How many of you niggers have actually done all of your trading taxes?

until you drop $60k into a bank account to put toward your mortgage and the bank is like woah wtf we need to report this. good luck when you're audited 8 years later and they're like hey user where did this $60k come from?

Just wait you think these boomers in power are going to sit by and let you get rich without working for schlomo

This is exactly what I'm worried about. I have a not insignificant amount of money in crypto (around $100k).

This is just so incredibly fucked up. I bought ETH when it was $40, $200, and $400. I also mined a bunch. I haven't cashed out a single coin. I don't have $20k sitting around. How can they force me to close my position to pay taxes? What kind of sense does that make?

FUCK THIS BITCH

again you three need to see my post here H&R BLOCK...WHO DOES TAXES....DOESNT KNOW ABOUT CRYPTO...OR EVEN BITCOIN....
They are associated with the IRS...
The IRS doesnt even know what the fuck its doing. pay capital gains and stop sweating. only when you cash out

If you havnt sold anything, havnt done any crypto to crypto trading at all you're fine. Just declare you positions and you're golden down the road when you do convert to fiat.

because you realized gains during the tax year. gains realized from mining are also taxed. sorry user. you can avoid paying on principle, fight the power and all that, i get it, but you'll regret it when that letter from the IRS comes in the mail.

Notice 2014-21 makes it all pretty clear:
www.irs gov/pub/irs-drop/n-14-21.pdf

you don't declare positions on your taxes

h&r block is the walmart of filing taxes. "they are associated with the IRS" lol

Here's some helpful copy pasta I saved from another user:

>I bought in a sizeable amount through GDAX in January 2017. Over the first 6 months of the year I did a shit ton of trading on Polo, Bittrex, Kraken, and a few others. I also participated in a couple ICOs.

>I cashed out a relatively small amount through GDAX and sent money to the bank (less than $50k). I imported all my trading transactions through Bitcoin.tax (I paid for the premium service - it was like $20), and then went through and manually added my ICO contributions and a few other things that had a $0 cost basis to make sure it all made sense.

>I handed my CPA the bitcoin.tax report and he handled the rest. My CPA cost me roughly $200.

>Doing this very minimal amount of work saved me a fuck ton of anxiety and stress in terms of the IRS coming and trying to fuck me out of my money. This was basically free for me in the first place, I'd much rather just pay the fucking government their 30pct or whatever and be done with it.

>My CPA was very easy to work with and had no qualms looking through my bitcoin.tax reports.

>God speed anons. We're all going to make it.

>havnt done any crypto to crypto trading at all you're fine

I've done a fuckload of crypto to crypto trading dude. I have over 1000 trades.

Sorry you are correct, I misspoke. You declare your gains losses but not your open positions unless you are calculating mark to market or whatever it's called.

I figured it was. Im not sure where to find a decent CPA

Each trade is a taxable event. Take the 8949 that bitcoin.taxes gave you and give it to your cpa or do what I did and spend an evening copying each line of the 8949 into turbotax

Ps. I am hiring a cpa next year to deal with that shit

How the fuck will gov find out if you're trading crypto to Crypto?
Just use coinbase or whoever to deposit fiat
Buy eth
Send to binance, forkdelta, or another exchange who doesn't verify your id
Trade eth for other coins
Cashing out will be more difficult but worry about that later, don't freak out now over some tax "owed" for trading funfair tokens to eth to link all on binance. They don't know shit

bitcoin.tax gives you the option to export for turbotax and taxact and others. No need to copy line by line.

I'm trying to understand how in the fuck I owe $20,000 still.

>Cashing out will be more difficult but worry about that later

I'm sorry but that's a horrible fucking idea. I'm sitting on a 70k LINK stack, and when that shit hits $100 and I cash out a million or something, I don't want any audit questions coming my way.

Fuck man.

>How do you do fellow non taxmen

What the fuck are you on about dude? You made over 100k and are confused as to why you owe 20k? That's 20%. Some of us have it much worse.

and what do you mean, "Where the fuck am I going to get this money?" You sell some of your coins. That's how this works. Have you been purposely avoiding all the tax threads these last 3 months?

I think part of the problem is I'm already in the highest tax bracket from my normie job, so I get double fucked.

Fuck fuck fuck.

I never said I made over $100k -- I haven't cashed out a fucking penny. I'm saying my current stack is worth about $100k.

If you pajeets still haven't figured out how to not pay taxes God help you kek

I would be fully prepared to go to jail for not paying crypto taxes. After i done my time i would blow up the fucking town hall

Are you using FIFO or LIFO the latter was way less for me

yes you are. Because short term cap gains stack on top of your annual income. Placing you in a higher tax bracket

I was going through this same cathartic breakdown as you several months ago, user. I considered every option. There's no way around it.

with the way tax laws work, saying you're current stack is worth 100k is essentially = to saying you've made 100k. And I'm honestly surprised you don't owe more on that, given how many trades you've made

Stop baiting. If you don't cash out you don't owe anything

>paying crypto taxes

You're such a fucking cuck dude lmao
All you're doing is funding (((them))) and their NWO

You're an idiot
If you're cashing out a million then just pay whatever you owe
It's not like you were dodging taxes for years on 6 figures
Penalties and interest won't even be much at all on the past due amount
And this all assumes there isn't some easily spendable crypto card or other way to cash out and avoid the tax jew

Have you cashed out any time? No? So you don't owe them any taxes. Fucking go to a tax accountat and he will tell you the same, but charges you 300$

Regardless, the $20k you owe is based on the gains you locked in over any trading you did. Your principal was presumably much less than $20k less than your current portfolio, or else the numbers got messed up somewhere along the line.

