/biz/ - Business & Finance

>>21152351
Why the fuck do burgers have to pay taxes on unrealized gains?

(((They)) will ever have a way to steal your money.

>>21152371
>>21152393
do burgers really have to do this

>>21152351
move to Puerto Rico

You don’t keep your money in coin base you don’t trade on GDAX.. you fucked up. Leave the country.

>>21152393
Only zoomers and basedboys pay taxes on this. Boomers and Chads pay nothing to the GovJew.

>swingiecuck
>shitcoin roulette gambler
he deserved it

>>21152429
yes

>>21152393
it not, he realized gains cause crypto to crypto is a taxable fucking event. This is why trading fucking dumb.

OK chain analysis experts u can stop making these fake thread and fuck off, we are not selling.

>>21152393
no, but he sold his cryptos when they were high for other cryptos that crashed hard. crypto to crypto trades are taxable so he got fucked hard

>>21152351
You don't pay taxes until you sell, brainlets. Hold for over a year and it will be long term capital gains which are less than short term capital gains. Exact same as buying stocks.

Haven't bought or sold crypto in two years now, best to just hold

>>21152545
Shit. I didn't know about this. Good thing you told me now.

>>21152545
Unless on 31st december instad of creeping up on stacy at the office party he should hve sold all his failed shitcoins for dainto realize the loss and traded right back in for muh pride and he would have been in the clear but he didnt do it because you know dumb

How can this be avoided?

>>21152393
they were realized though, every time you trade coins it counts as a sell.

>>21152671
move to Singapore or Switzerland

>>21152671
Buy and hold. That simple, brainlet.

>>21152351
This is why you should own a gun. The government is your enemy, the tax man is their executioner.

tfw only have to pay tax after making 30k profit in a year, feels great man

He's a swinging moron who instead of HODL'ing probably traded back and fourth a million times not keeping track of anything. Gets what deserves

Ah jeez dude, how does three dollas sound?

>>21152545
Couldnt he just trade for crypto and file losses and reduce taxes ?

>>21152789
is this true? for usa?

Are you just supposed to keep a record of every fucking trade and meticulously enter that shit in on the next tax return forms?

>>21152750
wtf though. i can't buy altcoins to make it?

>>21152844
unfortunately not the US, I live in the netherlands

>>21152671
buy and hold until you're a bajillionaire, then take your money and leave the US for good and dont pay the taxes.

You can't come back tho, so remember that

>>21152455
no, retard

>>21152393
he realized it by trading it, but this guy's a retard. gains are offset by losses so if he realized all losses in the same tax year he'd be perfectly fine to file...

>>21152850
i guess so, that’s what i’m doing. recording the shit i buy on uniswap. have a lil excel sheet with the amount of the coins and what they were worth at the time of trade. no clue if that’ll be enough

Nigga how will they know my metamask wallet?

>tfw living in tax haven with 0 tax liabilities and 0 questions asked

>the only trade I’ve made is $20 worth of bitcoin for LINK when LINK was a couple bucks each
>threw another $100 into LINK at the time
Feels good to gamble with lunch money instead of real money

Dont the losses count as realized losses which offset the gains

>>21152907
When the bank alerts the feds you got shitloads of cash from an exchange

>>21152907
This. They're only going to ask for money if you trade on exchanges or turn it back into fiat. Pay what you owe on the entry and exit amount and fudge the rest. IRS isn't going to give a shit.

>>21152671
Would I be taxed if I move a currency from one wallet to another, but no transaction occured except the moving fee?

>>21152957
That's why you call the bank first before you just dump half a million into a savings account. They'll actually help you set up an account to hold the tax money away from the spendable money.

>>21152879
if you trade crypto >>> crypto you are subject to tax in the US.

>>21153036
sure because that's considered realizing a gain

you don't have to pay taxes because something you hold increases in value

All you faggots worrying about working out tax, aren't you rich enough by now to have an account at hand?

>>21153092
Yea, but a lot of people are under the impression that "realising a gain" means only cashing out to fiat, which is the assumption I was alluding to.

>>21153036
Only if you made money. Buying $400 in etherium then using that to buy a shitcoin 9/10 is a net loss (fees, plus the etherium immediately losing value because you bought it)

>>21153036
So you should wait a whole year from your last trade to cash out in order to only pay long term gains tax?

>>21152438
where should you keep your money?

>>21152351
glad i pulled my monies from shitbase

>>21152789
Not exactly Dutchbro
Let's say you have 100000 euro's in assets (cryptomoney, savings account, stocks)
You have to pay no taxes for 30846,- euro's
For your remaining 69154,- euro's you need to pay 0,54% in taxes.
(If you'd have even more, you'd pay for the remainder 1,27% in taxes)
(dit is belasting onder box 3)
So you here in the Netherlands they look at your assets rather than how much profit you make

The Netherlands is a crypto tax haven, unlike America.
I will even let my Monero be taxed, I'm not taking the risk.

>>21153202
correct

>>21153240
You can use FIFO in order to cash out parts of your investment with the according tax rate IIRC. Modern exchanges make this easy to keep track of.

>>21152671
hodl until you're a millionaire

Oopsie woopsie sent all my coins to a casino and gambled em away! Yes thank you for the tax reduction for my capital loss.

>>21152932
he would have to sell to realize the loss

>>21152987
I don't think so. You're just moving the location of your 'property', not exchanging it with something else.

>>21153350
So, if he sold his 125k remaing portfolio for some other shitcoins and then cashed out to fiat, it would be all good? Even if his portfolio remained roughly the same value?

