IRS

(Or losses)

losses are infinitely deductable same year

the 3k rule only applies to rollover into forward years

>tfw I have already lost $25k

Somebody buys 10 Bitcoin in January 2017 and trades it back and forth between ETH all year. (No cashing out)

This is what their tax bill looks like.

If you traded on any exchange or from ANY wallet that ever traded to an exchange, they know.
Every time you trade BTC or ETH for any coin, you owe taxes on that trade.

Decide just not to pay. Jail time.
Decide to underpay. Audit and fees and a heavy % penalty and MAYBE jail time.

Just sell some stuff and pay your taxes. You are playing with fire otherwise.

I haven't sold 1 coin to USD and I have to pay upper 5 digits in taxes this year, all out of cash in the bank and 100% for crypto gains.

Don't fuck with the IRS, they will ass rape with a smile. You are not innocent until proven guilty with them. You are guilty until proven innocent. Hell they don't even need a search warrant and they can just take your shit.

Even if they lose everything in January 2018 they still owe taxes on the $938,861.43 realized last year through trading in Fair Market Value. If they lose everything they are now in $371,789 in debt to the IRS.

You got it. A lot of anons are in denial about the horrifying tax situation they are in. They thought it was all "Fud".

They think because of the meme that only 8 people paid in 2015 they can slide.

The truth is ALL of the BTC millionaires that didn't pay in 2015 will be getting a knock on the door.

Don't think because you traded on a foreign exchange or because you cashed out on Localbit coin they don't know.

They are slow but they don't fuck around.
you WILL get that knock on the door even if it's in 5 years and you are living in Mexico.

Hell I worked in a foreign country with Americans and 3 times in 5 years the US IRS came into the room and arrested people. IN A FOREIGN COUNTRY.

The only thing you MIGHT have some leeway with this year is using LIFO or other specific identification, if you find an accountant that isn't very conservative.

How are they gonna know it's me who's trading the crypto if I never got it from an exchange, and instead it's from anonymous freelancing or something like that? They're not, especially if I use Monero.

Yeah fuck conservative with taxes. I will gladly overpay and forgo the sushi a few times.
I write off almost nothing. Maybe one day when i can afford the $250 a hour accountant but for now it's HR Block and paying my full share.

Ok so one day you will want to use that Monero right ?
You gonna buy a car with Monero ?
a House ?

If you are fucking around with $1000 and Monero, never to trade it out to BTC and finally to FIST, then fine..

Best not to tempt fate.
Paying large amounts in taxes has its benefits, namely credit.
It's nice having credit over 800 and taxes returns saying you made over 100k. it's very helpful in the long run.

*fiat

...

>giving a shit about credit

Go suck more cut moneylender Jew dick

Yeah worked great for Al Capone.
Are you smarter than Al Capone and his legion of Jewish accountants ?

I'll just buy a laser tag arena, or a car wash, or something.

Probably smarter than the guy that wants a nice big credit score so he can be a good little goyim for his banker overlords

Yeah just pay cash for your house. buy it with crypto. I'll buy mine with 10% down and the lowest interest rate possible. Then I'll pay with crypto over 30 year while you already lost your crypto paying with cash or crypto 100%

You people better stop thinking the IRS is stupid and that you are clever.

Airsoft arena is a better investment. You don't need all the laser guns, the kids bring their own to break. You can take a patch of swampy forest, build a couple stick huts and let kids pay you to shoot each other up over it while you sell them power-aide.

...

Lmfao you think you’re so intelligent yet you sit here telling me about your plan to get a mortgage

Run along now. Go get another fat loan so the usurers can buy another yacht

look at this fucking jew cocksucker in this thread FUDDING IT UP

kys fucking rat piece of shit

>Anonymous
Do you know what's being using there to sort out the taxes?

How would they lose it all we haven't had that big of a correction.

>I watch breaking fad I'm so indie and hip

Since when was breaking bad "indie" and "hip"? It's the most normie show I could think of.

Ok Children.
See if you can raise a family and be a productive member of a society while lurking in the shadows.

or.. pay your damn taxes, get married and buy a house and write off your mortgage..

nah better to just be smarter than everyone else and not pay your share. Lets us all pay for you instead.

Dude I don't even have a fucking credit card, how could tax returns give me credit?

