crypto taxes

[Anonymous No.25755894]

I have been putting money into crypto for several years. Total inflow probably around 20-30K. Only ever cashed out like $400 of litecoin and I paid taxes on it. Since then portfolio has grown to 160K (mostly BTC). A few years back, I had gotten into algorithmic trading on Binance and accumulated literally thousands of transactions. I also got into shitcoins on weird exchanges that I don't even remember anymore and don't have accurate transaction history from them.

How am I supposed to pay taxes when I eventually cash out? Give my accountant reams of documents containing my high frequency binance transactions and expect them to calculate the accurate amount owed? I assume I would also need to amend my older returns with these transactions since each one was a taxable event?

One idea I was thinking about was just cashing out all at once and paying the capital gains as calculated on (total USD taken out - total USD put in). Not sure if IRS would fuck me by doing something like that. Another option is to just assume the cost basis was $0 for every coin and just pay long term capital gains on the entire amount to avoid the headache of tracking down every single transaction.

WWYD?

[Anonymous No.25756053]

bamp

[Anonymous No.25756093]

>>25755894
Just pay long term cap gains on the stack.

[Anonymous No.25756380]

>>25755894
there's software out there like bitcoin.tax and tokentax.co et al
they're all standard format etc and are pretty easy they cost like $150-300 but imo they are worth it and make life easier for everyone
one of two things will happen either you pay your taxes
or
you
go
to
jail
and thats the end of it.
bitch all day, bitch all night, but at the end of the day THEY GOT MCAFFEE FOR TAX EVASION
THEY GOT AL CAP FOR TAX EVASION
EVERYONE GOES DOWN BECAUSE OF TAX EVASION JUST PAY THEM I KNOW IT SUCKS

[Anonymous No.25756458]

>>25755894
start a 501c3. that's what all the politicians do.

[Anonymous No.25756520]

>>25756380
What do you think about doing what >>25756093
said and just paying cap gains on the entire stack assuming cost basis of 0? I'm concerned these tax software will not support... random metamask transactions, etheremon transactions... weird sketchy exchanges that literally don't exist anymore and I don't remember how much I sent or withdrew from

[Anonymous No.25756710]

>>25756520
I'm not an accountant or a tax lawyer, but I reckon you can't really get in trouble by overestimating your gains.

[Anonymous No.25756987]

why are machine dildos so hot?
especially the chick gets spit roasted by them

[Anonymous No.25757634]

>>25756380
Only answer. As far as your transactions OP you would be surprised what's supported, if you link your ETH addresses it will definitely pull all the Metamask transactions too.
Make sure you take the time to go through each transaction. The software can only make so many assumptions about those transactions so any simple transfers to different wallets should be marked as such so there are no loss/gain figures attached to them.
I'm not sure what you do with defunct exchanges, so zero cost basis may be the best move.
Lastly I'm sure not all of those trades were profitable so take advantage of the losses.

[Anonymous No.25757887]

>>25756380
>just cuck goy

[Anonymous No.25758014]

>>25755894
>A few years back, I had gotten into algorithmic trading on Binance and accumulated literally thousands of transactions. I also got into shitcoins on weird exchanges that I don't even remember anymore and don't have accurate transaction history from them.
>How am I supposed to pay taxes when I eventually cash out?
What country are you in? Because if you're in the U.S., you are already fucked. Oh -- IRS? USD? Yeah, you're already fucked.

There is no such thing as a "like kind exchange" in crypto trading in the U.S. I *KNOW* you stupid fucktards tried to meme it into existence. That's not how the tax code works. You have to calculate gains and losses for EVERY SINGLE TRADE even if you're swapping one stupid retarded shitcoin for another. And then you get the fun of sorting all of those into two piles of LTCG and STCG and then netting all of those gains and losses in each pile against each other, and finally calculating net taxes owed (if any).