>>21152351
Glad you posted this, I didn't know that.

>>21152864
in Germany, if you hold longer than a year you pay fucking 0 in tax

>>21153440
No because you can only claim $3000 a year in loses.
Anytime you swing, set 40% of the profit aside into a savings account or something. It'll save you tons of grief come April.

>>21152351
Coinbase keeps track of everything.
Just go on the desktop website and downlod your excel file should have everything.

He’d probably spend a good half day doing all the calcs but it would all be there. Laws will probably change in a decade a so, so just don’t pay

>>21152488
checked, this

>>21153440
i dont think swapping to another shit coin would even be necessary, hes already lost ~$750k on paper if he just cashed out to fiat right from his holdings

>>21153500
But you have to live in Germany.

i filed my taxes thru credit karma and put in 1 entry for "bitcoins tradings" and the corresponding amt into the system. no problem so far.

>>21153245
>buy from goyimbase with fiat
>send to a hot wallet you own
>send from hot wallet to a warm/ cold/ paper wallet for hodl and don't use the hodl wallet for anything except sending to your hot wallet when you are ready to trade or sell
>only trade crypto to crypto without kyc
>sell p2p if you can
>pay taxes on profits like a good goy

>>21153505
you can seriously only claim $3000 a year in losses? i didnt know that

>>21153584
>buy from crypto. com with fiat
ftfy

>>21152907
I was thinking the same. The only visible thing on Coinbase is the ETH that I transfer to Metamask...

>>21152839
yes everyobne in this thread is retarded

>>21152351
He should have just taken the initial out and let the rest alone then move on.

I've become quite the shitcoin collector this way and don't owe a dime in taxes.

>>21152839
you're right im a brainlet

>>21152351
you can deduct any losses against yr profits and you pay a 15% capital gains tax on profits after that.

dont quote rebbit retards and stop sucking cock OP

>>21153347
Can someone tell me why this isnt a solid strat?

>>21152865
Don't do this, just go to Puerto Rico under Act 22 get that sweet 0% capital gains tax.

>>21152351
This is just another reason to hold.
Single filing tax on long term gains (1+ years held)
> 0% on $0-$40k
> 15% on $40k-$400k.
> 20% on $400k+
Single filing tax on short term gains (>1yr held)
> 10% on $0-$9.7k
> 12% on 9.7k-40k
> ...
> 37% on 500k+
Each time you make a crypto transaction that's selling or exchanging you lock in the length of the capital gain. Redditfag was essentially day trading with crypto, tons of transactions, tons of "profit" and therefore taxable events. These tax bills add up and now he has 400k in taxes, even though he also has losses.
If you just bought some link and sold it two years later, you could potentially owe 0 taxes on it if you profit under 40k. Or only 15% taxes on gains over 40k.
>>21153440
As soon as he trades his portfolio for something else it's taxes are set. I.e. Shitcoin->ETH.
Should he trade Shitcoin -> ETH -> Cash, each transaction is taxable and just adding to his bill.

>>21153646
Extra losses I should say. If you make $10000, but lose $140000, you don't pay taxes on the 10k but can only claim 3000$ loss

>>21153982
* I should note he can also claim losses on his tax bill but on paper they see him making a bunch of money and quote him that much.
* also if he cashed Shitcoin -> Eth -> Fiat, he'd likely owe no taxes on the Eth->Fiat transaction if he does it pretty much immediately as there wouldn't be any gains there.

i dont know what the fuck yall are on but since 2017 i have cashed out about 15-20k a year from crypto and i never payed taxes on any of it.

but im also a neet i think if you make under 35k a year you dont gotta pay

im also on food stamps.

>>21152459
That’s so stupid so if I cash out a 10 million into say btc and btc goes to zero I have to pay taxes on that 10 million dollars??? Can’t you offset the lost against the taxes and pay nothing

>>21152545
He can just sell his crashed coins and count the losses against his gains. If he wants to, he can then rebuy at minimal loss. He's twice retarded for losing all that money and then thinking the taxes would bankrupt him.

>>21154070
If you bought a coin (Cash->Coin is non taxable event) and it goes to 0 you would not owe anything as there were no gains, when you eventually convert your BTC into $0 US.

>>21152851
Day trading will fuck you tax wise. Buy whatever you want and hold for at least 1 year.

>>21152671
just dont report lmao

>>21154108
I mean if I converted say 10 million link to btc and then btc went to zero. Sure that’s a taxable event but wouldn’t it be cancels out what you owe the tax man after offsetting the 10 million loss? That would be unfair paying taxes on 10 million when it went to zero.

Say you got a million from link and want to cash out. Do you get taxed?

>>21152351
DOES UNISWAP REPORT ANYTHING HELP

>>21154041
Lol. IRS will be paying you a visit in the future.

>>21153310
I traded my eth for more link is that okay? Or is that taxable.

>>21154198
Yes.

>>21154250
Taxable.

>>21154238
yes they report everyday to isreal about your shitcoin trades, you better lube up because the irs is going to hammer your tiny asshole very soon

How does chainlink know im trading im swing trading on binance?

>2017
There wasn't a clear government distinction on how crypto to crypto trades should be taxed until 2018. He's only liable to pay taxes on crypto he cashed out and only if that amount plus his normal income is over $39,000.

>>21154276
>>21154301
So in other words we’re all going to get fucking taxed when we cash out? It just depends how much for the country we’re in.

