It's like the only time the government can do anything right or set reasonable policy in a given field is when they are wholly unaware of the field to begin with. Remember when you just had to pay taxes when you cashed out of crypto? >inb4 you can't cash out
Now starting Jan. 1st, you will have to keep track of not only EVERY trade you make between different cryptocurrencies, but also their dollar worth at the time of transaction EVEN if you are merely transferring coins between exchanges. So even if you send value to an exchange with a coin other than the one you are holding, like litecoin, you would need to now pay taxes on: >the trade to litecoin from btc >the mere transfer of the litecoin from your one exchange wallet to the other >and the trade from litecoin back into btc
So if at any time down the line one of those coins gains in worth, you'll have to pay taxes on it. Not even to mention if you set some order on an exchange that only partially goes through, or if you have a spread of buys that went through automatically at a few different prices.
just don't pay, it's what I do. The IRS doesn't have time to chase down every small fry who decides not to pay.
Right, but how much do you have, about?
I'm on the order of $10,000, so 'five figures' that is, but if one is to make more (or "make it" at all) what do you do then? Taxes on every trade would make the capital gains taxes even more crazy than they already are.
Anyone have any sound ideas on how to avoid taxes straight up or even launder money?
>Now starting Jan. 1st, you will have to keep track of not only EVERY trade you make between different cryptocurrencies,
It was already like this dumbass, claiming like kind was a fucking meme.
>the mere transfer of the litecoin from your one exchange wallet to the other
Transferring from one exchange to another doesn't create a taxable event, I don't know where you got this fucking idea
Wait for mass adoption in 2018. You wont need to cash out.
just use XMR retard...they can't tax what they can't track
Buy Monero and say you mined it
[an unknown amount of monero]
but I want to use some of the money nowish
Transfer from one wallet to another now counts as a taxable event if any value was gained or lost in the meantime
the good news is every trade isn't taxed for 2017 because the law they passed is only going to go into effect for 2018 taxes.
The IRS will gladly take the money, maybe do a small audit, and go on their way. Unless you're cashing out more than $500k per year, you're probably fine.
Press B to doubt
It's not like the government can take money from your wallet like they can with bank accounts. Crypto is the currency of the future anyways, just transfer to a solid coin like BTC or ETH and hold until businesses start widely accepting bitcoin (which won't be too far in the future)
I honestly just created a company outside the US in super secret place where crypto tax is none. I have a 800$ stack and doing this was less than paying taxes, which i could really avoid all together, but I mean I have an office now.
if u wana get out ur taxes hit me up and ill just charge fees my guy!!! THEY CANT TAX IT IF THEY WANTED TOOOOOOOOOO
if you do not pay and try to claim long term gains on your stack they will bumfuck you with the 40% tax rate on 0 cost basis
You created a whole company for an $800 stack?
From my cold dead hands.
enjoy going to jail for tax fraud
yeah i was tossed so i dont really rember doing it but its funny no?
Genuinely considering just leaving the U.S.
I don't see the fucking point of this country. It's only good for boomers and the elite anyway.
From my cold dead hands.
Oh you have no idea how good it is for you too, my friend
Everywhere else doesn't speak English or is a shithole
I will literally refuse to keep track and only pay after I cash out. Don’t give a fuck.
You got contact info?
Recursive onward smart contracts so you only agree to transfer funds in principle and only do so once you want to cash out.
That way you only get taxed one time when you cash out.
nothing has changed. you won't get away with "like kind" for your 2017 taxes either.
What's great is if they kill you they still can't get it. But realistically if they wanted you to give it up for real for real they would likely drug the fuck out of you and torture it out of you. Highly unlikely they would do that to you for peanuts though.
Seems like the way to go is to keep your money in cryptos via monero and actually spend at places that accept bitcoin.
more and more places accept bitcoin now so as long as you create a wallet unassociated with your person you should be fine when spending.
Buy ur etherum or bitcoin from an exchange. Make 2 wallets. Send the crypto from the exchange to one of the wallets. Then send it again to your second wallet. Use kucoin or etherdelta to trade(dont require id). Tell the IRS you bought runescape gold, star citizen ships or path of exile orbs.
>Tell the IRS you bought runescape gold, star citizen ships or path of exile orbs. And when the IRS asks to see the proof of that? You will either have to show them the email or the account?
The novel Accelerando predicted this back in 2005. It will get worse after the next big 2008 style market crash. The protagonist leaves the U.S., but it's no longer possible to renounce your citizenship, you're a slave for life, so he is hunted by his former wife who became a dyke tax auditor. He has his own trading pair in an electronic prediction market for himself (essentially like creating your own cryptocoin) that people can invest in, and makes bank.
>Ey yo, honkey, ya gots to pay fo muh welfare! >Si, gringo! Paga for me, Maria, and mi 7 goblinos!
Not all transactions need a recipt. U can sell or trade shit to a person tru skype without getting a recipt. U can buy runescape gold and lose it gambling. The same with poe orbs. Just tell em u bought crypto cuz that is the only payment method the seller would accept.
I don't get how this is even enforceable. Would you need to pay this tax on purchases or gifts? Like if I sent my friend $1000 in bitcoin, would I have to pay $60 tax on that on top of fees?
My guess is they will only be going for the wales and even then it will be extremely hard to trace everything, assuming you keep your money in a private wallet and use exchanges that dont require id
how do you create a wallet unassociated with your person?
i haven't seen the code yet so i'll wait for that
until then this whole concept of tax on every crypto to crypto transaction is a meme
so basically use private cold storage wallet and something like Binance instead of Bittrex?
Myetherwallet is an option but it only takes some etherum and related tokens
By just making a wallet on a hard drive. Literally zero proof it's your wallet regardless of coin (unless you make it completely obvious and surround it with evidence beyond reasonable doubt like a retard). If you mean making an account on an exchange not associated with your person then I have no idea.
See the other responses, but aside from that, the company you are paying may also associate the wallet with you. so you may have to take extra steps.
but if it's on my computer wouldn't they reasonably be able to deduce that it is my wallet? Or do you recommend creating one and then storing it on a different drive?
Yea. Thats how you make your gains. Cashing out is a whole different story. When they see your bank account getting 10k fatter every month, they will want their share and they dont care where it comes from.