There are plenty of people who got absolutely FUCKED by trading shitcoins like they're swapping semen at a homosexual orgy, thinking "like kind exchange!" and never bothering to do taxes on the trades figuring they'd just wait until they cashed out to fiat. The IRS does not look upon this with amusement. They send you a bill for hundreds of thousands of dollars and it is up to YOU to PROVE that you don't owe it. If you can't prove it, then guess what, YOU OWE IT. They won't take "noooooooooo!" for an answer.

Remember that short-term gains and losses are taxed at ordinary-income rates. If you cannot show the IRS your basis cost on those trades, then they will calculate your "gain" based on a zero-cost basis. That means that you bought the coin for $10000, sold it for $9000, lost $1000, but they assume you paid zero and so they tax you on the $9000. Period. YOU have to prove otherwise.

So, good luck if they get a 1099 from one of those exchanges that you don't remember. They WILL collect from you.

[Anonymous No.25758063]

Yeah just do a cost basis of zero, you’ll pay slightly more but avoid headaches

[Anonymous No.25758177]

>>25755894
IMAGINE unironically thinking Binance reports your shitcoin trades to IRS.
IMAGINE ever paying taxes on trading shitcoins.

[Anonymous No.25758586]

>>25758177
This

[Anonymous No.25758589]

>>25756380
>1 shekel has been deposited

[Anonymous No.25758798]

>>25758177
They do anon, that's why they're allowed to operate in the US in the first place.

[Anonymous No.25758833]

taxation is rape.

[Anonymous No.25758835]

>>25756380
cant i just say i didnt know to file them (true) and will pay whatever they give me?
im in the eu

[Anonymous No.25759145]

>>25758014
Yeah, what I was concerned with those high frequency trades is that they all fall under short term capital gains so it may not be as easy as saying "I will pay long term capital gains on the entire amount assuming cost basis $0".

The safest would be be to pay short term capital gains rate on the entire amount assuming cost basis $0, which would be a LOT of money, so I'm thinking it's worth it here to churn through the data and figure out exactly how much I owe. The weird ethereum services and exchanges I was dabbling in didn't really have too much $ in them so I could just suck it up and pay max cap gains rate on the amount that came back into my (trackable) accounts.

Only shitty part is I will have to amend old returns. Probably need to hire an accountant for this. I'll look into those crypto tax services though.

[Anonymous No.25759161]

>>25757634
>zero cost basis
can anyone explain this to a brainlet?

[Anonymous No.25759191]

>>25755894
>when I eventually cash out

[Anonymous No.25759260]

>>25758835
The burden is on you to know the laws, they don't give a fuck how unclear they are

>>25756380
>there's software out there like bitcoin.tax and tokentax.co et al
have any of you guys used these softwares? I was looking into them the other day and they seem like a decent deal. Better than spending all day going through my etherscan

[Anonymous No.25759349]

>>25758177
edgelords like you clearly don't live in the US. Try pulling more than 100k out of an exchange into your account and not pay any taxes lol

[Anonymous No.25759393]

>>25759161
Cap gains is calculated based on how much you made or lost on the trade.

Sale price - cost basis = profit or loss

[Anonymous No.25759456]

>>25759393
so cost basis mean initial investment?
and why would people calculate without an initial investment that seems like showing yourself in the leg

[Anonymous No.25759473]

>>25759161
I believe "Zero Cost Basis" was and old, old wooden ship used mostly during the civil war era.

[Anonymous No.25759792]

>>25755894
I dont know what country you're in but I was in a similar situation in the UK, basically I was ignorant of how the taxing worked and had to file a self declaration with the HMRC for previous years missed tax payments. I used koinly to figure out all the costs and gains between each transactions (you export the trading history from the exchanges and load it in and it does a pretty good job of spitting out a fairly accurate representation of what you owe, and also what you would need to put in to a current tax return form. I had thousands and thousands of trades where I went mental in the first couple years 2016-17 and of course would have done massively better if I'd just left it.

