Do you plan on trading crypto even after Trump's tax bill passes? If so, how?

be an australian

This is what I want to know, if I cash out in smaller increments over time and then reinvest into a Roth IRA or some shit, couldn't I just get away with reporting those capital gains at the end of the year for my taxes? How could they prove that it came from crypto and not some kind of informal remittance or inheritance? If you don't report capital loss from the initial investments into crypto, how could they honestly tell?

You could roll that it's in a crypt Ira. 20% off on some place but paid out over a year. I think they rolled it into mining. Bitvestira

Fuck off red coat

I also highly doubt that you'd end up getting taxed for buying and selling shitcoins on exchanges even if it is not considered like-kind. Imagine a boomer trying to figure out conversion rates between all these shitcoins in order to determine taxable rates in USD when the price is constantly fluctuating. It just feels like scare tactics that they really don't even have a plan set in place to do things the way they're implying that they are, which would truthfully be a lot more work and cost a lot more money than I think they are willing to put in.

Starve the beast

Inheritances are reported at both ends, dummy. The estate issues tax documents. If you claim money as an inheritance and they can't find the docs from the estate, they're sending you to pound me in the ass prison.
s. Inherited high 6 figures. I have a stack of paperwork from it.
You need to talk to an actual CPA, not Veeky Forums. They know the actual laws.

>Inheritances are reported at both ends, dummy.

>"""informal""" remittance or inheritance

Oh, and they can prove where it came from, because your bank will have the wire transfer records, that they're required to have by law. This isn't the Wild West where the IRS doesn't know exactly how this works, and they hire smarter people than you to track people like you.

Just pay the fucking taxes. Then use your gainz to hire a CPA to help shelter your gainz.

No such thing, if the IRS is involved. Sorry. They know more than you do.

If you say "informal remittance of an inheritance" to the IRS, they'll chuckle, and schedule your audit. Do you really think you're smarter than they are? Are you really that laughably pompous?

Have fun at your audits!

>decentralized exchanges
where the fuck is it
i'm waiting

Blocknet isn't too far off.

>seriously thinking I meant "informal remittance of an inheritance"

Pretty much they only are checking if you're making big gains

techcrunch.com/2017/11/29/coinbase-internal-revenue-service-taxation/
> a federal judge in San Francisco ruled that Coinbase must supply the IRS with identifying information on users who had more than $20,000 in annual transactions on its platform between 2013 and 2015.

I will pay the tax, gains will cover it no problem and websites like bitcoin.tax make it simple .
Don't buy into the FUD

lol fuck i haven't made 20k but i have had over 20ks worth of transferring money around, withdrawing , adding more etc.

>$20,000 a year
>big gains

Byteball has it
You can trade crypto-for-crypto and they have a prediction market
You can even margin trade on price of BTC/USD pairs

Without a website, all done through the wallet, like a chat.

There is no traces left except anony hashes,
if you prefer you can also trade with Blackbytes - private, if you use Tor, also anonymous. Better than Monero since the Blackbytes are not a public ledger, they exist only at those wallets that hold them.

This.
Pay your taxes, remember it could also be worse, what do you pay 10-20%? It could be 32%.

Only profits are taxes, not moving money around, losses are tax-deductable. Say if you have mortage and pay interest on it, if you make losses on crypto - you can deduce that from the interest you payed on morgage.

What is this Veeky Forums or retardgarden?

One day AI will be the IRS. Its coming probably.

>Stocks - you trade USD for property.
>Crypto - you trade digital bytes for other digital bytes.

These are not alike at all, and the taxes surrounding crypto trading are asinine.

He is referencing like-kind exchange...

meaning stock -> stock is the same kind of excange. But to the IRS crypto -> crypto is not the same kind of exchange...

I see a law suit coming that will make it to a higher court ruling on if crypto is an assest or not so it can benefit from the same kind of tax breaks that the fiat markets have.

It already is.

Can someone entertain my curiosity?

So let's say I start with $10k in cash in June 2017. By December 2017, I have $100k. As I understand it, if I want to cash out, I pay short term capital gains on the $90k increase, at a rate of ~39%, or $35k.

Sorry, to add on to this, let's say at the $50k mark, I trade one coin to BTC, and then buy another coin with those BTC. Is it getting some sort of tax markup with every trade?

Yes? Just don't liquidate it.

>Literally can't cash out
So holding until you can buy food and pay rent with crypto?

starting january 1, 2018, every trade is a taxable event. prior to january 1, 2018, unclear if taxable event has triggered.

Also, it looks as though if you can just keep it in crypto for 1 year, you qualify for a max of 20% capital gains, so that's considerably lower than short term. Any way the IRS can prove you kept THAT particular segment of your crypto wallet (FIFO) for less than a year?

So what I'm hearing is that I need to choose one coin, stick with it for 1 year, and then sell it off and retire, paying the 20% long term capital gain

>tfw not american

kek

Bruh you pay capital gains on the 90k. And then you you pay more capital gains when you cash out. So your 90k gain just turned to 30-40k. Land of the pink wojacks.

Yes. But say you have Monero, just an example. You hold it a year. How do you get it to the bank? You sell for bitcoin. Now you’ve had bitcoin a day, so you held for a year just to get screwed and still pay short term cap gains.

Yes. I have an accountant. I copy all my transaction histories into an excel spreadsheet and email it to him. It costs me a couple hundred more every year for him to run the calculations. That's about it. Everyone is making this out to be way worse than it is. At the end of the day we pay the same taxes, we just have more record keeping to deal with.

This is completely false. Each trade will be a taxable event. You don't get double dipped leaving the exchange because your gains and losses are already calculated at time of trade instead of when exiting the exchange.

Sure. I'm not cucked by american laws