TAX ANXIETY THREAD

>Buy a few thousand dollars worth of crypto
>Value goes up to $250k
>Didnt store all my shit on coinbase, so government doesn't know
>phew.jpg
>Rent bill comes in. "That will be $1500, user"
>damnit, looks like I will have to cash out some crypto to pay this bill
>send crypto to coinbase, cash out to my bank account
>OH FUCK NOW THE GOVERNMENT KNOWS

there is no winning here.... is there guys?>?>

does your exchange not have a record of trades?

small amounts

fucking kek because it will work

If you do not keep records of your crypto to crypto transactions, then the IRS will assume that all the extra crypto you earned has a 0 cost basis. This fucks you royally i think

Just cash out and if they come after you say you didn't know because coinbase never sent you any tax documents or just cash out slowly via btc atms

Texas doesn’t pay crypto taxes?? Tf

Cash out somewhere in Asia or Belarus

just pay the 15% capital gains tax when it's time

I think governments are really insane thinking they can reliably tax these currencies. The wealth will just start flooding out of the country.

I use like 6 different exchanges to do all the crypto trading I do, not to mention the ICOs (which you have to record yourself).

why does the gubmint know what you've got on your coinbase account?

turn it all into bitcoin/monero and sell it on craigslit

have you been paying attention to the news at all retard? IRS sued and they won.

Also, bank will tell the government any input/output from crypto

there is no cashing out
wait for the time it won't be needed
fuck taxes, be le snek

yet 80% of listings on localbitcoins or craigslist or kijiji are honeypot/feds

seriously, if OP or anyone doesn't have a record of their trades, they're fucked. PERIOD. that's the #1 advice I give to anyone before they even get into crypto, is are you willing to keep a record of EVERY SINGLE trade, if not don't even try, you won't ever be able to cash out.

Step one. Stay unemployed
Step two. Don't cash out for a year
Step three. Cash out exactly 36000 a year.

Your income is now in a non taxable bracket for long term capital gains. Fuck the gubment

Trading and exchange company's usually enable you to see your history or download them.

why? is selling locally illegal?

massive faggots detected.
Pussy asses , i skimped out on taxes a few times already. I was making shit money but wasn't keeping track so just didnt do them. I am completely fine.

Pay taxes on CRYPTO? Lmao don't make me laugh, ill pay $50 and say that's how much i thought it would be.

What the fuck is this gay ass advice? I LIVE IN CALIFORNIA MOTHERFUCKER i have a standard of living to maintain

I personally am a law abiding citizen officer.

>lives in Mexifornia
>talks about living standards

in my experience with being audited once, the IRS generally errors on the side of fucking you deep in the ass

I'm neither a Burgerclap nor do I use Cuckbase, so no I don't read that kind of news.
I wonder if something similar is happening in Europe though. AFAIK crypto profits are tax-free when hodling for more than 1 year.

>Pussy asses , i skimped out on taxes a few times already

just wait a couple years till the IRS nails you down

get tenx or bitwala you retard

anything is better than paying taxes

hire a CPA, you'll end up paying full tax basically (assumes $0 cost basis), and maybe penalties for not paying estimated taxes.

I have LTC I acquired from the BTCe exchange (now Wex) by trading BTC bought from Mt Gox years ago. How the fuck am I supposed to dig up all my old trade records?

Holy kek, this is the ultimate NEET fantasy
>Turn $5k into a few million through crypto
>Cash out $36,000 a year
>Enough for food, some entertainment, and rent
>Avoid taxes
Truly the life every man on Veeky Forums would want to live

What will they do user, i'll say no one ever taught me how. And also i thought you didn't have to file taxes if you are making under a certain wage.

Play innocent

>California
>Believes they have the only high standard of living
Oh god it's official. Californians are the yuppies of the USA.

>Play innocent

doesn't work like this.

YOOOOOO ARE YOU SERIOUS MY DUDE? I DIDN'T EVEN KNOW FUCKING LOVE THIS STATE

yes. read burtw.com

on bittrex and kraken you can download your trade history

pretty sure this applies to the other platforms as well

Now I’m scared to cash out. Why’s this shit gotta be so complicated

lol its 40%

actually, it does. The worst that will happen is he gets fined and has to pay interest on the owed taxes.

If they can prove he did it on purpose, then it's a free bed and 3 meals a day for a few months.

Well they can't expect you to dig up records that don't exist. Just dig up what you can from your history on exchanges.The more people try to hide their profits, the more they will come down on you.

I mean they're not going to send you to jail, they just want their money.

no state tax but you still gotta pay the feds

Holy fuq so blessed

youre about 40 years late on that observation friendo

This... maybe the big players get raped because their taxes actually matter

But a college student making shit tier money.. they are gonna give a warning and demand their shekels

>Forced hodling for a few months
>Provided NEET lifestyle

Doesn't sound too bad to me

this user gets it

>I mean they're not going to send you to jail, they just want their money.

incorrect.

Nocoiner here. How do you pay tax on crypto to the feds?

This.

t. brainlet

Literally just don't cash out. Crypto will be directly exchangeable for all goods and services within the next 10 years.