Part of the forms I had to fill in involved a fee based on the reason you hadn't paid the tax - if you purposefully hid the money then its a max fine, with varying reasons/behaviours like notifying them first before they contacted you that brings the fee down. There was also interest on the amount owed to pay..

Best thing you can do is read through your tax authorities advice, make sure you understand it and start figuring out your amount owed and how to pay any previous unpaid tax. Otherwise there's plenty of tax experts specialising in crypto that would probably take you on, though it would cost quite a bit if your affairs are complicated.

Or don't do any of that. I don't care.

[Anonymous No.25759940]

one thing i dont get is how are normies supporsed to get on board if they have to fill out taxes and calculate shit
we need some kind of exchange that automatically does everything for crypto to be viable, right?

[Anonymous No.25759998]

>>25755894
Did this ASMR whore really start doing softcore porn? I remember watching her videos a few years back and thinking how old and saggy her body looked

[Anonymous No.25760080]

>>25759940
It varies country to country how you calculate it.
Exchanges want to make money. Including tax calculations would just be excess server strain.

Normies are more likely to just chuck in a few hundred and probably forget about it

[Anonymous No.25760145]

What if i've only lost money on crypto? I got scammed with Link bought the top, same with XRP and others. I'm probably down 3,000 dollars in the last 8 months. Do I still have to report? I'm a NEET and only made like 1,500 from odd jobs last year.

[Anonymous No.25760213]

>>25755894
Seeing her porn ruined her ASMR :(

[Anonymous No.25760294]

>>25760213
I would need a name or a link to confirm that brother

[Anonymous No.25760362]

cointracking.info is the best one anon.

But I’m sorry to inform you, bonanza has horrible api history consistency. Even if you use the binance api to import your trades it’s going to be missing tons of random transactions and things won’t add up. It happened to me and many others I know.

You’re in for a hard time getting it squared away but if you get yourself caught up it’s easy to manage on a monthly basis like balancing your budget.

Cointracking let’s you export the tax forms and support automatic import on tons of exchanges and blockchain wallets.

[Anonymous No.25760387]

Imagine... just imagine... being American. Must be fucking awful.

[Anonymous No.25760422]

>>25756520
this is mostly the right answer you simply have to have a good faith effort. it all depends on how much you make
your risk of getting audited is not necessarily as large as many people think, and only goes back 7 years anyway
SO what i would do is just pay your taxes normally this year however it may be and amend your 2019 IF THERE ARE SUBSTANTIAL GAINS but anything less than $10K in gains id just ignore it
irs wants peopel to pay but they also just want people to pay, if you get me
>>25757634
i agree with this
i use the software and it makes everything very convenient. when gas fees for contracts are like $250 who cares about a quick software thing
everything in one place makes it crazy easy to just scroll through your tx and make sure nothing weird goes on on the import (hasn't ever happened to me)
>>25757887
>youre still paying the taxes whether you like it or not, serf
>>25758589
thanks
all i know is that there's an IMMENSE power associated with being able to tell the tax man and anyone else that gets into my finances THAT I HAVE PAID MY TAXES AND YOU CAN CLEARLY SEE ON A BLOCKCHAIN SCAN THAT I HAVE OWNED AN ASSET FOR MORE THAN ONE YEAR
long term gains you stupid fucking retard
so nice
>>25758835
i dont know eu tax law, glhf
>>25759145
>The safest would be be to pay short term capital gains
yeap, as they're 100% short term. either amend or as i said above, if you're woefully unclear then just ignore it and whatever take the risk
OTHERWISE
keep in mind that prior to 2017 crypto may not be like kind, so, dyor
personally? i paid my taxes fucking happily because if we all make it (we will) i will be shit eating grinning paying long term gains
>>25759161
means 'assume you got the asset for free'
>$10K worth of bitcoin, cash out
>assume you bought at zero
>taxes owed are on $10K
this is kind of wise if it's a small amount and you're actually unsure. when you get into real numbers youll learn to optimize things like FIFO LIFO etc

[Anonymous No.25760494]

>>25760145
I can only say from a UK perspective but if your amount traded is more than 4 times your allowed non tax amount, so here you can get 11k ish per year capital gains at 0% tax. If you traded an amount to 50k then even as a loss you need to report it as it's over the 4x threshold. Losses can be passed on to offset future gains.

