Reminder you owe taxes from crypto to crypto trades last year even if you lost your gains

I'll take the bait.

irs.gov/privacy-disclosure/historical-documents-relating-to-alphonse-al-capone-chicago

do you seriously think you can get away with tax evasion? every major cryptocurrency exchange is reporting every transaction made to the irs as you shitpost.

the irs doesn't fuck around about their money

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That's exactly why taxation is theft especially when you speculate with your own money.

Jokes on you, crypto is tax free here.

you are literally comparing crypto NEETs to al capone

If I could just pay 20% when I cash out from crypto to fiat I literally wouldn’t give a fuck and would happily give it away but in situations like these it’s literally the government stealing from you legally and if you don’t have the money you can get assraped by Tyrone in jail.

The IRS doesn't have the ressources to go after everyone. Especially when you throw in stuff like RingCT, VPNs and wash trading over various sites, then they have basically no chance to backtrack that to you.
Furthermore binance or other exchanges in asia wont give a fuck about the IRS. Anyway you are fucked when you are living land of freedom and on top are trading on coinbase / bittrex. Then get ready for the soap.

I live in California too.. this guy had to pay 40% in taxes.. is that true California anons? I knew it was high but I thought 25% max. What the fuck man

>people don't even know about FACTA yet
FBARs dont apply but FACTA does.

Some countries have to pay up to 60%. Would you still do it? The government did nothing to support or help me gaining my money. In the end i wouldn't mind 20-30% either.

Wow that guy is so fucked. I already payed my taxes on tax return. Shit sucks but I know if I want money I can cash out my 12k in crypto at any time. Owed about 3500 did it through hrblock online

personally id rather lose an unknown amount and if the government wants to pay my living expenses for a few years because of that then fine, they can spend the money and resources to find the people like me until they are completely broke. the IRS talks a big game for the reasons a schoolyard bully talks a big game. only butthurt pussies who have already been fucked and feel entitled to a part of my money will even try to debate any of this. it's obvious to any white man

haha ok. When I start breaking the law in the same way a mob boss does I will be sure and hire a CPA.
Until then, get fucked bootlicker.

it's your income tax bracket. if he's in the 39.60% bracket in the US then he claimed more than 400k in income tax this year.....so larp.

>I live in California too.. this guy had to pay 40% in taxes.. is that true California anons? I knew it was high but I thought 25% max. What the fuck man

Who else do you think is going to pay for all those niggers on welfare in Cali?

California is currently the largest welfare state ever, in US history.

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IN THE LAND OF THE REEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

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It really doesn't matter. 'Mericans are fucked up the ass anyways.

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>not understanding that you can offset capital gains with your capital losses

I don't see the problem here. You'll never owe more than you gained, and you'll never owe anything if all you do is lose money.

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I don't even know how tax works but I don't think you need to pay crypto-crypto last year just this year
I paid long term capital gains on my bitcoin to cash and I think that's good enough

If I'm wrong what are the consequences?

>all these anonymous basket weaving burgers that think they're bigger and badder than the irs

holy fucking shit, you guys make sure to let me know how your nutraloaf tastes come Q2 2020

>make a lot of money
>don't pay taxes on it
>reinvest it elsewhere
>then lose a lot of money
>still owe taxes from previous activity

ree! no step on snek!

I spent $350, then withdrew every single cent I could from Finance/Coinbase. Do I have to report something so miniscule? I didn't even make any gains from it.

Reporting mine today

what about the way the market moved
you have big gains for last year and big losses for this year but you owe the gains before the losses
so are you crippled for a couple years until you can offset the losses + taxes

Except it’s not reinvesting, in the end all alts are tied to BTC it’s just the governments regulating it like stocks which they are not.

What country are you in? In America if you make short-term capital gains in 2017 the losses in 2018 have absolutely nothing to do with them.

Wrong. If you have a capital gain in 2017, even if all your money goes up in flames in 2018 you still owe taxes for 2017.

>the absolute state of the united states

>20% of the state collects disability
wtf

(and its probably that bad in every state)

If you made less than 10k, you generally don't have to file a federal tax return

If you, for instance, invested $1000 in 2017 that mooned to $100,000 by December, you'd owe capital gains tax on that $99,000, but only once you sold or made a trade, because every trade is a taxable event(basically a sale).

So lets say you had $99,000 in capital gains, but then you lost that entire investment in January 2018 by making retarded trades, and now your coins are only with $10,000.

You do indeed still have to pay your capital gains tax on the $99,000 you made in 2017. So if you don't have the cash to pay the ~$30k in taxes you owe because you lost everything, yes you are fucked. You'll have to talk to the IRS about your options.

Now, you will be able to write off your January 2018 capital LOSSES when you file in future years. HOWEVER you can't apply the losses to your gains from 2017(losses only carry forward, not backward).