Etherdelta is already buying BZC for 5x ICO price faggots.

The exchanges have a post of your trade history.

bitcoin.tax/

Use them on this site.

You guys are such fags sometimes.

Me no pay tax on internet money in cowboy land

If you made $1000 dollars, do you think we still have to pay the taxes?

i bought in with 100k in july
i bet they have an eye on me now REEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

Umm sorry but this is an American only thread pajeet

you still have to pay federal taxes

>"have to"

lmao

what are the actual law changes. do you actually need to report specific intercrypto transactions? surely it would just be CGT on whatever USD you put into the system and whatever USD you cashed out.

if they actually want you to report on every transaction thats retarded. no wonder americans are so fucking in love with small government and muh freedom. maybe in a few hundred years they'll realise big government isn't inherently bad, just theirs is.

Yes

Two options I found

bitcoin.tax/home

Free for 200 transactions. Otherwise pony up $20 for the 2017 plan. They have lots of exchanges listed with instructions how to import them. Two options, a) Import with .csv files from each exchange. OR (easiest) follow the instructions to allow an API query to import directly.

Was slick as shit. Let's me choose tax % bracket and the like-kind option. Like-kind (irs section 1031) is not allowed in 2018 with the new GOP tax rule. However I don't know if that is retroactive for 2017, conceivably allowing you to use like-kind in 2017. *not a tax expert or advice.
Runner up, since it has a really cool dashboard:
cointracking.info/

Really cool, but want to be paid in btc. One plan has a lifetime access to the app. Free version is good too if you don't have a lot of trades. I had to import with csv files. API query required paid plan.

right its like one minute youre mining dogecoin to your cryptsy account not even covering electricity and the next minute you are johnny depp in blow. it's not our fault normies went crazy for our internet collectible hobby

this is all you really should worry about and then if they do come knocking on your door you tried to pay what you thought was owed and will gracefully accept the penalty and pay a little more

Can you suggest some software to use to calculate my capital gains tax?

big gov. is inherently bad you fucking bootlicker

read aristotle

cointracking.info/
Just use this
Plug in every trade

cointracking.info/

No, why do I need that where I live
which is outside the US?

what i dont understand is how like kind even matters over a yearly period. you're supposed to pay quarterly. surely you cant be expected to keep a literal usd account where you are constantly balancing your tax liability based on your trading gains/losses. nobody is fucking doing that. instead you make quarterly payments based on your expected earnings for the year. so the only issue is whether risking dollars that are a current tax liability is allowed, I don't see why it wouldn't be. 1031 seems like it only applies to larger timescales. there has likely not previously been a type of property which is traded property to property on such a timescale, so the tax laws are ill equipped to deal with it

no pay state tax. you still gots to pay fed tax.

Start reading up.
every transaction is considered a taxable event in 2018 and beyond. there is wiggle room for 2017 to use the like-kind exchange.
finance.yahoo.com/news/tax-free-bitcoin-ether-trading-090000442.html

coindesk.com/uncle-sams-surprise-tax-reform-impact-crypto-investors/

money.stackexchange.com/questions/74789/do-altcoin-trades-count-as-like-kind-exchanges-deferred-capital-gains-tax

What happens if you havent cashed out anything?

And if you are just letting the initial purchase/invensment sit? No trades at all
Do you still have to pay taxes?

Enjoy Jamal's dick in your ass after you get audited for having a bank account associated with crypto exchanges.

you only have to pay once the gain is realized, which happens when you trade or cash out.
so no.

You only pay when you cash out.

if you dont cash out ever, then there's no problem

Yes they do. He probably meant income tax.

funny

I know so many retards irl who think no state taxes means no income tax. Kek.

what's the point of investing you're not going to cash out ever? what can you even buy with crypto (which sadly you still have to technically pay capital gains taxes on when you do so)?

i cant be the only one who wants to know more about this but falls asleep halfway through the thread can i?

Tbh it'd be cheaper than paying taxes.

Again not a tax expert, but I thought the paying taxes quarterly was for businesses. I don't think you have to pay taxes quarterly on "property". IRS ruled crypto was property, similar to gold/silver.

If you bought and did nothing.
Anything over 1 year falls into long term cap gains. Under 1 year is short term.

The moment you trade/sell triggers a cap gains event.

because fiat is sub 80 iq

dumb normies like u r what fugg over crypto bc you treat these like theyre "investments"

(and no you dont have to pay capital gains on it)

This only counts for 2017. This is why people are pissed.

Once 2018 rolls around, you will be taxed for any transaction that is higher in USD than your previous balance. Any gain you make is a taxable event when you make a transaction.

This.

>dumb normies like u r what fugg over crypto bc you treat these like theyre "investments"

It's not up to me or "normies", it's up to the feds, and they will come down on you if you don't follow the rules.

If none of us follow the rules they cant do anything about it. It depends how many people here have stockholm syndrome and will actually track and record their trades.

On a scale of 1 to 10 how little do the people regulating this understand how insane this is for crypto to be taxed like this instead of being like-kind.

On a scale 1 to 10 how scared do you think they are of crypto?

Actually it's 99%. Be grateful goy.