If you sat on it all year, did a few small trades that amount to like 20k moved around then you don't need to report.

This might not be totally accurate but it's something like that. And fuck knows what the rules are in the US but there should be guidance on it all over the place.

[Anonymous No.25760513]

>>25759260
i used bitcoin.tax in previous years and since uniswap took off this year i use tokentax.co
it's fucking amazing, as above, it has an optimizer. buy it faggot.
>>25760145
yes, lucky for you $3000 is the maximum an individual can carry over year to year
say for example,
>invest $150,000
>lose it all in one year
>write off 3000 in 2020
>write off 3000 in 2021
>continue until you're dead
this is the /worst/ part about tax law in the US, while you can invest as much as you want, you can only write off $3k a year
HOWEVER
>salary $100K
>invest $150K
>lose it all
>gains -50K NOT $150
so, factor in your income as well
>>25760387
its actually not so bad. honestly, the coolest part about the cuck system is that when you're poor is sucks but when you're rich it's awesome. LITERALLY !! TRY !! getting wealthy in a fucking eurocuck nation. TRY.

[Anonymous No.25760554]

>>25760494
>This might not be totally accurate but it's something like that
it's inaccurate from what i know
your 11k number assumes you have no other income
otherwise it's added to your regular income, which, all income is treated the same whether it's from gains or wage slaving

AMA TAX LAWS FAGGOTS

[Anonymous No.25760612]

>>25755894
Do you want to never pay taxes anon?

Look up the 4% rule, it's not difficult.

[Anonymous No.25760615]

>>25755894
>cashing out
NGMI

[Anonymous No.25760624]

>>25758014
Or just do swaps on a non-KYC'd exchange or DEX

[Anonymous No.25760682]

>>25760145
Yes you have to report. With known cost basis and losses will roll over into next tax year too. So you're better off

[Anonymous No.25760726]

>>25759260
Sounds like tyranny. This government is not legitimate. Nobody should be paying anything.

[Anonymous No.25760744]

>>25756987
i think because it further dehumanizes the whore

[Anonymous No.25760802]

>>25755894
Exuse my retardation but...
Can't you just look at the transaction history with the timestamp and just calculated the purchase or selling price at that point? and then calculating on an excell sheet?

[Anonymous No.25760818]

>>25759940
A normie might buy something in one year and sell something in another year, its literally just a couple line items.

If OP wants to be a super trader like I used to be and do 20,000 trades across 14 exchanges, then he's going to have to reconstruct an entire history, make an excel sheet, and load it into bitcoin.tax, export as a .pdf and then append it to the tax software when he submits his taxes.

Anyone can make a "good faith" estimation of "lost" cost basis, based on something, for those trades they cannot find a record of (and for most cases these can be approximated with wallet movements). That is the only way to survive an audit. The other way is zero cost basis, which is a stupid tax

[Anonymous No.25760875]

>>25760554
the 11k or so tax free allowance refers to gains from investment, salary is taxed separately

[Anonymous No.25760897]

>>25760875
fuck you bong

[Anonymous No.25760916]

The other option for the IRS is taking half the assets in the accounts in question. This can be done entirely within the banking system. Once completed, any wages can be garnished in the future, and IRS debt cannot be expunged in bankruptcy. They own you utterly, totally, and forever.

[Anonymous No.25760956]

>>25760897
;^)

[Anonymous No.25760975]

i’ve paid for cointracking.info and i have an issue where i never actually bought crypto i’ve just mined it and it’s saying i have no buys for my trades basically. wut do?

