How the fuck do taxes work

Absolutely nothing because you have no gains as long as the money is still imaginary. Your $1000BTC -> $1000 expenditure to buy the new crypto. Zero taxable income until you cash out the gains on the second transaction. If it rolls back into a new crypto as well, again you see a gain immediately nullified by an expense.
Until it hits fiat (actually "sold") your gains and your business expenses nullify each other.

Anyone telling you otherwise is a kike or a shabbos goy spreading kike lies.

In the US, short-term (1 year) is at a lower rate from 0-15% depending on your tax bracket.
You will also have to pay and report the capital gain/loss between buying the BTC and Exchanging Alt/BTC.

crypto will change the tax game around I am certain of it..we in America deserve better..all this bs only confuses people. it will get better ya dig. it cant go on like this forever. my feeling is things will cool off in a few months

to calculate your capital gains, take the usd value difference from when you buy and sell each crypto

say you bought 10 eth for $100 at the beginning.
then you traded 5 for link and 5 for xlm when eth was at $200. So you have 2 trades where you bought eth for $500 and sold it for $1000. that is a capital gains of 2x $500. If you are still holding the xlm and link and it's now worth $10k total, you only owe tax on $1000 worth of capital gains (which is set based on your income bracket). If you have made a bunch of trades, add up the difference in the usd entry price with the usd exit price of each trade (subtracting the losses). always in usd. pay short term capital gains on the entire amount (unless you have held any for over a year in which case it's long term capital gains)

For this year when filing my taxes, considering I've never cashed out, do I tell the IRS about me putting all my money into it? Or do I wait until I cash out, and then tell IRS where the money came from on my tax forms.

those rates are incorrect

This is not true and will get you ass fucked by the IRS. Your bitcoin -> new coin trade becomes taxable (the $9000 profit in your example) as soon as you trade that new coin for anything else. Doesn't matter if it is for crypto or fiat the second you utilize the $10,000 value you owe the IRS money

No, actually in IRS tax code it's not like kind. They jew you on realized gains the second you trade. They even specifically clarified it in the new law for 2018.

forbes.com/sites/robertwood/2017/12/28/loophole-allows-tax-free-bitcoin-exchanges-into-2018/#4e0ea13012fa

So is forbes lying? Or listening to random people on Veeky Forums a better alternative?

What's more plausible kikes want to fuck you in the ass more or less?

This is how any other investment works, its not complicated.

Tell the tax authorities someone stole your crypto after you went on a cocaine rave binge in much. It’s not illegal to be stupid user.

if btc went up when you bought the other crypto, you must pay taxes when you exchanged btc. for example, if you bought btc at $1000 and bought another crypto when it was btc is $1200, you must pay taxes for the $200 profit

if you think you can apply 1031 to crypto swaps you are retarded. you might not get audited if you aren't making much gains, but you will get fucked in the ass if they catch you

The more I read up on this the more I am sure that the best thing to do is report on what you cashed out and leave it at that. Its better to approach this from a simple perspective and if that just works then fine, do that until it stops working, by then you will be able to pay it all off once anyway fines included. Its still better that way.

They are going to be so fucking bogged down on this whole bullshit experiment they go insane and lose to a bunch of people who simply do nothing.

Stop giving a shit and just pay on what you cash out. If they come after you just delay pay the fines and hit them with 15 boxes of paper work delivered directly to the IRS offices.

Easy fix: HODL for eternity

But you have to pay taxes while holding apparently.

You put it all in Monero and Chinese exchanges like Kucoin and Binance and tell them you lost everything. Fuck the nigger charity.

GUYS HOW THE FUCK DO I DO TAXES ON ETHEREMON AND ETHERTANKS?

>he thinks the IRS will go after someone whos paying their fair share of taxes

HOW THE FUCK DO I KNOW!? I ONLY OWN CRYPTOPUSSIES!

Stop. Just stop.

You are taxed on realized gains when a trade happens.See the article I just posted from fucking forbes.