Crypto tax laws are retarded. Using capital gains tax from stock trading and applying it to crypto is beyond retarded. Its completely different, with swing trading super prevalent

Scares me shitless. If the market crashes, im just gonna sell all my shit and realise those losses

>>21154070
No, you don't pay taxes on a loss.

>>21154348
Yes. Why wouldn't you. Your job taxes you. Stocks tax you, etc.

>>21152351
Does Binance report trades to the government? I'm not cashing out for a long time, I assume the CRA won't know about my trades and would only audit me if I suddenly had $100k dumped into my bank account

>>21154190
>but wouldn’t it be cancels out what you owe the tax man after offsetting the 10 million loss?

Yes, if it happens in the same year.

>>21153952
Pretty much any crypto with the sole exception of Monero and a few other coins like Zcash (and only if you enabled the privacy mode) can be analyzed to know what happened to the coins, there's a lot of firms that do that nowadays, I have never heard of the IRS doing this to track crypto gains but it isn't something impossible or particularly expensive
And most exchanges will fully cooperate with the IRS even if they don't operate in the US and don't serve US citizens, odds are that the casinos will too

>>21152839
>>21153685
No. What happened was he kept trading for all of 2017 accumulating taxable gains. Then he lost most of the money in 2018. You can't offset 2018 losses on your 2017 taxes owed.

>>21154250
>>21154301
But wait, there are some cryptos that you can only buy with other cryptos, like the uniswap ones. So you get taxed just to buy them? Or am I doing this wrong?

Serious question - who's actually doing tons of trades like this on american exchanges? If you do all your trades on a dex then the IRS doesn't know shit until you go to cash out. Which could be never - if we eventually have an easy crypto to fiat off ramp and you can just hold DAI or RSV or whatever instead of USD.

>>21154070
you owe taxes based on the difference between what you paid for link and what you sold it for.

>>21154395
I don’t want to sound stupid but when you cash your from Coinbase. I thought the tax will be done by them and that’s it. Am I correct with that thinking?

>>21154472
Dont know about that, but in general the sale or exchange of a crypto is a taxable event.

>>21154431
Only above a certain threshold. I can't remember the exact number, but I think it's 200 trades or a fairly high $ amount. Someone correct me if I'm wrong.

>>21154449
Okay so that’s why the bullrun followed by the massive dump happened near the end of the year. Holy shit.

>>21154517
You figure your taxes when you file your returns every year. Coinbase will give you a tax form for you to use, that's it.

>>21152393
You can write off your losses. The dude who made the OP is either retarded or lying (or both).

>>21154431
if you never verified then no, binance is not going to work with the US givernment.

i made my binance acount in 2017 and never verified. i still trade on the chinese binance without VPN and not paying taxes.

just binace fees and the risk of losing about 15k links i have there

>>21154616
You can't write off losses from 2018 on your 2017 taxes.

Quick question on UK taxation because it's been puzzling me.

We get taxed on crypto to crypto transactions. So if I take £1000 worth of swap, it moons, and I exchange it for £20000 of bitcoin, that's a taxable realises gain of 19k.

Do I then have to pay tax AGAIN on that 19k when I turn it into fiat?

>>21154108
>If you bought a coin (Cash->Coin is non taxable event
So it’s best to use your cash when buying coins. Using other coins to trade is where you get taxed?

>>21152897
Fuck all that. They can take taxes from the fiat I cash out or fuck off. Hopefully they stop treating crypto traders like criminals

>>21154654
how do u cash out to fiat though?

>>21154706
Thats the impression i get, buddy. Fellow late night UK fag here

>>21154754
I agree. It’s too much of a hassle. Tax me or leave me alone.

>>21154461
Not being able to file losses on the year after seems pretty damn retarded...

>>21154706
>>21154795
If you sell the 19k worth for 21k, you pay tax on the 2k of gains. If it's still worth 19k when you sell, then no tax. And if it's less than 19k then you can file a loss

>>21154679
Oh yeah I didn’t see the timeline there. Yeah that dude ruined his life lol.

>>21154706
Yeah you do, fuck this country

>>21154795
So if you earn £1million because of Link. How much do they charge you in tax? (Fellow UK anon here also)

>>21154190
> Depends on when you bought the link (Short vs. Long)
> Depends on profit made (Taxable bracket).
> There's limits to loss writeoffs
>>21154472
>>21154715
If you bought ETH and immediately turned it into shitcoin, you're taxed on gains the ETH made before the swap to shitcoin. So tax on that would be very low or nothing, since ETH probably didn't gain before you converted it to shitcoin
I.E. $50USD -> $50ETH (this ETH becomes $51 before you swap) ->$51PNK
You only owe taxes on the $1 gained during Eth hold, and then eventually taxes on gains from the sale of the PNK

>>21154883
just buy citizenship in a country that will not tax you
https://www.forbes.com/sites/laurabegleybloom/2020/07/28/escape-america-countries-buy-citizenship-second-passport/#11fa009a7f74

>>21152351
My strategy is to wait until trump dissolves the IRS. To be honest.... if this gold standard And XRP thing is true. I think the taxes won’t matter

>>21154866
this is how I understand it

>>21154706
The exchange will be marked as "bought swap for £1000, sold swat for £20000 (£19000 taxable profit), bought BTC for £20000". If you then cash out BTC to £20000, there will be no gains and no additional taxes.

>>21154950
Yeah great idea. Go to some shitskin infested poor country and get killed for being white

Open a swiss bank account and cash out, then use art "commissions" as a way to launder it through with lower tax rates for smaller transactions.

