Crypto taxes thread

bump

Yep at this point I've decided to forget about it until next years taxes. As far as I know that rule didn't take effect until January 1st, 2018 so won't matter for this years taxes.

doesn't work that way hombre

that's a fast ticket to tax evasion charges
do you not understand that you have to PROVE where you got your coins and if you don't your assets are frozen and you will be charged?

Just report anything you cashed out. If you get audited (.4% chance if you’re poor) they’ll ask for your forms and tell them you didn’t know. Reporting all of your trades would be asinine.

It's asinine but it's the rule.

If youre reporting 4 digits, dont bother reporting
If youre trading 5 digits, report when you cash out.
If youre trading 6+ digits, report every trade

This

why do you retards think it's so hard to download the trade history from your exchanges and calculate the gain or loss per trade

This my dude

> If youre trading 6+ digits, report every trade
that's why I have to manually recheck THOUSANDS of trades over several exchanges and wallet now in order to make sure to not pay more then I have to.

half way to 7 digits, thats worth 1-2 weeks of doing that shit :^)

Now I know it better.
Buy and hodl, do not daytrade shitcoins.

you guys are 100% fucked if you dont download it every 3 months

by the way, cointracking works like a charm.
just insert all your APIs or trade exports and you are done.
Free up to 250 Trades

It's cheaper for you by using this link in pic. Don't be stupid and pay more.

does that .csv file even work?

it's not a fucking csv. linux/libreoffice doesn't open it right

Fuck off IRS

it's a ms excel file

you can probably import it to (((google))) sheets

>proprietary .csv format
jesus christ

Seriously how the fuck will they know every trade. There is no traceble way to know I traded out of fun and into Sai coin. Literally no possible fucking way for them to know that. Just pay your shit on cashing out don’t be a retard

This is such pain, why can't they just take my money when I cash out, now I have to cash out crypto to be able to pay the taxman.................................................

bitcoin.tax

This. Best $20 spent ever.

I haven't had to face this problem. But I would still sit down with a tax lawyer. I'd give him all the records of my trades, and all that jazz. I'd go from there. Luckily I don't do much day-trading anyway.

Here’s the thing, if you don’t tell them, they won’t know. Unless you decide to cash out one day. Then you have to provide records, including years you didn’t report. This will raise a red flag or two in the irs system and you’ll be subject to an audit. And then you’ll most likely have to pay a fine and interest at whatever rate they deem is ‘fair’. And you still will have to go back and find all your trading info. Don’t be a retard. I don’t want to see any of the Veeky Forumsness men become someone’s girlfriend in prison.

No. You always owed taxes. People just thought they could use like-kind exchange to delay taxes. But you would have to fight the irs to accept that. Most likely they would say fuck you give us more money, unless you wanted to lawyer up and try to fight them for it.

They just clairfied it with that, stating that they would never accept like-kind exchange for crypto. They will still probably rule that way for previous years taxes as well, but you can try to fight it.

>implying this stupid rule will last more than a year
>implying you'll need to cash out when you'll be able to buy anything with crypto soon

Let's say I have 1 ETH. I now trade this for DOGE, TRX or what ever, back and forth 10 times. I bought that 1 ETH for 1000$, but the trades make me let's say 1.9$ ETH

I never sell to fiat/cash out. Where the fuck is the money to pay gains for all those trades going to come from? I am with this logic forced to sell my ETH to cash out, which itself is a a taxable event...

Have you never heard the phrase “ignorance of the law excuses no one.” You say you didn’t know. they’ll say fuck you, you should have. Now pay us the taxes and fine.

>not preparing yourself anyway

So I literally have to sell my crypto to pay the taxman? that hurts me in so many ways

99.5% of my money is in crypto

how the fuck will the US government get data from binance unverified accounts lol

Fuck the IRS

It's not about them getting data you retard, it's about you justifying your capital gains whenever you decide to cash out

>paying taxes

The good news is that you don’t have to pay shit when you cash our. A small silver lining.