I already filed like-kind. No word on if it’s accepted or not though. Wish me luck anons! I’ll keep you all updated. If they reject then I owe $4500. Not a huge deal but I’d rather keep that.

Every caveman living under a rock gets the reference of your dated early-2010's tv story. No need to be a cunt about it when someone gives you real business advice on Veeky Forums

I think this is the last year you can do like-kind.

bitcoin.tax
>Even if

Then tell them you are poor. The IRS isn't fucking omnipotent. They have shit information systems and can't even account for misalllocated tax returns. So fuck them.

>implying people take "business advice" from Veeky Forums seriously

Did you fill out Parts I, II, and III of Form 8824 for each and every single trade ?

They will send it back and possibly flag you.

It's simple. They want us to pay our taxes.

Let's see here...
>Worked actual job: Taxes remitted by employer.
>Refused to touch "Tax free" investment scheme with a 10 foot poll.
Outstanding taxes for 2017... 0 dollars.
Feels good man.

>he didn't cash out during the December bull run
Yeah I'm gonna take it hard in the ass from the (((CRA))) this year but I'd rather pay taxes on 50% than lose 100%

Dude this isn't some Mexican claiming his abuela in Puebla slipping under the radar.
This is cutting edge crypto. They are gunning for us. Be smart.

You can't do like-kind. All this does is put special attention on you and throw up red flags. If you file it with an accountant they will ALL tell you not to do like-kind. They want to just report it on one line on Schedule D with an 8949 electronic attachment. As long as the formatting is good on Schedule D your 8949 which contains all the details about trades will most likely never be seen by a human. If you start trying to do like-kind and shit they'll pay attention to you.

Thanks

Good thing I’m in the 0% tax bracket so I don’t actually have to pay anything hahahaha

>taxes

That was just an example I entered into bitcoin.tax for illustrative purposes. Albeit it's someone who traded in a tax unfriendly way. (Traded with their whole stack for BTC when it was at it's peak price realizing maximum capital gains)

>being poor

The most they can do is jail some whales and FUD. Most young people don't have real assets they can seize. They will literally have to waterboard people for their assets. It's ironic that the system closed off any avenues of wealth. So we were forced to make one they couldn't touch. Its over for them.

serious question what is the tax rate if you are a jobless neet who has not worked all of 2017?

lol. I've not paid taxes in 8 years. get lost.

sage.

That's a good point. Form 8824 is 2 pages.

irs.gov/pub/irs-pdf/f8824.pdf

That's the paperwork required for ONE trade. You'd have to send them mountains and mountains and mountains of paperwork to like-kind everything if you're a frequent trader.

No what they can do is show at Neet's house and audit his mother.

You guys really think this isn't going to be a walk in the park. I've had at least 100 acquaintances audited in my adult life.
Pay your taxes people. Wow.

if you open a business and work part-time at it and only realize 24k gains at a time while the business make no gains but holds you get free gibs

They can garnish your wages. the IRS (or CRA in Canada) get 100% priority access to your wages. They need leave you only what THEY decide you require to live on.
>Oh he can just go to the food bank
>Oh the church will give them some free clothes
>Oh they can just move to a cheap apartment in the projects
They'll get their money. They always do. In the 1840s the feds tracked down Henry David Thoreau over 4 dollars and threw his ass in jail over it.

Have fun getting audited if you made any real money.

Your tax bracket is decided by your total taxable income. So even if you made $0 working a job but have $500k in capital gains (even if not cashed out) from trading crypto you're in the top tax bracket and owe about 39.6% federal. (Actual rates will differ)

yeah imagine if you do 3000 trades in a year.. Or even just 100.

The instructions are daunting.
irs.gov/pub/irs-pdf/i8824.pdf

You clearly don't understand how progressive taxation works.
Let's say the tax brakcets are 0-60, 60-120, 120+
The first 60,000 you gained is taxed at Rate A. The second 60,000 is taxed at rate B and the rest is taxed at rate C.
This kind of financial illiteracy is why retards lose their life savings investing in imaginary internet money and then get raped again on back taxes.

That’s why it’s good being personally poor and whoring yourself out to a sugar daddy to buy you good gifts

>muh family
>muh productive member of society
Fuck off normalfag

...

I have literally hundreds and hundreds of trades, and I LOST MONEY overall. Do I still need to bother with taxes?

