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2117151 No.2117151 [Reply] [Original]

I'm totally new to crypto, how do I avoid getting fucked by the IRS?

Say, for example, I buy and hold ETH for like 5 years, and say ETH is at like 2000 and I sell and make, say, 10k.

How do I report it? Should I just log all my crypto transactions in a spreadsheet? I've never filed my fucking taxes, I don't know how this shit works, I'm 18, please help me

>> No.2117532

>>2117151
bump

>> No.2117539

>>2117151
dumb fuck just Google capital gains taxes

>> No.2117547

buy the dip

>> No.2117550
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2117550

>> No.2117553

>>2117151
BUY GOLD, or just straight up buy a house, car or boat there are places that seel for btc

>> No.2117558

>>2117151
Report your gains the same way you report any gains like you sold stock. Yes, you should log your crypto transactions, as that'll let you know your "basis" (generally what you bought your crypto at).

>> No.2117565

>>2117151
Calculate your profit from when you bought to when you sold. You will most likely pay long term capital gains tax on that amount (15%).

>> No.2117621
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2117621

>>2117558
>crypto transactions
Does that mean only when you pull the money out of the market into fiat currency, or do you have to record ever up and down it goes through

>> No.2118035

>>2117151
Relax anon. It's quite simple if you live in the US. Just use one of the many reputable online tax filing services for free. Enter any crypto profits you made (ie. if you invest $1k and cash out when it's worth $5k, that is $4k profit.) as capital gains income on your tax return. At the end it will tell you how much money you need to send to the IRS if it's greater than what your tax return would otherwise be.

Take a look at this if you want to estimate how much you'll have after taxes: https://taxfoundation.org/2017-tax-brackets/.. Remember your income includes capital gains.

If you wait until you retire, you can cash out on your crypto at lower tax rates because your income will be less.

>> No.2118043
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2118043

>>2117151
>buy assets, or convert to a stable crypto after bubble (in 2+ years for ETH)

>> No.2118055
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2118055

>>2117151
>how do I avoid getting fucked by the IRS?

You don't.

Consider yourself cucked, fucked, and stuck holding the bag.

Welcome to patsyville slave.

>> No.2118494

>>2117151
Capital gains, once you sell, reserve 15% for the man to take his share at tax time. Ez