For example, establish a devianart or art profile, and use a swiss proxy to create like 10 emails. Then, using the swiss bank account, transfer small increments through "commissions" with the different emails, so you have proof of transaction and it's not just sending money suspiciously. You can easily corrupt images, so even if they tried to audit you and call bullshit on you sending art, the files will be corrupted. With that you have a ledger and proof of transactions through the emails, so even if you get audited, their argument wouldn't hold water, since commissions are pretty common. You can most likely launder 200 a day or so from rotating accounts. It's not a lot, but if you don't want to pay the fuck huge lump sum you have to drip feed it into your account.

t. not cia

>>21155018
You only need to live there on paper

>>21152351
Is this real? If so, how can I avoid ending up like this? I have bought crypto on Coinbase for the most part, but only about $200 of it so far. What should I do?

>>21153648
do you need kyc for it?

>>21152393
because the system is designed to jew you over. But it's also important to remember there is ZERO REASON TO PLAY BY THE RULES ON THIS.
Taxes on crypto-to-crypto transactions are not enforceable. There really isn't any simple way for the IRS to actually come at you for alleged money owed from eth gains made trading shitcoins on uniswap.

>>21152351
The problem that happened with this sucker was
1) he reported his crypto-to-crypto gains like an idiot, or he cashed out to fiat before going back in
2) the big dump last cycle happened from december-january. It's completely arbitrary, but since the way our kiked tax system works is separated by the years, it doesn't matter that his gains were wiped out a few days after the new years. He still made all that money "in 2017" so he's fucked.

>>21155202
I have all my money in Coinbase anon. Fuck. Am I fucked?

>>21155018

>Go to some shitskin infested poor country and get killed for being white.

Like America?

>>21154855
You're right, it is retarded. But that's how it works. As well, you can be taxed for theoretically an infinite amount of gains, but you can only deduct 3k of net losses in a year. All sorts of tricks so that the house always wins.

>>21155279
Sounds like we ought to cash out and cash in, between tax years then.

>>21155202
Don’t buy and sell 200 times within a calendar year with $20k or more in value? As long as you don’t trigger goyimbase’s algo that sends you a 1099, the IRS won’t know about your gains/losses.
If you want to be a good goy, however, you should still be tracking your own gains and losses, or get a goyimbase pro account that tracks it automatically so you don’t fuck up and make a life-ruining auditable mistake.

>>21152351
>Imagine paying taxes on crypto

Do you have no idea why crypto was invented in the first place? To busy speculating to even do the slightest of research?

>>21155349
Something I’ve learned you can do is if you lost your ass on a trade and say you lost 90% you can sell and rebuy it and you effectively “gained” nothing tax wise as long as it’s the same year.

>>21155350
That's a strategy people use, although be careful that doing so doesn't fuck you over and make you do short-term capital gains rather than long-term. It's one of the reasons why markets tend to dump at the end of the year.

If you guys don’t want uncle sam up your ass and want to spend it. Spend it on travel using travala.com they also got a token - AVA . Direct crypto payments. BINANCE BACKED. enough said and book that travel with your faggot friends for the ultimate cuck fantasy vacation

>>21155380

>>21155279

Can you not carry forward losses from previous years?

I buy my ETH on Coinbase, store everything on Coinbases wallet, but do all trades through Uniswap. Is Coinbase tracking those trades, their wallet is separate right?

>>21155506
You can, but only 3K at a time.
So in OP's example where he went from 880k to 125k, that's 755k in losses. But he can only use 3K of that PER YEAR for tax deductions.
So he'd deduct 3k from his tax every year for 250 (two hundred and fifty) years to make up for it.

OH SAY CAN YOU SEEE

>>21152351
Wait what the fuck?
this makes zero sense, if he didn't report his crypto-crypto transactions how the fuck could he pay taxes?

Why should I pay taxes on uniswap shitcoin swinging that the IRS has no way of finding out about?

>>21155486
So when this says "trades" it's only referring to taxable events, right? Will this happen if you've bought 20k worth of crypto on coinbase but have not cashed it or traded crypto-to-crypto there?

AFAIK as long as you withdraw to a private wallet and do your shitcoin gambling somewhere else like uniswap, you're fine right?

>>21155629
assume that they are. get an accountant.

>>21155650
He fell for the memes that all those CPA jews told him that you absolutely need to report taxes even on things that are literally unenforceable that the IRS boomers have zero fucking way of possibly knowing about without you telling them

>>21152351
Should've stayed under the $20k/200 transaction limit on coinbase. They don't report anything to the irs if you're under that threshold.

>>21155730
In other words all linkers should are getting rich get an accountant before you cash out right?

>>21155778
establish a relationship with one now. ask a relative if they know one.

>>21155760
this

>>21155380
Oh ok. Thank God I'm a poor faggot and only have $200 in Coinbase.

>>21155730
Guess I'll move it off their wallet. Other good virtual wallets that trade on Uniswap? Metamask?

>>21155639

What in the fuck, that makes no sense

>>21155878
house always wins, baby

can you just pay capital gains tax? How tf can they actually know about every micro crypto-to-crypto transaction (unless you tell them)?

>>21153572
Which is better than living in America

>>21155380
LINK is putting my coinbase wallet over 20k, can I lose scrutiny by moving it to a ledger?

>>21155380
>Don’t buy and sell 200 times within a calendar year with $20k or more in value?
So if I spent around $3k on Coinbase and it went up to 20k. Have I triggered Coinbase algorithm?

