I made huge gains this year thanks to Ethereum and Bitcoin. But I haven't been keeping track of my trades until yesterday and so far I have to pay more than $8000 in short-term capital gains tax (I live in California btw). FUCK
What do you guys think? Should I just sell off all my Litecoins so I can pay off the taxes? This is so fucked
Other urls found in this thread:
bloomberg.com
twitter.com
are you honestly cashing out?
missing out on 10x+ gains by next year
take the time cool and pick your coins wisely, sonm, mco, drp are good moon missions
did you talk to one of those crypto tax accountants?
I'm not cashing out. Converting to any other kind of crypto is considered a taxable event
KILL YOURSELF
Yes sell and pay them asap
>land of the free
Not yet, do you think it's worth it?
uhm no it's not LMAO
Pay your taxes noob.
>pay $8k in taxes so far
>pay couple hundred for professional help
>is it worth it?
It’s actually not, you total fucking retard. Only when you cash out.
Yes goy give your reptile overlords their cut
>living in Commiefornia
hahah you know all that money is going to ngs and beaners
Yes it is, idk how they plan on enforcing it though. Is the government going to start accepting crypto for payment in taxes? Because I'm not cashing out to their fiat nigger money.
Good job /u/atarian
yes it is. cryptos are not covered by like-kind exchanges
If you have a coinbase/gdax account and sell your crypto and have cash in the account it is taxable!
If you convert to different coins it is not taxable, but you have to keep track of your tax basis. Honestly you want to do this anyway, otherwise you don't even know if you are making any money.
bloomberg.com
Supposedly it is. My question is: Say I don't cash out. Do they have any way of knowing?
wrong. in america every trade is taxable. have fun getting dry ass raped by uncle sam.
so the government basically is forcing you to cash out every year?
what's the time frame? Like, if the coin goes from 400 to 700 then back to 400 all in the one financial year, do you have to pay taxes?
they can't enforce
also, i fully expect most of this bullshit to be challenged in court anyway
"commodity" kek. It's pretty much the opposite of a commodity
what if you sell to fiat and buy crypto with it? is it still taxable?
How do miners calculate their gains if they don’t sell?
no, only if you trade it or sell it, not hodling
miners might be under different rules, but for regular people selling or trading is the event that causes taxation.
Miners may have to pay taxes even on unsold btc, I'm not sure
yeah man, you should have kept track of that better. you might get penalties if you needed to pay the estimated taxes per quarter too. at this point you really need to hire a CPA that can sort you out, unless you're really confident in your accounting abilities and know how to handle having shitty records.
I had to pay $4k estimated for Q3, but probably won't end up needing to pay estimated for Q4.
Yes, right now as soon as their is cash in your account it is taxable.
DONT PAY THE TAXES YOU NEANDERTHAL, it's as easy as setting up a shell corporation in the caymans and paying yourself wages, then the company donates enough to your favorite charity to never have to pay taxes in the first place
>US govt wants its cut
>try to enforce every trade being taxed, even if crypto-to-crypto
>NEETs on suicide watch, bargain with govt that theyll pay taxes but they cannot currently cash out
>govt agrees, IRS starts accepting bitcoin cash and dogecoin for capital gains taxes
>Veeky Forums and /d/ ironically crash both alts and the IRS loses billions
>trump personally executes multiple auditors and an unlucky gardener
>second bill in works says cryptocurrency is not a legal currency or investment
>9% sales tax on each trade
>absolute state of burgerland
Enjoy your taxes.
I believe they need to record the market value of what they mine as income, so they are paying income tax on that and it goes towards your AGI just like gains, then when you sell it it's like a normal capital asset sale, the cost basis would be the market value of when it was mined (that might be $0 too).
I’m in the exact same boat. Cashed out like 50k (live in Los Angeles)
A) could have cashed out like 100k if I just fucking waited 2 more weeks while BTC went to 19k
B) just wanted to feel comfy with $$ in account. But once I did research on short term capital gains I realized I owe the IRS so much and Coinbase has my records so I gotta pay REEEEEE
If you sell it for another crypto.
Buy a bitcoin, sell bitcoin for altcoin, then if altcoin goes up you have to pay cash to the government. Cash you don't have.
>the government accepting crypto as tax payment
FUCK
I'm actually heavily invested in SONM because I think it's a really solid project and this dude even pisses me off. Giving my coin a bad name with his pajeet-tier shilling in every fucking thread.
Why is this a surprise?
