Bought a bunch of eth back last summer. Traded a shit load to make 10-12x.
Will claim I never traded hence no need to file taxes. Sometime next year, trade a portion of my alts to 90% of the eth I originally bought, cash it out for long term capital gains.
Claim I traded the remaining 10% for an altcoin that mooned and cash that out next year for long term gains.
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i was thinking of doing the same. I actually would have to cash out a lot of money to pay my taxes so I'll just take the risk
Bump, victory or do I get locked up like a filthy animal?
The question is, do we really have to prove our trading history? If not, then the strategy for claiming I traded my remaining 10% for a coin that mooned should work
I doubt it would be hard to use photoshop if you do have to prove it. But seriously, is the gov going to know how I've accumulated 5x a coin on etherdelta or idex? I doubt it.
You don't pay taxes until you cash out. As long as you're willing to pay tribute to Israel when that money finally hits your bank you're fine. Though you're going to need a rent-a-jew for proper paperwork for the long term gains rates.
anyone offering tax techniques here on an open public website filled with literal government stooges waiting for loopholes to plug is a genuine RETARD
yikes
Have you looked much into it? Seems like the crypto world is divided between tax on every trade or capital gains. I really don't want to pay tax on my huge Dec 2017 xrb run when it's only worth $8.60 now.
The thing is, in the US at least, if you're below a certain income bracket long term gains are 0% (someone please verify I didn't misinterpret) I'm in grad school and neck deep in loans so no income. I wanted to exploit this to basically not pay for my trading gains.
Nothing to see here IRS, just another shitpost
I'm in a similar boat. About $30k in student loans. Just graduated. Got a job that pays $69k/year. I made about $10k in crypto last year with a $1k investment (got in early November). If I'm just trying to accumulate a portfolio throughout this year to pay off loans what are my options?
This is what I'm wondering about. You think some dude in an IRS cubicle will be verifying all reported trades?
I have to imagine they have a team that is writing a program to collect all blockchain/exchange data to organize it and associate it with each person's ID. I mean, most of us use coinbase which requires ID/bank info. If they wrote a piece of software that can trace each transaction and compile what you owe in taxes it would be pretty useful for us to have some clarity, but it would definitely fuck people who are trying to avoid taxes somehow
Once your ether hits an exchange wallet, where it goes can be anyone's guess (unique addresses for alts) so I feel like someone following your funds would be difficult if not impossible. As for building a portfolio, I'd say DYOR, but if you have a strong bullshit filter, a lot of homeruns get shilled on biz on the ground floor
Ah, I didn't consider the fact that exchanges are tough to trace. Yeah I'm in a few low cap coins shilled on twitter/chan. Trac, BTO, Sphtx mostly. You?
I have a large ZCL position that I took around $90 b/c of Veeky Forums shills to bump my NEO stack. Have BIX, COB, SPHTX, WTC, HAT, FSN
You are EXPECTED to be able to prove it. You do not actually have to unless you are audited, the government finds out by following the paper trail during the audit
This could actually happen, but it is not really how they typically catch people. What happens is when they audit you they will see a tx from your bank -> cuckbase, you will then have to provide your cuckbase records
Assuming you didn't use coinbase/gdax for any actual trading and just used it to cash in/cash out eth I don't see how they will know what your eth has been through
The used to have a prison for tax evaders and white collar criminals on the Air Force base my buddy was stationed at, it didn't look too bad, they had tennis courts and got to do yard work all day, anyhow good luck user.
What are they going to plug exactly? There is nothing they can do.
There's only people that don't know what they're talking about and people that do. The people that know what they're talking about say that every trade is a taxable transaction when the fair market value measured in dollars at the time of trade exceeds the cost basis of the coins, you have capital gains.
Because they will see the coinbase -> binance or whatever tx and then you will have to provide those records and so on
>You don't pay taxes until you cash out.
That's a lie. What if you trade your coins for a lambo? You didn't cash out, yet you owe taxes on the dollar value of the lambo minus the cost basis of your coins. Since all coins are considered property, trading coins creates an identical tax event as buying a lambo with bitcoin.
If your adjusted gross income is below 38700 you don't pay long term capital gains.
What website did you buy ETH from. If your identity is connected to that website, every transaction you did can be seen plain as day since it's all recorded on the block chain.
But will they know what addresses belong to binance etc? god dammit, if they see that the eth goes somewhere and is no longer there, then obviously it was traded= I'm fucked thanks, this is what I want to take advantage of, but I can only do that if I claim I never traded.
I used coinbase and since I bought and sent more that $20k worth, I think coinbase might report me to the IRS, it's not looking good for our hero
By the way if they literally have to ask at every instance they are understandably going to be fucking pissed. You were already required by law to have this information and expected to be able to produce it at the drop of a hat. What can happen is they say OK fuck you we do not have time for this larping, you owe us x amount now, come back when you have your shit in order if you want some of that back.
They know which addresses are associated with exchanges. Didn't the confido scammer send the ETH to his bittrex account and the FBI made bittrex hand over all the info?
Actually even fucking Etherscan.io shows what exchange it went or came from. No special software needed.
