>invest $15k in crypto a while back >worth $200k, cashed out $100k in 2017 >do taxes >have over 2000 trades on binance, make sure to calculate how much I owe on a per trade basis >end result: I owe $2,000,000
HOLY FUCK YOU LITEARLLY CAN'T WIN WITH CRYPTO
TAXED ON EVERY SINGLE TRADE AT THE PRICE IN USD, AT THE PRICE IN BTC, FOR EACH TOKEN OF THE ALTCOIN YOU HAVE AT THAT EXACT MINUTE OF THE DAY DOWN TO THE SECOND THAT THE TRADE WAS EXECUTED
IT'S ALL A PLOY YOU ARE GOING TO OWE THE US GOVERMENT 10x WHATEVER YOUR GAINS ARE IF YOU ARE IN ALTCOINS
you know youre only taxed on PART of your capital gains right, brainlet? god you ppl are fucking retarded
I think you did it wrong. You can't get taxed more than what you've earned.
Oy m8 that right goym, pay up.
lol that is absolute bullshit
you guys knowing this little about taxes scares me. go read a book
Bend over Johnny, here comes Uncle Sam!
is there a way to filter the tax FUD threads? its getting even more annoying than the tether threads used to be
how is capital gains even calculated when alt coins are exchanged? Like 10k usd of eth for the appropriate amount of some shitcoin?
sigh. so we're b8ing with tax threads today? welp, alright then.
brainlet, losing trades offset winning trades, you can substract the worth of your crypto at first buys from the last trades and then multiply by the % you sold and it will be roughly the sum to be taxed, to get exact sum you need to fifo your transactions
We’re all dead
You're stupid capital gains tax is on what you made in the year and it's like 20% or something
its easy, just never pay taxes on crypto
either take out a bit at a time and fly under the radar, or just convert the crypto to goods and services directly
if the government thinks they are seeing one fucking red cent out of me after all the bullshit they pulled..
and if the IRS ever comes knocking, just be like "oh my god I never knew im just a brainlet who cannto into the law sure thing mr lawman ill pay the 10% penalty or wahtever the fuck"
failing that, simply refuse to pay and shoot any agent that comes to collect
Yea this, people on here want to be good goys I can’t comprehend it
it's all about timing, though. let's say started with 1k, you bough some shitcoin for fractions of a cent. if you closed all your trades december 2017 and made 100k, then bought let's say bitconneeeeect and lost 98%, you would have left 2k, but owe 30k in taxes
you bet your sad little ass you can get taxed beyond your gains, atleast if you are an amerimut
your trading gains are seperated in years
>user made 2 million dollars in 2017 >user decides to hodl like a retard and not cash out before the year ends >this means that user starts 2018 with 2 million dollars >market crashes hard >user's stash is now worth 500k dollars >as its now 2018, it means user cannot use his 2017 gains to compensate for his current losses >user tries to cash out >recieves $500k in bank >SEC shows up >tells user what happened to the 2 million dollars he made in 2017 >user tells them he didn't cash out before 2017 ended and paid his tax >sec doesn't care >tells user he still owes taxes on his 2017 gains, which for example is 53% of the 2 million dollars >user basically owes 1,060,000 dollars in tax, but only has $500k now >user gets a massive tax debt
this is unironically how it works in the us, look it up
Fuck Uncle Sam. Just don't report it or put it down as a Capital Loss. Or be smart and just mine the shit, and sell your coins at an ATM or locally.
Fuck it, I'm paying taxes then
I'm moving to Thailand with my relatively modest gains to live like a king and fuck gook bitches
you are taxed on NET gains in USD for short and long term capital gains, not transaction volume. If your total profit from all realized trades is 500k, but your net gains is 200k that means you also realized 300K in loses on losing trades. you calculate net gains in USD equivalents at times of transactions to determine tax obligation. Try using a crypto-tax software like bitcoin.tax, yes they charge you money, but you can list it as a deduction on the next years tax form.
this guy is right, but that isn't what OP is talking about. For instance, at the end of the calendar year I had about 41k in realized gains off of 9.5k total investment over that calendar year. after that point I hit an ATH at 60k, and have since dropped back to about 30k. that 30k loss counts as realized losses which counteract the 20k profit from the start of the year so currently my net for the year is -12k or so, in both realized and unrealized. any realized loss can be listed as short term loss which you can deduct from taxes at a rate of 3k per year. If between now and the end of this caledar year, my account grows back to 60k, I cahs out making all gains and losses realized gains/losses I will owe taxes on the net change from end of last year to end of this year so (60-41=19k). If I don't trade much, and all that profit is in unrealized gains from trades that I entered but didn't exit before the end of the calendar year, I would still be at the -12k net gains figure because I realized those losses but have not realized any of the gains that come afterwords.
Just use a software solution and talk to a basic advisor to ensure that the numbers from the software will hold up, and about using and setting up Roth/IRA or 401k to limit tax burden and to distribute gains into long term accounts.
If you sell your bitconnect then you record the 98% loss breh. You owe on the 2% gain
Enjoy sucky sucky by gay boys with plastic tits
alt coin transactions are calculated using the USD equivalent at time of the trade.
for instance, if BTC is at 10k, and you buy 10 of shitcoinx at a value of 100k sat each for a total of 1 mil sat or 0.01 BTC your cost basis at time of trade will be $100 instance 1: realized gain you sell your 10 shitcoinx at 1mil sat each after a 10x for a total of 0.1 btc with BTC at 10k USD your realized gain is 1000-100=$900 (realized-initial) instance 2: realized loss you sell your 10 shitcoinx at 1 mil sat each for 0.1 BTC but in that time BTC has declined from $10k to $100. Your realized value in USD is then 100*0.1=1 so while you have made "gains" relative to BTC in USD equivalents at times of trade you have a realized loss of $1-$100= $-99 (realized value in USD-intial in USD) which you can then add to your net change, which since it's a negative number, decreases your realized gains and deduct from your net. If at the end of the year your net realized gains exceed net realized losses (remember to track long and short term gains separately) then you have a net positive which you pay taxes on. If you have realized losses exceeding realized gains, you can deduct up to 3k per year from your tax burden in losses and roll over anything over 3k to the next year.