What the FUCK do I do about taxes. I bought through normiebase so im worried tax evasion isnt gonna work...

how is that possible?

This is why Im freaking out. I cashed out my initial investment in crypto so I thought I was smooth-sailing with a net profit even if crypto went to zero, but im still required to pay taxes simply because of hundreds of short-term trades I made.

What an absolute joke that the IRS is undoubtedly planning to fuck crypto users over for tax evasion yet they don't have ANY helpful information about how to report this. CUNTS

just dont say anything about it u normie faggot. they dont give a shit and cant track down everyone using fucking singapore exchanges and shit, and nobody cares about your small plebbase purchase. dont be a cuck, report nothing

It makes me want to just sell everything so I dont have to deal with this again. Why bother already getting taxed on my wagecuck income and then get taxed AGAIN on an extremely risky investment

fortune.com/2017/11/29/irs-coinbase/

>The investigation began after the IRS searched its electronic filings and discovered that only 802 people had declared bitcoin-related losses or gains in 2015.
Lol
so according to Veeky Forums are they gonna anally rape literally everyone but 802 people who traded buttcoins in 2015?

reddit.com/r/personalfinance/comments/7p9a2t/cryptocurrency_a_guide_to_common_tax_situations/

"In general, you don't have to report or pay taxes on crypto currency holdings until you "cash out" all or part of your holdings. For now, I'm going to assume that you cash out by selling them for USD; however, other forms of cashing out will be covered later.
One important thing to remember is that there are two different types of gains/losses from investments - short term gains (if you held an asset for one year or less) and long term gains (over one year; i.e. one year and one day). Short term gains are taxed at your marginal income rate (basically, just like if you had earned that money at a job) while long term gains are taxed at lower rates."

but what if you are a NEET without a job, and therefore no income tax rate?

cont
"However, one thing that surprises many people is that trading crypto for crypto is also a taxable event, just like trading crypto for a car. Whether you agree with this position or not, it makes a lot of sense once you realize that the IRS doesn't view crypto as money, but instead as an asset. So to the IRS, trading bitcoin for ripple isn't like trading dollars for euros, but it is instead like trading shares of Apple stock for shares of Tesla stock.
Practically, what this means is that if you trade one crypto for another crypto (say BTC for XRP just to illustrate the point), the IRS views you as doing the following:
• Selling for cash the amount of BTC you actually traded for XRP.
• Owing capital gains/losses on the BTC based on its selling price (the fair market value at the moment of the exchange) and your purchase price (basis).
• Buying a new investment (XRP) with a cost basis equal to the amount the BTC was worth when you exchanged them.
This means that if you "time" your trade wrong and the value of XRP goes down after you make the exchange, you still owe tax on your BTC gain even though you subsequently lost money. The one good piece of news in this is that when/if you sell your XRP (or change it back to BTC), you will get a capital loss for the value that XRP dropped."

You won't need to cash out in a few years.

Holy shit its a fucking Larp Tax FUD thread everybody. Sage in all zones, hide thread, and walk away

You can also read through this copy/pasta that covers some tax questions:

US Crypto Tax Guide
pastebin.com/mAPNtGV0

Except it's not. go to bitcoin.tax and you'll see youre equally assfucked :^)

It's VERY possible. Every time you make a trade you realize short term gains on the fair market value of the trade measured in dollars. So let's say on December 31'st you have a net gain in FMV realized through trading. (Like-kind doesn't apply, I spoke with many accountants with this. If you try it, it will raise red flags with the IRS.) Then you lose your shit in January because everything crashed. You STILL owe your taxes from that gain from last year. Losses only carry FORWARD, not backward.

Do half of you just not understand how taxes work? You get taxed on profit.

Buy $100 worth of bitcoin at $10k. Trade for Altcoin X when bitcoin is $15k. You currently have $150 worth of altcoin X. At this time you owe ~33% or w/e your rate is on your $50 gains.

Now this is the part some people seem to struggle with a lot. Oh nooo Altcoin X is a piece of shit and crashed 50% in a week.

Now you have Altcoin X equivalent of $75 but you still owe that ~33% tax when you traded your bitcoin to Altcoin X originally (since BTC went from 10k to 15k).

Except then you just trade Altcoin X back to Bitcoin and now your gains are wiped out.

You are now at $75 worth of BTC. If you cash out you will have $75. $75 < $100, no taxes.

The reason why most people are fucked is because they had gains in December 2017 when the tax year ended, and losses in January 2018. The losses from this year DON'T cancel out anything from last year, you can only carry it forward.

Only time you can really get fucked is if you make trades right before the new year.

>t's VERY possible. Every time you make a trade you realize short term gains on the fair market value of the trade measured in dollars.

