Taxes

[Anonymous No.26094877]

What the FUCK?

Is this how taxes work in shitmerica?

If you make a profitable trade but then it tanks, you get taxed based on the profitable trade and so basically if the asset tanks despite being in profit, you will OWE taxes??

I know america is down syndrome incarnate in every regard, but not this, right?

If I made a mil in a trade but then that asset dumps to -99%, I'd have to pay as if I still had the mil?

PLEASE tell me this down syndrome country isn't as bad as I think. Please tell me this government isn't THAT retarded

[Anonymous No.26094895]

>>26094877
*despite no longer being in profit

[Anonymous No.26094943]

You only owe taxes if you cash out or trade crypto to crypto

If you hold longer than a year it’s long term capital gain. Less than a year it’s short term which is whatever your income tax rate is.

[Anonymous No.26095046]

>>26094943
What are the tax benefits to a long term capital gain vs short term?
Does this make it even riskier to trade alts? For instance, if I have bitcoin for a yr and trade it for an alt then back to btc, does it remove the "long term capital status" of that bitcoin used?

Last question. If I short bitcoin on bybit, does it not get taxed as "cashing out"? If not, what about if I sell on spot using binance? Does THAT count as "cashing out"? If it does, it basically means trading spot is terrible and you're better off using leverage

[Anonymous No.26095055]

Use an exchange that doesn't send a tax report, problem solved

[Anonymous No.26095097]

>>26094877
we have that here in europe tho. take the swisspill

[Anonymous No.26095172]

>>26094877
>If you make a profitable trade but then it tanks, you get taxed based on the profitable trade and so basically if the asset tanks despite being in profit, you will OWE taxes??
I know nothing about crypto taxes and little about capital gains tax but I very much doubt that. I'm sure you can subtract your losses against your gains, that would be absurd otherwise. So absurd nobody would touch it.

[Anonymous No.26095173]

>>26095046
Long term capital gains tax is 0 if you make under a certain amount. Only the BTC that was swapped would be subject to short term.

[Anonymous No.26095238]

>>26094877
Reminder. All of these tax laws are specifically designed to fuck people in the lower and middle class. Wealthy people have plenty of tax loop holes to exploit and literally pay 0%

[Anonymous No.26095308]

No it's the same as stocks. If you are up 1 mil on paper then it tanks you just sell and that is your net profit/loss. You can get rekt though if you do that across tax years as your 2020 gains could be +1 mil, then you sell in 2021 with 1 mil loss

[Anonymous No.26095319]

>>26094877
>live in ontario
>get taxes 50% of cg.
>lost 4k in the sm
>made 4k in crypto
Broke even fuck off fed.
Movong to bongland to avoid this shit. Can't take it.
They fucked out economy and the working class and still feel they are doing right.

[Anonymous No.26095345]

>>26094877
You wouldn't have to pay if you sold the asset that lost. Meaning you can add that to cou ter your cg.

[Anonymous No.26095362]

>>26094877
Coin to coin transfers are taxed. Thats pretty much it. You might owe 50 bucks lol

[Anonymous No.26095369]

>>26095173
>only the btc that was swapped
So basically don't use btc you want to couny as long term capital gains for usd or any alts at all or it erases that status of the btc used. Good to know.. So spot trading with it is stupid.. fuck. Well good thing I stopped trading alts with it then. I'll probably use new capital for alts.

[Anonymous No.26095393]

>>26095238
Yep. 100% obvious what this government's goals are. To fuck people from moving up. Lesson here is to make sure you don't cash out until after a year and to not swap that asset for

[Anonymous No.26095406]

>>26095172
You can subtract your losses but the point is that they occurred in different years. So, the losses probably make his taxes for 2018 pretty much nothing, but it doesnt matter because he still owes the taxes for 2017 and I am pretty sure the 2018 realized losses have no impact on that amount owed. Also, if he made those trades earlier in 2017, he probably owes a penalty of some sort for not paying the quarterly estimate of it after the quarter ended.

[Anonymous No.26095418]

>>26095393
*for anything

[Anonymous No.26095428]

>>26094877
Yeah USA taxes are down syndrome when it comes to crypto.