They dont need any of that data. The only data they need is
>What you bought in with
>What you cashed out

When the gain is suspicious -> audit

I will only pay what I cash out in FIAT. If the IRS wants to sort through me entire trade history and tax me on every individual trade, then they can go ahead and do so. But good luck figuering out how much I traded X shitcoin for Y coin on Z exchange and then figureing out how much Y coin was in USD exchanged for X coin USD... fucking autistic

>implying irs will track down my binance account registered with false info from a different country
good one bro.
I just bought btc in 2013 and held until whatever day i cash out. Will pay taxes accordingly.

Either you sell some to cover the tax or pay out of your bank account. And yes selling eth to cash out is a taxable event, but remember, it’s only gains that are taxed. If you sold your doge to eth- taxed on gains. Then eth to fiat, again tax on gains. Most likely will be no tax on that last transaction unless you’re holding eth for more than a day.

They probably won’t. But if you ever cash out, they’ll want to know where it came from and how you got to it. If you put fiat in from any USA based exchange, they’ll want to see how that initial trade got you to where you are cashing out.

Lmao, this is so fucked, guess thats whats up then

So I can really use the low price for the day and use that for all calculations?

They don’t really care about every single individual trade. They care about the sum of your capital gains minus loses. So if you get in with 10k. And cash out with 100k. They want taxes on the 90k difference. Then if you cash out more later, they’ll say where the fuck did this come from and start investigating. Or maybe they’ll say fuck it and just throw a lump fine at you of whatever they think you owe.

thats my point, if I only have 1 ETH , and it gained 30% , and I buy doge, where should I get the USD from

Maybe. If your books square up using that, then you’re good. If you suddenly have an extra 5k because you always used the lowest value, they might question it and all previous reports.

Of course you may get lucky and always slip under the radar, but if crypto gets going strong enougn at some point there will be a dedicated section to it and all taxes from it.

>buy and trade btc/fiat a bit on gdax
>do shitcoin trades on bittrex and now binance
>put them into the wallet
>cash out btc via gdax

I only report gdax trades, worked last year.

The whole rule is fucking dumb. I don't get taxed for trading baseball cards, which carry a USD value just like crypto. Why the fuck should I be taxed for essentially trading digital collectibles for other digital collectibles? I honestly have no idea how to pay my taxes properly at this point and my gains are in the sub thousand level so I don't give a fuck. Filing my taxes as normal and if the IRS wants to come after me for the month and a half I held 3 LTC at the end of the year, more power to em.

Whatever price you use, make sure it’s consistent on all buys and sells. I used cointracking, they do it all automatically.

I could just keep that excess money in crypto and cash out the rest

enjoy jail

you're an idiot

such an idiot that you will never realize it

What addresses did you hold the BTC in user?

>uhhh
*freezes your assets and charges you with tax evasion*

nothing personal kid

the funny thing is you would probably still be better off with the fine.

the irs has no way of tracking your crypto trading on foreign exchanges

stay dumb and poor

enjoy frozen assets & prison lad

you get fucked when you cash out you immense retard

If you people truly believe in cryptocurrency you wouldn't cash out. The IRS has no way of freezing your wallet. This is what will kill the statist brigands.

you are a literal retard, and you don't even know it

you will never know it, and it's funny to me

>autistic NEET thinks he's smarter than the IRS
wew

haha nice

And it may continue to work. Or eventually they’ll catch it and fuck your hard. It’s the gamble you make and decide if it’s worth it or not.

Held less then a year you pay your income tax bracket for gains minus losses. More then a year, I think it’s something like a flat 15-20%. As for how filing taxes or not, see above.

Much like the above, but also you would have to acco Not for that if you ever wanted to cash it out. If you just leave it forever, that’s fine. Maybe. Eventually there will be people doing all kinds of accounting hijinks to finagle extra cash out. But again, they’re gambling.

to difficult to understand for the brainlet i am

Haha, possible. But who knows what the government will actually do if they think this is becoming enough of an issue.

This, seriously there are plenty of sites you can buy shit like gaming computers or what not with crypto, unless you're like looking to buy a house why bother?

If your port is below $100k I wouldn't worry about it, you're small fish.

It's the big boys that they are concerned over. If your port is over $100k go see a crypto tax specialist. I don't even recommend using bitcoin.tax or coin tracking, see the lawyer/cpa. Especially if you hit 7 digits.

