Crypto Taxes Tread

If audited, the IRS could be dicks and assume a zero cost basis since your records are lacking. In other words, you'd be taxed on the full 100k. This also results in a 10% income discrepancy which can result in a 20% neglegence fine iirc.

good luck most of that money going to ur government XD

I bought drugs using my Coinbase wallet. How fucked am I?

>Regular traders in both the US and Canada have to do this already.

Stop crying and hire an accountant. Or drown in paper.

Hire a CPA or Tax Attorney. Bitcoin.tax has a list of professionals that are familiar with crypto. I'm going to go see one since I'm in a similar situation. I'd rather play by the rules if I can't retire on the amount of money I want to cash out.

You are still supposed to pay capital gains tax if you use crypto to purchase something.

do i need to pay taxes this year on trades even if im not cashing anything out

I state this. The other guy was saying something like there was a double tax. 1 for specifically a crypto trade aaand capital gains aaaaand income.

Yes.

I guess technically you can trade a shitcoin for BTC, sit on it for a year, then cash out if you're looking to be double taxed in some manner.