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/biz/ - Business & Finance

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7325044 No.7325044 [Reply] [Original]

Here is a tale of woe for the lot of you in the United States who used Coinbase or GDAX to trade again Bitcoin... I am going anonymous, for obvious reasons.
At the end of December 2017, I had nearly 1 million USD worth of BTC in my trading account. This was earned through what I thought of as hard work. Daily trading, playing the game "right", not taking too many risks... at the beginning of the year, I had started with a little less than 100k USD, so for the sake of this, let's just say all of it is short term capital gains.
Anyways, I trade very often with my bitcoins, exchanging to and from USD on the GDAX exchange. Everything was great at the end of 2017. However, I lost ~45% of my stack during January. So now, I'm down to approximately 550,000 USD.
That sounds great, considering where I started from, but let's take a moment and think about the taxes I am now responsible for.
I made over 900k short term capital gains I live in california so my state tax is ~10%. Federal tax at this level is ~38-40% So I have to pay ~48-50% of the gains in taxes. Therefore I will have to pay ~450k in taxes.
So, I started with ~100k, made ~900k, lost 450k in January, and now will have to pay 450k in taxes. Everything is gone.

>> No.7325061

Fuck off with your blog
Buy FUN

>> No.7325089

Jamal and Dequan need the new Air Jordans, white boy

>> No.7325140

>>7325044
jesus christ, america is really that great.

>> No.7325237

>>7325140
its the same in every country

remember taxation is theft and that statists deserve helicopter rides

>> No.7325250

first of all you're retarded for publicly announcing trades. You should have seen this coming and planned ahead, you deserve it, and I won't even tell you how to get out of it.

>> No.7325272

>>7325044
Capital losses are deducted from capital gains.

1/10 larp.

>> No.7325317

pls explain american taxes to me, only burgers seem to care about it

>> No.7325327

>>7325044
Localbitcoins?

>> No.7325348
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7325348

>>7325044
>does not know that corps set their own tax year start date

>> No.7325353

Shitty larp

Btc had fallen off a high of 19.9k to roughly 13.3k end of december last year; if you trade as frequently as you claim you would’ve had those capital losses to deduct

Also your cost basis is 100k, so total taxable basis is 800k in that case, .5 of that is 400k

2/10 got a you

>> No.7325369

>>7325044
That isn't how capital gains taxes work, retard.

>> No.7325393

>>7325044
but...
you will have 450k in losses to claim against 2018 earnings. I think you can carry those forward for a few years too.

>> No.7325400

>>7325140

There are countries where you can't deduct losses due to crypto falling into a fucked up tax category. You can easily end up with a tax bill multiple times your total earnings if you are trader and haven't been paying attention to this fact.

>> No.7325411

>>7325044
You're a retard if you think it works like that. Nice larping btw.

>> No.7325461

why don't you just claim a loss? and obviously you'd be retarded to cash out now in the first place

>> No.7325482

If singles bitcoin won’t drop below 7k

>> No.7325497
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7325497

Living in country #1 is real suffering.

>> No.7325543

>>7325044
Fuck off shill. Everybody knows that you only have to pay taxes on what you cash out to fiat.

>> No.7325565

>>7325044
Created Taxable events before being ready to cash out. GG

>> No.7325607

>>7325044
Pay money to IRS as if your crypto are property.
(money gained - money spent) * 0.37
You can put the tax owed on a payment plan if you're not able to pay up front immediately on tax day.

>> No.7325612

>crypto trading is hard work
Ahahahhahaahahhahaah

>> No.7325683

>>7325272
All his losses are in january, the next tax year. You fucking brainlet.

>> No.7325821

>>7325543

plebbit tier meme