>Buy 1 BTC on US exchange, say Kraken
>Send 1 BTC to Binance and buy alts
>1 year later, end up with 5 BTC
>After a year, send 1 BTC back to Kraken to Cash out to USD and deposit to the bank. Pay long-term capital gains on it.
How would IRS know/penalize me for the 4 BTC I made on Binance that I have not cashed out?
god damn thos bazingatitties tho
Monero.
You didn't cash out or exchange the 4 btc, so there is no capital gains tax yet.
They won't. But when you do cash those out, they will be like "where the fuck did this come from?"
Then what do you say?
Then when they have you in a huge IRS wedgie, you'll eventually say "ok, I'll pay the taxes on it, sorry!" and they'll slap you with an enormous fine and you'll be fucked right in your anus.
Are you guys really this dumb? The IRS will destroy you.
They won't do anything. You don't owe anything on the other 4
Selling large amounts of Monero for USD would still raise alarms.
Any large transaction, such as buying a large house or a Lambo would tip off the IRS.
I mean one day, hopefully, we can just spend Monero directly, but I don't think the US Gov would let that happen.
Are the trades recorded on Binance sufficient to keep up with gains for tax purposes?
.....until you sell them
im thinkin bout thos tits