You only have $10k worth. Assuming you're like me, you probably don't make enough money at a real job to be in an upper bracket, so you'll probably end up balancing out, especially if you're a student.

this. as long as you are paying your FAIR SHARE of taxes, have a legitimate job, and report all your USD cashouts, you will not get bothered. you only get put in jail or audited if your bankaccount shoots up from $4k to $400k overnight and you didnt include that on your tax paperwork. if they ask for proof then all anyone whos doing this legitimately would need to do is print out their bank statements and exchange statements to prove that it was all paid for with legitimate paychecks.

So its techincally impossible to ever do long term gains because you will modify your investment in order to pay out.

Seriously, I think its best to play it low key and just pay what you cash out. I don't feel like any of this is going to be taken seriously by them.

We got all of these people trying to scare you into "THE IRS WILL PUNCH YOU IN THE FACE MAN."

Nah there not. They aren't in a position of power when it comes to this and if they did try to do anything it would just exasperate the problem further.

They would be absolutely retarded to start a war on crypto.

Buy gold.

Seriously. This has won in court cases in the US.
>Gold 1oz coin has a 'face' value of $20, technically legal currency for $20.
>Gold is over $1000oz
>Buy Gold with BTC, only on the hook for a fraction of the taxes.

You better pay up on that factory new Dragon lore you got in CS:GO while you are at it.

Pretty much this. If you hide your crypto gains in a few other gains no one would care if you made 50k or 70k this year.

anyone

Tenshi Kawaii Totsuka no Dekamara de Mesu ni Sareru Hachiman no Hon

I work at burger king and live at home. Not in school although.

pls I just want to bookmark another hentai

> buy btc for 1k
>turns to 10k
>buy shitcoin with 10k
>turns to 20k
>on Jan 2nd it crashes to 5k
do you really have to pay taxes on crypto you never cashed out on?
that makes no sense.

exhentai.org/g/908827/63821594ea/

oh~ thanks

You have to pay taxes on the trade, assuming you're a burger like me

>buy BTC for 1k
>trade it into 10k worth of shitcoin
>pay taxes on the 9k gain from BTC

If you held it for less than a year, you pay income tax on it as if it were your normal paycheck. If you HODLd it for a year, you pay capital gains which is determined by your income bracket.

That's my understanding of it, I could be wrong.

How in the halibut is some IRS boomer going to retrieve my trade info from an exchange to which I am not linked by ID or SSN?

It's linked to an email account, which can then be traced to other online accounts and to you.

What happens if you get paid in crypto for your job?

if u ever cash out a sum into a bank account they will have motive to suspect something is up. i mean if its an unusual sum at least

>"Someone's been using my account to trade cryptocurrencies. I don't know anything about that kind of stuff."

>Thanks for the tip user, we'll just requisition this account because it's being used fraudulently :) surely you won't care because it's not yours

>Good luck, taxman.

>is a kike website trying to lie about kike laws?
No of course not

>It's linked to an email account

I don't get an email for every trade I make unless its a coinbase cash out.

Intrigued, tell me more.

Wait so we seriously can't just wait until we cash out the money to pay the taxes?

This sounds... wrong

If a stable coin works, why even pay taxes

You can yes. If you can afford the taxes on it. There’s a lot of neets here with no income so they have no choice.

For the sake of this example, say I buy 1 BTC at 10 USD. I use that 1 BTC to acquire 1 XXX at 1 USD. I hodl for one year and Coin XXX appreciates to 1000 USD. I then convert my 1 XXX back into BTC and liquidate into fiat. I pay the capital gains tax on the transaction back into BTC...ok. Do I pay another capital gains tax when I convert that BTC into fiat? Is it possible to be basically double-taxed? If so then liquidation gains go WAY down.

You pay capital gains tax on any gains
You converting 1xxx back to bitcoin then cashing out immediately, you can assume there was no gain so no, no double tax.

>use that 1 BTC to acquire 1 XXX at 1 USD

Meant to say use that 1 BTC to acquire 1 XXX coin valued at 10 USD. So no taxes on that transaction.

AFAIK, it isn't a "sales tax", you're only getting taxed if you make profit. Converting $1000 ETH to $1000 XRP to $1000 BTC has no profit anywhere, so I don't believe you would get taxed on that

Also, would like more info on buying gold ala

This is the important thing to remember - Only profits are taxed. IIRC you can defer up to $10,000 in capital losses.

Ok, that clears things up, thank you.

>paying taxes on crypto
shiggy diggy doo