/biz/ - Business & Finance

>>27818583
yes, unironically

>>27818583
Yes
But if you lost money, it's a deduction

>crypto is not real money lmao
>but you have to pay taxes if you use it

>>27818583
No.

>>27818861
>t's a deduction
Careful.
It's a negative value distribution in either long-term or short-term capital gains reported on Schedule D of the 1040.
It's important to make this distinction so people don't go expecting that the losses will offset their income from non-investments such as wages and other earnings reported on the 1040.

>>27818583
Britbong here,

Say I sell but I leave it in cash in my coinbase account. How do I declare CGT or what do?

I'm a law abiding citizen and our CGT isn't as ridiculously high as US, also CB has every histoircal trade i've ever made on it (don't day trade just hodl)

>>27818725
the coinbase csv is not helpful. how the hell do I determine my capital gains/losses on a conversion?

https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions

>>27818583
technically you're supposed to report crypto-to-crypto and pay taxes on it. You're also supposed to report crypto gained from mining/airdrops/forks and pay a portion as income.
but I mean, come the fuck on. Who the fuck actually is going to report uniswaps and stuff like that?

>>27819137
Unironically Go to reddit, m8.

>>27818997
>IRS considers crypto to be property rather than currency
>also the 2020 tax filings has a new question where it asks if you own any "virtual currency"

>>27819293

>>27818997
>a house is not real money
>but you have to pay property taxes on it

>>27819170
It has the USD price at the time of the transaction use that as the basis for everything in USD.

if the conversion process did not create any profit or loss, then no

>>27819196
I wonder if Coinbase rats you out if you trade there. They seem to be extremely pussy whipped by the feds.

>>27819196
Don't be surprised that when you want to claim all of your GAS fees you need to use public sources of information such as Etherscan which would show what occured in the wallet under the address. We already know that the N-S-A can track and trace IP Addresses (many layers even if using a VPN) to Ethereum contract addresses. Be mindful, fren.

>>27819605
but it only has the price of the cryptocurrency I converted from, not the one I converted to

>>27819787
how could it not create a gain or loss? the prices are constantly fluctuating

>>27819809
They do. From what I understand, they send a 1099-K to the IRS if you either did 200 trades or sold more than 20k worth in a year. Just buying a ton and not doing any trading/selling on coinbase will not trigger this though.
You can check your emails and see if you got sent a 1099-K from coinbase. If you received it, then that means the IRS did too. If you didnt, neither did they.

But yeah, never ever do any crypto-swapping on coinbase or any other KYC'd exchange. Use uniswap or binance with a VPN or kucoin or anything else.

>>27818583
anyone actually going out of their way to pay taxes (or their credit cards) in an era of infinite and reckless money printing is unironically the stupidest motherfucker in town.

>>27820397
but won't the big tax man assrape me if I don't?

>>27819809
Of course.
You think people would be able to escape their contribution to making Israel Great? With a company in New York?

>>27819137
I'm in the UK too and I sent a lot of my gains to another wallet. If they ask I'll say I sent it to the wrong address.

>>27818997
You pay capital gains tax on crypto just like with any other asset.

>>27822133
>If they ask I'll say I sent it to the wrong address.
"OK that all makes sense. I hope you have a lovely day in your solid gold mansion, Mr Anon."

Here's where I'm fuzzy.
If I trade ALGO to USD, the USD has a profit or loss as "real" currency. I expect to pay gains tax.
If I trade ALGO to USDT/DAI/USDC or ALGO to ETH... does that apply as capital gains or does it abstain until I "cash out?"

>>27822565
apparently it does for some reason.
for example:
you buy $500 worth of ALGO
you wait some time, and it's now worth $750
if you trade it for ETH, that would be a capital gain of $250

>>27822759
also I have no fucking clue how you would do this if you trade some crypto for one thing and some for another

>>27819395
>>also the 2020 tax filings has a new question where it asks if you own any "virtual currency"

Yes Mr Tax man, I'm quite rick in World of Warcraft.

>>27818583
>converted
You mean sold USD for crypto? If you are a Canadian, then yes. You declare the difference between the value of the USD in CAD on the day you bought and the day you sold.

Every step of every action is full of taxable events.

>>27822876
In your example above, it would be two capital gains of $125, or whatever the split... then each of those purchases are a new cost basis going forward.
Every time you sell, it's a gain or a loss and has tax consequences. "Trading" is a sell plus a buy. If all OP did was buy and hold those same coins, no taxes yet.

Just gonna higher a lawyer to put me through the legal loopholes and keep as much shit as possible.

>>27818583
You don't have to report anything if you bought XMR, you can't get taxed on [undefined amount] of xmr. But don't do it ofc, pay your taxes faggot

>>27822133
They can't prove you are not retarded

>>27818583
Nope. If you never sold for fiat you don’t owe shit.

>>27819137
Bitcoin.tax

>>27822466
What can they do? Audit him? Bitcoin is still semi anonymous

cointracker.io

It will tell you your capital gains

>>27819395
>2020 tax filings has a new question where it asks if you own any "virtual currency"
Technically, if it's on an exchange wallet and not in my hardware wallet, it's not in my possession.