So eventually you'll have to pay whatever you gained last year.

tl;dr come up with some money.

this is why hodl is not a meme

legal theft
>pay us your own money goyim or we will throw you in jail

>number
Now overlay a population growth graph you fucking retard.

>Now, you will be able to write off your January 2018 capital LOSSES when you file in future years.

You can only carry $3,000 worth of losses to the next year.

NOW LET ME REMIND YOU WHY THIS IS ALL HAPPENING.

This is the SEC stepping in to PROTECT consumers from evil ICOs. So that consumers don't get ripped off. THEY ARE PROTECTING US GOY

I only sold bitcoin in november december january
and didn't touch the money, but then what does bcash mean do I owe everything I made from selling bcash then owe again selling it to dollars

I feel like none of this shit is clearly defined and I paid what I sold to dollars I hope that's sufficient

what about all the bitcoin I lost gambling on sports and dice are those losses I can report

2017 trades are not enforced, only trades after Jan 3rd or whenever it was after Drumpf signed that shit

Galt's Gulch awaits you in scenic Somalia

user its like that every where

No, Coinbase only reports 14 or more transactions a year.

Thank god I never traded lmao I just held the entire time, basically owe 0 tax
People make fun of holders for the HODL meme and now tradefags are the ones who will be fucked. Feels good.

Not in the netherlands

but why don't you time the dip goyim trust us we'll be your exchange

Illegals can also collect disability as well.

You just know that kid is playing minecraft

We’re all dead

Damn. That is completely fucked.

You mean Somalia where gangs and pirates rape and pillage just like the government?
You are so fuckin gullible.
>No taxes = Somalia
Lol please noose yourself shitstain.

friendly reminder these threads are made by the same agency everyday

Come to my house pussy ass kike bitch :v)

that's just dumb luck. it's not like you knew anything about capital gains or called the top and set aside taxes

are you using this random reddit post as evidence of your claim? Crypto to crypto 2017 not taxable.

from the congress hearing yesterday it's obvious the government hates us
"pajama millionaires don't contribute anything to society"
literally calling for a terror attack financed by crypto

Yes, it is.

Fucking kek. Good luck tracing my binance and kucoin trades.

>So lets say you had $99,000 in capital gains, but then you lost that entire investment in January 2018 by making retarded trades, and now your coins are only with $10,000.

how would all your money go up in flames if you already cashed out in 2017? you only pay taxes on realized gains

Maybe you missed the part about the money?

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that law was put into place in like december it doesn't count for 2017 only 2018 and on wards

why do you say that?

>because every trade is a taxable event(basically a sale).

This is a meme. Explain how the IRS will figure out your SATOSHI profit and somehow convert that to USD and then burn you for it.

Seriously these fucks should start getting wacked by some hitLedger or something. Make them think twice before trying to gut us like fish with taxes and reg.
>mfw government is the bane of civilization

dude fuck off, not cool at all man. Seriously go think about your sick pathetic existence for a little bit.

not here in Germany

>LAND OF THE FEE

Can't wait for the massive exodus from the US everyone with half a brain will get the fuck out of there and give their citizenship.

selling is realizing gains or losses tard. doesn't matter what you do with the gains after that. if you lose them all you still owe taxes for the year you made the gains

You can always tell who the boomers are on forums and the boomer boot lickers. I can profile you down to the last detail based on your word choice, carefully passed down from boomer generation to gen z to millennial, it's fascinating desu.

>You can only carry $3,000 worth of losses to the next year.
You're wrong, you can write off $3000 in INCOME TAX with capital losses, but there is no limit to the amount of capital gains you can offset with your capital losses.

I don't understand your question. Are you asking what you owe from selling BTC -> Bcash? It's all the same, you have to pay capital gains tax on whatever gains you made from the time you bought the BTC to the time you sold it, no matter what you actually sold it for.

That being said, the IRS should only be able to see what made off with in USD. I don't think they can see your BTC -> Bcash trade.

>Damn. That is completely fucked.

Yes it is, that is why many experienced traders will...
>file early, so they don't lose everything before they've paid Uncle Sam
>intentionally sell bad investments at a loss at the end of the year, to offset gains they've made on other assets

The latter technique is called "tax loss harvesting".

>believing in the crypto to crypto meme

You only pay on what you convert to fiat.
If you WANT to pay on crypto-crypto trades, the tax man wouldn't mind at all.
People talking about crypto-crypto taxes are being asinine and spreading rumors for normies to fall for
I guarantee you a fuck ton of people will pay more than their fair share because they believed them.

If they ask for my trade history they can sort it out themselves, otherwise I'm paying the difference on what was bought and taken out with fiat.
Good luck determining the precise price of "x" shitcoin at "x" moment in time in terms of Bitcoin, and then the USD value of Bitcoin at that present moment in time. Not realistic at all.

