Here is a tale of woe for the lot of you in the United States who used Coinbase or GDAX to trade again Bitcoin... I am going anonymous, for obvious reasons.
At the end of December 2017, I had nearly 1 million USD worth of BTC in my trading account. This was earned through what I thought of as hard work. Daily trading, playing the game "right", not taking too many risks... at the beginning of the year, I had started with a little less than 100k USD, so for the sake of this, let's just say all of it is short term capital gains.
Anyways, I trade very often with my bitcoins, exchanging to and from USD on the GDAX exchange. Everything was great at the end of 2017. However, I lost ~45% of my stack during January. So now, I'm down to approximately 550,000 USD.
That sounds great, considering where I started from, but let's take a moment and think about the taxes I am now responsible for.
I made over 900k short term capital gains I live in california so my state tax is ~10%. Federal tax at this level is ~38-40% So I have to pay ~48-50% of the gains in taxes. Therefore I will have to pay ~450k in taxes.
So, I started with ~100k, made ~900k, lost 450k in January, and now will have to pay 450k in taxes. Everything is gone.
I have lots of money, but I'm about to have nothing
Fuck off with your blog
Buy FUN
Jamal and Dequan need the new Air Jordans, white boy
jesus christ, america is really that great.
its the same in every country
remember taxation is theft and that statists deserve helicopter rides
first of all you're retarded for publicly announcing trades. You should have seen this coming and planned ahead, you deserve it, and I won't even tell you how to get out of it.
Capital losses are deducted from capital gains.
1/10 larp.
pls explain american taxes to me, only burgers seem to care about it
Localbitcoins?
>does not know that corps set their own tax year start date
Shitty larp
Btc had fallen off a high of 19.9k to roughly 13.3k end of december last year; if you trade as frequently as you claim you would’ve had those capital losses to deduct
Also your cost basis is 100k, so total taxable basis is 800k in that case, .5 of that is 400k
2/10 got a you
That isn't how capital gains taxes work, retard.
but...
you will have 450k in losses to claim against 2018 earnings. I think you can carry those forward for a few years too.
There are countries where you can't deduct losses due to crypto falling into a fucked up tax category. You can easily end up with a tax bill multiple times your total earnings if you are trader and haven't been paying attention to this fact.
You're a retard if you think it works like that. Nice larping btw.
why don't you just claim a loss? and obviously you'd be retarded to cash out now in the first place
If singles bitcoin won’t drop below 7k
Living in country #1 is real suffering.
Fuck off shill. Everybody knows that you only have to pay taxes on what you cash out to fiat.
Created Taxable events before being ready to cash out. GG
Pay money to IRS as if your crypto are property.
(money gained - money spent) * 0.37
You can put the tax owed on a payment plan if you're not able to pay up front immediately on tax day.
>crypto trading is hard work
Ahahahhahaahahhahaah
All his losses are in january, the next tax year. You fucking brainlet.
plebbit tier meme