[Anonymous No.26095646]

>>26094877
Crypto laws suck for USA. If you convert crypto to crypto, or crypto to fiat, that is a taxable event. The taxes depend on how long you held the asset. If you held less than a year, then its short term capital gains. If you held over a year, its long term capital gains.

Short term capital gains makes your profit into your yearly income, so it gets taxed as income. Long term capital gains has its own bracket, which starts at 0% for under 40k, and it maxes out at 20%. In comparison, currently the highest income tax bracket is 37%.

[Anonymous No.26095745]

What if I trade my bitcoin to a friend for a piece of artwork?

[Anonymous No.26095749]

>>26095406
Ya so from what I understood, he didn't pay taxes on 2017 and owed a shitton do to massive gains. Then couldn't pay in 2018 cause he lost most of meaning he still owes a shit ton, only he has no way of paying it now.
Fuck taxes. More harm than good. This faggot ass government needs to leave poor people alone already. Mafia fuckers.

[Anonymous No.26095779]

>>26095749
*could't pay the 2017 taxes in 2018
*still owes a shit ton from 2017

[Anonymous No.26095818]

>>26095646
Fuck. In other words... leverage trading is the only real way to go..? I don't think that counts as "crypto to crypto", right?

[Anonymous No.26095839]

I thought I could become a day trader. I lost half of my money. BUT E-Trade sent the IRS reports on some long trades that profited. I'm not even sure it was correct amounts. Three years later I get a big bill with interest I could barely pay. This was during the market crash and it sent me into a hole. I will never forgive the govt ever again.

[Anonymous No.26095871]

>>26095646
>Short term capital gains makes your profit into your yearly income, so it gets taxed as income. Long term capital gains has its own bracket, which starts at 0% for under 40k, and it maxes out at 20%. In comparison, currently the highest income tax bracket is 37%.
Yep.. so basically there is ZEROOOOO point to cashing out until it becomes a long term capital gain.
I don't understand why it's not it's own thing to begin with. Making you wait a year just to be dicks. Well, I still plan on holding bitcoin for the long term anyways, it's just dumb to fuck people like that

[Anonymous No.26095912]

>>26094877
It's pretty shit but not as bad as this kid says it is. He was just dumb because he didn't realize that crypto-crypto is taxable.

Let's say you buy 100 shitcoin for $100 each. 10k invested.

Shitcoin goes to $1000. You sell all your shitcoins for 100 ETH. You are taxable for 90k gains.

ETH falls to $100. You can sell all your coins then rebuy them to harvest the tax loss. Aka, you no longer have to pay taxes on that 90k.

That kid was stupid because he either didn't do the last step or he did the second and last steps in 2 tax years. In that case, you get tax credit going forward. A good tax lawyer can make this problem go away.

If you're in 6 figure gains, defiantly higher a tax lawyer.

[Anonymous No.26095948]

>>26095839
What the shit? So you're paying taxes even though you are at a net loss? It should be the other way around. You should have qualified for tax harvesting.

I used this one place that didn't even calculate my shit right either (didn't calculate my losses on bybit or on binance's margin account). I hate this government for not minding its own business. Making relatively simple things 100x more complicated to take more control over your life. FUCK government

[Anonymous No.26096038]

>>26095871
40k is enough to buy a Honda Type-R. I had no idea.

I'm going to stay poor on purpose.

[Anonymous No.26096098]

>>26095406
Cash out and buy back in immediately after, at the end of the fiscal year. Now you can claim the loss.

[Anonymous No.26096143]

>>26095055
This. Use a CEX that does not require KYC and DEX.

[Anonymous No.26096260]

so i put 500 in coinbase. xfered to eth and did a uniswap to a shitcoin. if i make it to 10k, then swapped to a stablecoin. what do i do to avoid being taxed?

how the fuck do they know how much i made?

[Anonymous No.26096289]

>>26095646
Let's say I amass a full bitcoin over the course of 15 months, purchasing 0.2 at a time, five times. Then I sell the whole bitcoin all at once. Now some of my purchases occurred over a year ago, but some of them didn't. Am I paying long term capital gains tax or short term?