[Anonymous No.25761047]

>>25760916
yeap. this is why i bitch all day, all night, but in the end, do the best job i can because they're basically like the king's guard coming to your door asking for your daughter's holes, your son's strength, and your field's harvest.

if you don't comply they'll kill you
just pay them and vote for how you'd like to see the dollars spent

[Anonymous No.25761072]

>>25760802

You could if you only did a few trades a year. You also may need to take into account pooling and 30 day rules and other bullshit which quickly becomes a massive headache if you do a fair bit of trading.

[Anonymous No.25761116]

>>25759940
theyre getting on board anyway, theyre so stupid they dont even know they will be fisted by the long arm of the law.

[Anonymous No.25761142]

>>25761072
wrong faggot
>The wash sale rule does not apply to cryptocurrency.

[Anonymous No.25761158]

>>25761047
Thats not what its like.

Its like actually getting down to it and doing your fucking taxes. I'm sorry but if you cannot handle financial accounting there is no way you are making any serious money to begin with. I know all about OP and his "trading account" as I work an exchange back end. Portfolio returns are inverse to number of trades in vast majority of cases. The sooner OP realizes trading is for arbitrage bots and losers he will be better off

[Anonymous No.25761202]

>>25759998
yep. she can take a cock tho

[Anonymous No.25761215]

>>25755894
>30k put in
>only 160k
>mostly BTC

Did you buy right before it crashed last march or something?

[Anonymous No.25761227]

>>25760975
Well you didn't buy them then.
Mining is counted as income. Check with your countries guidance on how mining is treated for tax. It may count towards your income rather than a separate investment tax.

[Anonymous No.25761230]

>>25755894
>every single micro transaction taxed independently
Please tell me this is a /biz/ meme to make me sad
How would this even work?
>invest 100
>line go up
>cash out and reinvest 110
>line go down
>have 90

So even if I lost money I’ll owe taxes? That doesn’t make any sense.

[Anonymous No.25761270]

>>25759161
Just to be sure you saw it, >>25760422 got it basically right.

The IRS only gets the price you sold at. You have to prove the cost you bought at (and any fees). If you can't prove that you paid money for something, they say "oh you acquired it for free" and they demand that you pay taxes on 100% of the price you sold at.

Doesn't matter if you paid more than what you sold for and actually ended up with a loss, you still have "zero cost basis" in their eyes unless and until you prove otherwise.

[Anonymous No.25761283]

>>25761142
Seems like to sum this entire thread up you could just say it depends on what country you're from.

[Anonymous No.25761304]

>>25755894
Or, just do what I do, export all transactions out into Excel, then just do buy/sell cost analysis for four gains or lost and don't have to get into each transaction.

[Anonymous No.25761317]

>>25759349
Why are you cashing out 100k+ into fiat at a time?

[Anonymous No.25761340]

>>25761230
idk how crypto works but in burgerland when you buy AND sell that is considered 1 transaction and if you were profitable in that transaction you must be taxes even if the underlying proceeds to lose value

[Anonymous No.25761431]

>>25761340
How the fuck would the IRS ever know about your trade history to begin with?

[Anonymous No.25761439]

>>25761230
You may not owe tax by the end of it but you may need to report the activity. You can potentially get fucked if you make a big gain then poorly invest it and lose it but keep it in hope that it'll go up again, meaning you owe tax on that gain you made after trading from your big earning crypto after your initial investment to the shitcoin that ruined you.

[Anonymous No.25761456]

>>25755894
>all of these replies
>no source
>no link
>no nothing

[Anonymous No.25761501]

>>25760387
Could be worse, we could live in Eurabia or Bugpeopleland or Canuckistan or in a Latinx country or even on the dark nogtinent or be bogans.

Really the only good country left is the one where they all fuck sheep.