This. I understand they're assets, but you cant charge people on the mark-to-market price of their fucking pokemon cards as they swap them in the playground.

I see tax as a threat but barring some weird supranational agreement, there'll be some way to cash out for 1-3% "tax" in laundering fees.

Bitcoin.tax.

I'm not even shilling. It's $30 for one year and you can upload your APIs from Bittrex, Binance and every other exchange. It automatically converts to fiat for you and it takes like 5 minutes to do.

You fucking don't. The government doesn't deserve that money to spend it on fucking explosions & war for our bloated military. Fuck our country.

I don't understand why anyone would worry about taxes unless you're trading on an exchange that is based in your country. Why the fuck would an exchange like Binance, which is based in Hong Kong, have anything to do with the IRS, for example? They'd tell them to fuck off

bitcoin.tax rats you out to the government

The problem with Bitcoin.tax is I have used so many defunct exchanges over the years like cryptsy and mintpal, I have no records of any trades from those, wtf am I supposed to do.

>I don't get taxed for trading baseball cards.
Technically, you do. Barter is taxed. But people usually don't report it, and IRS usually don't go after people unless significant value was exchanged.

>have 1 BTC in 2013
>trade 1 BTC for some shitcoin that moons at some point
>trade shitcoin back to BTC
>now have 10 BTC in 2018
>try to cash out 2 BTC
>You have to account for where the 2 BTC come from
>You can only account for 1 legally
>you get fined heavily and/or imprisoned for cashing out more than you were legally allowed to have

that's how it work sanon

with the irs __THE BURDEN OF PROOF IS ON ********YOUR ASS******* TO PROVE YOU DIDN'T LAUNDER OR PERFORM OTHER ILLEGAL ACTIVITIES FOR YOUR INCOME

>not converting it to a foreign currency and having a trusted friend in another(developing) country withdraw it stuff it into teddy bears and mail it to you
do you even Veeky Forums?

wow, you are fucking dumb

Or you can just sell your BTC for cash...

and get arrested

stay mad your retarded NEETplan is going to fuck you up the ass (LITERALLY LMFAO)

>having friends

Or just do taxes yourself. It's not complicated, and the instructions are written in English. People are being silly making a huge deal out of this.

Just use bitcoin.tax

the entire point of hiring someone to do your taxes is because they legally are responsible

you pay more for immunity to jail

Which would work. Unless they realize your spending more than you are reporting and question how you’re affording a lambo working as a high school janitor.

If you don’t want to report your taxes, you can do that. But you are gambling you will never draw their attention or get unlucky enough to get audited. You have to decide which way you want to go.

>because they legally are responsible

Holy shit, no. How do you even feed yourself?

Nice thing about IDs is you can identify the brain damaged retards and ignore their subsequent posts.

What the fuck are you even on about? Who realizes? The spooky government man that each person has assigned to follow them and watch their spending?

Are you fucking retarded? You know tons of people live on cash right. And not just criminals. A lot of older people who don't trust banks.

I swear the IRS hires someone to make these threads.

Say that you bought 10 BTC 2013, print out an email or say you bought in person with cash. "only" get taxed on the gains for those BTC, not the cost basis of all your trades

and only like 1000 people followed it last year

Serious question, how am I able to report btc withdrawn and cashed from pozis that pose as "ICOs"? Or to put it simple, ICOs that hav exit scammed but where you have profited off.

And after they require you to show the address in which you held the funds, what do you do?

Yes people live on cash. Some report taxes. Some don’t. But it’s not easy to own property (cars, houses, anything that needs insurance or you have to report to some institution about) if you only pay cash and don’t report taxes. That’s what I was talking about. If you have low income, but spend large amounts on things like that. You are more likely to get fucked. Will everyone? No. That’s why I said it’s a gamble.

Just show a random address with 10 BTC sent at that time , that sent the coins to your exchange ? Or just pick one recent that sent 10, say that you had them in a friend wallet. Say that you found a wallet after 5 years , just pick one that sent to an exchange recently.

Just a few ideas right now , you can of course come up with a lot more

Crypto counts as a gambling gain on taxes. Source several accountants I know