What are the tax implications of me buying crypto in the US for the sole purpose of sending money back to my family in my shithole home country? Do I need to prove to the IRS that I don't hold dem coins any longer come tax season?
What are the tax implications of me buying crypto in the US for the sole purpose of sending money back to my family in...
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I'd also like to know. I grew up here in america but I have a lot of family back in moldova who could live off my crypto gains
pls help biz
If you're trading them and actually increasing the amount of money you have before sending them, you 100% will have to pay a capital gains tax. I don't know about just buying them and immediately sending them though, if that's what you wanted to do.
God Damn, she looks like some english slag. An ugly one at that. And ofc the pajeet is without saying pretty ugly anyways.
Jesus christ. Is everyone really clueless around here?
mommie wommie milky wilkies
those are some mouthwatering bags
Yeah I mean just buying it straight off of coinbase or similar and sending directly from there to their wallet
If you spend the money that you gained within 24 hours you don't have to pay taxes.
The answer is NO
But it, send it to your country and chill
No taxes owed.
You only owe taxes on Sells. Not buys.
You're not realizing/recognizing any gain if you give them away. If the IRS asks about it, you can show them that you gave them away, i.e. the beauty of the blockchain ledger. I guess they could dispute it, and ask you to prove that you don't own the other wallet, but that would be impossible.
I don't think taxes apply if you hold anyway. It's wehn you sell or trade. After holding a year it converts from income tax to a capital gains tax.
There are gift taxes, but there are limits that aren't taxable, and you have to give away a lot of money before it applies. 12 years ago individuals had a $2 million lifetime exemption and an $11,000 annual exemption per recipient. Those numbers have possibly changed; I haven't looked into gift tax since then, but, essentially, you could give away $2 million before gift tax applied.
so if i buy 1 btc at 10k, and sell it at 9.99k i dont pay capital gains taxes?
lol where is her penis
Cryptotaxation as current understanding
U. S. EDITION:
Lifetime Exemption =$11 million
Use “First in first out” (FIFO) method when reporting coin taxation. Safest option
No standardized way of reporting cryptotaxes. IRS still trying to figure it out.
Margin trades/short sales are difficult to report. Many people use different exchange programs when making transactions. Stick to one good source that provides an excel spreedsheet of your order history. Do not use coinbaseas your transaction history. Use the exchange program i.e. Binance or whatever else you use. More accurate. Unless u only use coinbase and dont do anything then u can use that.
Tax form 1009B
Transaction taxes -
Bitcoin = cash. Altcoin = product
From bitcoin to altcoin, this is a taxable transaction.
Cryptocurrency = property (loosely labels as section 1031) Anything treated as property requires Report form 8824. Some people have used this method in reporting crypto. It isnt illegal. IRS may or may not disagree with this method. Might go to court to appeal in some cases. In this case Exchanges are real estate value.
Crypto Gifting = USD LIMITED @ $14,000 without paying taxes once a year, within the US and leaving the US. This taps into your “Lifetime Exemption” pool
Report loss on what coin value was @ when original purchase was made.
CAPITAL LOSS is when your exchange fails in
“Damaged property” - computer hardware breaks, lost wallets
“Hacked accounts/robbery” - lost account/wallets
“Abandoned property” - walk away from specific exchange and left as is. Reported abandoned.
“Wash Sales” cannot apply to crypto when u purchase asset of same type within 30 days.
Some different examples of transaction practices.
If XRP coin drops in value and you transfer it back to ehtereum (which in turn gains value) this transaction is reported as a “like kind” where there is no loss or gain. However you can choose to report it seperately as capital loss and capital gain.
However, you cannot sell XRP to “trigger loss” for IRS if you buy XRP back right after that loss. This is counted as a “Same Economic Substance” IRS will not accept this as a loss. You would need to wait 30 days for the triggered loss to take effect.
Im sure there is much more that i am missing. Im not tax expert but it helps to hire crypto attorneries to help file these taxes with you. Be diligent and keep a record of all transactions made.
I don't think so. The receiving party would be responsible for the tax. If they live in a shithole country maybe they can just not pay the tax and get away with it
>“Wash Sales” cannot apply to crypto when u purchase asset of same type within 30 days.
says who? crypto isn't a security user.
Those are some big chink tits.
google reverse image search only lists Veeky Forums ;_______________;
Both losers. At least the pajeet probably has some mobius.
Just came from /v/ to say MOMMY
Idk brah sorry
Just relaying the message. Listening to lawyer firms deal with the IRS and client crypto reports. Just letting ya know.
SOURCE BEFORE ARCHIVE
If you're buying it in the united states and identifying yourself to a brokerage/exchange as living in the united states, or putting the fiat into a US bank account, it's taxable money. if you buy the crypto and your information is unreported to a US financial intelligence body (purchased without KYC/AML), and you send just the crypto to someone in another country, the US taxes are not a problem.