/biz/ - Business & Finance

Only pay tax on the difference between what you put in and what you cashed out. There's no way for them tor reliably track the value difference between hundreds of shitcoin transactions
As long as tax man gets his cut, he won't ask questions.

you only get taxed 20% of the profit you make assuming you live in america. So if you turn 500 into 1000 you pay 100 bucks in taxes. you turn that 1000 into 2000 you pay 200 more in taxes. you can write off up to $3000 in losses though.

>>20277907
........

Fuck paying taxes on crypto. At least with stocks the gov rigs the market for bulls. You literally get nothing out of it.

>>20277947
So if I start with a $100 investment in crypto 1, sell it all for $200, then invest that $200 in crypto 2, and sell it at $400, the only taxed amount would be $300, of which I would pay 20%?

>>20277907
Technically you have to report every transaction whether it’s dollars to crypto or crypto to other crypto. Obviously enforcing this is going to be challenging so do what you feel comfortable with I guess?

>>20278037
yup. you'd owe $60

>>20278052
they want you to report every transaction but you only get taxed on what you profit on. the rest is just for record keeping. if you report a transaction as a transfer and not a trade for instance, you don't get taxed anything on it. if it's a trade where you make 1 dollar well you owe 20 cents now

>>20278052
Technically means its the law to report every transaction. Is there any way for the IRS to verify all the transactions you made? I'm comfortable with not getting fucked by the IRS

>>20278069
Isn’t that crazy? They literally did nothing for it, the projects are not based out of the US, the exchanges are not based out of the US, but you have to pay them $20 for every $100. It’s like the mafia.

>>20278090
So, a good strategy would be to:
1.) Hold whichever crypto(s) you think will moon/have the most long term survivability,
2.) Constantly buy low and sell high with the shitcoins

>>20278118
I don't think even the Mafia had it that good

>>20278159
Best strategy would be to make your own shitcoin that you can convert your eth/box into and then call it a loss by making it go to $0 on paper.

This has been true until recently. 2021/22 is gonna be the crypto boom for the IRS. They’re ramping up efforts to track tax evasion in this manner. If you use a major cex that does American trading they will preserve their business before preserving your privacy. If you can use bitcoin.tax to discover tax basis then 100% the gub can figure out how much you owe. Would you rather have peace of mind and not be accruing interest and penalties for every day you don’t report your gains or get raped by the long dick of the law? Ignorance of the law isn’t a defense. All it takes is mass letters to potential offenders then the burdens on you to accurately prove you’re compliant. There never really was a loophole they’ll pursue offenders as far back as the 2017 boom.

>>20278184
Well, I have no idea how to do that, so is the strategy I mentioned any good for someone who doesn't have much to invest? I'm willing to play with a $1000 and just buy high/sell low over and over again until the $1000 is $100,000

>>20278238
Do they really have the resources to account for hundreds of millions of transactions that have taken place since 2017?

>>20278101
I honestly have no idea what they are or are not capable of in that regard but you’re probably safe

>>20278301
Yes. The exchanges keep records for much longer than three years I’d say you’re safe if you used an exchange that went bust. But if you used a big one like binance and coinbase 100% report your income. They’ll even come for smaller exchanges it’ll be very profitable for them to chase that sweet crypto money. File an amended 1040x and overpay by like 30% to cover any penalties and interest to cover your ass. You can calculate later and recover your overpayment. The irs is the worst creditor to borrow from don’t hold out from them for your own sake if you weren’t carefully anonymous.

>>20278391
Well I use crypto.com app, and have only made one investment so far. Another anon said we only get taxed on the profit, but it sounds like you're saying we get taxed on every transaction..

Don’t you guys see trumps hate for crypto? He seethes over it. Even tho he bragged in 2016 debates about avoiding taxes legally “because he’s smart” doesn’t mean you’re smart avoiding them illegally. When the gub starts to stabilize it’ll get hungrier and hungrier to get back the stimulus check monies and he’ll give the irs full authority and the power to chase down tax evasion for the dank gains.

>>20278456
You are. It’s short term capital gains anon. You’re taxed at your income level unless you hold for a year then it’s much more favorable but miss out on trade opportunities. You also weigh in your losses too as long as same year so make sure you calculate before December 31st and take out enough to cover your tax burden in case it nosedives the following year.

