/tax/ - tax planning general

Is there anything you can actually buy right now using cryptos? I want to actually put my cryptos to use instead of fiat so I can avoid taxation, such as buying real estate.

You can't avoid taxes if you live in the US

Even before the new tax bill, buying goods with your crypto was always a taxable event.

if american, then it is taxed no matter what the fuck you do with it. the only way not to be taxed is to never ever convert it or purchase anything with it. this is one reason why purchasing shit with crypto-cards will be f'd

Already stated by others. But buying something w crypto is taxed the same as cashing out.

If you make less than $38K a year and hold investment for a year, then capital gain taxes are 0%, no?

I would rather be making more money and getting taxed more than being a neet getting zero taxes

What if you only cash out $37K/year? That's considered 0% taxes

How do I know if cryptos are taxed in my country? I live in the EU and I've got no fucking idea.

Its based on your income not by how much youve made in capital gains, although im sure if you make enough in capital gains you also pay more

Ask a lawyer.

What if you're jobless? Then that cashed-out 37K was your entire income.

What if you use cryptos to pay for deductible items or things like college tuition? If the item is tax deductible can't you just write it off?

What college accepts crypto as payment? And if you cash out for that reason, they're still gonna tax you.

why don't people get this

Yes you can. It's called SALT.

DO NOT PAY TAXES ON CRYPTO

THESE THREADS ARE STARTED BY IRS EMPLOYEES AND SHILLS TO SPREAD FUD

THEY ARE FREAKING OUT BECAUSE THEY CANT TRACK ANY OF IT.

DO NOT PAY TAXES ON CRYPTO

I answered about 30 questions last night. 90% of Veeky Forums has no idea of their pending tax liability come April. Many will not find out that they owe back taxes and penalties until a year or two years from now when they move to dollars and turbotax asks them for old transaction details.

>Oops, those are short-term capital gains. You may owe a penalty and back taxes for not reporting those transactions on your 1040 back in 2016. Don't worry though, we'll help you figure out how much you owe."

Many will never know and will file erroneous tax returns. Many will never be caught. Some are recommending that anons commit a felony by evading taxes. Anons on the straight and narrow may not have the cash needed to cover their tax liability and will have to quickly liquidate to raise cash and hope that they can get what they need. Wash rules will absolutely not apply to crypto gains.

Uhhhh no? If you're talking about converting crypto to fiat, then yes it was taxable. Some websites allowed you to purchase goods with just crypto. You did not pay taxes on those purchases

Neck yourself bootlicker

BTW, this retard was saying the exact same thing last night claiming that helpful anons were IRS agents (this would have been about 2am EST). Government employees do not work one second beyond 5 o'clock.

I told you last night asshole. I am waiting for the sovereign citizen guinea pig to file suit regarding 1031 exchanges, wash rules, etc. Until then, we have no other options.

I have all the paper work and money put aside for taxes for short term trades, but I don't know if they require it when I cash out or when anytime I do it. So I'll have the money just in case

Please stop your liberal arts degree. It's clearly showing. Converting to fiat WAS the taxable exchange. NOW it's when you convert any crypto coin for other crypto coins. You HAVE to recognize the gain or loss immediately and pay taxes on that. Congrats on getting butt fucked America.

>Buy bitcoin
>Trade bitcoin for shitcoin. (Recognize gain/loss)
>One month later your shitcoin now has $1000 profit
>Convert shitcoin back to bitcoin (Recognize gain)
>Convert bitcoin to fiat

Congrats America. You were just taxed THREE times before you even got to spend $1 of your profits. More than likely at a 25-28% bracket THREE FUCKING TIMES!

Land of the free. This is how the revolution started. Taxation without representation

Crypto to crypto (like-kind) was always an asshole to get through taxes because the IRS wouldn't accept it unless you had a good lawyer. Now it's standardized for first in and first out, of which every crypto to crypto is taxable (like you said). What people are doing is withdrawing under a certain amount (20k?) so they don't get under the radar and waiting a year for their gains to be recognized as long term holds and then cashing out then. I really hope in the next couple of years they recognize it as a currency, especially if other countries are trying to build national currencies based off of blockchain tech.

You can buy gold and silver using crypto, which you can then trade for cash. C'mon dummies

the FIFO was scrapped though. They didn't include that in reform. What do you mean you withdraw, but don't cash out. Isn't that still cashing out?

Yeah cashing out but staying underneath a limit that draws attention, apparently 20k is a number coinbase utilizes for requiring reporting to tax authorities, I'm guessing other exchanges like Gemini would also have to do that.
FIFO Scrapped? So what the fuck do we use? I thought Like-Kind was totally scrapped.

Clever girl.

You use LIFO and recognize any crpto to crypto gain/loss immediately and whenever you convert to fiat

>>get a salt loan
>>pay it back
>>personal loans not taxed

>2018
>not funneling your crypto through an LLC
shigging and digging like it's 2011

Unironically this.

Pay it back with what exactly? Where is this money coming from?