>TFW owe more in taxes than my entire net worth due to shitty trading in 2017

you're an idiot. read IRS Notice 2014-21.

Don’t even sweat it, it’s a good problem to have. You’ll still have millions after tax.

you're either not an american, or your portfolio is worth less than 6 figures. I guarantee it. Because if either of those things were true, you'd be freaking the fuck out like the rest of us. Unless you paid your initial investment with local bitcoins/BTC atm, never verified an exchange account, and plan to launder all your money for the rest of your life.

Why is this a meme? All you idiots saying this are wrong. Read IRS Notice 2014-21.

I did it with cointracking.info very easy

The only exchange I was verified on was Bitgrail. My portfolio is 50k or so but I invested in late december...

what was your ATH and what are you worth now?

CPA here with a Masters Degree in Tax as well, you only pay taxes if you used and/or are using a american exchange. If not you're just throwing your $ away. If they don't have your social they don't know who you're.

This is what I'm tempted to do, but like I said I have 70k LINK on binance. If I disregard binance, I only owe like $5k

>IRS Notice 2014-21
which Q# talks about crypto to crypto?

Based on some back-of-the-envelope calculations, I'm guessing your principal was around $40k and you managed to get that to $100k? It sucks that after taxes it's actually only about $80k, but that's still a good ROI (~200% post-tax vs. ~250$ pre-tax).

What if you gave your ID for a higher withdrawal limit on Binance? Same thing?

If they ask, say you lost it margin trading on BitMEX
unfortunately my losses are real lel

>Started with $5k in spring 2017
>Traded up to $250k
>pissed most of it away on shitcoins like tron & verge
>lost most of the rest in bitgrail hack
>back to about $5k networth in shitcoin dust on various exchanges
>owe approximately $80k in taxes

J U S T
U
S
T

What does someone do in this situation? It has to have happened before...

There will be tons of crypto payment processors that convert to fiat for you. In germany, thus europe, you dont pay taxes on buying stuff with crypto. Be it w coffee, be it a car

Holy shit, let me get you some warm milk too. Q7.

I went to an accountant, paid $300 and he saved me $12.

I went because I had issues with IRA clawback (I overcontributed because I quit driving Uber in 2017)

I'm not going to a tax accountant again next year, I'm doing it on my own

From what I know you have to pay taxes from crypto-crypto trading in US from 1.1.2018, after tax reform implementation

Say you buy 2btc on coinbase send it to your binance wallet you turn that into 10btc, just send 2btc back to your coinbase wallet in a year and pay the 15% capital gains tax. Hold/trade/sell locally the rest of your btc. To the IRS it just looks like you bought 2btc sent to an external wallet to hold and sold for loss/profit a year later

Make sure that all time zones are accurate. I had to change bitcoin.tax to use UTC setting because that's what all the exchanges do. Otherwise it gets some right and some wrong.
Also look at gains for each coin and make sure it looks ok. Sometimes mine got inexplicably messed up and I had to reimport everything for the year.
Always update it after each trade so it's easier to catch mistakes and errors.
t. Sold btc at 2k to cover taxes

in the US, you'd owe around 10K on trades that net you 100K because first 37K are free, and 15% after that

Assuming you were replying to me, you're about right -- my initial investment was around $40k. Nicely calculated user.

Well, it happens, and it's entirely his own fault. His taxes were basically locked in with the end of 2017. Should've cashed out enough by then. He gambled away with money he owed the IRS, so he's fucked.

It's not like this is a new concept. If you're trading ANY good, your taxes are to be paid on the profit made in a single fiscal year. If you don't set aside money by that point it's your own fault.

The scam in taxation is in the.valustion of the assets in usd

You couldve started with 1000 eth and ended the year with 500, doing tons of dumb trades, and yous still owe loads in tax because the assets appreciated. This is fundamentally flawed

that is on long term capital gains

if you didn't actually make sure to have shit for a year, you'll pay more

this faggot again

Suicide would be appropriate

Lol wtf use taxact, you can just import it. I might pirate turbo tax and use an offline computer this year, the real turbo tax can import those trades.

this faggot again

Total profit for a year or do you need to take 20% of each trades profit, set it aside in usd, and calculate losses against that?