>>20278456
And yes only on the profit from the trade, say you buy 1000$ worth of shitcoin and it goes to $2000. You sell. That creates a recognized gain of $1000 dollars which you are taxable for, not the money you put in only the profit from each trade.

Just trying to help frens not trying to scare you, you can still make good money but if you’re not leet haxzorz with your anonymity then make sure to cover your ass. Btw I do kek at the fraud of buying your self made erc20 and exit scamming that’s pretty based ngl.

and this is why I don't trade. Hold only.

>>20277947
>20%
JESUS FUCKING CHRIST

This is why I just be a good goy and pay my taxes.

The mafia gets their cut for now, once I'm a millionaire I'm out of this shithole. Or maybe I'll just leave when LINK is worth over $100 and call it good

>>20278469
Damn, sounds very plausible..

>>20278118
>Isn’t that crazy? They literally did nothing for it, the projects are not based out of the US, the exchanges are not based out of the US, but you have to pay them $20 for every $100

Welcome to trying to make something of yourself in the modern world -- you make money, and pay taxes on that, then you take what's left and then you risk it on an investment. If you lose it all, that's on you, there will be no check forthcoming from the government to make good your losses. But if you invest wisely and the asset appreciates, here comes the government to take a cut.

All so money can be given to people who risk nothing and just want a comfortable existence.

>it's like the mafia

Yep, when you follow every law, statute, and regulation to its logical end point, it is a man with a gun who will shoot you if you don't comply.

>>20278602
How high do you think LINK can go?

>>20278644
Checked. That's pretty depressing to think about. I don't think income and property should be taxed, only goods and services.

>>20278669

I don't mind income being taxed, and point-of-sale taxes tend to disproportionately hit the poor (because someone who's living check to check is basically spending 100% of his income on goods and services), but capital gains taxes are absolute bullshit.

Investments are made with money that's already been taxed. The investor then takes their post-tax income, and assumes all the risk of investing it. The government doesn't bail you out if you lose it all, but somehow if what you buy, with your money that's already been taxed, appreciates, here comes Uncle Sam to take another cut.

>>20278650
I had a dream once that the LINK ATH was $347

Felt very real but beyond that I have no fucking idea. If it's actually used as widely spread as HTTP or some shit 1K could unironically be FUD. If it's similar in use to ETH we might see $90 and never get that high again. Personally I think it's the former though. Either way I'm going to be filthy fucking rich and LINK will be my primary and only investment for years to come

>>20278514
Gotcha. Thanks for taking the time to explain. I suppose it would make sense to implement this strategy: >>20278159 What do you think? I'm sure there are a number of better strategies, but would this one be ok?

>>20278723
Yeah Link seems like the one. I wish I got into crypto a lot sooner, but it's all good. If Link hits above $300 we'll both be rich

>>20278714
Ah, so no point of sale tax, no property tax, and no capital gains tax, but income tax is fine. I like that idea.

>>20278602
You have to surrender US citizenship to stop them from taxing you. Hope you have a plan

It's 30% here in my cuck country. Just fuck my shit up. How is this not organized theft. It's all gonna go to nigger gibs too.

>>20278860

Right? You incentive investment and consumption, which in turn makes it easier to start and sustain a business, which means more employment and productivity

I still don't understand how they could track everything. Imagine every uniswap shitcoin trade, knowing the exact value of eth against said shitcoin and then working backwards against that for multiple transactions over multiple accounts. They just won't have the manpower for that, I'm just paying income tax on whatever I cash out because they'd never verify hundreds of shitcoin transactions, they'll allow some amnesty as long as you made an attempt to pay something

>>20279093
Are you sure it'll play out in your favor though?

>>20278729
Yes just use a service like bitcoin.tax or save a spreadsheet of your trades to figure your total profit loss to then submit to gubment. That is a good strategy because gains are better than no gains.

>>20279093
What? There’s public record of every trade and there’s a spot price available at the time of trade if not in direct dollar denomination then ethereum denomination which can be assessed in dollars. You are leaving a paper trail anon just submit tot he overlords

>>20279093
Also doesn’t take much manpower they have AI’s to do the legwork on your specific transaction trail and they see when you cashed out and will determine you are deficient in your reportable income and you’ll get the letter.

Not trying to be the prophet of doom but more of a reality check that there’s no way they’ll pass up harvesting this dank crop of crypto tax evaders lol