Crypto Taxable Event overview

[Anonymous No.13138487]

If anyone is familiar with the US tax law surrounding crypto, it'd be really great to get a rundown on all the costs a trader will face if they want to manage their anxiety by being honest to the IRS. I have heard that crypto-crypto is a taxable event for the IRS; but at what rate? How do you trade and make a profit with that kind of hobbling?

I'm curious to hear how those of you who honestly pay taxes trade and don't get completely fucked. And also how those of you who want to minimize your taxes in an ironclad, anxiety-free way do so.

[Anonymous No.13138511]

>>13138487
what you made - what you lost * your income tax for your bracket = tax

if you hold a coin for more than a year you get long term cap gains

[Anonymous No.13138518]

>>13138487
that image accurately represent the market

[Anonymous No.13138548]

>>13138487
You only have to report taxes for 2018 if you made more than $12,000.
So nobody on /biz/ has to worry about it.

[Anonymous No.13138642]

>>13138548
Where are you getting that info from?

[Anonymous No.13138762]

>>13138511

How am I hearing about all these people with total losses paying out the ass in taxes?

[Anonymous No.13138837]

Whenever you make a trade, convert what you bought to USD. Then subtract whatever it cost you get what you sold. That is how much money you made, which you pay taxes on. There is plenty of computer software like bitcoin tax that automatically fetch trading data from exchanges and calculate how much you owe, or if you lost money how much you can deduct.

You do get long term gains if you "hold" a coin more than a year, but you don't actually have to hold the same coin. You just have to hold at least a certain balance somewhere continuously since almost all cryptos are fungible like currency.

[Anonymous No.13138867]

>>13138487
Taxes are paid on the profit you make from a trade, not the total amount of the trade. It is absolutely gay as fuck and criminal of our traitor government, but it does not prevent a trader from making gains. He just has to give 20-30% of those gains to the nigger enabling ZOGbots at the irs.

Minimize taxes by buying and holding for a year so you only pay long term capital gains instead of short term.

[Anonymous No.13138909]

I made literal thousands of trades and it's not that bad, as long as you stick to just a few exchanges. Bitcoin.tax worked for me, since there's clever logic built into their service that can detect when you've put coins into a wallet you control and when you send coins between exchanges. Stay away from Bear.tax.

[Anonymous No.13139034]

>>13138487

>mfw haven't made money or lost money
>craaaaaaaaaaaaaaab market