Well they're going to ask you what that address was, I guess you could say you spent it on weed or something and hope they don't figure out it was an exchange, you have to weigh those risks yourself.
>I used coinbase and since I bought and sent more that $20k worth
Then it's game over. It's not "might". Coinbase literally already handed over all information of users that transacted with over $20k.
AAAAAAAAAAAAAA
what if I create new addresses for coinbase, will they still have records of my old ones?
damn tennis courts you say?
>thanks, this is what I want to take advantage of, but I can only do that if I claim I never traded.
Long term capital gains still make your adjusted gross income go up, for instance if you had 0 income from and cashed out ltcg that equaled 100k after deductions you would be in the 100k bracket for long term gains tax.
what do you mean by making an alt? how does that help you for taxes? won't it all come out the same when you cash out?
Nah they did this for between 2013-15 or something. I don't think they did this recently, but the fact that they did it once means might still be game over
Shit like this could easily get worse with them just taking all cuckbase records at any time. For those who do not want to pay tax do it properly next time and start by cashing in anonymously via cash.
I thought of a workaround. Say I traded and lost most of it, hence no need to report. The still go on with phase two of my plan where I claim to have struck it big with a trade and cash out roughly 1.5-2 years from now. This is assuming I get audited
Go to your coinbase account look at all your transfers.
Paste your addresses in here.
etherscan.io
The trail will all be there. Everything you see on there, they will be able to see. Plus they're hiring some company called Chainalysis as well for more advanced blockchain analysis.
No, you have hundreds of thousands of dollars worth of gains. Go see a tax professional. There's too much shit you don't know that you don't know.
My workaround should work. Say I traded and lost most of my stash, made a trade to get a shit ton of shitcoinx which mooned, proceed to cash out?
Well the numbers aren't going to add up then user. Basically your problem is that you left this way too late and it's hard to go back and clean up because you're dealing with compliant organizations and an immutable public ledger.
What's the reason for this scheme anyway? You racked up too much tax and can't afford it after the dump?
>prove trading history
>the irs can verify your claims
That's a lot of frauding you're going to have to do then. I'm afraid your 'say that you lost it' plan won't be very original too.
milky milky mommy mommy
Yeah, the decentralized exchanges would be hard to track. I mean, allegedly it happens on the blockchain, but I don't even know where to find the trade info, and I'm pretty decent at this crypto shit. You think some boomer is going to start looking through the blockchain for TXIDs and wallet/contract addresses? And there's plenty of centralized exchanges that I can't see reporting to the IRS. Bitgrail? Binance? STOCKS.EXCHANGE? There's so many more and they are obscure as all hell. I mean, eventually they will have the power to track it. It's there, recorded forever. But by that time, I should be able to claim I lost it, lol
damn. I just don't agree with the reasoning that the trades I made during 2017 while not knowing about this shit will cause me to have a hefty short term capital gains. Once they pulled a rule out of their asses, I figured I might as well make some more trades since I can't get Long term gains without committing fraud at this point and will likely never make sense of all my different trades from various exchanges including etherdelta
I still have not got anyone to pose a counter argument that Steem power is not a crypto currency. Buy a bunch of steem then stake it into Steem power and you wont have to pay taxes for capital gains on that because its not a cryptocurrency.
OK well do you have an existing income or just NEET?
It's been the rule since 2014 (and before because it was applied retroactively). They don't have to prove everything btw, sometimes if they think you're doing something wrong they'll just seize everything you have.
reason.com
The IRS needs to be dismantled. I'm sorry this is absolute bullshit when they go after innocent people.
Whether it is or not, you still incurred capital gains from all your other trades. If you bought $1000 worth of ETH and then traded it for $10,000 worth of LINK then you have a capital gain of $9,000. Even if you then trade that LINK for a "non crypto currency item", that doesn't erase the gain.
Well Ted Cruz wanted to abolish the IRS and have everyone self-report on a single post card with a flat tax.
Why didn't you guys meme him into office?
Working in a lab, mostly for my resume so get paid peanuts for sweatshop tier work. Unfair shit like taxing for short-term gains in 2017 are why ppl consider fraud for this
>bought my ether on coinbase
>only traded on binance with no kyc dcuments
>converting everything to monero and selling for cash
Is there any posible way i can be caught?
if you try to buy a lambo with cash u could get caught
True but if I am all in on coins that do this kind of staking system. Lets pretend Steem is not the only coin doing this kind of thing later on. Once finished getting the other shit out of the way you can completely avoid all future capital gains shenanigans.
Did you trade on Bittrex? Good luck with your plan then because the Feds/IRS are up their ass and will definitely request trade histories from them.
It’s RLC
OK then maybe with all the trading you can successfully argue the profits as income rather than capital and trim the tax off through the lower brackets. There's nothing unfair about short term in 2017, anons chose to remain ignorant and rely on hopes and this is what fucking happens.
There was still ambiguity about like kind exchanges as crypto was considered 'property.' Not going to delve into semantics, but I think papa government doesn't always make the best calls
This is my start, all they have is an email that may or may not be me
If you use coinbase you expose personal information whether thorough a credit card, bank account, etc