Tax season

JURY
OF
YOUR
PEERS

Fear mongering at its best.

Irs is backed up right now. U think theyre gonna care about small fry?

That's a fundamental misunderstanding of the system; small fry are easier to go after since they can't afford lawyers.

You keep saying this shit but there's never documentation. Give me something solid from them, not just random advice.

I'm not 100% sure about how it works, but I know if you have a side gig that makes more than your primary job, that side gig actually becomes your primary job and you need to pay quarterly taxes on it. I think self employment taxes kick in at a point too.

Commodities and stocks are different though and are taxed differently, but I think if you make too much, then you still need to do quarterly filings. I would look this up, it isn't crypto specific. Pretty sure there's no self employment for gains from capital gains, but there might be in certain cases like if you don't have a job and that's all you make.

Educate yourself before you end up in a prison cell
I'm doing this to help you
irs.gov/pub/irs-drop/n-14-21.pdf

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

>irs.gov/pub/irs-drop/n-14-21.pdf
says nothing about crypto. kys. take your hurr durr going to jail FUD somewhere else.

It literally says "virtual currency" in the first paragraph of SECTION 2 you actual retard
You do realize that posting on Veeky Forums doesn't grant you special immunity to the law right?

Again... fear mongering.
Dude no one is going in a prison cell for evading taxes on 40k.

>irs.gov/pub/irs-drop/n-14-21.pdf
>If you mine you automatically owe the government money even if you haven't converted it to anything else

That's fucking stupid

hm this is just a thought but maybe we should just ban the IRS?

When you get stocks from your company, you pay taxes when you receive them because they're income. Then you pay capital gains on the difference between when you got them and when you sold them.

I know, I've gotten like 30K in stocks over the last 2 years

You literally cant have all your gains eaten up by tax unless you live in a liberal paradise like France with 110% tax rates for the rich.

>Dude no one is going in a prison cell for evading taxes on 40k.
Probably not, but I wouldn't be so sure.
Regardless, they will just tax all your crypto as income rather than capital gains, plus the fines, etc. You'll end up wishing you'd just done your taxes.

Just defer until next year when crypto is moved to a different asset class

>paying taxes

Lol enjoy feeding Jamal and his 10 kids with your hard earned money.

>Q-5: How is the fair market value of virtual currency determined?

>A-5: For U.S. tax purposes, transactions using virtual currency must be reported in
U.S. dollars. Therefore, taxpayers will be required to determine the fair market value of
virtual currency in U.S. dollars as of the date of payment or receipt. If a virtual currency
is listed on an exchange and the exchange rate is established by market supply and
demand, the fair market value of the virtual currency is determined by converting the
virtual currency into U.S. dollars (or into another real currency which in turn can be
converted into U.S. dollars) at the exchange rate, in a reasonable manner that is
consistently applied.

I'm a retarded faggot and I don't understand how to do taxes based around trading. The value of coins often varies drastically within any given day. I have only made a few trades ranging in the $100-500 dollar range. Do I need to report the exact values in USD made during each trade? It's not like I'm profiting from the actual trade, it's the time between trades where profit is made based on fluctuations in the market. If you bought bitcoin at $100 and never traded and never cashed out, you still haven't made any profit until you cash out because it could crash to $100 the day after you do your taxes and you've now paid thousands in taxes with zero profit made in the first place.

I won't cash out for another 12 months. That's another category and I believe it's only on profits and only after 36k... anyway I won't care for another year. My accountant can figure it the fuck out.

Just use cointracking.info or bitcoin.tax if you've done a lot of trading. Automates fucking everything and spits out a tax report for you that you can hand off to an accountant.

It's all fucking retard and I'm not doing till they figure it out properly. I'll defer for another year. I don't care for your fucking FUD. Be Uncle Sam's bitch. Fucked if I care.

yes you do, and yes you need the USD value
It sucks, but tough luck, make your best guesses for the daily price and fudge it to be accurate
There are some services to help you out.

>you've now paid thousands in taxes with zero profit made in the first place.
You have, you just haven't taken it out into USD

If I trade a Toyota for a Lambo, I have taken profit without cash involved.

Not reporting anything until I cash.

>taxes
lol americucks

Unless you live in absolute third world shit hole you owe taxes on crypto. It's not just burgers.

>Denmark
>Germany
>absolute third world shit hole

>it's not just burgers
crypto taxes about as widespread as imperial system

...

...

Here my fine taste friend. Just got posted a couple days ago if you dont already have it.

Both of those countries have absurd tax laws for rypto. You're proving his point

you should especially declare if you lose money retard. Your losses can be applied to next years capital gains.

>My plan is to tell them I've been breaking the law and evading taxes for years after I have a lot of money in my bank account.

It's set in stone that if you trade property, you owe taxes on any trades where the fair market value of the trade measured in dollars is greater than your cost basis. Like-kind treatment never applied by default, each deferral would need to be approved after you fill out a complicated 2 page form for every deferral. They also only apply to real-estate.

Keep track of how much you put in and how much you took out and report it how?

Show me the form that asks you "lul how much u put in? how much u took out?". All forms for reporting capital gains require extremely detailed reporting of the date of each trade, the cost basis, gain or loss for each trade, whether it was long-term or short term....

irs.gov/pub/irs-pdf/f8949.pdf

You've never actually gone through the process of filing capital gains taxes have you?

If you bought 1 BTC for $1000 dollars. Then before 1 year you traded that 1 BTC for $10,000 dollars worth of ETH, you just realized $9,000 worth of short term capital gains. It doesn't matter if you just traded the BTC/ETH pair and never touched USD. You have to calculate the FMV of the trade by using BTC/ETH * ETH/USD. It's taxed as if right before you bought the ETH you traded everything for dollars and used the dollars to buy ETH. Use bitcoin.tax to automate these calculations.

Whoops I meant ETH/BTC * BTC/USD

If the government gets it's money, it doesn't give a fuck. Report any fiat transactions. Ignore rest.

So you're saying report that you bought 5 Bitcoins for fiat then later cashed out 20 Bitcoins, they won't notice the discrepancy and won't ask where the 15 extra came from?

If you only report fiat transaction and omit your other trades that will result in inconsistencies, which is worse than not reporting at all because that's how you automatically get flagged for an audit.