>>21155778
Or just read the US Code yourself. DYOR and all that.

https://uscode.house.gov/view.xhtml?req=title:26%20section:7701%20edition:prelim

https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1221&num=0&edition=prelim
https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1222&num=0&edition=prelim
https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1223&num=0&edition=prelim

Have fun :^)

what if i bought bitcoin/chainlink on coinbase, transferred to binance and let it sit for a year, and then deposit it back onto coinbase and sell and move to my bank account?

does this get taxed?

>>21155380
If you have >20k on coinbase but it's purely from buys and no sells does that still report to the IRS? I don't swing on coinbase so there's no taxable events there

>>21152351
i realize the meme has already been addressed but if the tax man ever decides for real that you owe more money in tax than you have what we're talking about is a literal self defense situation

>>21152351
Tax debt is dischargeable in bankruptcy after two years from the filing date. He’ll live.

>>21156009

Yes. Why the fuck wouldn't it? There is no way around the tax niggers.

>>21155999
Only if you sell it. If that’s the case, then you’re treating it like a stock. You will be expected to pay short term (held for less than a year) or long term (held for a year or greater) capital gains tax.

>>21152351
>>21156009
I just happened to see this thread. The IRS told me in 2018 that I owed them $147,000 for my crypto trades in 2017, and I was unemployed at the time. That amount of money roughly equaled my life savings at the time. I wrote the IRS back a letter saying they owed me $1,300 instead of me owing them anything, and they sent me a check for $1,300 about 2 months later.
People in this thread will say I'm lying but I'm not. I still think it's kind of amazing.

>>21152895
no, a similar thing happened to me bro. I had unrealized gains, crypto started to dump, I converted to depreciating currencies a few times before the new year, ending up with a few times less. So I owed the IRS for the gains I made before the new year, even though I didn't have the USD equivalent of currency to show for the gain. You can't deduct the next years loss from your previous year's gain. Instead, the loss you took is deducted in 3k USD from your taxable income each year. i.e., if you had 30k worth of losses, you'd have 10 years of 3k less taxable income. If you could pay the previous years gain with your current years losses, you'd be fine. I'm not a financial advisor, and this is not financial advice. If I make it, I'll convert it slowly to something that has reliable worth relative to the USD (tether), in chunks. And then withdraw the chunks as USD (the IRS respected currency), and I'll do it all same year before January 1st hits (that's important). That way there will be no surprises with intermediate currencies tanking in value come the new year, and thus I won't owe tons of money I don't have. So basically... be careful when you trade coins, if you made yuge gains off a coin, be careful about how and when you convert it...

>>21155878
He could deduct all of it at once if he traded under and s-corp or an LLC recognized as an s-corp.

My company only gets taxed when I take money out to my personal, or pull a “distribution”.

>>21156140
Did you pay that $147,000 in the end.

>>21156082

but binance doesnt report my trades to the IRS

>>21156255
No. They sent me the check and that was the end of it. This was almost 2 years ago now. I made it out with my money and that was it. No audit, nothing.

>>21156140
I believe you. Those IRS letters are mostly bots, believe it or not.

>>21156140
What did you say to convince them to chance their mind?

>>21156140
So do I have to wait for them to send me a letter first or do you think I could just send them a letter now asking for $1300?

Any way for a aus fag

>>21155760
So if I only dumped $19k and 199 transactions into Coinbase I don't have to report shit?

Will H&R Block solve all my issues for me?

>>21153036
good luck with that glownigger

>>21156361
Coinbase's profit/loss tracking thing weirdly worked out to say that I only had a gain of like $1000, when in reality I made close to $200,000 but almost entirely on different exchanges, so Coinbase's data was wrong (and Coinbase specifically warns that their data is not accurate for this reason). I copied their profit/loss data into an Excel spreadsheet, removed the warning, printed it, and included it with my ammended 1040. That's what it was.

Essentially, once Coinbase sends you a 1099 (and the IRS as well), you have to at least acknowledge that you traded crypto on your return of you will get flagged and taxed for the entire amount. By amending my tax return to include this but claim that "despite depositing over $350,000 into Coinbase, my total gain was only about $1000", their bots apparently bought it and it worked. Anyone with a brain would find that claim a bit strange though. I made the $400,000 from ETH, ELIX, and BTC mostly, but I'd lost a lot in 2018 (but have since recovered all of it).

>>21156449
I think that if you got a 1099 from Coinbase, you have to acknowledge the crypto on your tax return, but if you send them even fake profit/loss Excel spreadsheets and claim you didn't actually earn anything, they will accept it. Coinbase essentially just tells them total buys and deposits. It's mostly on you to tell them your actual gains/losses. If you're lucky enough that Coinbase fucked up your data because you used multiple exchanges, use that. If not and you're ballsy enough to send them fake profit/loss data, that could possibly work as well but it's obviously illegal and risky.

>>21156529
So you committed fraud?

>>21152393
He moved his profits into other coins and lost it. Learn to read.

>>21156488
You'd have to go over both limits to trigger it. So you could buy and sell as much as you want and as long as you're under 200 transactions they won't report it. Unless you live in one of the 6 cucked states listed here.

>https://help.coinbase.com/en/pro/taxes-reports-and-financial-services/taxes/1099-k-tax-forms-faq-for-coinbase-pro-prime-merchant.html

>>21156599
Yes. /biz/ told me I'd get fucked in the ass if I even tried but I got away with it.

>>21155486
So if you have less than 20k you don't have to worry about it?

