Let's say I have $150k in crypto. I wanna buy a house that's $100k-$150k in America

Let's say I have $150k in crypto. I wanna buy a house that's $100k-$150k in America.

If I pull out my money and spend it on a house how much will I owe in taxes and when will I have to pay them?

>inb4 take out a mortgage
I don't play those games.

I'm not sure how much you'd owe in taxes but you would need to pay it around April 15th

Some places you can claim your mortgage payments against your income tax. Also depends on how long you held and how much is your salary

It depends.

($150k - amount you put in)*15%

is the basic calculation. It's more complicated, but I don't really feel like explaining.

localbitcoin.com

You’d still wind up paying more on the interest for the loan though wouldn’t you?

>buy duplex for half price of house
>live on one side
>rent other side
>its like living for free

So just to clarify I don't have to pay taxes on the purchase?

I'm just a stupid kid, they never taught me about taxes in school

Can you buy a house like that in 150K in america? CAN YOU?

FUCK I'M MOVING THERE.
MERICA FUCK YEAH

Do cryptos qualify for long term capital gains? If not it's taxed like income.

You’ll have to pay property tax every year for one thing.

True. I don't know how long OP held.

OP if you held for > 1 year it equals 15%

if you held for < 1 year you need to use 2018 tax brackets to calculate

There's more that goes into it like calculating all the trades you've done. The basic premise, though, is that you're only taxed on your gains, not your principal.

So you really have no clue what you're doing.

First off buying the house outright will charge you tax. Find out how much through your municipality. Typically there are online materials that you can look up. Find out your property tax. Second, liquidating your assets will make them taxable income. If you want to avoid tax hikes you'll have to withdraw within a certain bracket. So if you want to avoid paying more money, I'd put a down payment on a house and do mortgage payments and by still having some investments you'll still get dividends. Don't cash out all of your dosh

Yes but as you can see it is in the middle of fucking nowhere, and new/cheap construction.

Also, lel at not wanting a mortgage, you could be putting only 50% down and using the rest of your crypto to make more gains/income.

Also - if you want to do this right, gather up all your trades and go talk to a CPA for just this year to help you out. It'll cost you a little money, but you'll want to make sure this is done right.

Another word of advice - you could end up having to pay $10k - $20k in taxes, possibly even more, so don't go spending it all on the house. You also need to calculate cost for inspection/attorney/closing costs.

Basically - if I would liquidate everything, but only look for houses in the $100k to $110k range.

I'm around so let me know if you have more questions.

In Las Vegas or Arizona or the south, you can definitely. The south has too many slave descendents though.

Actually you can transfer your funds directly into a mortgage line of credit and avoid getting charged tax altogether. At least, that's what you can do in Canada

Not to be pedantic, but you are going only going to find houses that cheap in North Vegas (Nog/ZOGbotville). Even then, $150K is a stretch for an actual house, not a townhome/condo.

I kno rite ?

Lel

I've been daytrading basically. Also, how do you calculate taxes for cryptokitties?

If it's income tax won't I have to pay the same taxes as someone who pulls in $150k a year? Even though my bank account currently has $7.49 in it and I have nothing but a laptop and a playstation to my name?

BE CAREFUL WITH CPAS

YOUR DISCUSSIONS ARE *NOT* PRIVILEGED AND THEY WILL SHARE EVERYTHING WITH THE IRS

ONLY A TAX ATTORNEY IS TRUSTABLE

GET A TAX ATTORNEY, KNOW WHAT YOU SHOULD DO, THEN EITHER HAVE THEM DO YOUR TAXES OR GIVE YOUR PAPERWORK TO A CPA AND SAY LITERALLY N O T H I N G

OP, first you pay taxes on your crypto, then you buy a house. There are a million fees and gotchas when buying a house. Take a look at one I was trying to buy that fell through. Triple all the numbers to give a good estimate of what your going to pay for a house.

Yes depending on the area 150k is small house. Nuttin too fancy but 2B/2BA. Chicago burbs 175 is easier to swing for a decent cheaper house.

yeah in kansas where tornadoes can wipe out your house in 2 minutes or alternatively wait until the housing bubble pops and then you can buy one anywhere for that price or cheaper

This is true. If anyone thinks that a 2x4 piece of wood is worth $20 then they aren't very bright.

And how much similar house would cost somewhere in the neighborhood of San Francisco?

Ouch. Jesus Christ you're in deep OP.

You're going to need to print out every single trade you've done and bring that to an accountant. Were these trades done in 2017 and 2018? If so, you may have a large tax bill that you'll need to pay in April (unless you file an extension) for all trades done in 2017.

Then come April 2019, you'll also need to pay taxes for everything done in 2018. Here's the issue though. If you're like most of us a lot of the trades done in 2017 were for gains. While the trades done in 2018 were most likely for losses. So you'll be paying a ton in taxes this year, and won't have anything to offset your losses for in 2018 since you'll be cashing out.

For cryptokitties I have no clue. It might be as simple as figuring out how much you put in and figuring out how much you sold for. No need to go any deeper than that.

Around 1m

Leverage can be a good thing...

Consider - 4.5% Mortgage
Leverage Savings into Stock - Annualized 6-8%

Minus the Inflation, you'll come out ahead with a Mortgage and Leveraging the differences.

