Imagine you will have 1/2 million $ in crypto how do you avoid the taxes guys?

>>Sell off all alts for BTC or coin of your choice that is widely sold for fiat
>>Hold for one year

...and then get royally fucked by the IRS because selling the alts to BTC was a taxable event. You already generated the money with that altcoin sale user. EVERY TRADE counts, not just when you cash to fiat

I make like 50 trades a day. Wtf do they expect me to do about that?

>every crypto trade is a taxable event

holy shit, what kind of unbelievable hellhole do you americucks life in??

if you trade $1000 50 times to have a profit of +$2000, you would have to pay $7500 in taxes.

They expect you to keep track of them. If you haven't been you're already fucked. You cost basis on every trade will be assumed as zero, say goodbye to your money and hello to prison.

only crypto to usd shits are taxable, if you trade crypto to crypto its like trading stickers, nobody cares. ... at least in my country

I seriously hope you are trolling. If not, gg guys.

just pay your taxes dude

I'm not, read Q6.

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

It's very unclear still. Section 1031 could be used to make a great argument to protect you.
I'm personally only claiming fiat transactions and my tax guy said that's fine. Not to mention there's not a good way for them to track you on shit like binance.

And to follow up, if you pay the gov a substantial amount of money, they usually just leave you alone.

yes. this more or less hasn't been resolved but I'm taking the position crypto for crypto is like kind until IRS gives clear guidance otherwise.

Okay, now you have 1M in crypto that you need to convert to fiat without the tax-man finding out, and then you need to store the 1M in cash, and spend it without the tax-man finding out. I guess it would work if you only needed the money for groceries and other low priced items, but you probably wont be able to pay rent or buy a car with the money.

you don't. you aren't going to cash out $500,000 without going through some regulated financial institution. you're an idiot if you try.

Purchases made using bitcoin are taxable in burger land LOL ur face when you realise this is real

taxes do more than help the poor. its goes to our education system our schools, parks, roads, infrastructure, our vets, our army, most of our taxes go to the army so thats really what you would be supporting by paying your taxes. what tyrone gets is such a pathetic amount of money he has to live in a ghetto to make it by, thats how little he gets from your taxes. meanwhile our men in camo get an education, training, housing, food, to defend us from our enemies.
taxes are worth it. simple as that.

Err, there will be records of your profits linked to your real life identity.

What do you think is gonna happen when you appear with items something worth 500k? That's how the IRS catches most people, because it appears that they are living beyond their means.

People who think "tax is theft" are fucking stupid, they should go live in some corrupt shithole in Africa where the government keeps all of the tax money for themselves and see how awesome it is then.

I'd stay purely in privacy coins, ie monero etc, and make any and all purchases in said coins. All this living in a tax haven mind you.
Unless you have serious money, enough money to pay for private tax and legal counsel, then the safest thing you can do is pay your taxes.

you do realize like 90% of america lives in poverty, right?
and 90% of your population is in extreme debt
and you have no health care
and you're 50% niggers
america is third world

Move to a country which hasn't implemented regulations for cryptocurrencies, for example Colombia :^)
Then sell via localbitcoins or something

>how do you avoid the taxes guys?
I don't... the IRS doesn't fuck around and I'd rather give a portion of my gains than give up all of them and end up in prison. Just pay the taxes and be happy with the easy money you made.

>paying to defend our (((greatest ally)))
no

So you're filling out the two page like-kind exchange form for each and every alt trade you did? Seems like a lot of work just to get triggered for an audit

>why's the americunt gov sucks balls?

I've literally cashed out close to 120k in 2-4k increments over the last few months, how would this not work for another year, what would go wrong.

i don't. I just cash out, pay 1.2% over the worth of my coins on january 2017 (Hint that is not a lot) and be done with it.

Let other people pay for that shit. Only the wagecucks pay taxes, they are the modern day slave-class.

When you trade alts the new cost basis is the traded amount.

If you bought Coin A for $10, and trade it for Coin Bs when coin A was worth $12, then Coin B's cost basis is $12. So you pay tax on that $2 profit.

If Coin B is traded after it is worth $15, then you pay tax on that $3 profit. And so on. If you trade Coin B when it was worth $8 you get a capital loss of $4 to net against future pr current capital gains.

So no you would never pay 3.5x your profit in taxes, that's retarded.

The Chinese by and large aren't intelligent and their biggest private companies are either rampant copies of US companies that exist only because their government makes it difficult for US companies to penetrate their market or are real estate companies built on a house of cards

>buy SALT token
>when platform opens take out $10k loan with BTC as collateral
> pay back loan in BTC
>no taxes since you’re paying back a loan

expect some serious regulation changes next year in order to deal with all this. you're delusional if you think the taxman is going to let you get away with it

expect some serious circumvention technology employed if they try. you're delusional if you think the taxman has any power here. they should be thanking us for buying their worthless fiat with bitcoin.

they have the guns

you're a fucking idiot and I hope you get audited

there are two billion people in this world working for less than a dollar a day. If you were born into one of those countries you may never have even heard of crypto. If you don't want to pay taxes go there. You made all this money and have contributed absolutely nothing to society. Literally gambling on internet shitcoins

lmao hope you're not in good ol US of A. that falls under structuring and money laundering and is worse than just not paying taxes

if you want to circumvent taxes you can easily, when they tax too aggressively everyone circumvents even without crypto, crypto just makes it all much easier.

They have guns. American citizens have more.

Same in US, their guidelines treat it as an asset class. So trading for like assets does not trigger, converting to cash does. These people here are fucking stupid.

Careful with the small increments. It may trigger a structuring investigation.

>"i could have timed the market perfectly"

just kill yourself

nvm wrong thread

Eat my dick fag.

tfw my crypto gains are tax free

converting it all to monero

I use bittimaatti

Sir, watch your language.

Let them fucking audit me. Ain't going to find shit.

small if true