[Anonymous No.26096306]

>>26096260
They wouldn’t if u made the swap on uni. Just cash out thru local btc or something like that

[Anonymous No.26096321]

>>26095646
Oh yeah and under Biden all capital gains will be taxed as income... sorry investors! lole!

[Anonymous No.26096334]

>>26096306
oh im not gonna cash out. but thanks for advice dude!

i'm think about doin a stake and letting it chill for a while

[Anonymous No.26096378]

>>26096143
>This. Use a CEX that does not require KYC and DEX.
an example would be....

[Anonymous No.26096421]

>>26096260
They don't really know, but if you get audited you still gotta pay tax on that $9500 profit. You can probably shelter until the tax laws get better tho.

[Anonymous No.26096455]

>>26094877
What a coincidence. I was just doing some more research on crypto today and I saw that reddit thread a few hours ago.

[Anonymous No.26096471]

>>26096421
>tax laws getting better
probably note dude

>shelter
like hide my coins or i hide somewhere?

[Anonymous No.26096478]

>>26096378

Kraken or Uniswap

[Anonymous No.26096480]

>>26094877
HODL.
It was always easy.
Don't by a mong.

[Anonymous No.26096510]

>>26095046
Every time you sell, you are realizing a gain or loss. It doesn't matter what you sell it for. Sell btc for eth is the same as selling btc for usd.
Capital gains are the profit of the trade. They are the difference between your total cost basis and net value after sale. Say you buy an amount of btc for $10,000 today and sell it for $12,000 tomorrow. Your realized gain is $2,000. You are taxed at the short term rate on that $2,000.
Now say three days later it's still the same tax year and you buy $12,000 worth of btc, then sell it for $10,000 one day later. Your realized gain is -$2,000.
You don't make any other trades and the tax year ends. Your net realized gains for the year are $2,000 + (-$2,000) = $0. You are taxed on $0 which is $0 at any rate.
>>26096098
This can be considered a wash sale and is cancelled from your tax assessment.
With regard to claiming losses from earlier tax years. You are allowed to do that. So in OP's pic, that guy would file whatever years he didn't file and his tax liability would be adjusted according to his actual net p/l. He doesn't owe any taxes if his net realized gain from all years is <0.
You can also deduct capital loss from your ordinary income in any years. There's a $3k annual cap on this. >>26096260
The danger is that if they ever find out they'll charge you interest on what you owed.
If you made $10k you're probably still in a no-liability tax bracket btw. So wouldn't really matter

[Anonymous No.26096577]

>>26094877
chill nigger, you can use the loss to offset the gains

[Anonymous No.26096584]

>>26096510
>. Your net realized gains for the year are $2,000 + (-$2,000) = $0. You are taxed on $0 which is $0 at any rate.
You still have to report it on your tax returns.
This is where you mongs fuck up.
Just HODL.

[Anonymous No.26096588]

>>26095912
You lost me a bit.
So 10k invested in a shitcoin (doesn't have to be multiple) netted you 90k taxable gains (you have a total of 100k) and so you buy 100 eth? (meaning pretending eth is at 1k, you buy 100 of them at that price meaning you bought 100k worth of eth)..and then eth falls 90% giving you 10k... the eth part is where you lost me.
Do you mean wait for "eth" to dump and THEN sell your shitcoins once you think eth has bottomed out..?

Or do you mean go to "eth" immediately after the 90k gains are made then wait for the shitcoins to dump hard as sht and THEN rebuy that shitcoin? And THEN by rebuying the shitcoin, you will make a loophole where you get tax harvesting benefits rather than pay taxes? I don't get how that would qualify you for tax harvesting when you aren't at a loss

[Anonymous No.26096614]

>>26096584
but im in a shit coin. it could crash. i wanna reap at the top

[Anonymous No.26096620]

>>26096588
>where you lost me.
...
You have to list every buy/sale on your tax returns.
HODL.
Easy.

[Anonymous No.26096625]

Every crypto crypto transaction is a taxable event.
FIAT to crypto is not taxable (its like buying a burger)
Crypto to fiat is also taxable
>GAINS
$ -> Eth
(1 week)
Eth -> Link
you owe taxes on any gain Eth made during that week, and since it was held a week it's short term capital gains tax.
Say eth made 5% gains, you owe taxes on the 5% gains only.