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the IRS is the only competent branch of government for obvious reasons

>Explain how the IRS will figure out your SATOSHI profit and somehow convert that to USD and then burn you for it.

Fuck man you are naive. Ever heard of a 1099K? Coinbase sent mine to the IRS (and notified me by email). Every single trade, transfer (even Coinbase to GDAX), deposit/withdraw, etc... was declared a sale and my year-end total was around $13 million dollars.

I have to prove that the vast majority of that $13 million was in the form of transfers and not trades or else I am fucked. Trying to determine my cost basis for 2017 right now with a crypto tax CPA who literally has a waiting line of customers at his office everytime I visit.

I'm just telling you the rules that the IRS has laid out.

Will they trace every transaction on the blockchain? Probably not.

But they know about every sale of BTC that gets made with USD on the exchanges. So they know that you do own BTC, if you purchased it with USD.

So while they don't know about your trades, they'll know if you cash out more BTC than you bought, and then they'll be asking how you made those gains.

>but there is no limit to the amount of capital gains you can offset with your capital losses.

Oh wow. So if I have huge losses this year but massive gains next year I could potentially pay 0 short-term gains tax for the next year?

It's easy to do. Every major exchange allows you to export your orders.

Yes good goy, dox yourself to the government even though you have absolutely no obligation to do so.

if you're tech savvy enough you may get away with it but remember if you ever cash a significant amount of it out into a bag account that will automatically get flagged and you can be audited up to 7 years in the past. id rather just take the hit than be looking over my shoulder for the better part of decade

I say that because I’ve read the laws and spoken to three different cpas. One was useless but the other two fairly knowledgeable about crypto laws. Do your own research is all I’ll say. Don’t forget about facta/fbar as well. I don’t plan on dying in the next few years so I prefer to cover my ass.

>the IRS is the only competent branch of government

Oh is that why thousands of people get away with not paying their taxes every year?

>You only pay on what you convert to fiat.

Absolutely false. You pay when you trade for ANY FORM OF PROPERTY with a fair market value.

wtf is with all this tax shilling on this board

>The market punishes risk more often than not
>The tax man punishes risk on top of the market, whether or not the risk paid out

I start to see the point made by Libertarians sometimes.

how are you going to figure out the exact $ amount of each order before and after? oh thats right you cant

his point is the exchange can and will hand those records over to the government even if you don't. and then you'll likely get jail time + have to pay everything you plus interest

Yes, exactly.

If I had $100,000 in the bank and bought BTC at 20k and then sold it at 8k, I'd have lost $60k, so on my next $60k in *gains* I can pay 0 taxes.

And you can use $3k/year to deduct income tax as well.

thats not what im talking about

>have shitcoin
>shitcoin skyrockets
>sell shitcoin for BTC

how would the IRS know this ever even happened on an international exchange like binance? And how would they know the $ amounts to tax? they fucking don't.

Bitcoin is no property

The irs is an agency for the government not a branch of and like every other agency under obama, the irs became corrupt and incompetent.

You were supposed to keep track of that. But if you didn't there's tax software that can load up the exact conversion into dollars in that second from that exchange's API data of BTC's dollar price.

It literally prints the value of BTC at the time of your trade, you god damned brainlet.

>you have no obligation to tell the IRS about your income

Ehhhh

No, but in that case they can hit you with an audit and ask you to prove everything as they go through your shit with a fine tooth comb because you tried to say that 2+2=5. Good luck with that homie.

These threads are getting annoying.

First off, the irs will have no clue about your trading unless you bought crypto using usd on a legitimate exchange like coinbase. However, even coinbase fought back from the irs probe and settled on providing them information if an individual has made at least 20k worth of activity. So if you're under 20k on coinbase, the irs will not get any of your information. I would suggest from here on out finding an individual to buy crypto from in real life. Avoid exchanges like coinbase. And if you're constantly cashing out, that may also be a red flag. Don't know why youd want to, fiat is the worst shitcoin.

Second, if you're trading on a bunch of shit chinese exchanges using a fake name, which I assume most are, the irs isn't going to know shit. Add on decentralized exchanges (which everyone should be using), and it's nearly impossible to track anything.

If the guy in op's photo only dropped less than 10k for bitcoin with usd on a legit exchange, then made a bunch of shitcoin trades on decentralized exchanges and elsewhere (under a different name), he's likely fine because none of his info will be reported by coinbase.

even if you get away with it this year you could be audited 5 years from now. a close friend of mine got caught last year for shit he tried in 2013. had to lawyer up, wages garnished, the whole deal

The IRS isn't some cartel where you have to worry about getting killed by a hitman. If they notice that you haven't paid you can reach a settlement. Better to be chased down and haggle for a reduction than to be an honest cuck and pay it in full on time.