Can't affrd taxes. What are my legal options?

Burger here. With the recent crypto crash, I am unable to pay my taxes. How can I legally navigate this scenario with the IRS?

How can you even have to pay taxes if you never short and now you're even at loss? Fucking ridiculous.

He had big 2017 gains and didn't sell before the crash

Imagine you made 1 million in 2017 at short term capital gains, that gets taxes at 40+% So you would owe 400k. If you kept trading that 1 million and you lost 60-70% in the recent crash you are now totally fucked.

Depending on how much it is you can probably work out some sort of payment plan with the IRS. If it's a lot I would advise seeking a tax attorney or something.

Whatever you do don't rely on Veeky Forums.

Probably $60k

File for bankruptcy

Also you don't have to pay taxes if you don't sell.

>$60k

Holy shit. Get a lawyer and get one fast. How do you fuck up this badly.

Well shit, looks like the US is really trying to kill crypto with that shit.
I'm guessing if the same thing happened with stock you wouldn't need to pay tax until you actually cashed out?

you cant pay more than youve gained

its a wash sale

You have to pay taxes even if you don't cash out into fiat if that's what you mean. Every transaction is now taxable.

Wait until April and see what the situation is then?

I mean fuck what else are you going to do? Just hold and hope by April you are in the green again.

That literally happened to me. Bitcoin.tax said I owed 400k because I had a 1 million short term gain from crypto to crypto trades. I was down to 900k when BTC was at 13k so I was forced to pull everything out.

Sure you can, because you have to pay all the realized gains from trading in 2017. You can't deduct any loses from the crash in January and February this year.

I think a lot of people are about to get fucked just like OP.

They're trying to kill day traders. And for good reason.

>be me
>never buy crypto
>only mine privacy-tier coins
>all my gains and losses are user
>???
>mining master race

>> burger here
>Takes deep breath
> AAAAAAAAAAAAAAAAAAAAAAHAHAHAHAHAHAAHHAHAAHHAHAHAHA

That's fucking ridiculous and doesn't even makes sense. You guys got fucked by your government.

And to answer your specific question, the exact same scenario could easily happen with any asset (the capital gains tax does not discriminate). If you take realized gains from one year (i.e. assets sold at a profit) and them invest all of your money without leaving asides the tax owed on that into something which then tanks, then you can easily find yourself severely in debt to the IRS no matter what that asset is.

All of this is quite depressing :)

You guys aren't larping?
Americans need to pay taxes even if they don't sell?
What the actual fuck

So are the tax laws different if you gain 50% in a year on a single trade or on 12,000 trades?

It still sounds like you need to sell stock to owe tax but you don't need to sell crypto to owe.

cant you yanks just file for bankrupcy with virtulally no side effects?
in britin bankrupcy is basically the end of your life

Paying taxes to cash out to pay taxes is illegal

if you bought and hold, no you don't owe any taxes

if you day-traded and kept rebuying, yes you may have tax liability depending on your accounting method.

Separate but equal!

Now people really can't shit on HODL, it's a better strategy than daytrading for Americans.

The only thing that really matters is how long you've held them. If it's less than a year then you pay the full tax, if you hold them more than a year then you pay substantially less. And, yes, this can be chunked out (so if you bought 10 in early 2000 and 12 in 2001 and sold 22 in late 2001, then the gains on the 10 are taxed at the lower rate and the gains on the 12 on the higher)

This is to encourage people to invest in things they believe in rather than trying to game the system with their "brilliant" apophenia.

Because people don't trade one stock for another, they sell for USD and buy.

as long as you didnt use coinbase you are fine.

they are the only exchange sending records to the IRS afaik

What are you talking about. If you buy and hold how do you have to pay taxes? There is nothing to tax yet. You don't pay capital gains until you've sold the thing you bought for a profit.

Capital gains tax is not owed until you sell. Most likely this was someone buying, then selling, then reinvesting the profits.

I actually support that system, my only complaint is you shouldn't be taxed on crypto until to cash out to fiat.

>looks like the US is really trying to kill crypto with that shit
And stocks, real estate, etc.

THIS. AND ONLY THIS.

Literally nobody is going to pay taxes on crypto this year. NOBODY. the percentage will be like 1000/1 who actually do it.

Don't report it in the first place user

We need crypto to work this way as well I think. But after this I will be moving to primarily decentralized exchanges.

The IRS will pressure the banks. The banks will pressure the credit card companies, the credit card companies. Anyone who deals in money transactions will be getting a knock on their door. You aren't the first person who ever thought to "just not pay the government." If you somehow managed to make your transactions truly grey and invisible to oversight then well done. This, however, is not a feat most can replicate.

Bankruptcy can't protect you from the IRS.

just do what niggers do and don't pay them and don't answer the phone and throw the mail in the trash they don't have the resources to collect anyway

doesnt everyone realize this is a huge reason its been dumping...

ever since the tax FUD started all these idiots are freaking out and pulling out money to cover themselves

The tax fud didn't even come from the IRS. It was from companies trying to sell their shitty tax software.

>>>
> Anonymous (ID: W8e2fHZr) 02/05/18(Mon)18:31:40 No.7349022▶
>
>Probably $60k