(Hodl Link 1 yr)
Link -> Tether
you owe taxes on any gain Link made during that year. You held for 1 yr so it is long term capital gains tax.
Say you made 420% on the Eth, you owe long term cap gains tax only on the 420% gained

Tether -> Eth
(1 Week)
50% of your Eth -> Link
If you only exchange a portion, you only owe taxes on gains accrued by that portion. Say Eth gained 20% that week, you owe taxes on (50% of principle * 20%) only.
>LOSSES
$ -> XRP
(Hold 1 week)
XRP -> Tether
You lost $6000 on XRP over that week. You can claim this against income. If you made $9000 in SHORT TERM GAINS that year, you can claim (up to) a $3000 Short term capital gains loss, meaning you're taxed as if you made only $6000 in short term gains.
Up to $3000 additional losses can be claimed the next year, and the next, etc. but (almost always) you can only claim up to $3000 in one year.

Same goes for long term:
$ -> STA
(Hold 1 yr)
STA -> tether
You lose $3000 on STA that year. You can claim this against your LONG TERM CAPITAL GAINS. Say you made $5000 in Long term capital gains, subtract $3000, you pay Longterm cap gains on $2000.

[Anonymous No.26096639]

>>26096510
>This can be considered a wash sale and is cancelled from your tax assessment.
Not actually true. That only applies to securities like stocks, where you need to wait at least a month before buying back in. Since the government decided to classify crypto as property, you absolutely can do things like sell at a loss on 12/31 and then buy back in immediately.

[Anonymous No.26096658]

>>26094877
This is correct. That is why I sold my LINK and quickly rebought the whole stack so as to not pay taxes on the original gain

[Anonymous No.26096667]

>>26096289
I'm guessing both aka some of it will be long term capital gains and some will be short term

[Anonymous No.26096672]

You’re all a bunch of flaming retards. If you have massive gains one year and massive loses the next and you can’t pay your taxes then all you have to do is file for an extension and write your gains off from your loses. Are you all this brain dead or is it just consistent insufferable larping again

TLDR; get an accountant goy

[Anonymous No.26096683]

>>26096639
And you still have to list every buy/sale on your tax returns.
Anons have fucked up, i guarantee it.
Just.
HODL.

[Anonymous No.26096688]

>>26096672
how much is an accountant?

[Anonymous No.26096720]

>>26096510
If I make 30k automatic trades in a week I'm supposed to put each trade in my tax return instead of just the net profits for the year?

[Anonymous No.26096757]

>>26096688
Like 100$ to pay them to do your taxes

[Anonymous No.26096771]

>>26096289
You pay the period and gains the 0.2btc made when you had it.
(% gain 0.2 btc held for 1 month) -> Short term
(% gain on 0.2 btc Held for 6mo) -> Short term
(% gain on 0.2 btc held for 10 mo) -> Short term
(% gain on 0.2 btc held for 12 mo) -> Long term
(% gain on 0.2 btc held for 15 mo) -> Long term

[Anonymous No.26096781]

>>26096757
thanks anon. and they guide you how to do some cool tricks? >>26096658 like this guy?

[Anonymous No.26096783]

>>26094877
Capital gains taxes allow you to write off losses

[Anonymous No.26096787]

There are a lot of rarts in this thread
>>26096688
It varies a lot, the firm I work at charges anywhere from $150 to $15000 for a return based on its complexity

[Anonymous No.26096819]

>>26096588
My example is how to harvest tax losses. After eth loses 90%, you can sell your eth to realize 90k losses, then buy eth again so you end up with the same 100 eth.

This is how to avoid the trouble OP got into because he only realized massive gains by trading at the top, but never realized his massive losses by trading at the bottom.

If your portfolio keeps going up, then this trick won't do shit. Sell some of your coins to pay taxes.

[Anonymous No.26096822]

>>26096720
Yes, but set up an API and get software to create the 8949 for you, there are various out there, and a lot that import directly to various tax software

[Anonymous No.26096849]

>>26096510
So for example if I put down 20k, lose 10k, but then put down another 10k and that becomes 100k,

Would that be 100k - 10k from initial investment and -10k from the loss, which will only = 80k capital gains?