Stock market works the exact same way. You buy a stock, sell it, buy another stock. It doesn't matter that you bought another stock, you had cash in your account.
you could've evaded all of this, there are loopholes
Not only that but lets be honest. Paying taxes on crypto means you are giving up a FUCKING LOT MORE of your money than what taxes are meant to take.
If you end up having crypto that is worth a lot and you are forced to cash some of that out you get hit again with taxes for cashing out.
Then on top of that I am now losing out on the opportunity cost of the coins I was forced to sell. Which could end up being millions of fucking dollars in a year.
The IRS is supposed to take a cut of your earns. They cannot be allowed to fucking take millions of potential dollars from me. WTF...
>9% sales tax on each trade
Surely this won't cause upheaval.
Does Binance send your records to the government like Coinbase does?
if you're using a foreign exchange and you don't pull back into coinbase/gdax until cashout and you pull back in the same currency (btc out, btc in), then you're looking at max 23% on the coinbase transactions and differential between what went out and what came back in right?
they probably sell it to google
but it's not "cash" while it's in your "cash account" on coinbase, is it? It's not cashed out until you then put it in your bank account.
How? Bitcoin atms? You can’t deposit more than 10k cash at a time it triggers an SAR.
coinbase only sent 14,000 people's info to the irs, only customers who bought or sold 20K +
>but it's not "cash" while it's in your "cash account" on coinbase, is it? It's not cashed out until you then put it in your bank account.
Yes, it is cash in your coinbase account!!!
>yo dawg I heard you like taxes, so I put taxes in your taxes so you can pay taxes on your taxes while you're paying taxes
this is why the government will never shut down crypto. this is a fucking tax goldmine
Get working on those puppet accounts, boys.
This right here.
I know the banks usually report to the IRS when the transaction is $10,000 or more. Regardless, OP pay your fucking taxes. Trust me jail isn't a fun time.
golden dubs has spoke
AAAAHHH FUCK
why can't burgerland be like the fucking aussies where there is only capital gains tax on what you cash out?
Dude, they passed the GOP tax plan last Friday
life is a scam
i have more than 600.000€ and no i dont know what to do since it's a crime already
Is binance still doing 'maintenance' on xmr wallet?
Uncle Sam can suck my boi pussy, cause I ain't cashing out.
you are trying to rationalize it in terms of what's physically there - that's not the case.
the act of making a sale is the taxable event, that's all that matters. they don't care where the money is, or if it's money at all. property to property is fair game too, and you still are going to have to pay them in cash on the gain, even if you didn't transact any cash at all.
and yes - coin to coin trades count as property to property. the same as trading silver for gold, it's always been taxable.
How do they know how much you have? Is the IRS keeping tabs of all the trades on your exchange account?
Move to Thailand or something, disregard laws.
Dude no one goes to jail for forgetting to pay some taxes
Do you mean yesterday?
Also not signed by the president yet.
this is even worse than what people in this thread are saying.. that it's only taxable if you convert to fiat. i will likely owe more than $10k on taxes
FUCK MAN!! FUCKING BULLSHIT!!
Yo dawg I heard you like money so I put money in your money so you can pay taxes while you pay taxes.
Guys this is fucked. No I am flat out saying, even as someone who is ok with paying taxes, THIS IS FUCKING UNFAIR and its insane what they are going to try and establish.
I am starting to think I will end up owing more than I fucking made at this rate. lol
Fuck this. I'm holding until I die. If I can't keep it, then the gov doesn't get any either.
cant wait for freedombux backed by the fed.
How do expect them to catch you in the act
all sales are taxable events because we need to support the welfare state. My eth gains are going to be going to some beaner with an anchor baby who doesn't even speak english.
Not when only 1%, if that, of the population dabs in crypto.
It's your responsibility to get the money together by selling your crypto, they don't give a fuck if that inconveniences you.
The real issue is that they can't really prove you traded crypto until you finally do cash out to fiat, they don't know what happens on every shit exchange that may not even be attached to your name. But at the end when you try to cash out 50x more bitcoin then you bought, they'll be asking where it came from, and that's when they'll catch the old trades you didn't reveal or pay tax on.
uhm, al capone?
Yeah, they just have to pay double what was owed in tax now, due to (((interest))) on their (((debt))).
>people dont go to jail for not paying taxes
That just made my day.
Then again wage garnishment (if OP has a job), constant bullshit harassment. Also other 3 letter agencies looking into you.
I prefer not to deal with the feds much.
