all intensive purposes I find fucking crazy.

Think of every person who says they buy the dip and cash out on the regular.... Each time they do that this would be considered a taxable event. At that days rate... That's fucking crazy.

I'd rather believe for the health and sanity of the market in the liberal approach, that crypto to crypto could be interpreted as like type property exchange because it is all just digital property to the government...

Face?

I know i need make a payment to the IRS but HOW do I do that? How do I even figure out how much I need to pay?

HEY YOU STUPID FUCKS IF OP HAS NO JOB AND IS IN THE TEN OR FIFTEEN PERCENT TAX BRACKET HOW MUCH IS HIS CAPITAL GAINS TAX IS HIS TAX is ZERO YOU DUMB FUCKWADS? You should CLAIm your BTC, since they will be lookign into shit further or just turn it into monero. if u bought on coinbase ur fucked just claim it.

bitcoin.tax

They offer free services up to 100 transactions.

Thanks

I dont understand how anyone can be this retarded.
wow. just wow. do you pay taxes on your WoW gold too? It isnt capital gains unless you fucking sell your coins and put the cash in your bank account
tfwnogf

I don’t think this is accurate.

If you trade btc for usd, usd for req, req for usd, usd for btc then you might have to pay capital gains.

It could also qualify as a 1031.

But if you never convert to usd how can you pay capital gains?

forbes.com/sites/greatspeculations/2017/10/31/smart-tax-accounting-moves-for-cryptocurrency-traders/#414af7641c17

One more good source brotha

Fuck that OP, when you cash out simply report them as parental aid.

99% of you are dicking around with amounts of money/crypto the IRS isn't going to care about.

declare a little. pay some tax and you'll be fine. nobody is going to comb through all your transactions to see if you paid every last cent correctly.

what if i've literally lost money and cashed out a little under $100 of what i had left? i was day trading like an idiot during the summer and whittled my holdings down to almost nothing but now have to go through two hundred trades and withdrawals to wallets and exchanges? really? to report a loss?