[Anonymous No.26096900]

>>26096819
Individuals cannot take advantage of wash sales like that unless you qualify for trader tax status

[Anonymous No.26096911]

>>26096822
Abolish the USA.

[Anonymous No.26096927]

>>26096849
Stop.
Just stop.
If you sell any crypto.
All buys/sells need to be reported on taxes.
Just HODL.

[Anonymous No.26096948]

>>26096849
See>>26096625
You can only claim losses up to $3000, And it has to be the same Lenght of time. SUbtract Short Term losses from Short term gains, Long Term losses from long term gains.

If you didnt realize the loss (sell the position when down 10k) you cant claim at a loss. If this is what you meant in your example, then you just have 70k in gains because you put in 30k (20k + 10k).

[Anonymous No.26096962]

>>26096822
I tried this api method and it didn't calculate my gains/losses properly for bybit and didn't even account for my margin binance account. Like what the fk..

[Anonymous No.26096968]

>>26096849
Yes and the gain and loss is triggered when sold

[Anonymous No.26096980]

why didnt i pay attention in school, this shit is mad confusing FUCK

[Anonymous No.26097002]

>>26094877

Same in Canada; that's why you don't swing and when you cash out after you made it make sure to do it in small proportions so an exchange shutdown doesnt fuck you over (owing $250k capital gains even though you lost everything).

[Anonymous No.26097006]

>>26096948
Oh ok, so you can only subtract maximum 3000 from losses on your capital gains taxes? I thought that only applied to ordinary income

[Anonymous No.26097007]

>>26096980
they dont teach taxes in school lmao. just how to be a good wagie and automatically have your taxes taken from your pay check

[Anonymous No.26097009]

>>26096900
Wash sales rule only applies to securities, crypto is not classified as securities.

[Anonymous No.26097038]

>>26096584
Yeah you report it. And it doesn't affect your tax liability at all.
Wouldn't recommend trying to stiff the IRS in ways outside of their game. Plenty of legitimate methods to reduce or eliminate your tax liability that don't result in actual financial ruin.
>>26096588
Ok you made $90k.
Then you bought eth and it tanked. You lost $90k.
You realized zero net gains. Your tax liability is zero.
>>26096688
$100 to $200 typically for individuals to file, depends on how annoying your taxes are.
>>26096720
You should be listing them all separately.
>>26096849
Depends on what you mean.
If you buy 20k and hold and later buy 10k more and the whole amount is sold for 100k you realize 70k of gains.
If you buy 20k, sell it for 10k, you're at negative 10k in gains. If you then buy 10k and sell that for 100k, you're at 80k in gains.
>>26096948
That is wrong. Your losses offset your gains, no matter the amount. But you can use losses to deduct from ordinary income up to $3,000. This only applies if you lost money overall in your investments.
>>26096927
Sure if you never sell you never trigger taxes. But even just spending crypto at the store or whatever counts as a capital transaction and is taxable.

[Anonymous No.26097043]

>>26096819
>After eth loses 90%, you can sell your eth to realize 90k losses, then buy eth again so you end up with the same 100 eth.
So in other words this method works for when your investment failed and basically when you are at a loss. You quickly just sell your shitcoin that rekt you and rebuy back IMMEDIATELY.. why tf is that even necessary to do.. like I believe you that it works. I just don't see why it has to be done that way

[Anonymous No.26097060]

>>26095238
quoting from final fantasy tactics
"If the punishment is a fine or tax, then it is only a crime for the poor"

[Anonymous No.26097068]

I heard you have to declare airdrops as income, is that true? Also, do you get taxed on it again when you sell? If so that's beyond retarded

[Anonymous No.26097096]

can i escape and move to puerto rico? i literally have family there.

[Anonymous No.26097117]

>>26094877
Yes. It's not that bad. Goyimmmmm!

BoringDAO will save me and then I will move to Japan.

[Anonymous No.26097130]

>>26097060
>quoting from final fantasy tactics
IRS audit doesn't work that way.
(You) have to prove you didn't fuck up.
If you have your shit together, this will cost time and $$$.
JUST.
HODL.

