I keep hearing people say you're suppose to pay taxes on every transaction if in US. I get that any money that goes through Coinbase can be easily tracked, but since you don't register on Binance, how would they ever know if you traded a coin 100 times?
Asking for a friend
they don't until they decide to audit you and require proof of every single transaction, which they can verify against the blockchain. there are legal ways around paying as much but generally they're a pain in the ass. on any other income I would do everything I could to avoid paying but cryptogains are easy to come by so I don't mind
>implying most people on biz won't save money on tax by claiming capital losses
that was literally me last year
they can't verify any exchange related trade against the blockchain retard.
How did I deal?
I paid my taxes, entered in the amounts for every trade.
"I was hacked, sir"....is what I'll tell them. let's see them try to prove anything....
Took a while. 190+ transactions.
I had more than 190 transaction in a day.
What did you use to file your taxes.
The paper forms
Liar, liar, pants on fire. Nobody uses paper forms anymore.
What was the form number?
lol bud it's the IRS. That wont work they have the power; they can do whatever they want with you. What are you going to do? Request a trial? Who in the public space would side with a greedy neet?
if you don't put it in a bank or spend it in large amounts they don't care but if you spend X amount over X amount of time at the same place they will ass rape you, or if you put x amount in a bank over x amount of time.
by never creating a taxable event.
Hire a Tax lawyer. Get charged 300 per hour. Then pay your taxes.
I'm not reporting shit and I'm never cashing out either. Come and take my shitcoins, FUCKING TRY!
>paying protection tax
only in america
Another way to avoid taxes is to buy a shitload of LTC, hold for a year, and then cash out and get that lambo.
>implying most people on Veeky Forums have any fucking clue how taxes work or have steady enough hands to hold for at least 30 days to not get hit by the wash sale rule