IRS crypto nightmare: WORST CASE SCENARIO

cointracking.info

most exchanges can either supply you a csv or even give you an API to import to your bookeeping.

The trick here is that you'll need to keep track of all deposits and withdrawals from wallets and such to get an accurate description of where fees and money is moving from.

I had over 529 trades, between 2016 and 2017. I took one weekend and tracked everything. I'm off only a little, and decided to use that as my cost basis moving forward.

Got my 2016 amended and made my estimated quarterly taxes for 2017.

or find a CPA. If this happened to you with stocks, why are you still making the same mistakes? Stop being a dumb fuck.

Everyone else can call me a dumb cuck all they want for paying taxes, but at the end of the day, I'll be white man rich, instead of nigger rich when my shit explodes beyond $200k

Best of luck to those they want to get a head.

And you can never use it... anything of value you'd want to buy would set of red flags, houses, cars, etc. I guess if your only plan is to buy shitty consumer goods with your money that has little life impact then by all means, you won buddy.

Also, any retard who thinks they can dodge paying short term capital gains by shifting money around different wallets and having it 'go in' as btc and come back out as btc and say I was long holding btc this entire time and not day trading.

How do you plan on explaining how your initial investment had a 1200% gain while BTC over the period you are claiming was the only asset you held had a completely different rate of return? Do you guys think at all? Oh gee this guy held X asset from Jan 3rd 2015 to Jan 3rd 2017, the market said it went up 200% but he somehow has 1000%, I guess lucky him derp derp. They will audit your ass so fast.

>houses
>cars

shit only a nigger would want for the short term

>all the RnD for my own blockchain-based hardware products mysteriously completed
>"yeah it was really hard we had to bootstrap for a long time and couldn't pay anyone but yeah thats the startup life kek"
>opens an offshore corp to hold everything other than the IP

And then what? Pay corporate tax on it, income tax? What is your end game here, all you did was just kick the can, eventually when you want to spend it, which means you are paying taxes or getting thrown in jail.

I refiled an amended tax return with Schedule D and 8949 filled out.
It was ScottTrade. They may also send the buys as well, but it's not the IRS's job to reconcile all your trades and calculate your PnL.

oh right, the final step

>wipes ass with US citizenship

bye bye muriqa, thanks for the free everything

I speak so many languages I'll make it somewhere

new tax law doesn't effect 2017 taxes.

What exchanges are sending the gubment the info on their accounts? That's confirmed?

affect

Laundering money isn’t hard if you do it gradually and irregularly over a long time. And you don’t tell ANYONE.

For one there is an exit tax, you get audited on the way out, and they make you verify that you have paid all taxes owed to IRS in past 5 years. Better hope whatever shithole you plan on staying at doesn't have extradite treaty. Not to mention when you get to your new country how in the hell you plan on just magically depositing a million dollars out of no where without setting off the same alarm bells within their governments taxation agency. They will want their cut too. No matter where you go, once you start takign delivery of that money and you aren't paying taxes on it, that country is going to think you are either up to criminal activities and start monitoring you, or think you are not reporting income and also ass rape you.

Ok, if you plan on fleeing a country and shit just to have an extra like 10k a year to live off of, go ahead you are pathetic. Any reasonable amount of money is going to set off alarms, anything less isn't worth all teh hassle you could have just paid the tax on it to begin with and not be a total idiot. Instead of laundering the money like a tard you could have just sold off your crypto at a pace that keeps you in the 0% capital gains tax bracket.

If I didn't make any crypto to crypto trades do I still have to report that I bought crypto??

If anyone knows the answer help a brainlet out

Ok how about this, since we're gonna assume the worst
>x = a way to cash out undetected
>solves for x

the gubberment isn't god, user

Only when you close a position (sell) do you repor it on your taxes. Each trade is treated like it's going back to USD between them. So if you bought btc then decided to get eth it would really be. You bought btc at X, sold it for Y usd for a gain or loss. Then bought eth at Z

If you really made that much you should buy some property over $400k EUR in Portugal to get an investors visa, get the residency and then EU citizenship. You will not have to pay taxes to Portugal, and if you renounce to your American citizenship you will be FREE. You then can come back for periods of up to 6 months to visit your family in the US.

Seriously, move out of the country user. Pic related, this is what waits you on the other side.

How cucked am I?

horizonstate.com/

and then we have a vote

[ ] - ban the IRS
[ ] - the IRS is the good guys!

Okay so buying crypto with cash only needs to be reported when cashing out.

All crypto to crypto are treated like a sell.

Thank you.

The same link with the same image was posted in a thread last night. This is a FUD/IRS Shill trying to scaremonger.

FUCK OFF

larp

you're still poor so you're fine
they won't tax you for a couple thousand

Meanwhile in non third-world countries there is no tax on cryptocurrency trading.