[Anonymous No.26097143]

>>26097068
Airdrops count as income
($1400 from UNI = $1400 income)
And when you sell you owe cap gains tax on any gain. If the 1400 becomes $2000 in a week, and you sell, you now owe short term gains on $600.

[Anonymous No.26097161]

>>26097068
Yes. It's income on receipt. You probably need to pay quarterly estimated tax on receipt.
But ya know what, this is hopeless.
Good luck anons.

[Anonymous No.26097197]

>>26097143
Blatant robbery, holy shit

[Anonymous No.26097214]

>>26097043
Because the tax code is outdated piece of shit.

Basically it sees everything only in dollar values. When you swap ETH for a shitcoin, the taxman sees you selling eth at that price, then buying the shitcoin. You already realized the $ gain on your eth while whatever the shitcoin is at is considered unrealized gain/losses.

[Anonymous No.26097220]

>>26097043
Imagine you have a portfolio with just bitcoin and some shitcoin in it.
Your bitcoin went up and you sold it. You realized gains from that, and owe taxes now.
Your shitcoin went down. You can sell the shitcoin to realize losses, then buy it again. You have the same portfolio you had before, but you offset the gains from bitcoin.
Why it's done this way is because IRS doesn't care how your investments are performing. They care how much money you make or lose when it's all said and done. Think of it this way. If you own a shitcoin, you own a shitcoin. You don't own dollars. The price changes of the shitcoin don't matter. What matters is how many dollars you bought it for and how many dollars you got when you sold it.

[Anonymous No.26097246]

>>26095238
This is bullshit, wealthy people pay the vast majority of taxes in the US. Yes there are dodges and loopholes and shit, but that doesn't save them from paying the tax man far more than you ever will.

[Anonymous No.26097260]

This thread is absolutely mind boggling and insane. When the time comes that feds ask for tax i will just say i lost all my keys.

Christ. I cant even fucking put into words how angry and disappointed i am in this piece of shit country.

[Anonymous No.26097268]

>>26097214
No.
The tax code incentivizes HODL everything. Maybe a sell or 2, here and there.
If you want to trade like a madman then you better keep *EXCELLENT* records.

[Anonymous No.26097282]

>>26097246
upper middle class do. wealthy fucks know how to get their money back

[Anonymous No.26097317]

>>26097214
Lmao that is retarded. Holy shit. Well whatever. Good to know

[Anonymous No.26097327]

Whilst we're on the subject of tax, could one of you colonials explain Property Tax to me, I suspect that it's similar to the Council Tax we pay here in Bongland which is around £180 a month for 10 months of the year, and goes towards local councils to waste on pointless shit and maintenance

[Anonymous No.26097328]

>>26096962
Some of the software is crap, I agree especially for margin... some is great though. Im curious which software you used.

[Bitcoin Canada No.26097344]

>>26095319
50% of the capital gain is taxed at your personal tax rate. Effective should be 23% if your cashing out $250,000+.

[Anonymous No.26097347]

>>26097317
Good to know is:
Understand the game before you play.
You know why the Gov loves blockchain? It's not anonymous when you morons cash out.
Losers.
The lot of you.

[Anonymous No.26097353]

well i got homework to do then. thread you've been amazing

[Anonymous No.26097355]

>>26096771
>>26096667
Thanks boys, much obliged

[Anonymous No.26097360]

Thread tldr;

Either hodl or outlawmaxx and start a Kingdom in Africa.

[Anonymous No.26097393]

>>26097327
Its one percent of the property's value. Its just tax that goes to the government.

>>26097214
Current crypto tax laws were passed by republicans, look it up. Retarded 80 year old republican boomers that have no idea what the fuck a crypto is gave it the same tax laws as stocks which are as old as the 1600s

fucking boomers need to die. All of them

[Anonymous No.26097433]

>>26097327
>your house has a value
>every yr your property is taxed a % of that value
>you get raped
the assessed value rapes you too. your houses "value" can go up based on your neighbor renovating THEIR house.

AND they made property tax pay for schools, so that not only do poor people get shit schools bc their property isnt worth anything, but no politician can ever oppose property tax bc MUH YOURE DEFUNDING SCHOOLS!!!!!! even though we could decide literally any other tax money funds schools if we wanted to.

