So my initial investment of $ 20k dollars became 200k in crypto. How do I put this in turbotax? How fucked am I?

case in point long term rate is 0%, 15%, or 20% depending on your bracket. the only advice you should take on here is the one suggesting you talk to a professional

In US crypto to crypto is considered a taxable gain

Any recommendations? H&R block? or something else?

If you traded crypto to crypto you do. If all you did was buy and hold and never made one trade you don't have to report it.

i knew 2018 was gonna be the year the govt starts accepting crypto as payment

crap. i did 1000's of trades but i only made 2x of my original investment. If i pay taxes for that 1x . what if my current shitcoins become -ve or zero. then I may end up losses ?

how would they actually find out?

burden of proof is on you if it is deemed a big enough amount for you to be audited

They wont

i cant imagine that. itd be magnitudes more difficult than doing a non-digital forex tax assessment. youd have to weigh the fiat value of btc vs each alt on every specific day

taxes will never cause you to go from profits to losses

I used solo practitioners in the past (friends of friends). if your serious about investing long term (and you have serious profits so) you need an accountant that can advise you regularly. I'm sure there will be plenty advertising there crypto-fu this year

nm you asked if you don't cash out

but what's the point if you dont cash out

wait you actually cashed out that 200k?

you can, however, sit on a huge tax bill, spend all your profits, incur an even huger amount of penalties, and have the IRS put a lean on all your bank accounts after you go broke.

Unless you sold that into cash you have no income. I'm technically up $42000 as of the last two months but I have $8000 in debt for the year because I didn't work, so I owe nothing.

you could, ya know, read the fucking form 1040 when you file your taxes

I've always done my taxes by hand and I'm not even remotely in the finance business.

this guy has done real taxes before

Retarded gay and a LARP

how, as per your theory. lets assume I bought 5k usd worth of btc in coinbase and transferred it to exchange did1000's of trades and I just did 2x(not cashed out yet) of it as of today. lets assume I pay taxes for that 1x this year, lets assume 30%(which is 3k), now I continue to hold those 2x worth of shitcoins for next year, bubble burst or my shitcoins gone to zero. so my total investment gone but I paid taxes for 2017 unrealized gains, but I lost all in 2018. in this case I am total loss correct? can you please explain this situation

Transfer half into aeon and the other half into monero. Cash out whenever ya need something or before shit hits the fan and pay little to no taxes

>paid taxes for 2017 unrealized gains
you can write off essentially $0 assets (forgot the term) without realizing them in the same year, but you better close the loop eventually or youre audited. im not aware of people paying taxes on unrealized gains

if you cashed out 3k now (2017) you pay capital gains tax on the 30% of your initial investment

if you lose it all and sell your coins for a loss later, you take capital gains losses for the remaining 70%

If you made $180K you should probably be able to afford $250 for a tax attorney to do your taxes bro.

>if you cashed out 3k now (2017) you pay capital gains tax on the 30% of your initial investment

so If I dont cash out, I dont need to pay taxes for those unrealized gains right ? also since I am not cashing out this year, do I need to report to irs about my purchases this year? or not needed

Right, except that I'm still holding it all in crypto. Hoping to cash out in a few years. Just want to make sure everything is fine with uncle sam.

This you fucking retarded burger. Pay the $250 for tax person who show you loopholes. That's why they went tomcollege .

Surely you have a regular job so you can have money in the bank to pay for the tax attorney

You don't, you keep it on a wallet that can't be easily traced. Then you put it on a stable investment like ETH, taking out only what you need. This is money for your children, not the government.

cointracking.info/
Just plug in all your trades

Yes, my problem is when I declare my gains, I don't want to sell them in order to pay taxes on them. I doubt I can pay taxes of that magnitude with my regular job. But I guess I will end up getting a tax attorney.

How could the government prove I moved BTC or ETH from Coinbase to buy a shitcoin from a DEX and transferred it to a hardware wallet or if I just moved BTC or ETH to a separate wallet?

>I don't want to sell them in order to pay taxes on them. I doubt I can pay taxes of that magnitude with my regular job.
That's why when you invest you assume you're going to pay 0-20% on whatever you gains are.

k

It's been said numerous times before, but in case you somehow actually think this.

You get taxed any time you trade for a profit. Technically it's any time you trade crypto, but really they aren't taxing you on your losses. You could use those to help offset some of the gains, but really you owe taxes even if you do not cash out.

They look at it as every time you trade, you are cashing out.

Can you just tell the IRS you want to pay 30% flat tax?

This

>Surely you have a regular job
Of course we have those things around here. No one here is a NEET surely

Then the IRS is obligated to take their cut in the form of the crypto currency. Otherwise it creates a situation were you get taxed for the gains and then taxed again for cashing out.

We seriously need to stop pretending that its possible to b taxed on crypto. The IRS gets its cut when you cash out and that's all. I know a bunch of you guys posting on here are shilling for the IRS and making it sound all scary and shit but its fucking insane to put someone in a situation where in order to pay tax they have to pay more tax.

Catch up with the technology and take the crypto cut or back off and say its not supported yet.