Can I report as capital loss, as I would with stocks?

It's better for everyone if most of these disgusting NEETS don't reproduce

Sounds like you got it all figured out man, you're totally gonna get one over on le evil taxman haha.

>Do I still need to bother with taxes?
Yes.

What's the 0% tax bracket?

Yes you still have to do your taxes. You can write off $3000 in losses.
Best to talk to a tax professional.

THE WORLD ISNT THE WAY IT USED TO BE

MM MM NOO NOO NOOO

They are going to be REALLY surprised when their parents get caught up in the audit because they live at the same address and claimed them as a dependent, not knowing they made 50k plus last year..

MY WIFE SHE DOESN'T BELEEVE IN ME SO I WENT TO THE BANK AND I TOOK OUT THE MONEY AND PUT IT ON THE TABLE AND THEN THE IRS CAME AND TOOK EET.

Point is they can't get all of us. There is no systematic way to seize crypto assets. And there never will be because this is software. If the FBI can get hacked by some 15 year old what the fuck is the IRS going to do about people hiding their gains.

this is all lies by the way. and even if it wasnt, the IRS doesnt care about your 4 digit annual gains

>0% tax bracket
So you made less than 10k on employment and crypto combined?
Or you are assuming your gross gross income doesn't include capital gains, which is wrong.

unless you are playing with a chad portfolio, im not gonna worry about it.

the irs is so understaffed its funny. until they get their shit together and systems in place and some people actually go away for crypto tax fraud..most people are gonna fly under the radar.

fuck off, revenuer

Dunno ask Wesley Snipes, he an expert too.

It looks like you can summarize multiple exchanges on one form, but then you have to attatch a huge amount of information and you need descriptions of every kind of property, written notices...

*LAUGHS IN SNOWDEN*
The US feds pretty much have a ball vice on everything that happens over the internet. Here you have a country whose credit card is charged up to the laurels, and a bunch of unpaid taxes.
They'll get their fucking money and you're a retard if you believe otherwise.

And if I move to a country without an extradition treaty what are they going to do?

i dont believe they have the resources nor manpower to enforce any of this.

until i see some people actually going away for crypto tax fraud, im gonna write this off as FUD.

nice try though, revenuer scum.

Says it should take hours... and they're going to look through every trade to make sure you did everything right. AND they're most likely going to reject it anyway because they never said crypto qualifies for like-kind exchange.

yeah guys the IRS is totally tracking your crypto to crypto trades on chink exchanges..just pay up those taxes...

>Give us the money
>No
>Okay heres a trip to prison

close your bank accounts.
Put a warrant out for your arrest.
You better hope that country gives you citizenship and you never travel to any US friendly country.

Only real thing you could do is to impregnate brazilian and come back to the US and renounce your citizenship..

but then that is an instant audit before they let you renounce your citizenship.

Easy answer..
Pay your taxes/

yep, they totally have no idea how much money you've made on exchange accounts that are linked to your real identity. you're a stupid goy if you pay a cent to le evil taxman

No the Hong Kong exchanges ar reporting the info to thier government who in turn shares it with the US.

Did you file a fbar form ?
I did.

irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar

You sound like that faggot who worked in NSA for 4 years

>on exchange accounts that are linked to your real identity
>chink exchanges
>dexs
>implying IRS can subpeona either of those things

you are an actual retard

What about we all just don't and we let the US financial system implode when it runs out of capital and credibility. We can probably starve you out. This is most likely FUD so you best believe I am not cashing out shit. Especially, on the day that the stock market is starting to take a shit.

Literally not true at all. The chinks have no reason or motivation to give it to the irs. If the irs or us gov gave them an incentive like a cut of the tax revenue then they might be inclined to give

No, I understood that. That's why I said Actual rates were differ. I should have said you'd be in the 39.6% tax bracket.

If you are a frequent poorfolio poster, go for it, even if they do come after you you'll be able to dig yourself out eventually.
In any case, it wouldn't be a bad idea to file an extension just too see what happens this year. Keep in mind the deadline to file a FBAR (Report of Foreign Bank and Financial Accounts) is now April 15. Every lawyer that has taken 2 glances at how cyrpto exchanges has said you NEED to file this if you have more than 10K aggregate in crypto assets. The penalty for unknowingly not filing is 10k PER EXCHANGE.