>>21152351
>have $300 worth of LINK that I’ve been holding for half a year
I only play with lunch money because I fear getting raped by the tax man.
Hypothetically speaking, if LINK were to become the next BTC and become worth thousands of dollars, what should I do when that $300 exceeds the $20K threshold on Coinbase?

Are you guys all this stupid? A 1099-K is a summary of transaction value, including things like conversions (trading between crypto pairs) and a bunch of other dumb shit, if you report your cost basis and buy dates properly and make sure you're paying full proper capital gains tax the IRS isn't going to care. The values you see on the 1099-K are not what you have to report as income to the IRS, they're a rather useless summary of your contributions to market caps. Find out your capital gains and report it with proper documentations and you should be fine.

P.S. THIS IS NOT TAX ADVICE AND IS NOT MEANT TO BE TAKEN AS SUCH BY ANY PERSONS.

>I'm the shitty receptionist at a tax office

>>21156709
the fuck? You just have to give them ID or something there's no limit to the amount you can hold there, that said look into getting a wallet if you're serious about crypto

So basically buy coins using your cash. Don’t trade for other coins. And then hold long term (a year or more). Is that about right.

>>21156529
Based

Am I gonna get raped because I traded $25 on Bittrex back in 2017?

>>21156662
I ain’t an accountant, I’m a good goy. I pay my taxes. I’m assuming if you make 200 trades in a year you’re going to break the 20k limit in a hurry, but I don’t know the size or scale of trades you do. If you’re trading $100 at a time on average, you’ll hit the $20k limit at 200 trades.

>>21154679
You can in Aus. You can carry capital losses forward indefinately. Thats what I read years ago anyway.

>>21156655
For now, at least. Always remember, Feds are crawling these boards.

>>21156655
I mean you still might. People get audited for shit up to 7 years ago.

>>21156833
I traded coins for other coins are 10 times now my portfolio is almost 20k. Will that hit the Coinbase algorithm even though I didn’t trade 200 times?

>>21156655
I hope you have enough money to pay it off if the IRS decides to rape you within the next 5 years

>>21152351
HOW DO YOU HAVE A MILLION DOLLARS WORTH AND JUST WATCH IT DROP TO 100k? THIS GUY DESERVES IT LOL

>>21156636
Happy to know I ain't paying shit for taxes this year

>>21156140
And let me guess the IRS agent carrying your money started clapping after you received it?

>>21157019
He was waiting for 1 mil lol. I can see that happening.

>>21154250
It's taxable but only on the capital gains you made from ETH. If you bought the ETH right before you exchanged to LINK, then the tax is probably close to nothing. However if you made a profit on the ETH for a while and then converted to LINK, yes you owe taxes but only on the capital gain. As long as LINK keeps going up in value, you're not paying any more taxes than you would've if you had bought LINK earlier, because obviously capital gains and the associated taxes scale linearly, not exponentially as some itt would have you think. But this should make sense, because it's the same thing as selling a stock then using the money to buy another stock. Obviously you have to pay taxes on the sale, and exchanging crypto to crypto is an identical transaction in the eyes of the IRS. That's why you shouldn't go trading crypto to crypto around like crazy. TLDR if link goes up you're fine if link goes down you're fucked

>>21156655
Dude are you not a bit anxious about it? Have you not thought about how you're going to hide that for the rest of your life? How you're going to explain your net worth if the IRS audits again, and how you're going to report any future gains?

>>21156655
>if I even tried but I got away with it.
Nobody ever gets away with it. The IRS is omniscient. They know all things. There is no such thing as tax fraud or an untaxed dollar or a transaction.

>>21156827
You have already been taxed.

>>21157492
The main issue is, I think, that crypto gets traded in much higher frequency and in smaller chunks than stocks or other assets, and that it's not just fiat to asset and asset to fiat, but also asset to asset (sometimes even asset to asset to asset etc). It's a fucking hassle to keep track of every transaction and convert gains to fiat for each step.

>>21157492
I traded eth to link and link to eth around 10 times. Is that too much or okay.

>>21157434
>wait to make $200k
>ends up losing $900k

reddit is hilarious

>>21154041
>payed
Ask me how I know you’re an idiot.

>>21152545
What if you use your own cash instead trading crypto to crypto. You’d be alright right?

>>21152351
>>21153505
so let me get that straight:
>2017: redditor makes $800k in capital gains
>IRS recognizes redditor as liable for $400k in taxes
>Midnight, 2017-12-31: 400k of taxes now "locked in", and due on tax day 2018 (April?)
>dump begins and redditor loses 700k
>these are "2018 losses" which can be filed for 3k, effectively a deduction from whatever "gains" he'd have to pay taxes on in April 2019

did I get that right?

>>21158326
it would be easier to track but you cpan still make a fuck ton in 2017 and lose it all 2018 and be screwed because you didnt save any money for taxes

I don't mind paying taxes on coins I sell on coinbase or other kyc exchanges but I'm not going through the 300 uniswap trades I did this year. Can the IRS track my uniswap trades?

>>21158367
yes lmao. He could have been saved if he did quarterly tax estimates like he was supposed to

>>21158374
In other words as long as I don’t cash out I’m fine. I’ll hold until I reach a million and then let the capital gain tax work itself out. Good idea?

>>21158404
if you sent any coins to a wallet that was used to withdraw from a kyc exchange or coinbase the irs can track it

>>21158367
>>21158407
So wait our portfolio balance isn’t money until I cash out. Do have to file tax estimates still. I haven’t cashed any money yet?

>>21158428
Cashing our is only one part of the issue. The part that will really fuck you over is any crypto to crypto trades

>>21158470
Yes. Crypto to crypto counts as realised gains. How the fuck can people still not know this.