[Anonymous No.25761524]

>>25761158
>Thats not what its like, its just that in the very same way they'll stop at absolutely nothing and you can very likely find yourself in jail for persistent negligence
i somewhat agree with your other statements like
>cannot handle financial accounting
yes, retards trying to make money are doomed to lose it
>inverse to the number of trades
dunno what exchange you work for but id really like to see this information published
if true, it could bring a lot of stability to a normie's perspective on investment etc, re: panic selling
>>25761270
>You have to prove
so many anons dont understand this. the irs isn't going to take a huge pile of toiletpaper written down trades and say OH MAN SO MUCH WORK! the burden IS ON YOU.
>>25761283
9pm est yeah everyone here is american
>>25761340
wrong
it's about acquisition and relinquishment
>acquire at $1000
>relinquish at $2000
whether you went from USD -> BTC then to ETH doesn't matter to the IRS, they see it as relinquishing an asset
under the case above, you theoretically only have $1700 as you should've given $300 to uncle sham
>>25761431
say you do cash out someday OR I DONT KNOW THE US TAKES A BIGGER INTEREST IN TAXING CRYPTO
meet my friend chain analysis
>>25761439
yeap many nightmare scenarios of owing like $100K in year 1, then losing it all in year 2, surprise, still owe $100K
it fucking sucks I hate the yearly basis of things

[Anonymous No.25761525]

>>25761227
im just going to submit as is. i’m fucked no matter how i cut it. i’m fucked for not reporting and i’m fucked for reporting the best i can. at least i can say i tried

[Anonymous No.25761557]

>>25761230
>invest 100
>line go up
>cash out and reinvest 110
>line go down
>have 90

Selling price-cost basis=estimated tax
110-100 = 10 cap gain
buy 100 sell 110= 10 cap gain
buy 110 sell 90=20 cap loss
total -10 gain
not taxed

if however
buy 100 sell 1000=900 cap gain
++ new calendar year ++
buy 1000, sell 100=-900 cap loss
You owe 900 for cap gain in previous year
You only have 100
The IRS now owns you forever

Put aside funds to pay if made capital gains last year DO NOT RISK THEM IN MARKET

[Anonymous No.25761573]

>>25761456
Thing is everyone here could be from different countries. All you need to do is look up IRS crypto tax guidance/HMRC crypto guidance etc. They won't accept you being too lazy or scared to look up what you need to do as an excuse when they come after you.

[Anonymous No.25761588]

>>25761524
>meet my friend chain analysis
On-exchange trades never touch the blockchain...?

[Anonymous No.25761605]

>>25761230
>So even if I lost money I’ll owe taxes? That doesn’t make any sense.
You offset the losses against the gains within the same tax year and tax category (LT vs ST) and then you get to offset LT vs ST too..

The only way you get fucked on that is if the closes were in two different tax years.

[Anonymous No.25761644]

>>25761215
>Did you buy right before it crashed last march or something?

Made a lot of hugely retarded trades. My average buy price was probably around $5-8K. My friend convinced me to switch to ETH and I got bitten by a bunch of shitcoins and I eventually converted 90% of it back to BTC.

In 2013 I also lost a (1) BTC from a cold wallet on an ecrypted drive when I accidentally erased the boot sector. Lol.

[Anonymous No.25761645]

>>25761524
>>inverse to the number of trades
>dunno what exchange you work for but id really like to see this information published


simple concept. the richest people in the world make a few trades a year.

Ex. buy in 2009, sell in 2024 = 2 trades

The poorest people in the world buy and sell 20 times a day all year long (and lose money 95% of the time). This is called "overtrading"

[Anonymous No.25761668]

>>25761588
yes, assume that an exchange never gets subpoenaed by the US
what the fuck do you think ahppened with binance?
if it's like hotbit or something yeah who gives a fuck it's impossible to trade real volume there anyway

[Anonymous No.25761669]

>>25761439
Ever given your full name and address to an exchange? They will know. If you've just kept it in your wallet and mined it or something then yeah they won't know. But if you end up with millions you'll want to do something with it at some point.

