Lets talk about taxes when we cash part our earnings out.
1. Banks are required to report to IRS when you deposit any amount of money over $8000 2. Every trade can be a taxable event even if its crypto to crypto 3. Capital gains tax for less than 1 year holding is 50% and you may be taxed by your state too in addition
>2. Every trade can be a taxable event even if its crypto to crypto
Not in the UK. Only when you use crypto to purchase stuff or cash out.
Joseph Gonzalez
Bullshit, just like every trade is taxed meme.
They just said they are thinking of implementing that next year. We are safe for now.
Ian Baker
UK is cucked, no one wants to live in a place full of pooinloos and Mohammads.
Angel Martinez
If they implement it officially and I pay / report taxes or purchases now (never cashed out to fiat) does that mean I can defer it until the law is in fact for next yrs taxes?
Michael Powell
Poorfag here
I invested a total of 3700 bucks and I now have a little over 4500, it's all being held. Do I owe any tax at all?
Oliver Collins
The Muslims are legally allowed to groom our daughters but we have pretty nice crypto tax situation to compensate.
Blake Torres
Who gives a shit about taxes lol go die grandpa
Mason Wright
just cash out small amounts. or use tenx/monaco cards for spending. is everyone here fucking retarded, the tax man isn't getting you unless you doing massive amounts, in which case, either pay ur taxes cos you can afford it, or move country because you can afford that too
Andrew Turner
Cash out in Asia.
Evan Richardson
This is wrong. In the UK a crypto is generally classed as asset, not a currency. This means if you exchange XEM for Bitbean and then Bitbean for DGB, then you dispose of XEM (value in GBP) and buy Bitbean at its value in GBP. If BITB now goes up 100% and you exchange for DGB, you would need to pay taxes on a 100% gain. You only need to declare those taxes if they are above 11.3k this year. But if you are you need to pay, even without cashing out a single pence
Cameron Gray
only if you sell for fiat and deposit to your bank
Samuel Martin
Run your numbers through bitcoin.tax - it will be ugly. Best thing you can hope for is that the 2017 tax year was still unclear - but 2018 will be a blood bath for sure. Also donate to coincenter.org/our-work for representation in DC
Isaiah Kelly
False. Trading crypto for crypto does not count as a purchase.
Nolan Cooper
How much would I owe?
Cameron Phillips
Unrealized gains (you didn't sell or trade) are not taxed until you realize them. If you traded those assets after they increased in price, you may owe taxes, but the max is your normal tax rate, which if we say is 15%, is like $120 on all of your gains.
Just stay consistent in how you report and it's not tax fraud if you do it wrong. The IRS doesn't give a shit about $120 but they will give a shit if you try to fuck them over deliberately.
Mason Richardson
By the way I am not talking about a situation where you cash out crypto currency then use that fiat to buy more crypto and profit from that.
The situation I am talking about is just trading crypto up and selling bits off and never rebuying again.
Jayden Miller
If I exchange $1000 worth of ETH for $1000 worth of BTC why do i owe taxes on this at all? I didn't make any money. Specifically in reference to the "like-kind exchange" thing (that will no longer be possible in 2018 for those in burgerland).
Isaac Gomez
no fucking clue fampai but probably your first born
Bentley Carter
this board would be alot more useful if u fags ever posted a source for any of your claims
Austin Lee
I haven't traded anything, I bought 2k worth of ETH, 1k worth of BTC, and 700 worth of LTC, I haven't traded any coin into another, it's all there waiting until I make at least 5k in order to consider cashing out.
Daniel Fisher
>Trusting "contacts" with your money >Getting money from contact to you
Nathaniel Long
99% of retards on this board have no clue about amything, at least not taxes
Nathan James
>haha the taxman can only get you if you actually use the bitcoin to buy things! If you just keep trading you'll never lose any of it to the man!
Luis Wilson
I have tax guy
I pay him every year so I don't have to think about taxes.
He's going to be very unhappy when I start making him deal with crypto gains.
Josiah Powell
Oh shit, so I severely underfprmed the market and only doubled / tripled my money. If it's less than 10k can I just not report it? (Amerifag here) I trade often but not to fiat
Brody White
How do you tax crypto to crypto trading? There's a 1-2% volatility at any given minute how the hell do you calculate the net profit per trade?
Owen Lee
the IRS probably won't care about anything less than $1k in gains... but I wouldn't push that limit.
10k is definitely going to raise some angry eyebrows
Hunter Davis
I am happy to pay the taxes. The UK law is good. But the idea of taxing every trade from alt coin to alt coin is a ridiculous clusterfuck that isn't the law.
Kayden Carter
I'm at 4K, could be pushing 6-8k if a few breakouts happens that I'm expecting a few days.
Be safe and report it?
Carter Rogers
I have never converted crypto to fiat but have hundreds of trades between alts on multiple exchanges.
Do I need to report anything?
Do I need to pay anything? (With what lol)
William Allen
Not sure where you are, but with the vast majority of places no.
Aaron Bell
only trades are taxed. so if you bought eth at $400, but it's at $700 , you're not taxed on the extra 300 until you trade it for something else. but all trades before that you can count up your net profit and that is taxable.
Jeremiah Bailey
You don't. You only owe taxes if you made gains.
Angel Nguyen
Wait Americans get taxed trades from alt coin to alt coin and not just when they cash out or purchase stuff? What a clusterfuck.
Levi Gray
Just to clarify however, this is mathematically equivalent to (final_asset*fiat_price)/ initial_investment right?
E.g. If I spend 100 GBP to buy 1K SIA, then trade it through fifty different altcoins to get myself 3.2K SIA, and the price of SIA went up 3% additionally so that my 3.2K SIA is now worth 330 GBP, the final tax liability is going to be 230 GBP of profit, it doesn't matter how many altcoins I went through, just what my final value is? My tax liability is no greater than someone who bought SIA at a lower price and achieved the same amount of profit with no trades.