Even with Inflation - you should still come out ahead due to appreciation in valuation House v. Market

Debt can be a powerful leverage tool.

That is one of the most expensive places on the planet.

75% of my gains were in 2018 And there's no way in hell I could track down every trade I've ever made. I have like 200 pages of trades on poloniex dating back to early 2016.

What does that mean exactly?

If that's the case, I'd highly recommend talking to an accountant. It's beyond my scope of knowledge. My guess would be that the IRS wants to see a "best estimate" of your earnings. Also if you've been trading since 2016, you're also going to have to pay back taxes and re-file your 2016 tax return if you didn't include those gains.

You're in deep, but the IRS is forgiving if you make a best effort to repay them.

I can't say it enough - SEE AN ACCOUNTANT. You may want to start looking for one in your area like today. The closer we get to April, the tougher it will be to get in to see one. Especially with your complicated situation, it may take them some time to unravel everything.

How much are back taxes? I think i owe some mining income from years back. I can't amend one return though

yes, but you're going to get fat from all the driving.

His point is, if you have enough to buy a house in full, you may be more wise to take the mortgage and invest the cash.

Also shouldn't he see a tax attorney first?

Accountants can testify against you to the IRS (in fact they regularly and always do!!), but an attorney cannot

How do I find one that both won't snitch on me and won't jew me out of my money?

Capital gains on the crypto will be owed on your income tax return. Thank our president for the lowered capital gain rate. You will have personal property tax on your home. You can pay that annually at the county assessors office. Depending on your state and city, you’re looking at around $930-1200 a year in tax.
Homes usually are paid for the year in October or November. You’d only owe a portion. Call your assessors office and give the address. They can tell you.
Source: I’m 33 and own a home in sw mo.

You owe around 45k bro

>you're going to get fat from all the driving.

literally how?

Attorneys cannot snitch on you, your conversation is privileged, like with a doctor or spouse.

Talk with an attorney, Find out what to do for whatever level of risk you are willing to take.
Give an accountant the forms and say nothing to them except hello and good-bye.

Yeah I'm not sure what the confidentiality requirements of a CPA vs. tax attorney are so I'll have to defer to the other guy on that point.

You can probably find one in your area by a simple google search. Just find one with high rating and you should be good to go.

>inb4 take out mortgage
3-4% interest rate
house appreciates 4-7% per year
your own investments you didnt sell will still be making gains?

The typical penalty is 0.5 percent of the total amount you owe calculated for each month you haven't paid it

You might be able to afford a 1br in Gary IN after the taxes and back taxes are paid

So say you underpaid the IRS by $10k. You'd owe $10k + [1+(.05% * 12 months)] = another $6k that you'd owe.

12 months is just arbitrary number. It depends how long it's been since the underpayment.

Your math doesn't even come up to another 6k... I'm sure there's an error somewhere in there.

Probably not on the sale of the house (check your local laws/consult a realtor), but you'll have to pay property tax every year as well as other local taxes.

Whoops you're right. It should be.

$10k * (.05% * 12 months) for just the back taxes owed

or

$10k * [1+(.05% * 12 months)] for back taxes plus the originally owed taxes.

Depends which part of America you want to live in. There are definitely houses like that for under 100k in some parts, but you probably don't want to live there. I live in a highly desirable area right now, that house would probably go for 400-500k. Granted, the housing market in my city is in a bubble, normally that'd probably cost 200-300k.

He'll most likely have to pay 6 months of property taxes up front in an escrow account when he purchases the home. I'm pretty sure that's what I had to do when I bought my home. Might vary from state to state, though.

Moving your Crypto to USD will require you to pay taxes (capital gains).

In additional, you will have taxes and fees to pay for acquiring a house (as well as regular taxes on the property.)

My suggestion is to contact someone who's a bit more specialized. Tax accountant or a tax lawyer might be willing to give you a free consultation on how to proceed. The IRS does not fuck around, and making big purchases (like a house) while having no income is the sort of thing that raises eyebrows.

>house appreciates 4-7% per year

Found the brainlet. Historical averages are 0-1% over inflation.

Can you get something like nigger insurance in the US?

If you buy or build a house in a good neighbourhood isn't there always a risk of undesirable people moving in dragging the value of your property down?

How do you protect yourself against that?

You rent.

Capital gains tax or property taxes?

Bottom line: after capital taxes, closing costs, and any unforeseen; you can afford a $93k house straight cash.

Either buy a fixer upper or be ready for a mortgage of a couple hundred bucks a month. Your mortgage payment should have your escrow payment included in one payment (property tax and home insurance) each month.

>in America
You're fucked user, you're irredeemably fucked. At least as a Britbong I have option of moving abroad to avoid taxes but (thanks to the Nigger 'president') Burgers are fucked tax wise regardless of where they live.

Enjoy being a slave to the US government no matter where in the world you are - you only exist to pay taxes to 'minorities'.

Its a little upgraded cuckshed, still comfy tho
But yeah, Vancouver cucksheds are 2-5 million

WHY THE FUCK IS IT SO HARD TO CASH OUT REE...

This.

How do I go about doing this?

I'm Canadian

Can I buy a house in usa and live there 6 months out of the year?

Also could I get perminent residency by buying a house or whatever.

Also what would be better for taxes

Fuck no, don't buy that overvalued house. It looks like it should 120k