A serious thread on cashing out

binance has a trade history you can export that converts everything to USD in excel format.

This is a nothingburger that everyone is freaking out over.

that "fellow biz-guy-dude" posting link to archived thread about bitflur in 3, 2,...

I hate to be the bearer of bad news but the IRS will expect you to report all of your sell orders for the year reguaurdless of whether you cash out or not.

Yep. You're only really fucked if you use EtherDelta which saves no trade history long term, in which case you'll probably just have to pay 35% on your gains.

I feel like that makes the most sense.

Seriously though, who the fuck is gonna keep track of all this fast paced buy/sell? That's miles of transactions to go through.

Why are all you guys so fucking retarded. Crypto was desinged to transfer wealth without banks and you are so brainwashed you are looking for the bank and government to give you acess to YOUR money, instead of oh I dont know, being your own bank/exchange and selling off your crypto to locals for CASH whenever you need it. Why is biz so dumb? 1 FB post and Ill have every cryptonigger and cryptogook in a 3 miles radius at my door looking for some of them bitcoins to buy TRAN and VERGE y'all oh and me gonna get sum of dat CARDANYO to nigga. So um how do I buy dat user? Here is my welfare check for the week.

Don't cash out. Problem solved.

AUS bros, pls advise how to minimise tax

Use CoinTracking.info, it does it all for you.

Although I personally use a spreadsheet so I can do more custom analysis.

They can't they are retarded to begin with.

this nigga knows

You dumbass, that isn't a fucking option right now and you know it. If we have a few hundred thousand USD worth of crypto and want to cash out within the next year or so we're going to have to go through the government/banks. No way around it.

And before you say hurr that's not the point of crypto you would be a fucking retard to not liquidate some of your gains into actual usable currency. Don't forget that literally no one actually uses crypto for anything other than flipping.

this

I just cashed out close to $100k. I plan on paying 10-15% of my profits in taxes next year. If the IRS come out with stricter guidelines that require me to pay more, I might just put the amount owed on a 3 year payment plan.

Aus government is monitoring money from banks to exchanges.

i didn't realise this before i transferred money into btc by those means.

more or less going to have to deal with the tax man at some stage.

Not true. Exchange for goods with monetary value is equivalent to exchange for money.

this. craiglist for sale. check off crypto box. buy anything with your coins.

Tax either short term or long term on the whole stack.
The IRS isn’t going to take all your shit away dude. If they do, they’ll send you a notice of how much you owe first for a REALLY long time. Like you can literally not pay taxes for years.
how do I know?
Because one of my parents evaded taxes for six years and is now facing a $50,000 fee. I got letters in the mail a million times from the IRS and they didn’t seize anything. They’re not going to go after every single person with cryptos. relax.

I think for one thing you need to wait a year after your inital investment to get a discount on the CGT (only have to pay tax on 50% of the profit) otherwise you will get fucked hard

lmao at retards filling out tax forms for a few thousands bucks of crypto gains. just do your regular tax shit from your job, you think the IRS gives a shit about your little fake internet money? you're painting a bullseye on your back if you tell them anything.

They will know anyway because of coinbase...

yeah but ftp what they dont know wont hurt them.

Or is it so bad in the US that the cameras the NSA set up in your bedroom will detect whether you own illegally purchased goods and make you pay tax or else you get dronestriked?

I know Puerto Rico doesn't tax crypto gains. Does that apply to your gains you made in the continental United States before moving to Puerto Rico as well?

Not interested in cashing out jack shit like that. As if cashing out 6 figures isn't going to raise any flags at your bank and then the feds find out about your new found wealth. Stop being delusional.

cash out in NZ if youre in aus, no caplital gains here, can negotiate with IRD to cash out as sales tax. Ive cashed out 60k only paid 15%

this user gets it

ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia---specifically-bitcoin/

i'm not an accountant but my understanding is each transaction from btc to an alt (and vice versa) is a taxable transaction.

seriously though, i have no idea how this shit works.

Ya its not like there is literally a billion dollar market of illegal workers in any given country that need to transfer thier dirty money back home to whatever country. Nigga I sell my crypto at ABOVE market price. I am an exchange service. You hang around too many white people. You dont even know man. You dont even know. You are the retard and I dont give a shit about crypto principals. You played yourself dawg if you let anyone even know you got magic internet money. I todl me family I am a writer hahahahaha.
People in this thread are the exact people I sell to. Clueless.

>Not moving to Puerto Rico for 140 days after making it big and taking advantage of no capital gains taxes due to commonwealth tax law.

dont use exchanges

this user gets it.

I tried to explain this exact same point to some dumb fuck yesterday.

"hurr durr,.. i'll just put $1 million into Monero, can't trace me yay!"

It's fiat that's king and transfers must be put into a an account.

Cryptos are for flipping.

According to Bitcoin tax, after plugging in every fuckin trade. I owe 4000$ USD in taxes. But I haven't even cashed out to fiat at all.... Just because of the cost basis changing from buying alts. So the governemt expects me to take USD out of my bank, pay them for something that could tank to nothing next year? Wat

sadly I can't buy a fucking apartment or house with crypto yet, the rest of my millions I'll keep in crypto obviously. But I need to get 700k out to buy a house.

yeah i realised that too late.

