/biz/ - Business & Finance

>>58069614
>How many people in the US are actually paying taxes on their crypto gains?
I didn't owe money this year but I filed anyway just as audit bait. If they audit me, fine enjoy wasting time I still don't owe them shit. If they DON'T audit me, they probably won't audit me next year when I'm paying taxes on bullrun winnings.

>So in this case how does the IRS actually know you owe taxes on that 100k capital gain? Is it reported by your bank? Do CEXs still report large transactions to the IRS even if they don't issue a 1099? Is the CEX reporting external wallet addresses?
They see your bank deposit and no corresponding reported income. It's all auto-reported and a computer sees it and sends an email to some IRS twink to investigate. Yes CEXs make reports even if they don't issue a 1099. The CEX probably isn't reporting wallet addresses simply because the IRS systems would probably shit themselves. When you get investigated, the wallet addresses probably do get reported then and they trace everything through a blockchain explorer to see what you did.

>Sorry I just owe like 20k in taxes this year and I'm trying to convince myself that it's fine if I don't pay it. Please advise.
20k is nothing my dude, just pay it. Yeah it sucks, but if you get investigated they'll shut down all your accounts and you'll have no access to any money that's not in physical cash or in XMR, because they'll track your wallets and tell you not to send any crypto until the investigation is complete.

This year try to focus on doing things to minimize your taxes in the future: hold crypto for at least a year, keep track of your cost basis, don't be a degenerate gambling with leverage over new year's eve. Set aside some money in December for next year's taxes. If you're holding bags in the red, at some point this year sell them, wait 31 days, then buy them back so you get the tax credit and didn't actually lose your bags.

>>57951262
I'm not fucking with my ETHshit this year but my plan is
>figure out cost basis for the ETH
>figure out how much ETH I spent on PNK
>use that to figure out cost basis for the PNK
And then when I sell the PNK I'll do it fast and just figure out how much PNK I sold and how much money I got for the ETH.

I will THEN draw a chart in crayon (so it's color coded) explaining the trades and include that when I physically mail in my tax return for 2024.

The most complicated part will be when I bought X eth but only converted Y of that eth into PNK, but it shouldn't be too hard as long as I keep the cost basis of that eth in mind. I'm not fucking calculating the gain/loss of holding that eth when it was all converted to PNK in the end anyway. Only time I'm figuring gain/loss is when I sell for USD.