Should I pay my taxes based on Crypto gains?

I leave my final decision up to Veeky Forums with a strawpoll included

strawpoll.me/14723793/

Other urls found in this thread:

irs.gov/pub/irs-pdf/f8824.pdf

I wouldn’t. You’ll be fine.

lol no

You took the risk, you keep the profits. All gubermint ever did was get in your way, you don't owe shit to anybody, fuck them

Thats from coinbase and the only one who made money was them with there fees

If you used an anonymous email, VPN, didn’t provide any personal information (name, address, SSN), fresh addresses for withdrawal and only made BTC/ETH gains then No.

Otherwise, yes...pay your taxes. I will pay my taxes for coinbase.

This

Fuck the kikes

Same here

Not paying them shit

are you that stupid?
so when you sell your coin wheres dose it go to a fairy that comes to your house in a invisible car or dose it go to bank ? they know you fucken retard ?

thank you daddy government for protecting me from all those scamcoins throughout the year and for insuring my investments and keeping all the hucksters out of the industry, just paid 100k in taxes.

are you mentally impaired friendo?

if you made $2k they don't give a shit but you make $50k or more and you think you can spend it with out them knowing lol do a >dear< you

it's better than federal prison user

I am a IRS RAT we see EVERYTHING

Then why the fuck you sending billions of money to fake SS tac returns?

>only bought coins and traded
>haven't cashed out

Do I need to report?

If you exchanged one coin for another then you do need to report any gains.

Any person who willfully attempts to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof: Shall be imprisoned not more than 5 years.
GOT YOUR IP EVERY TIME YOU LOG IN TO TRADE YOUR COINS

Congrats on this. Seriously

Good luck tracing my xmr mr.taxman

>gains

So the gains that alt coin made? Do I just send them the listing from Binnance and they figure it out or what? I don't know how they expect us to enter this into a tax software.

jokes on you im behind 7 proxies every single time i connect to the internet

you figure it out. they decide if you're lying and find out if you are.

I'm trying to figure out if they want us to claim gains while in possession of the coin or what, because that would be ridiculous as the gains aren't realized until you sell.

this so much fucking this
the state had zero effort in this
meanwhile lets say i dump 50k into it and make 10 million with trades etc why would i give the state a single penny
if i were to loose the 50k the govt would be like
"huh your fault you took the risk now bend over"
>inb4 commie
fuck all of you who support this shit im not risking my life trading day and night so they can give the money to niggers

I have two questions:

1. Do I have to report any gains under $600?

2. Hypothetically, say I bought $1,000 in bitcoin in July. It's December, and I've made gains, but I haven't cashed out a single bit of bitcoin. Do I have to pay taxes on those gains even though all that bitcoin is still there, or do I only pay taxes once I've converted the bitcoins to USD?

You don't pay taxes because you've cashed out. You pay taxes because you've experienced gains on your capital.


So if you bought $1,000 of bitcoing in July, and you haven't sold it. And that is the only transaction, it's been less than a year so you'd pay the lesser capital gains tax which I think is 25% of the gain or 35% if you sold within a year.

So that means if you bought $1,000 bitcoing in July, then sold it when it was $20k a couple weeks ago, you owe ~30% of that to the US gov't under capital gains.

I said I didn't sell it. The bitcoin is still sitting there. Do I have to pay taxes on the bitcoin that's just sitting there that hasn't moved since I bought it?

I have no problem paying taxes if it's comparable to any other asset/stock. However, if the government wants me to pay taxes on something I own for the sake of that I own it that's bull shit.

>So that means if you bought $1,000 bitcoing in July, then sold it when it was $20k a couple weeks ago, you owe ~30% of that to the US gov't under capital gains.

Is it the same with stocks? If not then that is bull shit.

Did you get gains?

Report the gains and pay the appropriate taxes on it

Did you have capital losses?

report the losses and pay the appropriate taxes.

The only way you don't pay taxes in bitcoin is if for the 2017 tax year the price went up and back to what you bought in.

Disregard the second part. I thought you meant he was still holding. If you cash out that's fine, I don't mind paying. If you're still holding then bullshit.

How are poorfags ever supposed to make any money if we put our spare money in bitcoin then have to pay taxes on it?

What if you bought bitcoin when it was $2,000, it skyrocketed to $30,000 on December 31st, then plummeted to $50 on January 1st? Are you literally just screwed?

What kind of dumb law is that?

You'd report a capital gains loss of 1950 and then not pay taxes.

But what if it plummeted to $50 on February? I thought taxes went by the last day in the tax year?

Do normies like you literally have hunks of poop for brains?

From the IRS website:
>When you sell a capital asset, the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss.

None of my assets have been sold, therefore this does not apply.

Buying into cryto and trading count.