Theres LITERALLY no way to do this accurately. The price changes minute to minute, plus how are you ganna measure the price of X shitcoin in Y bitcoin and then see the fucking price of X shitcoin in USD and see how much BTC that is in USD even though theres mulutple exchanges and arbitrage. It's literally impossible you niggers, its just IRS spreading FUD

i really dont give a fuck, you think they care about my meme money? get real or stay scared cuck

Honestly the people who did that are dumb. .

you are an absolute faggot brainlet, if you don't want to track it yourself just use cointracking they literally have it set up to do it all at historical dates for you. it is literally easy to do if you keep an excel spreadsheet. you pajeets are the dumbest of the dumb

Most exchanges record the exact second your trades executed, and the price for everything. Bitcoin.tax and Cointracking.info can pull up from the API the exact price in USD that BTC was.

Fuck that shit. I'm just paying when I cash out to USD. If the IRS wants to sort through all that shit and figure out all my shit, they can go for it. im not paying more than my fair share

even if you decide to only pay the tax when you cash, you should still try to keep track in the chance they come knocking with an audit least that way you won't be screwed and it would be less work for when you do eventually cash out to fiat and have to show where the income came from

So wait, coinbase makes you pay taxes?

What's your plan for paying when you cash out for USD? You're going to have to lie about how you got the extra coins to cash out.

i didnt get no extra coins. every time I bought ETH or BTC I immediately used that to buy alts. I did not wait for the ETH to appreciate or whatever

Yeah IRS why dont you sort through that shit for me HAHA got you IRS.
>How about you prove it to us or we price it all at bought from 0 as you kept no records.

what are people with millions invested gonna do, there is absolutely no guarantee that anyone will actually pay them what their coins are supposedly worth in 7-digit amounts but they still owe the tax man money for their imaginary internet money's imaginary value

>buy ETH with $1000
>my shit appreciates to 20k
>pay tax on the difference between 1k and 20k
>done

any questions?

These tax kikes think they own your fucking soul, not surprising theybthink they can take as much moneybyou have as they want

it won't be long before legions of NEETs who would've been millionaires get fucked by the IRS' (guilty until proven innocent policy) decide to go blow up IRS buildings and kill the board members
lol

This is the first year we're actually reporting. We know that people with millions invested and touched coinbase ever are the first one's who are going to get fucked.

There's one thing we're planning to take advantage of however, but I'm not mentioning it srry, because if it gets too widely known the IRS might take notice and make a pronouncement prohibiting it.

Coinbase is going to report your shit to the IRS because they are a U.S. based exchange and have to.

If you are trading on a non-U.S. exchange, those trades are NOT reported to the IRS, unless the U.S. is doing some backdoor force them to tell shit.

Yea I was gonna avoid reporting my trades on Binance, but I send LTC to Coinbase and sold them, but I never bought LTC on Coinbase. So what's the IRS going to think about LTC magically showing up in my account and getting liquidated?

This is a mess

fuck the faggot tax man

yes retard if you only have cash to eth and eth to cash you only have one transaction to keep track of. then you should be able to do that brainlet. No point explaining any further will just let the irs pummel your butthole.

this is what these brainlets don't get. if you want any cash in fiat in the near future just keep track and pay the tax. if you can afford to hold it in crypto off american reporting exchanges go for it, eventually payment processors will be in place to do the crypto to fiat payments anyways and then you can hide your wealth near permanently.

I cashed out $10 and now owe $50k in taxes, what do I do

Fuck that, I'm getting an offshore account

>but what if you are a NEET without a job, and therefore no income tax rate?

Then you are in the Bottom Tax bracket of 10% $0 to $9325 for 2017

The problem is that there are very limited options for depositing US$ FIAT the first time in order to buy coins. Basically, Coinbase or Gemini. Both of which are U.S. regulated.
So the initial purchase is definitely being reported to the IRS.
Whether the IRS cares enough to go after you... who the fuck knows. I got audited once for $2900 because it was different than the Income reported.

you can offset realized capital gains with capital losses you know
get a fucking accountant

Where do i fit in on all of this

I am a non us citizen that used localbitcoin to buy btc (4 times at 100$ of btc)

Then i used bittrex for my trades

If i eventually cash out, my coins could be worth 25 grand or more.

What do?

I live per fact in a tax haven in latin america.

No, he can't. Once December is over, it's set. No matter how much you lose you can't offset the gain now.

MWF bought around 5b in runescape gold with profits and now have to pay taxes on "cash out" for fake money on a game with magical money online.

Pretty sure you're fine

So I buy a small amount of btc a few years ago and use shapeshift to do trades within a month of purchase before I could realize any btc gains. I have receipt for shapeshift just coins moving out and into wallets. I also got about 100k doge coins from faucets worth like ten bucks at the time.

Never figured I had to pay anything or report it. Do I need to use something like bitcoin.tax and input those trades and report the faucet coins as income? Can my wallet record be used as evidence since I didn't use exchanges? I'm assuming I have to refile old taxes and pay fines on the tens of dollars uncle Sam didn't get so I don't get screwed for the large amount it became?

Clarification I have no receipts.