Just did all my filing on Bitcoin.tax and my gains are $87,766.48
therefore it says I owe $21,941.62 in taxes since it would fall under the 25% bracket here in the states.
Is this accurate? Is it taking into account that I'm married? Or that I make 50k a year combined from our jobs? Should I just hand this to the accountant at the local H&R block or give this to a lawyer to make it so I don't pay so much?
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You should only be paying 15% on your crypto gains if you've been holding onto your coins for over a year and you fall under the 25% tax bracket.
If you were a NEET your long term capital gains tax rate would be 0% :^)
>He didn't launder the money through a poker site over the course of a few months.
Might as well donate it all to JDIF
Capital gains are taxed at 20% tops. Just use H&R blocksoftware which you can pirate. Also accountants don't work at H&R block.
It's not taking account any of that stuff. The final number is just an estimate. The actual amount you'll be paying is different because with tax brackets (if filing jointly) you pay 10% on the first $18,650, 15% on $18,651 to $75,900, and 25% on $75,901 to $153,100.
So your total income this year would be calculated from $137,766.48 (income + capital gains) You'll owe about $20,809 for everything. Subtract from that the amount of taxes already withheld from you from each paycheck. Oh then add state taxes to that.
That only applies to long term capital gains. Short term capital gains are a different story
Right short term capital gains is taxed at exactly the same rates as income tax.
Did you cash it all out already? Or are those unrealized gains?
It doesn't matter. Whenever you make any trades or purchases with crypto that's considered realizing a taxable gain or loss.
I was under the impression that's not until after Jan 1st 2018 since it's codified in the new tax bill
The software is good for calculate the total amount of short term capital gains and and long term you have, but it can't calculate your specific situation of how much percent of that you owe.
trading is kill?
That's a fucking insane amount of taxes just for owning fake internet money. Why are they allowed to do this? Is this the end?
Jesus Christ. I thought you Americans were against socialism. Those kind of taxes are insane. I'm feeling for you user.
I can't believe how stupid Veeky Forums is about taxes. Why do people always think they need to pay taxes on their unrealized gains?
It was already implied in the IRS guidance from 2014 that all exchanges are calculated on the FMV at time of trade. But it didn't explicitly bar like-kind trade reporting. With that said, just because they didn't explicitly say it's not allowed doesn't mean you'll succeed when you try to report it as like-kind. (You do have to report like-kind trades and get them approved, they don't automatically apply)
How
this literally, IF YOU DON'T FUCKING TAKE IT INTO YOUR BANK ACCOUNT YOU DON'T PAY TAXES
That's literally not true. What if I buy bitcoin at $1000 and then after it appreciates I use it to buy $10,000 worth of gold. It never hit my bank account buy yet according to the IRS guidance I owe $9,000 of capital gains.
I mean a percentage of $9000*
Don't cash out your gainz to your bank account. Buy amazon gift cards with them and buy shit on amazon using that.
I'm a flithy nocoiner, but I've never seen anyone worried about reporting crypto-crypto exchanges until now. Have you guys trading crypto been reporting your trades as like-kind for the past few years?
>my wife's tax bracket
No, only 800 people out of millions of coinbase users reporting their taxes last year. Most people just literally ignored it.
Jesus Christ, this is not true.
The people at H&R Block are not accountants, they're niggers and old people who took a five hour tax course. Go to a CPA.
Fuck off, Jamal
yes, I am one of the 800. my filing is accepted immediately every year and never had a single problem.
Dont cash out yet you idiots, keep making gains for now. Just wait for someone to do asset swaping with crypto. They give you a loan in USD, you put up crypto as collateral, you default on the loan, they take your crypto, and you get the cash tax free. It's 100% legal, only let kikes take your money if its a last resort situation.
What difference does it make though? Will I pay less if I take it to a CPA? How much does a CPA even cost? And which form should I print out for him from Bitcoin.tax?
Wait, you were able to file as like-kind? Did you have to fill one of these out for every trade
irs.gov
or was there a more efficient process?
How how with this retard rushed GOO bill screw with the crypto market? This sounds like it will drastically slow down adoption and innovation in the long run for the hope of short term gains.
no, I didn't feel like hiring a tax attorney to get the like-kinds accepted, I pay for each gain. the first couple years I claimed loss, so it paid off, but 2017 I made bank and had to pay estimated taxes already, so it would have never really have benefit me to do it.
Not him but when I pick like kind on bitcoin.tax I actually owe more. Is there any reason to choose that?
Also should I be choosing FIFO or the ones that say I have to pay less? It says underneath those options
>"(Specific Identification)"
>deposit the max amount onto a major online poker site (America's cardroom, ignitecasino etc etc...) in BTC. Its usually a minimal fee to transfer BTC compared to fiat
>play a few games, then withdraw it as fiat.
>Do it in small increments, below $5,000 doesn't need to be reported
>Do this to pay your bills. Save up for bug time purchases so you don't arouse suspicion. You won't get audited if you aren't spending thousands of dollars out of nowhere.
What do if I have been trading on multiple exchanges, with literally no way to see a record of withdraws/deposits/trades?
I've most likely made hundreds, if not thousands of trades, sending between multiple wallets back and forth.
I have no income either. Can I just subtract total portfolio value from initial USD investment and then, say, report 10% of that or whatever is necessary?
>ith that said, just because they didn't explicitly say it's not allowed doesn't mean you'll succeed when you try to report it as like-kind
It can be argued in court, and the IRS is not going to bother bringing that shit to court. As far as we know, you can file as like-kind for 2017 and beforehand. It's 2018 and beyond that is fucked and every transaction you make will have to be reported.
so should I bother listing all the exchanges I've used or just gdax/coinbase which I used to cash out with?
kek, the IRS is going to want to know everything. What exchange, when you traded, what coins, and the relative USD price so they can tax you on any gain in the trade.
Here's what you do
1. DON'T CASH OUT
2. Invest 80K and make it 80K and 80 million
3. Move to the Netherlands or a tax paradise for a year and cash out
4. ???
5. Jews are not empowered
>paying taxes
>on anonymous meme money
Son I am disappoint.
well bitcoin.tax pretty much does that all automatically for you so it's not as big of an ordeal as you make it. Literally took me 2 seconds to enter all the exchanges.
If I have to pay tax to the government for profits then I should have to pay negative taxes for losses ie. the government should give me money. Fuck this retarded jew system.
You should consider using localbitcoins and just get cash from someone for a little extra fee.
It's realized the moment you make the trade. It doesn't matter if you cashed it out or not.
Did you put in trades for previous years? Maybe those gains are being carried forward when you do like-kind. Did you trade for fiat? Like-kind just means the gains are just deferred until you make a non-like kind exchange, the end result is the same once you cash everything out.
That's why I haven't done a single trade for weeks.
And the IRS doesn't enforce using FIFO. And again, once you cash everything out the net result is the same because FIFO or LIFO just chooses which "lot" of coins you choose to sell first.
You don't pay 25% on everything, you pay the tax rate on income earned within each bracket. Seriously this is basic shit.
You mean JIDF right?
the IRS is gonna rape your butthole
Not if you work a wagecuck job and pay taxes on your income, you will fly under the radar and they will assume you are a poorfag. They have no way of knowing what you hold in crypto or what you are trading on a foreign exchange.
Sit back, collect gangs, and wait for a loophole.
You can do this to get out chucks of money to get buy, hopefully that tax law passes with makes purchases of less than $600 tax exempt, then just keep your wealth in crypto until asset swapping becomes a thing.
Pay your taxes and be happy with the gains you made. Getting fucked by the IRS will ruin your life if they throw tax evasion charges at you.