[Anonymous No.25761709]

>>25760145
Just act like it didn't happen the federales aren't coming after you.

[Anonymous No.25761714]

Anyways, thanks for the input everyone, I'm going to try one of those tax services out, I have most of the transaction histories in CSV files.

[Anonymous No.25761718]

>>25761645
>simple concept
vs
>published data with graphs and shit
did you not read that i said what the effect might be? it would make smaller investors chill the fuck out and stop going from shitcoin to shitcoin and just relax in some solid projects
PUBLISH
IT

[Anonymous No.25761756]

>>25761230
>>25761605
BTW, this is why so many people got fucked in 2017/2018 -- everyone made huge amounts in 2017, then lost it all in 2018. So they had to pay taxes on 2017 and couldn't use their 2018 losses against it.

I forgot to mention, you can carry over a loss from year X to year X+1, X+2, ... X+n and offset later gains. You usually can't offset an earlier year with a later year's loss, although my tax adviser mentioned once that you can do it for up to three years earlier, but I've never seen it done to know how.

If you're ever in that situation, ask a real tax attorney about if it's possible, not some shitty H&R Block retard.

[Anonymous No.25761771]

>>25761525
Give your tax authority a call. they may seem like it but they aren't your enemy and will help you out if you're unsure.

[Anonymous No.25761779]

>>25760975
As income its just like trades but zero cost basis.

[Anonymous No.25761795]

>>25761714
Good luck OP. I hope you don't end up owing anything.

[Anonymous No.25761852]

>>25761771
i don’t have a tax attorney. i don’t even know where to begin finding one in the us that deals with crypto

[Anonymous No.25761907]

>>25761644
>had a btc in 2013
>could have accooomulated from there
>didn't

Your story is physically painful for me to read. I feel like you've had 3 chances to make it and if you fuck up this bullrun you're probably not gonna make it. Stay frosty, amigo.

[Anonymous No.25761921]

>>25761340
That’s even more confusing. What if I buy 1 bitcoin then sell 100 .01 burn parcels? I only have 1 buy/sell pair and 99 unpaired sells.
If what you said is true you ca. Pretty much delete taxes by buying batches and selling parcels.

[Anonymous No.25761982]

>>25761718
>https://www.investopedia.com/terms/o/overtrading.asp

Its a well known phenomenon especially among new investors, especially the frictionless crypto markets.

For example, if you did 2 trades of 100,000 each with fees of 2.5% the fees alone are $500

But anons here I am sure are more like 1000 trades 1,000 each = 1,000,000 = $2,500

[Anonymous No.25761983]

>>25761756
Look I’m just a retard playing on robinhood.
Will the irs leave me alone if I just declare income or something every time I make a withdraw from robinhood?

[Anonymous No.25761987]

The IRS really is the most cantankerous like infested pus leaking wound on the face of the planet. Imagine actually signing up for a job where your task is to shake money out of your fellow American in order to pay for shitskins to flood into America and shit out disgusting goblin children.

[Anonymous No.25762032]

>>25761852
You are better off just figuring it out yourself with bitcoin.tax. Get Taxact for more than 500 transactions. You get an attorney when the IRS contacts you and you are preparing to fight them.

[Anonymous No.25762086]

>>25761987
Haha yeah who would do that haha not me.

[Anonymous No.25762150]

>>25761983
To be honest, yes there is a low order of probability of being convicted of tax fraud

[Anonymous No.25762161]

>>25761668
There are tons of non-US exchanges with high liquidity. As a Canadian though I don't need to worry about it either way.