So from the hypothetical scenario, if I bought bitcoin for $1000 in July but haven't cashed it out, it doesn't count as a capital gain or a capital loss since I have no way of accessing it until I convert it to USD, right?

I'm not a CPA, but reading on the IRS website that would be correct.

If you ordered a bar of gold for $1000 and it went up to $1500 you would owe no taxes holding it just like a bit coin. Now if you sold it you would owe $500 times whatever your capital gains tax is depending on the duration you held it. Either 20% or 28%

So basically, I don't have to pay taxes on it or even report it until I've made that financial gain from it, right? Because I always hear tax terms thrown around like "hold for less than a year/more than a year", so it wouldn't make sense someone paying taxes would have to sell his own bitcoin back to himself just so he can pay taxes on it then rebuy the bitcoin again.

Not sure, you may still have to report it so when you do sell it can be taxed according to long/short term asset. What I do know is that it's not taxable right now.

Again, I'm fine with paying taxes so long as while I'm holding the asset they're not taxing me, because that would just be ridiculous.

>Again, I'm fine with paying taxes so long as while I'm holding the asset they're not taxing me

That's the main thing I was confused about, so thanks for clearing that up.

Not him, but as long as you don't cash out the Bitcoin pretty much doesn't exist as far as anyone is concerned. It's only when you receive monetary compensation for it that the gubmint is entitled to a slice.
I mean. How do you pay taxes on something that doesn't exist?

If all you did was held you don't owe any taxes, but if you did any trades or purchases with the bitcoin, you owe taxes on the fair market value of the exchange measured in dollars minus the cost basis.

That's misleading. Crypto to crypto transactions are taxed.

So if I used bitcoin to buy dogecoin (hypothetical), and the bitcoin was the same value during the purchase of bitcoin and during the exchange from bitcoin to dogecoin, AND I still haven't cashed out my dogecoin, I would owe no taxes since no gain while had, right?

Yeah, so as long as he holds and doesn't trade his BTC for shitcoins or USD, then he doesn't have to pay taxes on it yet. And if he holds it for longer than a year he only gets taxed at capital gains rate instead of his higher nominal tax rate (assuming he has a job too). I think the trick going forward into 2018, is to put more USD in if you want more crypto, don't sell crypto to roll into new crypto, or you'll get taxed on it.

Yeah, but 99.99% people here owe taxes even if they haven't cashed out because of trading from crypto to crypto when the value increases.

The real question is: How likely are the feds to go after a random person for a $2 difference in a purchase price?

This, and a few others but I'm not going to reply to every correct reply. Do not fuck with the IRS, but realize that as long as you pay the appropriate amount of your average demanded, it doesn't really matter. Are the IRS truly going to go after bobmcfuck who made five hundred dollars? Probably not. This doesn't mean you shouldn't pay them, you should because the government owns the gun, but it does mean there is still some leniency in how you do your taxes. Coinbase was recently audited for users who owned 20K worth or crypto by the IRS from 2015. Realize that as the IRS catches up to where crypto users are, the sooner they will become more stringent and finalized in how they see crypto (as like stocks). You still have some leniency now so if you're average faggot then it's not a huge deal. I would suggest every single person keep track of their records though, the IRS is not something you want to fuck with.

Isn't that just going forward into 2018? Or are they trying to retroactively close the loophole like the sneaky rats they are?

If you're never hoping to "make it" in crypto I'm sure you can get away with a lot. But if your portfolio ever turns into 6 or 7 figures all those unreported trades will turn into a headache and you'll have a lot of inconsistencies in your records.

This is what happened to me. I bought BTC at 2500 and traded it for XMR when it was about 14000. I was planning to hold the XMR until a year from when I bought the bitcoin then declare long-term capital gains, now I'm going to have to pay short-term capital gains.

So I'm going to have to pay tax on crypto even though I never realized any fiat profit. If the bubble pops and XMR becomes worthless I'll have paid a bunch of tax for nothing.

ITT

You need to have the historical USD for every trade and pay up to 39% tax for every single penny you made a profit on. If not get ready to be raped in prison you tax evading piece of shit. The government doesn’t care if you cashed out or not.

We never had the "loop hole". I don't know why so many news sites are pretending like we had like-kind exchanges. The IRS never provided any guidance on how to do them. The form to report them is 2 pages for EACH like-kind exchange. If we spam the IRS with thousands of pages of these:

irs.gov/pub/irs-pdf/f8824.pdf

I'm pretty sure they'd just throw it all in the garbage, reject any deferrals, and audit you.

>But if your portfolio ever turns into 6 or 7 figures

Then I'll never have to worry. :^)

Tell it to me straight Veeky Forums.

Will the IRS actually be ale to find out retarded poorfag day-traders like myself who lose money on 90% of trades?

Yes. We need to fund the government you fucking jew

>>willingly throwing money away to IRS

>Yes. We need to fund Israel you fucking goyim
fix'd