Dude take your 20 mil and never work another day in your life what the fuck are you doing

Which countries? I'm seriously considering leaving America if I ever become successful. Might as well move to a small western European country that has taxes actually benefit its productive citizens instead of the military industrial complex and millions of welfare recipients.

If anything crashes crypto markets it will be all these young turds thinking they can just not claim their gains on taxes, or try to cheat the IRS.

Then what's going to happen is there is going to be a world of hurt all over the place, MSM going to report on it left and right about all these idiots getting ass raped by IRS, everyone is going to think that investing in crypto is a sure bet for an IRS audit and want nothing to do with the market.

>Your crypto exchange reports your $1,000,000 of sales to the IRS after being subpoenaed
except i use binance

Not to mention people saying they will leave the country, what fucking country is going to take you? They don't want to import stupid bums who have no job prospects. If on paper you look like you are some unemployeed guy with no money why are they going to give you citizenship?

There are many countries where you could move. Check these articles:
corpocrat.com/2016/01/30/the-best-golden-visa-programs-in-europe/
bbc.com/news/business-27674135
nytimes.com/2015/02/10/business/europes-having-a-distress-sale-on-visas.html

>corpocrat.com/2016/01/30/the-best-golden-visa-programs-in-europe/
Are you guys seriously this stupid, it's like the fucking chicken in the egg with you guys. How do you plan on buying some million dollar real estate if you never claimed your income? And the entire reason you are leaving the country is so you don't have to claim the income... jesus christ.

Investor Visa, not tax dodging retard visa. You have no money to invest into their country, you are broke on paper.

I have an idea you oldcucks
>don't pay it
Seems to have worked so far, of course if you are making big bucks that's different. But if you are making 10k or less, you are a small fry.
I'll pay $100 and say that's what i thought i owed.

Prove me wrong

Any time you sold any crypto you have to add a row to 8949 form.
It doesn't matter whether you sold for USD or for another crypto.

You can open an account on Bitstamp and some EU bank (in Liechtenstein for instance), cash out, buy a property, apply for the investors visa, get the permanent resident document and then apply for citizenship. You wouldn't believe how many people do this. There are tons for expats communities around the world.

Do you not realize how hard it is to open a bank account in a country you are not a resident in? Are you seriously this naive? (You can't because of reasons like you are trying to do) . There are banking treaties between countries you idiot.

Are you an IRS agent or some govt shill? It's literally as easy as selling your crypto in some European exchange, buy a house, and request the visa. Seriously.

You have to report and pay taxes on all sales.
It doesn't matter whether or not you have cashed out from the exchange to your bank.

If you’re not going to pay it don’t pay $100. Don’t mention crypto on your return AT ALL or they will have reason to dig deeper.

>Do you not realize how hard it is to open a bank account in a country you are not a resident in?
This is how I know you are either LARPing or shilling for the US government. It just takes one single Google search to disproof your stupidity.

>shilling for the US Gov't

Well he hasn't told us to buy ripple yet sooo

Ok. So just fudge five trades that would match the numbers, rather than recording hundreds or thousands.

Can you help me out with this? Just a 22 year old NEET who's closing in on 7 figures, trying to not get ass raped. I'll pay you handsomely.

"Single google search" yet doesn't bother linking the proof he found. Tell me, how do you plan on identifying yourself at this bank where you plan on having an account? Do you plan on just say hi guys my name is Tim Bobby, I was born this day haha trust me! No, you have to show them official documents, your fucking passport, us ID's and like I said, there are banking treaties that require report of deposits you numb nuts.

>want to dodge taxes on muh buttcoins
>determine exactly how much you're up in exactly what timeframe
>probably took you like a thousand fucking trades
>go to coinmarketcap
>find historical info
>assemble artificial trade history of two or three long term trades into shitcoins that mooned to meet exactly what % you're up
>pay nearly nothing

Your understanding of the world is so limited in scope, it's so childish and naive it's incredible. "I'll just open an bank account" thinking there is absolutely nothing else involved.

>going through this much effort to lie to the IRS

Getting thrown in federal prison for tax fraud when the exchange reports your trades and they don't match up.

>be nocoiner
>anticipate comfy tax season as irs diverts all resources to crypto
>I can probably get away with absolutely laughable deductions

christ being a burger is just depressing

>western european countries spend more on socialized healthcare [with 3 month waiting periods] because they don't have to pay for a military

because binance will totally do that

kekd
the pink wojak exemption

I live in the UK (might be easy for you to adapt since we speak the same language) and the government has stated they aren't planning to change any tax laws for cryptocurrency until at least 2018.

It's outside the scope for VAT here, so it's tax free unless you are a business which accepts crypto for goods and services.

>buy monero $1k at a time from local people in cash exchange
>send monero to unverified binance and cryptopia accounts
>only connect through a vpn
>never plan on cashing out back to cuckbuxx. if i need money i'll sell it online for cash
get fucked

2019* my mistake

People in china have a capital gains tax as well, you don't think the chinese government is going to pressure binance into releasing trade information? They want their tax too. It's a very risk game to be playing.