>mfw they take years to come up with anything better while just receiving a nice check coming from our taxes

I wonder if they'll ever separate Cryptocurrencies from Cryptotokens.

these are the exact scenario anyone who trades securities is in. crypto is really no different, the IRS doesn't need to anything different. fucking neets need to stop pretending that crypto is some brand new, untaxable investment that the mean gubment just doesn't understand

You’re not double taxed, I think you are confused.

fuck no its all going to be investments to them. you think trading forex is different than trading stocks? same tax handling it really is very simple

There is no way to cash out, there is only the cold embrace of death

its different in the way that you suppose every stock you trade is valued in relation to one ultra stock, and that ultra stock apparently dips 30% in a day occasionally

If you go from crypto to crypto, you are taxed, and if you need to take out crypto to pay that tax, you must pay taxes again when cashing out to fiat. What if you just want to hodl and make occasional trades without converting to fiat and fucking your strategy up?

each of things you're trading has a dollar value that can be associated with it for any given point in time. theres some debate about how that number is calculated but thats what the accountant is for

Not fucked at all.

Take out a Fiat loan using SALT.

Put up your 200k as collateral.

Default on the loan, you keep the fiat, SALT keeps the crypto.

Buy the IRS a box of chocolates as a consolation prize.

OP, is that a serious question?

I feel sorry for people who dont have a way to cash out. By your standards THEY DESERVE TO FUCKING DIE!!!!

The IRS either updates or it misses out. Time to get with the times or fall behind.

If you cash out you pay taxes on that. If you own the crypto you are taxed on that. If you had to cash out in order to pay taxes you have to pay taxes on cashing out.

If you have no way to cash out you get locked in prison and your baby gets flash banged.

So crypto to crypto, you are taxed. Correct. But the total on all that is your capital gains for the year, Be it short or long term. Yes though it does fuck your shit up if you’re looking to be in this for several years. Puts a damper on it but it doesn’t kill all the fun of it.

Ha well when your trading milk money you don't gotta worry bout the feds. Anons with serious money (non of that blockfolio larping shit) pay their taxes so they don't end up in the can for felony tax evasion

We have a humanitarian crises in this situation. Its officially going against civil rights. Paying taxes on crypto is not going to be something everyone can do. Not everyone has a way to cash out. Crypto is not super fucking easy to convert to USD. Even when the planets align and you can actually do it its slow. You have limits on how much can be done.

Civil rights are going to be stepped on. The IRS needs to man the fuck up, make some wallets and when you pay your taxes you send your cut to their wallets. That is the only way this wont turn violent.

Enjoy your time in jail brainlet.

If you move to or live in a country with no capital gains or crypto tax, do you still have to report to the goverment how you made your money to prove you're not a criminal/laundering money/etc? Anyone have experience with this?

Bump because this thread is important, pic related, look into an accountant

The steemit platform ties your crypto currency in a feature called steem power. Steem power makes it so that it takes 13 months to fully get your money back.

If it takes 13 months to cash out then does that mean people who have their crypto tied up in steem power are instantly fucked and going to jail if they cannot pay up?

The steem currency 3x recently in value so anyone holding a decent amount of steam in on the platform can end up in a very precarious situation with the IRS as they wont be able to pay the high taxes they owe.

What about this situation?

My meme is famous on 88 chan

I think I just figured out a solution to all of this. Wallets that are designed to make the money completely inaccessible for 12 months at a time. Once placed in the wallet a timer begins and the coins are completely untouchable for 12 months.

Once this is done you report that the money is stored in the wallet and you don't have a way to pay for it because its tied up and inaccessible.

They would then have to breach your civil rights in order to come after you. The IRS cant tax you if the coins are in limbo, they dont technically belong to anyone in this state.

I am almost 100% sure there is an angle here where it completely exploits some angle. I might talk to an accountant on this actually.

If it’s “completely inaccessible” then you wouldn’t be making trades to trigger taxable events in the first place, dipshit.

Yeah man, if i made that much money, id be cool with doing the easy way out like this.

I had to do a trade to get the coins in the first place. Its not like the came out of nothing dipshit.

just don't work for a year, sell crypto as long term capital gain and take 0% tax rate because no income. boom, or i'm a retard

last few threads have had different opinions: If you make $300k in crypto, does that put you in the 300k income bracket tax rate, or is it based on your normal income tax rate from working salary???

if it's long term, it is not ordinary income. therefore, it's not accounted for in your tax bracket calculation.

eh too confusing not paying lmao

enjoy paying money to a nonexistent thing for no reason planck brain

so it's counted as ordinary income in short term? damn

They are right though. It's the same for playing poker. Technically you should pay tax on EVERY pot that you win. This makes it impossible to be profitable in poker ( to make a profit you need to win 51 hands and lose 49), but that's what the law says.

exactly

Cash out $100. Owe $10 in taxes. Cash out $10 to pay taxes. Owe another $1 in taxes. Cash out $1 to pay taxes. Owe $.10 in taxes. Escape to the 3rd world.

THANKS AGAIN TRUMPPETS YOUR "TAX CUT" BILL HAS NOW MADE EVERY TRADE (after 2017) TAXABLE, KYS BRAINLETs