US Crypto Taxes

[Anonymous No.20248446]

How the fuck do crypto taxes work? I figured you had to pay taxes on what you cash out, but now I’m seeing that the IRS wants you to pay taxes on exchanges. Do they really audit that shit? Has anyone here gotten IRS attention from trading? Seems like a lot of fucking work to keep track of every trade and report it, considering all the different exchanges, airdrops, etc...

[Anonymous No.20248472]

>>20248446
in 2021 i will pay something like 3-5 million in tax. it fucking suck. more money more problems.

[Anonymous No.20248507]

>>20248472
Jfc might as well fucking exile. If your taxes are that much, how much did you make?

[Anonymous No.20248520]

>>20248446
Use a crypto tax software and import your trade history

[Anonymous No.20248563]

>>20248446
Remember if you renounce your citizenship you still have to pay any taxes you owe before you renounce it

[Anonymous No.20248673]

>>20248446
honestly if they come knocking before I make any significant amount im doing something violent. let me make it first, then I'll give half, but if you come for half of a less than 6 figure stack while printing trillions and giving it to billionaires i know I can do more than $100k worth of damage easily.

[Anonymous No.20248714]

>>20248673
honestly same here. i’ve had it with this pozzed shithole country fucking me over at every turn

[Anonymous No.20248752]

>>20248446
How much tax would they charge on a $100 purchase?

[Anonymous No.20248834]

Someone honestly answer me please. How the fuck can they audit me when I can't even figure it out myself. Like some transactions I lost from cryptopia and some addresses from uniswap I lost the flash drive.
The tax programs you buy for crypto usually are way high. And a unaccounted amounts they weigh like you buy price was 0. So fucking silly
Meanwhile. Lefties destroy country. And get pat on the head. Billionaire get a dump truck of money dropped off at their house.
Whole system is for serfs to stay serfs

[Anonymous No.20249033]

>>20248834
You already know what the solution is. It will begin after the election and before February 2021

[Anonymous No.20249076]

>>20248834
If you provide reasonable data and pay your taxes on that they wont audit you.

[Anonymous No.20249148]

>>20248834
They say "we think you owe $x,xxx. Please remit with payment" and you have to prove you don't. They don't have to prove shit.

[Anonymous No.20249631]

Yeah I think as long as you're lifestyle doesnt massively exceed what your tax payments have been , and you make some sort of honest effort to pay what you think you owe or maybe figure out how much you may have lost then irs has much bigger fish to fry, fish who are making 7-8 figures and acitviely evading taxes not just too confused to figure out like many crypto traders situation. Especially for people who live all in crypto and are constantly sending crypto all over the place its fucked to keep track of for tax purposes

[Anonymous No.20249640]

>>20249148
Hilarious. Fuck the irs. Like Kafkas Trial
>>20249076
Yes thats what I hope happens.

[Anonymous No.20249683]

Found this thread googling crypto tax stuff. Literally my nightmare:
https://www.reddit.com/r/tax/comments/9tcnu8/did_i_ruin_my_life_by_trading_crypto/?st=KCGH8F4Z&sh=321977ff

[Anonymous No.20249792]

If you bought a product with bitcoin, that is basically the same as cashing out from a tax perspective.

[Anonymous No.20250190]

I always type out long responses to these threads but then never post because I am afraid it is an irs datamine
But think about it this way irs are government employees. Have you ever met any government employees? They are not fucking geniuses. Maybe there are a few but they are going after the guys who owe 10M MINIMUM and even that really is nothing especially when you account for how much harder it will be to create a crypto case over chasing regular cases

[Anonymous No.20250283]

>>20248834
Just let them tax it like you bought it from zero then since it’s unaccounted for. Unless you put a ton of money in from the beginning then the end result you pay in taxes will be basically identical. Also the irs said you can report it as a peer to peer off IRL transaction which means anything unaccounted for you could just say you bought from an anonymous guy online and then just write up a receipt with a pen for that transaction

[Anonymous No.20250319]

i would protest with my local anarchists if i get phonecalls and door knocks over my crypto trades

[Anonymous No.20250341]

>>20249076
This

Provide reasonable data and they won't give a fuck

[Anonymous No.20250369]

>>20249683
People are stupid. You can deduct your losses from your profits so you only pay tax on net profit.

[Anonymous No.20251537]

>>20248714
>>20248673
It's the left.
They are expensive retards.

[Anonymous No.20251775]

>>20250190
The IRS also goes after people with lower incomes, because they are easier targets (they have publicly admitted to this). Just keep that in mind.