In NZ you only pay when cash out. sales tax, no capital gains. for now...

Fuck off nigger.

think i'd still have to deal with the ATO as a citizen and resident of aus.

Just compiled my taxes and etherdelta wasn't a problem surprisingly.
deltabalances.github.io
They have exports for both bitcoin.tax and cointracker.
The longest part was manually adding icos using etherscan to look up dates/amounts/fees and cryptopia which can import after proper formatting in excel.

wow thanks im like 3 years too late

$4k tax is nothing. An accountant can write it down.

e.g

1.) home office use. electrical costs
2.) computer supplies, printer, stationary, desk, laptop, screens, VDU's, etc etc..
3.) transfer costs for currency conversion.
4.) Exchange Fees.
5.) Mobile phone costs, contracts etc.
6.) research material for currency, subscriptions etc..

The list of what to write down tax against per year goes on and on.

Retard ill say this one more time slowly. There are people in your country (whever that is) that have millions of dollars in cash they send through western union or even with money mules. You think 100k is a lot of money? You think 1 million is? I know you are prob an old fag who has never seen so much money and it broke your brain, but this is the real world. Welcome.

This

I run a small au trading operation both online and irl..

We liquidate all profits upto the total value of the account at the beginning of every month every 30 days.

30% of everything we liquidate needs to go straight into a tax account. It is hard to provide purchase evidence when you are buying your bitcoin in the back room of a casino so we don't declare costs and just wear any backlash(none to date) as the cost of doing business.

HOWEVER travel and accommodation expenses related to aquring the bitcoin can be written off even if you cannot provide a recept of purchases from the trip, as long as you can prove outgoing aud and incoming btc at market rate though assorted account statements.

If you are making gains In the hundreds of percent a month like the rest of us go and find a good accountant, pay him well and understand where your money is going.

it's too late for the crypto you already purchased through the bank>exchange method. they can see that. What they can't see is what they don't know about. If you and I meet at a restaurant and we both have core wallets on our laptops (like we are supposed to) I hand you 1000 cash for some monero. You send 1000 worth of monero to my pay address on my laptop that runs the monero client.. How on gods earth are they supposed to know about that unless they are spying on all our activity.. In which case we should revolt. USA was founded by a tax revolt. look where we are now. We need another one.

Im guessing you could declare as income and pay the difference as income tax?

Its what ive done when i move to aus after selling other assets.

Would still work out cheaper than paying capital gains.

How to cash out? Easy. Fuck 2017. Keep detailed records for 2018. Do it as you go, hodl more, trade less. Have fun. Pay your 15 or 30%.

look on craigslist user.

I thought coinbase only provides info on

You can do upto 10k per day in AU and declare it as personal income and it is exempt from capital gains.

Anything over 10k per day can be stung with capital gains tax at upto 50%

Advice for yall,

Avoid US audited exchanges (coinbase)

Use privacy coins

Govt doesnt trace on blockchain yet

If youre american, youre fucked, you will need to fly to panama or switzerland or something.

Well you can go ahead and not keep track of your trades if you want, but if you can't produce a record of where and when you acquired the coin and what your cost basis was it will be assumed as a zero cost basis and short term capital gains, so you'll pay a higher tax rate and full tax on it.. so you're really screwing yourself by not keeping track

I'm buying bars of Silver with my btc.

Im buying bars of xanax with my BTC

Well, the tax bullshit is real and and every fucking retard company or lawyer I've contacted that are "experts" on tax don't know what the fuck I'm talking about. 100k is not a lot of money, 1 million is a lot for me. And it's probably enough to make my bank go full retard on me once a transaction like that hits my account (I only ever keep ~50k on it and send anything that makes it go higher to my brokers to buy stocks or index funds, normie shit basically).

So to my bank I need to show proof of where the fuck the funds are from. Then the tax office will also be very interested on where they came from. Well, a full fuckload of trades. We're talking during 2017 at least 100k transactions between 10 exchanges.

>Can't cash out
meme is fucking brutal.

My second issue is yes, I've been in this game for over 5 years now and I don't have any proof of initial funds invested. I mined at the start. I mined litecoin and random shitcoins that died out years ago. None of the pools are active today.

I don't wanna buy some fucking random house, I want to pick and choose because assuming I get my money out I have enough money to do that.

This is what I'm getting at. For people who have been doing this for a while it is a complete fucking mess. And I guarantee the vast majority of people here haven't tracked a single thing.

The only 'easy' option is what said which would be fucking brutal in the end.

Hire a CPA and give them what records you can get, you'll get partially screwed and have to pay on a bunch of your inventory as having acquired it at a cost basis of zero, but once they piece it together and you pay taxes on it you will be able to cash out

what if an internet stranger gifted you 2000XRB when it was worth nothing and now it is worth something. technically that's a gift and not taxable right?