This is why you don't cash out.
even if they aren't literally NSA monitoring your account right now, you want a lambo some day right?
Once you reach lamboland (and if you're not trying to, why even bother?), you better bet your ass that even one single fuck up in our trade history will have you kissing your comfy neet life goodbye.
Based taxman putting an end to the shitcoins
just buy truckloads of cash off the darkweb and use it for any small purchases for the rest of your life, and only report your actual wage to the irs
>OP pay your fucking taxes
hardly anybody even knows what they actually have to pay
We have a ton of IRS shills here basically telling us that you go to jail and fucking rot if you mess up on reporting one USD worth of crypto.
But I might suggest you idiots try a better strategy or you may very well cause panic that is not productive. There needs to be some degree of sanity to this shit. You cant hit lower class people with 90% taxes even if you think they are being a little uppity.
That may not end well for everyone! I want to hear "Nah the IRS are a just worried about the big fish. if you ain't rolling a absurd gains you just don't bother to report it."
it's always been like that, but it especially is now that they clarified the like kind exchange rule
bloomberg.com
people just didn't want to face the truth, still don't. they are going to be fucked when they go to fill out their tax forms and find that none of their buy/sell totals match because they decided to ignore all the records in between. so then they'll have to go back and do it properly, or fudge the numbers and commit tax fraud.
This
Can't you already buy prepaid cards on the darkweb
wait for tenx
>the government will never shut down crypto. this is a fucking tax goldmine
they're pissed because like only 2% pay taxes.
How about buying gold with bitcoin, then selling the gold? Or will the IRS cry about tax evasion?
Why do we need a welfare state when crypto even fucking exists anymore? Crypto + maybe a much simpler UBI and you are done.
Xfer of cash through post office is a retarded idea.
You get taxed on the total profit you take out, from what you you put in. Any other interpretation you read on this god forsaken board is pure FUD or else just idiots spouting off shit they don't know what they're talking about. End of story. There's no secret hidden ballooning tax that's going take all your money.
Cointracking.info
Most exchanges will allow you to export your transaction history. Shit they even convert to IRS forms.
Or you could read the capital gains tax page on the irs website.
withdraw from atm, money orders for rent/mortgage
>buy 10k trx
>wait for trx $50
>get tenx card
>use pajeet coin as visa
>set up shell in thailand & pay yourself wages
>shell contributes to charity, evading taxes
>no taxes forever, u made it boys
Yeah, but like maybe a 15-85 split poor to rich? The top 1% of earners pay 90% of the taxes, there's literally no incentive to work hard
Why do we have these idiotic circle-jerk tax threads every day? This is all you need to know:
1) Only your gains are taxed, and according to your income bracket, and your gains are offset by your losses, so fucking relax. Unless you spent all of your net gains like an idiot you should have plenty left over to pay taxes.
2) Just hire an accountant.
3) The new tax bill only proves that for previous years crypto-to-crypto trades weren't taxable.
4) Just hire an accountant, they know all the tricks. Many CPAs are saying crypto-to-crypto trades aren't taxable, especially if its for a shitcoin that isn't directly tradable for FIAT. And who knows what other loopholes they'll have for you? It's their fucking job to save your money, hire one.
you are taxed when you trade crypto to crypto, so if I make $15,000 off of bitcoin and then put it in an alt, they tax you on the 15k as income even if all of your money is in crypto. The opportunity cost is insane. That 15k could easily be worth 50k or more 2 months from now.
this was already required but it's set in stone now, but I know you're too much of a faggot to ever admit you're wrong, so whatever.
Such a load of bullshit, why the fuck should people have to keep a record of every little single transaction, all that should matter is cash out day. I.e. someone started with $1000 and made $200K, the cartel can get their sweet 30% cut for doing fuck all except threatening everyone reeeeeeeeee
they can't arrest and audit us all. do you smell it guys? We're fucking up the traditional way of doing things. It's working, they don't want to admit it...but it's working.
well once you hit the 200k, 400k brackets you are going to get audited if you're cashing out huge sums, so some of us don't have a choice.
the funny part is we're paying less taxes on long term gains than on regular paychecks, and the same tax on short term gains as regular paychecks, and doing way less work in the process. but for some reason biz always loses its shit and thinks they are paying extra for capital gains, I just don't get it.
That is incorrect. That's the misconception that's spread around in these threads. You get taxed if make profit on that trade. You get taxed on the PROFIT. End of fucking story. The net result of this, is that whatever profit you've made in crypto, you have to pay tax. Simple. There's no big secret.