[Anonymous No.20251892]

This tax shit goves me serious anxiety. I'm expecting make decent money off my RSR by year's end but I'm not sure if I even want to report it.

[Anonymous No.20252023]

this is why you should just HODL frens, don't trade unless you talk to a tax fren. get your ducks in a row etc.

[Anonymous No.20252155]

>>20249033
Not helos this time, though.
Military tribunals.
The traitors will be severely punished.
Afterward, the FED will be audited, corrupt systems of our government and a decent portion of the private industry will be exposed.
After that shit is figured out, regulations should be relaxed extremely. The admin would be utter fools to not deem all cryptos foreign currencies.
The concept of "money laundering", often invoked by faggots trying to siphon wealth from the working class, will become foreign to us and plenty of forms of taxation will be relaxed.

Anyone reading this, purchase PMs alongside your crypto and hold until POTUS implements the new GESARA/NESARA. Following this, you will likely be able to realize gains from both sectors and likely hardly be impeded in doing so.
Trust /ourguys/, anons. They wouldn't give us blockchain and then use it to shackle us again.
We're almost there.

[Anonymous No.20252209]

>>20248563
You're not taxed on transferring assets between businesses. You transfer the assets to a business incorporated with no tax on investment income then renounce

[Anonymous No.20252270]

>>20250341
>Provide reasonable data
such as?

[Anonymous No.20252337]

>>20248752
$70

[Anonymous No.20252395]

Stop letting the faggots trick you.
Only sell small portions if you're going to use a CEX like coinbase to extract.
This isn't a good time to have a large amount of fiat anyway.
Buying a house right now is stupid because the housing market keeps getting inflated.
You shouldn't just go and buy a new car because you have tons of money, anyway.
No other big purchases make sense.
So, instead of cashing out, use a fiat bridge with a bitpay card, a crypto.com card, etc if you need liquid for something. Technically, you aren't exchanging your crypto for fiat when you do this, you're just giving your crypto to someone else and they offer the fiat to the retailer or whatever you're purchasing from...

>>20252337
It will not be 70%, brainlet. It's more like 20%.

[Anonymous No.20252404]

>>20248446
this is why crypto trading is a meme.

Nobody who actually does their taxes, wants to fill out all this shit. The amount of money you make from "trading" does not justify having to crunch all these cost bases.

>>20248834
and you're a moron. If you know your address, you can easily find each transaction on a block explorer. Then you just have to find the USD price of the tokens in question at the time of the trade. The fed's have scripts that can do this -- if you cant figure it out, you dont deserve to be in crypto,

[Anonymous No.20252426]

>>20250369
this is false. There is a limit on the amount of capital losses you can deduct in any given year. You get to carryforward the losses against future years, but its only like 3000 a year.

[Anonymous No.20252480]

>>20252426
It saddens me to know that some of you out there are actually stupid enough to do this...
Cypherpunks popularized crypto for a reason.
Go back.

[Anonymous No.20252566]

>>20248446
>I need to give a good amount of my money to the government so they can give it to brown people, the military to kill other brown people and put it into a doomed pension system with tens of trillions in unfunded liabilities
>"Maybe this should stop"
>NOOOOOOOOOO YOU HATE THE POOR
I'll never understand taxes, fucking piece of shit government needs to be destroyed

[Anonymous No.20252579]

>>20249631
Tax services make most of their money on the pleb, not the richest

[Anonymous No.20252718]

>>20252480
stupid enough to do what? Pay my taxes?

You do realize that bitcoin was not popularized by cyberpunks, but by the surveillance state who fooled you into giving up cash for traceable money so they could tax the living shit out of you forever..

[Anonymous No.20252772]

just take your cash profit and pay whatever the capital gains tax is for you on that. chances are, you'll be overpaying that way, so the IRS has no incentive to audit you.

[Anonymous No.20252793]

>>20252426
wrong, you fucking moron. the 3000 cap is only for claiming capital gains losses for other income, like waging. seriously kys.

[Anonymous No.20252799]

>>20252426
Can you wash trade and count all those losses. So say you made 10k in gains and owe 3k taxes. But one coin you hold has went down 3k. Could you sell that coin and rebuy it at same price and lock in 3k loss so then you own 0?

[Anonymous No.20252862]

Flame.exchange has no KYC

[Anonymous No.20252937]

>>20248446
Imagine living in the USA kek

[Anonymous No.20252988]

>>20248446
>he pays taxes
kek

[Anonymous No.20252992]

>>20248673
lmao based. i want to hear about the midwestern electric grid going offline during the 2021 tax season

[Anonymous No.20253022]

>>20250369
>>20252793
the reddit poster has 2 different years of tax returns. He made profits in 2017, and has like a 500,000 capital loss for 2018. He can't deduct losses in 2018 from gains in 2017. All he can do is wipeout all his capital gains in 2018, and book a carryforward for the balance, which he can amortize at a rate of 3000 a year.