>>21158500
So I traded crypto to crypto around 10 times. Is that okay.

>>21158470
if you did crypto to crypto trades you already cashed out in the eyes of the irs. Whether that was a gain or a loss is what they care about and that is why you file it so they know

>>21154041
>im also on food stamps.
kek

>>21156529
>>>21153584
I made like 30K on a pipeline, lost the W2, only reported income from one employer. Will probably get fucked in the ass. Wish me luck boys.

>>21158551
If the crypto you traded was worth more than what you got if for then that is a realized gain. Doesnt matter if you paid for it with cash or traded another crypto for it

>>21158500
>tfw the only thing I've ever done was buy LINK with cash

>>21158512
What happens when you only have losses on crypto to crypto but you HODL on your surplus gains?
>Buy AMPL
>It's trash
>Exchange it for LINK
>Still in the red from fees and less value
>HODL
>It moons more than what I purchased
>But it's still on HODL
Do I have to pay this?

Lmao fuck the IRS and FUCK the fed . Biggest scammers in history. I hope they all die by boiling alive in Minecraft

>>21152671
Just be the bigger scammer and claim local highs to local lows as realized losses, if done correctly you’ll owe almost nothing.

>>21158624
assuming thats all this year and you have no more trades, you declare a loss on the ampl-> link trade.
you don't realize a gain on the link until you trade it for niggercoin, BTC, or USD or whatever

>>21158612
I definitely did not buy eth and btc from a guy off localbitcoin and only use non-kyc exchanges and DEXs while using untainted wallets

>>21158633
Digits confirm hellfire for the money changers

>>21158624
Not until you realise link gains. If you lost on ampl you should still declare losses though as they can be used to offset your gains.

Gotta day that I’m amazed at how many people here don’t know a fucking thing about taxes. Jesus Christ, goyim. Try to take a day or two to read about this shit while you’re not busy being NEETs.

Everyone ITT mssing the point: Fuck Commiefornians.

>>21156655
checked, keked

>>21158750
Public schools want you to learn everything about holocaust and mitochondrias before they teach the goy about managing finances. If you didn't have financially responsible parents or went out of you're way to read a book you're pretty much doomed to be consoomer goy debt slave cattle.

>>21158750
Literally this. Taxes are the state's way of stopping you making it. You owe it to yourself to know how it works. You're dealing with immense life changing amounts of money, don't get screwed out of it.

>>21158719

>>21158846
I took a post grad class in taxation at a state uni and we never filled out a single fucking tax return. I work with CPA's now, but I know it's a bunch of bullshit.

>>21158877
taxes are fine
just dont make too much on the books without deductions.
capital gains taxes, however, under $1m, is a war against the middle class.

>>21158877
Time to move to a tax haven

>>21159008
It's always been a war against whites. Always Fuck them.

What kind on system is this???
you pay 30% for your gains when you "cash out"
or deduct you losses on your tax the next year!

>>21159008
>war against the middle class

This is it and it's so obviously the case. They're even talking about upping the rate and lowering the allowance here in bongland due to corona.

>>21152865
>take your money and leave the US for good and dont pay the taxes.
the US government is, to my knowledge, the only government who will try to hunt you down if you do this
land of the free and all that

>>21159060
its actually a pretty damn good deal in america at the moment. if you're a neet its basically free.

>>21156839
yes you can carry some losses FORWARD. That's not what I said. You can't carry loses BACKWARDS.

>>21159110
Lots of countries have exit taxes where you have to pay taxes on unrealized gains

>>21159132
since this guy was a student I assume the 0% bracket, why is he paying around 50% tax on assets that where never cashed out in to dollars in his bank account?

>>21155320
Top kek

>>21159291
because its short term capital gains which is taxed as income and he is probably from California

I will never pay crypto taxes. If the irs wants my money they can come steal it from me the old fashioned way. I gladly welcome the opportunity to go to Valhalla by meeting government goons weapon in hand and perishing in battle.

>>21159284
I'm too tired to read up on this properly, as it isn't even something I would ever experience myself, but the wikipedia page doesn't list "lots" of countries (7 total) and makes the US seem by far worst for an average person

so let's say I buy ETH on coinbase, I then swap it to an altcoin for a long term hold. I have to pay taxes on my "profit" at the arbitrary date of Dec 31?

>>21159454
based.

>>21159661
what part of crypto to crypto taxable event do you not understand? 200+ posts and you still don't get it?

>>21159661
you pay taxes on profits from selling the eth.. you don't pay taxes on the altcoin if you don't sell it

>>21159320
So I live in CA buy 1x Stonks for 100$
>to the mooooon
my stock is now worth 1000$ at date X
>bogd
stock is now 1$
I now have to pay tax for 1000$ stock price at date Y?

>>21159763
You dont pay taxes on unrealized gains. You never sold so you never gained.

>>21159132
is that income from only capital gains or is the income in that graph calculated from other things too like your wage cuck job?

So if I'm single, trade altcoins and cash out for less than $40,000/year, do I have to worry about paying taxes on trades and capital gains?

>>21159834
ahh, ok so this guy did cash out at some point and didn't set away money for the taxes, is it that simple? He write that he gambled a bit on ICOs...
sorry I'm a brainlet :(

>>21156599
>fraud
nigger the tax code is fraud

>>21159930
yes your income counts towards your capital gains allowance. that is the essence of the system. your time is valued at 0.