[Anonymous No.25762215]

>>25761852
Tax AUTHORITY not attorney. Speak to the IRS is what I mean

[Anonymous No.25762346]

>>25759349
2999 or less

[Anonymous No.25762374]

>>25756520
Ive taken accounting and am like 10 credit hours short of being a CPA, so I guess I cant legally give you actual accounting advice, and definitely take what Im saying with a grain of salt, but I kinda know what Im talking about. BUT, I still recommend talking to an actual accountant.

I would do what's described here (just paying capital gains on your realized gains minus your inital) every day of the week and think youll be 100% fine doing this. Nobody, and I literally mean fucking nobody, not even the IRS, wants to go through tens of thousands of random shitcoin transactions. They'll just care about your bank account on entry/exit and your current balances, nobody really gives a fuck about all the stuff in the middle, because for all intents and purposes it doesnt matter.

99.5% of the time you're never actually required to back up anything with receipts or proof. I think its like 0.4% of people that actually end up getting audited. In that case, I would put out the info showing your bank statements and current holdings very clearly, and then just send them a massive fucking stack of tiny 10pt font spreadsheets of your mass amounts of automated trades.

Id bet my fucking dick they dont actually look through it line by line

[Anonymous No.25762385]

podcasts:
https://talk.bitcoin.tax/irs-ramps-up-crypto-tax-scrutiny/
https://talk.bitcoin.tax/crypto-tax-planning-policies-bull-market/

services:
https://bitcoin.tax/full-service

Honestly though its not that hard to do it yourself plus you will realize how much money you straight up wasted overtrading

[Anonymous No.25762422]

>>25762086
assuming you aren’t LARPING I really want to know, how do you sleep at night? Does your job bring you fulfillment? Do you honestly feel like you’re making the world a better place when you steal $30k from some random wagie and then turn around and use it to pay for the food and shelter of a “refugee” that ends up stabbing and raping a child?
Just curious.

[Anonymous No.25762436]

>>25762374
Would you get in an uber if there was a 1 in 200 chance you would be murdered? I didn't think so. Gibs taxes nao

[Anonymous No.25762482]

With the bull market its obvious they are going to put even more resources toward examining crypto-related returns

[Anonymous No.25762530]

All the exchanges are going to be required to send the IRS your name and the total amount of money transmitted (traded/bought/sold) on a per month basis so make that shit look right if you are going to make stuff up

[Anonymous No.25762548]

>>25762482
>have foreign wife
>transfer all of my crypto to her wallet
>have her use Monero to obfuscate the transaction
>tell the IRS my wallet was drained by a hacker because my keys were compromised in a phishing attack
Hypothetically speaking how likely is this plan to work?

[Anonymous No.25762571]

>>25761718
Everyone knows this, get real newfag

[Anonymous No.25762701]

>>25762436
audited =/= murdered, you just need to back up what you say with receipts/invoices/etc. Im not advocating lying in any way, shape, or form. But getting audited really isn't as big of a deal as people here make it out to be. And, even if you're caught with discrepancies, they give you a chance to just pay it, its not like you just go straight to jail for making a mistake on your taxes.

As long as the exchanges op used keep records of its users transactions, hes all good, and if they dont, then how the fuck is the IRS going to know that he made tons of trades (which really doesnt even have the tax implications that most people here misunderstand it as having)?

[Anonymous No.25762940]

>>25755894
BTW, OP, thanks, I found the video.

https://media02.influencersgonewild.com/videos/gwengwiz_testing_out_her_new_machine_onlyfans_video-ELPNKY.mp4

[Anonymous No.25763028]

>>25762548
Depends on whether she is a U.S. resident or not, and on whether she is living in the U.S. or not, and on whether the country the exchange is in reports her trades to anyone.

If you're living in her home country and it's one that doesn't tax crypto, and if she doesn't have to file U.S. taxes because of your marriage to her, it might work.

Let us know. :-)

[Anonymous No.25763815]

>>25761270
>until you prove otherwise.
cant i just make a up a csv file and say its legit