You wont owe taxes because you can can deduct all your losses. People love to forget about capital losses. too much gainz i guess

if you had capital gains in december and capital losses in January, you still owe for 2017

Yes, it IS this retarded

welp. if you are indeed justed at this point, I would hire a CPA and file for an extension and PRAY your shitcoins will recover by the extension deadline.

i know this sucks user, but DO NOT fuck with the IRS. this is exactly why ive been hesitant to go heavy on crypto. ive seen all the banks buying everything up, and goldman just bought one of the fucking major exchanges. dont know if you watched yellens last speech as FED chair, but she seemed unperturbed by the "problem" of crypto when it was brought up. that, to me, is enough proof that FED has already got its claws in it.

and while you may be tempted to just not claim any gains in crypto and do taxes as usual, but unless you bought all your coins from super seekrit exchanges or paid premium to some dude on craigslist, they already know. the IRS is fucking terrifying and they will enjoy hounding you till the end of your days.

also, if you do get a call from the IRS, say nothing and get a lawyer. especially in a case like this where the whole idea of taxing unrealized cypto gains is relatively new (atleast thats what i thought, i only trade equities).

on the bright side, if youre getting hammered that hard in taxes, you probably had a pretty good year, so congrats

>How many of you niggers have actually done all of your trading taxes?
Not being a deluded member of le 56% it's not something I have to fucking worry about thanks.

REMINDER: if you had gains last year (if you are filing taxes for 2017) AND you made trades this year YOU HAVE TO PAY ESTIMATED TAX

That's right, you need to file quarterly because the United States tax system is pay-as-you-go. Otherwise you'll be paying underpayment penalties of up to 5%

So you pay taxes on all profit/loss in one year

You dont need to set aside your profit from trade 1 to trade.x, right? Im confused as to whether this is what the meme implies

>>Buy one eos for 1 usd
>>Sell for x bitcoin worth 5 bucks at a time
>>Deduct tax on 4 bucks profit, sell equivalent od crypro, set aside on tax account
>>Start next trade cycle

Is it actually the case that you need to do this in the us? Seems too dumb to be true

there might be an issue if youd ever want to cash out more than that

Fuck the feds. I'm not paying. I am buying xmr.

you don't need to set it aside, you just need enough in your bank account to pay the tax each quarter

Which if you dont have and lose it all on the last bad trade you still owe?

I really don't know what's so hard to understand. You calculate gains and losses for every single crypto/crypto and crypto/fiat trade. You add all the gains and losses together. You pay taxes on the total amount you calculate. If you make $100 on one trade and lost $100 on another you made exactly $0 profit and don't owe taxes.

Jist say you lost it gambling and that this whole thing was gambling for you and that you maybe like to gamble too much

Sit on the crypto for awhile or only trade on dexes

What if you had 100k in december and went to 1k in january?

Then you're fucked. You were obligated you cash out in December. If you made 100k of taxable income in December you owe taxes on that amount, so probably around 40k. These 40k were basically property of the IRS by December 31st 12pm. If you continued to gamble with them after that, that's on you. Now you have 1k and still owe 40k in taxes. Tough luck.

So basically it looks like I'm cashing out $20k of ETH (basically all I have right now) to pay my tax bill. I don't see any way around it.

Fuck my life.

Let's say an amerifat was to cash out a significant amount of bitcoins that have been mixed, they have no Bitcoin purchase history, and they no longer have the keys to the original wallet to prove the source of the coins, or how long they've held them. Can that person get by with just paying long term capital gains tax with a cost basis of zero? Or will the IRS come to fuck that person over, because they don't have exchange or blockchain records proving the length of time the coins were held?

call a few CPAs before you do anything. Make sure they know wtf crypto is, give them an interview, you're going to hire them for a job potentially. Taxes aren't due until April.

Two options, depending on the idiot handling your case:
>You pay full tax with cost base of zero (definitely NOT long term, because you would need proof of this), so 40% or more. This is the best case.
>They accuse you of money laundering and you're fucked.

Maybe if you’re a fucking NEET. You are taxed at your normal income tax rate, and if crypto bumps you into a higher tax bracket you pay at that rate. I owe 36%.

So without records it's guilty until proven innocent? How does someone normally prove to the IRS that the coins that were held in a specific address belong to a specific person without that person handing over private keys or signing a message on the blockchain? Does the IRS even have the time or resources to review blockchain data? I assumed they would just review US cryptocurrency exchange data, or whatever exchange data you can provide

Yes, exactly. If you can’t prove your trades they will assume you’re scamming them, and you will pay with a 0 cost basis and get royally fucked in the asshole.

Alt to eth. Taxed. Eth to cash taxed lol I just paid my taxes and am holding al my shit for a year now

The IRS is understaffed. They don't have time to audit every single person who has traded crypto kek

Im sorry for you bros for being american

>Does the IRS even have the time or resources to review blockchain data?
awww yea.
fortune com/2017/08/22/irs-tax-cheats-bitcoin-chainalysis/

Well thats kind of what he is saying. Worry about it later as you don't have to do anything tax wise right now. Say you have 100K but are still holding, you are golden. Say you have come out even or lost so far, you're golden. Worrying about it later means when you are ready to cash out..

Lol H&R block.