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0#:~:text=If%20a%20taxpayer's%20capital%20losses,Carryover%20Losses.

I love how kids on /biz/ pretend like they know tax law.

>Protip
Just because you've gotten away with filing your taxes incorrectly so far, doesn't mean you wont eventually get buttfucked by the irs

[Anonymous No.20253031]

Can't you just slowly move your money to Revolut and then move money from there to your bank account?

[Anonymous No.20253078]

>>20252799
i think that so long as you wait long enough between your wash sale and wash re-buy, it is ok to do this. Then its basically "tax loss harvesting". I'm not sure what the wash sale rule is for personal property, but if its like stocks (which it should be) I think you need to wait at least 30 days, but it could be 60, before re-buying into your shitcoin. If you dont wait long enough, the IRS pretends you never sold it at all.

[Anonymous No.20253091]

>>20253022
"carry over" doesn't mean what you think it means. you are retarded

[Anonymous No.20253099]

Can't we just transfer our crypto to a friend or family member then file for bankruptcy and have the crypto transfered back to us afterwards?

[Anonymous No.20253109]

If I make 6 figures and not any higher I’m just gonna say fuck it and drop that shit in my bank account and see if I get any calls

[Anonymous No.20253214]

>>20253091
ok mr CPA, if you're so smart, tell me how to do the accounting and calculate the taxes.

I bet you dont even pay taxes, and that you're a 17 year old somewhere in indonesia shitposting.

[Anonymous No.20253228]

>>20253091
Just take the L

[Anonymous No.20253382]

>>20253109
Or just tether and only pull out as needed

[Anonymous No.20253524]

i don't get it. literally just:

>transact on binance
>when you want to cash out, buy monero
>make monero wallet A, send to this wallet
>make monero wallet B, send from A to B
>send from monero wallet B back to Binance
>cash out

literally how hard is it? why do people have problems?

[Anonymous No.20253594]

>>20253524
good luck with your tax evasion

https://www.forbes.com/sites/shehanchandrasekera/2020/07/06/irs-is-trying-to-deanonymize-privacy-coins-like-monero-and-zcash/#6a1c714a4174

[Anonymous No.20254477]

Is it really that hard? Just download all your CSV Files and use something like koinly or crypto trader and it’ll calculate your capital gains/loss, you’re taxed on profitable transactions but any losses are also deducted from what you make

[Anonymous No.20254702]

>>20254477
This is my first year buying crypto and I just paid for Koinly. It’s just as simple as importing the file into TurboTax and that’s it right? Since crypto to crypto is a taxable event and I’ve made 500 shitcoin transactions I’m afraid I’ve made nothing after taxes.

[Anonymous No.20254703]

I've been using bitcoin.tax since 2017. Paying taxes on this shit really isn't difficult. Biz is full of retarded zoomers who don't understand anything about money. Whining that taxes are gay is a separate thing.

[Anonymous No.20254738]

So if I only buy LINK and always hold what’s the tax situation?

[Anonymous No.20254740]

Also, I’ve noticed that Ampleforth fucks with Koinly really badly due to the rebases. It says there are missing transactions due to the extra coins you get.

[Anonymous No.20254776]

>>20248752
$110

[Anonymous No.20254881]

Ok so unrelated, but say I make 30k and want to hold. What token should I swap my whatever FOTM shitcoin to for stability?

[Anonymous No.20254928]

>>20253524
Is binance going to mail you an envelope of crisp $100s? Or do you have to transfer to a bank account tied to your social, and the ATM has cameras on it and look over your shoulder for IRS vans the rest of your life

[Anonymous No.20255188]

>>20252799
with crypto you can do wash sales unlike with stocks. so, yes you can do this.
https://www.forbes.com/sites/shehanchandrasekera/2020/02/19/a-tax-loophole-every-crypto-trader-should-know/#17201fe77ddf

[Anonymous No.20255907]

>>20248446
Bump

[Anonymous No.20256078]

>>20248446
As a good trader, you're already tracking your trades on a spreadsheet, right? Look up IRS form 8949. Format your spreadsheet to match the columns on there and just enter your data in there as usual. That's pretty much all there is to it. At the end of the tax year, sum up totals at the bottom, put your name, social, and a name for the attachment in the header, then print that badboy off and file it with your taxes. On the actual form 8949, you just write the totals and say "see attachment [name you gave it]"