This really is the case of using tax havens. The red tape and government bureaucracy is utter bullshit in regards to crypto. Wall street cunts can get away with dodgy high risk trades and pay fuck all in tax, yet when the general public get involved in their own market its suddenly a fucking hysteria.

Like in any other commodity market, are we supposed to record every means of obtaining said commodity? If i was gold panning am i supposed to count every speck of gold i dig up and where i found it and what time?

Really the govt is pushing themselves out of this market with this level of bullshit.

There are websites for this OP. CoinTracking or Bitcoin Taxes. You import the information right from the exchange, it's supposed to be pretty smooth.

Unless they check every public blockchain. I know coinbase automatically reports you if you have more than 20k out to fiat

Dude, just calculate you taxes using one of the crypto tax sites, even with 100k trades it would take you a few days. Any thing you can't trace will just be assumed as no cost, but you should be able to get the bulk. Take your report to a tax consultant along with w-2s etc. They will look it over and file it for you. This year consider staring an llc and be cognizant of tax implications in every trade and activity like every other businessman on the planet.

Not taxable as income, but it sets your cost basis for that XRB as zero, as soon as you trade it you have to pay full taxes on it for whatever value you receive in return.

That is generally what I do with airdrops that have no value when I receive them because they aren't traded on exchanges... assume cost basis of zero... as soon as you trade it though you will owe taxes. IRS will never complain if you assume the cost basis is zero because thats the maximum tax

Yeah but the issue is, there are loads of holes in any documentation I can produce. What prevents me from getting omega fucked by the gov claiming my funds were accumulated by illegal means? (they weren't, but I can't prove they weren't)

It's tough to not just fucking flee to some bullshit country true, but I have all family and friends here. While the life of luxury and fucking roasties sounds good, I don't know if I'm ready to give up everything for it.

Yeah took a bit to figure everything out and sort it, but now that I'm caught up cointracking is fantastic. Going to take the report it spit out to a cpa just to see what they make of it but I'm satisfied.

I'm glad ive outright avoided coinbase kikes. I'm finding all american exchanges tend to be the cuntiest

All my pre 2017 records got destroyed along with btc-e. Still havnt been hit up about the fact i cashed out 300k with what are now known as russian money launderers

cointracking.info with a bit of excel will sort it all out for you user

m8
You dont get to decide when the taxes are owed
If you made gains in 2017 that income is taxed in that year. No payment plan where you choose to defer it for 3 years lol. Have you ever heard of the accounting profession? Thats literally their job is to figure out how to defer taxes to the future and reduce reportable income for this year

IRS doesn't give a shit how you got it, all they care is that you pay taxes on it, holes in your documents just mean what is unnacounted for = cost basis of zero/you got it for free

Tax havens are really a matter of cashing out, you dont have to live there permanently, if you have the skills, you could open an office in panama, and pay yourself your gains from that office to your hometown credit union and only declare as overseas income, comes passively but better than nothing if your gains are that high.
( I know stuff like that has been done before, but im no accountant so i could be talking shit.)

I would think this too, this is why id think the best method would be to purchase asset with crypto, then sell asset.

if I didn't cash out anything in 2017 am I good?

why do I have to report coin -> coin trades if they only just now clarified that that was a taxable event. They couldn't have enforced it until after 2017 right?

I've got an unchecked bank account with 80k in it from crypto, using the money to rent the apartment I'm living in atm. Planning on buying a house in Bolivia very soon.

Also people, Use credit Unions, not banks

Banks are kikes that are heavily audited and give a shit about everything

Credit unions are shareholder based with boards of directors etc and have best interest in heart to hold your money and sweep dodgy things under carpet.

Buying things with crypto is the same as trading it, what you receive in return is taxable is USD value.

Damn you people arent free. Thats bullshit

How the fuck am I supposed to pay tax on a portfolio full of memecoins that have realised ZERO fucking fiat. Ridiculous.

I wonder, can you buy cash on the deepweb?

buying shit with crypto wont necessarily get you caught (unless its a yatch or some flashy garbage), its when you get caught down the line you'll be scrutinized even harder

I thought that if you don't have the cash to pay it you can be put on some sort of payment plan.

Has anyone tried cashing out with gdax?
I bought bch on bittrex to send to gdax because of its low fees, it says confirmed but my balance on gdax is still 0. I refreshed and noticed the deposit addresses constantly change so how would the initial address i sent bch to be linked to my gdax account if they keep changing? Fuck im kind of panicking here

Need to know more about this Chainanalysis Software company.

google.com/amp/amp.timeinc.net/fortune/2017/08/22/irs-tax-cheats-bitcoin-chainalysis

Also everyone who has begged for money in here and posted their addresses, you get what you deserve. Company claims to have at least 25% of bitcoin addresses and owners.

This is why when i sell btc to normies, i sell private keys, not transactions

addresses are easy enough to make anyway.

what if half of my portfolio is monero and the other half is trading shitcoins for profit to accumulate more monero?

Serious answer here. Look into self-directed Roth IRAs.