Thanks user. I’m shopping around for other countries and will look further. The new crypto taxes here are a disaster. It’s like they want everyone to be thrown in jail over their own incompetence... or maybe they do want that because they’re that corrupt. What a mess of a system.

Thing is the IRS has the best hand for crashing the crypto market right now.

Because the market went up like 10x in valuation and they want real money for their taxes they could sifon out all the fiat available on the exchabges just for taxes.

This is not like stocks where all sticks are bought for fiat. This is a situation where they put a dollar value on your trades and you cant even buy these assets for fiat...

I made like 3k before the 31st of December. Is this shit really going to be bothered with?

Everyone who thinks crypto investing is somehow special or unique is wrong. It's no different then the forex markets. Paying capitals gains on crypto isn't some 'new' taxation, it's the same tax everyone has paid forever. You guys are just butthurt babies who are experiencing having to pay it for the first time in your lives, and having some weird criminal movie style fantasy of how you are going to flee the country and all this other bullshit. I just hope nobody actually buys into this shit, or someone takes any of the terrible advice and ruins their lives.

realistically? No
Are you an anxious fuck who doesn't want to worry about it and plans to keep doing crypto shit? Pay taxes

Most of the countries have capital gains tax due once the asset is sold for fiat and held in fiat on years end...
Treating each alt crypto/alt crypto as taxable events while they cant even be bought for crypto directly is a horrible for the market!

Cant wait for decentralised exchaneges to grow big in volume!

>decentralised exchaneges
imagine.. open source and where all transfers, trades, balances, etc, are completely hidden and irretrievable

China is keeping a firm hand on this bitcoin shit.

About as cucked as any larper

>you suddenly cash out 100k into your bank
>IRS wants to know where it came from
>you have no answer after it gets lost in the hidden exchange
Ya thats not going to end well

you dumb fuckers and your "cash out" meme. you dumber fuckers and your "put it in the bank" meme. top fucking cuck

No user. I’m pissed about the way they want to tax crypto not that I have to pay taxes in general.

haha holy shit
im not filing and if they wont audit me as im too small of a fish

>actually wanting crypto currency for anything other than making dollars

That's literally the only actual use you tard

If i only made $10000 from crypto and I'm unemployed do I stillness pay taxes? This is my only income

Problem with people being able to hide their transactions more and more like this is, you are REQUIRING the government to become more and more involved into your personal spending.

If you think the government is going to just shrug and say oh well I guess we can't tax that money you are wrong. So now instead of having a nice system where we have a trusted centralized exchange that reports the activity, and the government believes it. The government has to analyze peoples spending habits based on their reported incomes to determine whether they are properly reporting incomes or not.

This sort of thing is going to force the IRS to become more and more invasive into our lives out of necessity to properly collect it's revenue. I don't think people really realize that aspect of it. All this fantasy of privacy is a joke, all it's doing is becoming a catalyst for more Big Brother government 1984 style.

it makes 100% sense the way they want to tax it. Crypto isn't currency as much as you want to think it is

Would I be able to immigrate easily if I have a law degree from a prestigious American University? (Top 15 in the country for Law) Also planning on learning french, because my dream is Swiss/Belgian citizenship.

You have to go back. Get the rope once you’re there, too.

>cuckbucks
literally and unironically no thanks. checkin those quads tho

localbitcoins is a fed honeypot read the fucking articles
>what changed
they want complete control over our lives
>And you can never use it
This is why XMR is going to moon

by the time this situation arises the entire system will be ran on a blockchain with crypto

coinbase is suing the IRS because the IRS is requesting login, location, trade, bank etc info for every account

>coinbase
call me when the chinks submit to the irs oh wait i still won't give a shit because i did all my trading in unverified account and stash the gains i want to keep in monero.

--through a vpn

Take them to court over the claim that crypto is a capital asset. I think you could contest that.

Actually... you can retrieve transactions.

deltabalances.github.io

i said monero you illiterate nigger

And what do you plan on buying with your monero? You guys all actually think it's the future and you can buy shit with your crypto coins, it's never going to happen. You will have to transfer it to fiat and pay tax when you do to buy something. The government will see Monero to USD, assume your cost basis is 0 unless you prove otherwise. Enjoy your fantasy.

>You guys all actually think it's the future and you can buy shit with your crypto coins, it's never going to happen
:^)

I wouldn't be surprised if governments are just letting this go on because they see it as a new revenue stream. Letting retards take money that would have normally been spent, sit in savings, or I wouldn't be surprised if a lot of it is from credit card debt. Slap it all around the crypto market day trading and wracking up a huge short term cap gains bill.

I already have a head but thanks anyways.

>have to file one additional form
>NIGHTMAAAARE!
kek

>mfw I had to hire a cpa and pay him an assload just to file my shitcoin trades in 2017.

what a timeline we live on