>>21160806
So you are saying our beaner bros will fuckin make it because of
>DACA
>Undocumented/illegal alien = no SSN = ghost = no IRS tendies
These beaner bros are gonna fuckin make it.

>>21156216
As you say this I recall you are exactly correct.

>>21160806
well shit

>>21152587
This you brainlets. You ONLY pay taxes on REALIZED GAINS. If mommy cant find you an account to explain this then get out of crypto. Were sick and tired of your stupidity FUD.

>>21154679
actually you can

You don't get it, you always scream
>you can't cash out
But you never realized

when we make it we don't have to "cash out" anymore

>>21158404
I would assume if you moved X Amount from Coinbase to no KYC exchanges....then moved 100X the amount you previously traded... they might get a little suspicious and could dig. Whether or not they find what they need is a question for your nonKYC exchange.

>>21152351
>ITT goys from israel's vassal state, USA, try to figure out how to avoid the tax jew

>>21161523
nope

What’s the worse thing that’s gonna happen if you cash out and just don’t pay taxes in the USA. What if you don’t get audited?

>>21162375
If your exchange sends your tax form to the IRS and you “lol just don’t report it,” you have a 100% chance of getting audited.

>>21159714
It is fucking outstanding that these fools cannot figure this out....I pity thee

do you fucking niggers know what wasabi wallet is

>>21160806
Wait...sorry if this is stupid...but do long term capitols gains count as income or not? Anon above said only short term gains do.

literally ignore the audit what are they going to do Raid your house and take you to jail

What if I sent a portion of my funds into a separate wallet and tell IRS I lost money during a wrong transfer?

>>21158132
Don't know. Like I said it depends on whether they went up or down. Any time the following events happened:
>exhange A to B
>B value goes up
>exchange B to A
You owe taxes on B. Where does the issue come in? When the prices went up and down and you didn't really make any money. The result is you may now owe taxes due to the exchanging, like I said above, without having made any money. However there's good news because you can write off the money you lost as capital losses. That's when this happens
>Exchange B to A
>A goes down in value
>Exchange A to B
Now you've incurred a capital loss which counts against the capital gains. So if you gained $1000 from the first scenario but lost $1000 from the second, they cancel each other out and you don't owe any taxes. The REAL issue is that you can only write off capital losses that happen in the SAME YEAR. So if scenario one happened in 2020 but scenario two in 2021, you're fucked, because the loss in 2021 can't count against the gain in 2020, and you have to pay taxes on the $1000. In summary, like someone else said, sell off any losses before the end of the year so you can write them off against your gains, and also set aside 40% or so of all your crypto gains so you can cover your ass in case you fuck up your taxes. At least then you can pay it

What's the best course of action when it comes to trades, withdrawals and transfers from coinbase (as an on ramp) to non US exchanges, then back to coinbase? How do I report that?

>>21162657
Transfers are non taxable. Besides the IRS only cares about capital gains. As far as I'm aware, foreign coin exchanges don't count as foreign investment accounts anyway, but rather as shopping sites, so it's not important. Again the only thing that matters is capital gains. I may be wrong about the foreign account thing, though, so if someone can verify

>>21154938
Oh ok. Phew, yeah I only ever by ETH, then immediately swap it into shitcoins on Uniswap.

>>21160460
He exchanged his coin for another coin, not understanding that it was a taxable event. You don’t just swap BTC for LINK... it works like this:

>buy x BTC at date 1

>sell x BTC at date 2
>buy y LINK at date 2

>sell y LINK at date 3

You pay taxes when you “trade” x BTC for y LINK based on your total BTC profits (cash value of x BTC at date 2 minus the cash value of x BTC at date 1).
Then you pay taxes again when you sell y LINK (cash value of y LINK at date 3 minus cash value of y LINK at date 2).

If the value is negative, it counts as a loss which offsets the taxes of any gains you make that year. So if you sold BTC for a $1000 loss and then sold LINK for a $750 gain, you would have an overall loss of $250 for the year and wouldn’t be required to pay taxes.

If you live in California and you made a $20,000 profit and all these trades happened within the same year, and your total income exceeds $40k for the year (job included), you would pay 15% federal tax and 13% state tax on your trade. That means you need to set aside $5600 of that $20k profit and SAVE IT FOR UNCLE SAM OR THE IRS WILL LITERALLY KILL YOUR FAMILY.

>>21156636

>Massachusetts
>600 dollars
>I made like 3000 so far off Link


God FUCKING DAMN

Im living at home at 30 because a ghetto studio apt here is 1000 a month minimum, and then they wanna fuck my crypto up. I'm fucking done with this shithole.

>>21162624
If your looking for a way to fraud....then there's plenty others besides your plan.

>>21162895
It's only fair to out-fraud frauds.

>>21162791
Actually scratch that. 15% is the long term capital gains rate. I brain farted and thought Trump passed some tax law lowering it or some shit but apparently short term is still just the same as your annual income rate (which is like 30% for me). So I’d pay 43% on the $20k with state tax factored in, which is $8600. Taxes are theft, btw, in case anyone needs a reminder.

>>21155242
Yes that exchange requires kyc.
Maybe he meant local cryptos? That's p2p.

>>21162965

Absolutely. Made sense when back in the day it took a lot of effort to maintain roads, and doing business on those roads, someone would need to pay for the infrastructure (ie Businesses and Merchants).

Crypto trades use almost NO government resources and yet they feel entitled to nearly half your reward. ALMOST FUCKING HALF.

Founding fathers didn't take that shit, why are we?

This post glows
Also Redditore deserve nothing