/biz/ - Business & Finance

[Anonymous No.2263718]

Can someone explain taxes to me short and sweet? I've just started trading this year, and i've never had a job in my life so I never have had to pay taxes.

Should I be logging every trade I do and make profit/loss on for tax day? And do I have to pay seperate taxes on profit/losses or do I just give them how much money i've made and tax out on it?

I'm fugging confused.

[Anonymous No.2263987]

>>2263718
No. The thing is kiddo, you don't cash out. Never. You'll just buy things with the BTC that you earn out of trading, but converting your BTC into fiat after you've made anywhere from dozens to hundreds of trades will FUCK you with taxes. There's no withdrawing you principle out, sorry to tell you this. Just a reality of trading meme money on the Internet, the financial powers that be do not allow you to do as you please with it as they do with stocks.

[Anonymous No.2264021]

>>2263987
I understand, and thanks for the reply. But the thing is, I really am content on paying taxes, if it were reasonable. I've left a big paper trail already that's all connected to me through coinbase and everything, I really have intentions of paying taxes, and i've never even used a proxy or anything

But, is there really no way to easily pay taxes on money gained? Do I actually have to tax out on each individual trade? Like, couldn't I just pay capital gains tax on the amount of money I made in total?

[Anonymous No.2264053]

>>2263718
Consult a tax lawyer, not 4chan my guy.

[Anonymous No.2264080]

>>2263718
In. I'm also interested.

[Anonymous No.2264086]

>>2264021
There's an easy way to pay taxes. The IRS outlined cryptocurrency gain laws a couple years back, and they're harsher than any they've inposed on gains from stocks.
Yes, each trade that you gained money in is liable for taxations. This is the reason it's important to hold as often as you can, unless you're a daytrader (lol). Honestly just take what I saw with a grain of salt since I've never tried cashing out a BTC, but know that when converting to fiat you'll be held accountable for reporting each transaction that lead to the amount you're withdrawing. If you we're cashing out >50k I'd recommend getting a CPA to help you navigate the laws of your region.
Hope this helped.

[Anonymous No.2264114]

>>2263718
Taxes are cumulative, so at the end of the year you either show a total loss or gain for your portfolio. If you are using a good broker it will track everything for you essentially.

If you're talking about stocks and not coins the following is also true:

1.) Stocks become long term gains after a year of holding, meaning you pay less tax than capital gains.

2.) Dividends are qualified or unqualified. Qualified dividends are lower tax rates, like long term holdings. Holdings like REITS, BDCs, etc are always unqualified and have higher dividends normally.

3.) Only 3k in losses, after offsetting any gains, can be written off as taxes, but anything not written off is carried over to next year in order to offset gains or write off at the same 3k loss limit.

[Anonymous No.2264131]

>>2264114
Also, you don't claim any gain or loss on unrealized gains. Basically until you sell you don't count it.

For Stocks:

4.) Wash sales can also occur in the situation if you sell a stock and then buy back in within 30 days. Basically if you sell at a gain or loss, and then re-buy within 30 days of the sale, it doesn't count as a loss or gain.

[Anonymous No.2264145]

>>2264131
Those jpg artifacts are hot. They really accentuate her moles.

[Anonymous No.2264193]

>>2264145
She's my ideal seaman demon... I normally hate moles and the like, but on her, I don't mind. Too bad I hear she's an absolute basket case, oh well, not like it was happening anyway since you know she's just some random celebrity.

[Anonymous No.2265163]

can I buy stuff with BTC then sell it on ebay to skip taxes?

[Anonymous No.2265186]

>>2263718
shoudlnt they provide you with a tax sheet