>>27818583
(((money laundering))) (in minecraft)

>>27818583
If you use ETH you can't subtract the fees in taxes LOL, but the gain is calculated AFTER fees. In other words you pay taxes on $30 if your gain is above $0. keeeeeeeeeek

>>27818583
Bought what and converted to what? What do you think converting means? If you bought BTC and converted to ETH, what happened to your BTC? It would have to have been sold eg. a taxable event. Any crypto to crypto transaction, even if it's DAI back to USD is a taxable event.

>>27825027
sounds like a honeypot

>>27819137
https://coinjournal.net/news/hsbc-blocks-incoming-funds-from-cryptocurrency-exchanges/

You are fucked. There was a guy here that wasn't able to withdraw his money from Coinbase in the UK. It will get increasingly worse due domino effect. Get your memecoins into real money before it's too late.

>>27819947
You can calculate based on the rate of conversion from one currency to the other in USD terms for both the distribution amount (profit or loss) and the new cost basis for the converted to currency.

>>27820192
>use VPN
>someone uses your same IP to do something that triggers an account lock
>"we've detected dodgy activity, please send us full KYC"

>>27819395
does this include my money in GTA?

>>27826224
and set the conversion rate to $0 so you don't owe anything.

>>27823175
Hi rick

>>27819056
the worst thing about the IRS interpretation is that you might have to pay capital gains tax if you bought anything with crypto, like a pizza or burger. it's retarded.

Money is free speech and corporations are people according to the federal government.

Utilize your free speech and decline to pay your free speech to the government as protest. Constitutionally protected by the first ammendment to give the middle finger to the government by not paying your free speech into their taxes.

Keep enough funds on hand to retain a great lawyer just incase.

>>27819395
Why yes, I do hold some unbaked debt bills created in 1971, how did you know?

>>27820192
>Use shitty third-world country loopholes to work with your retirement money
>Paying shitty exchange rates is better bro
>Hey, nice crypto you got there, sorry guess you gotta wait 60 days to do anything with them
>B-but we have better toooooools for stuff that makes us look more analytical
Ishygdtt

>>27819395
In the U.S. we have freedom of speech, which allows you to not check that box. You only have to pay what the IRS or yourself (exercising freedom of speech) determined you owe. You can keep quiet basically, and don't use KYC.

>>27825027
just used this, solved all my problems

>>27826094
Isn't coinbase pretty much a bank already? They hold your money and you can get a visa card that draws against it for your cups of coffee

So do you guys check that box or no? US here. Do i check that I own crypto and pay them or just pay them what I owe?

>>27826904
retarded. The IRS will give you a golf clap for your creativity as they throw you in prison

Conversion counts as a buy and a sell. Similar to a mutual fund swap

>>27818583
You don't have to report anything that coinbsae doesn't report to the irs.

>>27819854
Yeah that's a good point. Gas fees would be a highly recognizable paper trail

>>27820397
I'd rather stay off their radar and pay the extortion money

Sold some of my stock portfolio last year to sink into crypto. I know I have to pay taxes on that, but how do you actually do it? Can I just transfer money from my bank account to somewhere? I know April 15th is the "filing deadline" but what does that even mean? Never paid cg taxes before.

>>27818583
>he thought he was being clever
PAY CIPPITAL GAINZ BOI

>>27829007
irs doesnt throw anyone in prison, they just collect

>>27825027
thanks for sharing this

>>27829930
april is when you file your 2020 taxes, did you do it then?
who did you do it with, they should have tax papers for you.

>>27818583
>bought and converted
Define this
What did you buy
What is a conversion in your mind ?

>>27823933
Eurofag here, can't I just compare what I had put in and what I eventually withdraw (once I end up doing that) and pay taxes on the difference?

>>27831311
How would I do that if I only sold my stocks this past fall? Don't I file taxes for the stuff I did in 2020 this upcoming april?
And I'm sure my brokerage (vanguard) has all the necessary papers for me, just don't know what to do with them. I'll probably just sign up for turbotax or something.

>>27826503
yup, you pay taxes on those hookers you hired and again when you promptly ran over them and got a refund

>>27831649
more than likely your papers arent even ready yet. RH for example is going to release 2020 papers between the 16th and 18th of this month.

vanguard will give you your papers, fumble around in the account settings theres going to be a tax section. once you have these papers (form 1099) you can actually plug it into turbotax and itll do all the thinking for you.

>>27825400
good luck anon!

>>27832019
Sounds good thanks. Just a bit nervous because this is the first year I've got to lube up for the taxman (student).

>>27818583
This anon had a good idea but it's just a prank

>>27831619
Also interested in this

>>27819809
do you even have to ask?
us jurisdiction = bend over for feds every time

>>27832221
honestly not a lot to worry about, if you have any actual gains then they take a tax on that. this tax would be deducted from your potential refund - it isn't something you pay separately.

either way just get all your tax papers and throw them into turbotax and itll do it all for you.