What's to stop people from lying about short term cap gains?

if your assets go 1 year without a taxable event you pay long term cap gains tax, which is half as much as short term cap gains

most of us are vyvanse fueled daytraders, but what's to stop someone from fudging their transaction log? The IRS is not going to pay someone 100k a year to investigate each taxpayer's blockchain record. They didn't even know most of us had this money hidden on chink exchanges until we reported it. Won't they just be happy they are receiving anything at all?

How is lying about the length of time you held on one transaction any different from fucking up your transactions on Liqui and other shitcoin exchanges that don't even keep records. We will have to lie/fudge numbers for those.

They wouldn't do the investigation themselves. The burden of proof is on you to show your trades and prove where you got all your fiat.

only cucks will pay taxes on crypto-to-crypto

literally impossible to track those trades

only cucks will pay taxes on crypto-fiat

IRS too short staffed, can't even catch fiat tax evaders (estimated

this. why is Veeky Forums full of brainlets?

that's my point...

I'm cashing out over 500k. Gonna have to pay taxes mate

fuck off with these thread. we know its planned shilling by a 3 letter agency

Sshhhhh.... as long as enough nerds pay uncle sam, he won't get super aggressive in finding the rest of us that dont pay.

I'm talking about 99% who are Redditors with portfolios

>lol 500k? The IRS won't care about that. Surely I won't be in prison soon getting sodomized by Jamal.

Good luck with that, OP. Oh and they have a thing called "blockchain explorers" these days.

There is nothing stopping you.

>less than 10k is nothing
>10k is risky

ok.

>crypto
>short term

you're not gonna make it. Your goal is to stack up on bitcoin before the high trillions. If you're not holding at least 10 btc, you're probably not gonna make it, that's the reality. The goal is to trade shitcoins for more bitcoin.

If you need rent or food money, cash out $2k.

If you're loaded and actually want to cash out for some weird reason, get an account in a fiscal paradise and don't worry about it. 35% is too much

nvm faggot

I just realized that I've been holding the same coins since my portfolio was 100k. Meaning, I will only have to pay short term cap gains on the first 100k. Long term gains on the rest. Easy enough.

Yeah you can try for it. But it takes 30 seconds for somebody to look at your blockchain and see if you sat on your ETH/BTC for an entire year before you sent it to an exchange and cashed it on to fiat though.

lol, just convert to ltc and mix the coins. Or put it in monero

lol you better be holding ETH, BTC or some other fiat pair or you will have to trade for them to cash out, meaning no long-term capital gains.

All of your trades have already been logged on exchanges or the blockchain. There is no "mixing the coins".

Also how exactly would you plan to cash those Monero out?

I plan on holding them for a full year though

Everything 10k and above will be sent to the IRS if you are having it enter your bank account. Ok? Ok.

But once you trade your alts for Ether/Bitcoin, you have to hold the Ether/Bitcoin for an entire year before converting to fiat or else you'll be paying short-term capital gains tax.

Each time you trade coins it's another taxable event, and your newly acquired coins are "fresh" in your possession. You can hold 100k of ICX for a year with the intention of cashing out, but once you trade those ICX for Ether or Bitcoin you're expected to hold those coins for a year or pay the insane short-term capital gains tax.

Any transactions with exchanges are going to the IRS bud

wrong

say yhou hold an alt for over a year

the alt->BTC/ETH is what triggers the long term capital gains

then when you cash out the BTC or ETH you only pay short term capital gains (or loss) on the cost difference between
>1. the BTC/ETH price when you went ALT-BTC/ETH
>2. the BTC/ETH price when you cash out

so it might be 40% of a few dollars oh no