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/biz/ - Business & Finance

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11028778 No.11028778 [Reply] [Original]

I'm new and I want to report my earnings correctly as an American. What advice can you give me? I understand that every trade between every coin/token is a taxable event. When determining the profit/loss from a trade, say between BTC and ShitCoinA, do I base it off of BTC/USD market value at that moment?

>> No.11029186

does biz even pay taxes?

>> No.11029913
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11029913

What earnings?

>> No.11029928

>>11029913
This I lost all my money in bitconnect I don’t even know why I still post here ;)

>> No.11029986

>>11028778
Capital gains tax but there are ways to go untaxed. Tax is a ponzi scheme

>> No.11029988

Just lie and say you held btc. If they ask for proof just photoshop some documents up. I barely had to pay anything on 50k

>> No.11030142

>>11029986
>>11029988
So you buy in at coinbase/Gemeni and send that btc/eth off to another exchange. Either way, you are coming back to your base exchange to cash out or hold with a different amount of crypto than you started with. Every transaction is considered a tax event in the U.S. I believe.

>> No.11031326
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11031326

>>11028778
>When determining the profit/loss from a trade, say between BTC and ShitCoinA, do I base it off of BTC/USD market value at that moment?
yeah, you have to use whatever the market values for both shitcoins involved in the taxable event were in order to figure out your tax liability. it's a pain in the ass if you make more than a couple trades a year.

i used bitcoin.tax last year to help with my earnings. you just download a csv file from your exchange, upload it, and it'll convert all your trades to USD value. it has options to use fifo, lifo, and average cost to minimize your taxes. it'll generate a report that you can upload into turbotax or some other tax software. super easy and it only cost $20.

there are other websites and software that'll do the same thing, but i can't think of them off the top of my head. i'm sure a google search will net you some results.

>> No.11031832

>>11031326
so you'll have to sell crypto to pay tax if your current holdings are under the value you made the trade at?
should I make some wash trades soon to get my taxes down for the end of the year

>> No.11031909
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11031909

>>11031832
>so you'll have to sell crypto to pay tax if your current holdings are under the value you made the trade at?
as long as you realized gains, regardless of where your holdings currently are, you'll have to acquire dollarydoos somehow in order to pay your tax liability.

>should I make some wash trades soon to get my taxes down for the end of the year
yeah that's probably a smart idea. i.e. if you made a trade at the beginning of the year for 3btc when 1btc was worth $15,000 you could make another couple trades now for shitcoinA then back to btc and erase a substantial amount of tax liability; savvy investors do this with all kinds of assets.

>> No.11031947
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11031947

>>11028778
>>11029913
>>11029928
I know right, I lost most of the Bitcoin I earned from the bull market on BitMEX...

>> No.11032022

>>11031326
>>11031909
thanks for the tips anon