I bought some crypto earlier in the year but pussied out and sold a dip amounting to approximately $500 in losses. I then bought back in and have held since.
If I sold my current crypto assets I would pretty much break even. How the fuck would this work tax wise? Do I just write the $500 off as a loss?
Any money gained is taxable, so If you gain $1000 and then lose it again, you're still responsible for $1000 worth of taxes
Fuuucck are you serious, I thought it was gains - losses = taxable capital gains tax. Well in this case I wouldn't have to pay anything since I haven't gained shit right?
he hasn't realized his gain yet (he hasn't sold or traded)
>Do I just write the $500 off as a loss? yes
Better off not reporting it
And why is that? Btw I'm using cuckbase
Jesus Christ you fucking retard. You net your gains and losses. If you have a net gain afterwards you declare the gain and pay tax on it. If it's a short term gain (you've held it for less than a year) you pay regular income tax on it. If it's a long term gain you pay capital gains tax. If you have a net loss, you can write off $3,000 towards other regular income. If you have more than $3,000 in losses you carry anything over $3,000 forward. You then net that remaining loss against any other capital gains next year.
if its $500 stop being a faggot, nobody is going to notice or care.
don't listen to this fraudster
What the fuck did you just fucking say about me, you little bitch?
I called you a fraudster
I’ll have you know I graduated top of my class in Financial Accounting, and I’ve been involved in numerous secret raids on tax evaders.
Why not report though if it's a loss? I'm in the 25% income bracket so wouldn't I get a free $125 if I deducted $500 from my income? Sorry I'm a brainlet
So, let's say I have 800k that I want to cash out and I started out with $200, how would that work without me giving up a good chunk of my money?
You're gonna give up a good chunk.
Start by not cashing out within a year of buying it to avoid short term capital gains tax.
move to another country
Monero, move to another country, don't withdraw that much, etc. You could withdraw up to 14k a year untaxed if it's 'gifted' to you.