Council Tax sounds more like an HOA fee (home owners association) who take $4000000000 to pay for $40 worth of lawn work by a street sign.

[Anonymous No.26097458]

>did a shitton of short term trades in 2017/early 2018, if you netted them up it was probably a capital loss
>never declared any of this
How fucked would I be if I cashed out now and just declared a capital gain with a cost basis of $0? Would the IRS care at that point?

[Anonymous No.26097467]

Say I made a profit of $500 on link. Sold and cashed out. Now say I dont give a fuck about filing for that and just don't. Are they really going to bother auditing me?

[Anonymous No.26097487]

>>26097458
You would get a letter stating you owe $900,000.00 in short term capital gains tax thats three years over due and then you have to come up with all the paper work proving you dont owe $900,000.00 in back taxes

[Anonymous No.26097504]

>>26097458
>>26097467
It's at their discretion...
Repost:
Understand the game before you play.
You know why the Gov loves blockchain? It's not anonymous when you morons cash out.
Losers.
The lot of you.
This is what it looks like:
>>26097487

[Anonymous No.26097505]

>>26097268
Tax code just isn't ready for weird ass trading pairs.

Before crypto, everything was traded against the dollar, the code make sense since you can't buy ABC stocks directly with DEF stocks.

Hodl is the best and simplest way to keep your tax records squeaky clean. Just imagine what liquidity providing does to traders now. It will be fucked for a few years.

[Anonymous No.26097518]

>>26097433
HOA does indeed sound more like our Council Tax, on my property I only "have" to pay,
>Mortgage
>Council tax
>Water rates
>Fuel rate (gas and electric)
Every thing else is completely optional

[Anonymous No.26097534]

>>26097505

Sure but all it takes is a few tech nerds to make court-approved software that will calculate your tax owed simply through eterscan, so even nigs who traded pizzacoin for cumcoin are gonna get cucked.

[Anonymous No.26097539]

>>26097347
kys

[Anonymous No.26097554]

>>26097505
Exactly.
HODL. Maybe. *Maybe* a few trades every year. Keep records.
HODL.

[Anonymous No.26097563]

>>26097534
There is plenty of software already

[Anonymous No.26097564]

>>26097328
It would take time for me to refind it and the thread will prob die by then. Anyways, which one do you recommend?

[Anonymous No.26097580]

>>26097458
Pull your records from all the exchanges you did this on and bring them to an accountant. $100 to avoid getting no-lubed by internal revenue. You don't want to just let them guess what you owe.

[Anonymous No.26097600]

>>26097563

Do any go through public ledgers tho? The only ones I know are for crypto users to report their taxes (through voluntarily connecting exchange apis); if that's the case then thats even more reason to not try and fuck them lol. Jewsa loves their shekels and loves opressing Neets.

[Anonymous No.26097621]

>>26097580

Say you lose exchange records the most they can assume is a 0$ cost basis right?

t. Hodlers but asking for theoretic situations

[Anonymous No.26097629]

>>26097539
Truth hurts. Bitch.

[Anonymous No.26097636]

>>26095745
Thats anti-semitic and to be quite honest pretty racist as your taking money away from the the PoC community since your evading taxes. FUCKING BIGOT

[Anonymous No.26097641]

>>26097518
Property tax seems more like Bongland Stamp Duty tax, you guys pay upfront, in the US we pay annually.

It can vary by state here too, some states it's median <1% property tax annually. Unlike Income tax, you only have to pay state property tax, whereas income tax you have to pay state income tax AND federal income tax.

[Anonymous No.26097656]

>>26097621

Like if you cash out $500k they can't say you owe $500k in taxes until you prove you didnt flip shitcoins 20 times?

[Anonymous No.26097669]

>>26097564
I used cryptotrader.tax's software one year and had no issue with it personally. Now I use koinly that my work pays for, and have had some that use cointracking and bring in what it creates for me to review, uphold is the only exchange Ive found issues in reviewing on cointracking's generated reports, and have to make sure they marked margin for what it was, and im surprised how well it handles airdrops and such as well.

[Anonymous No.26097670]

>>26097629
Sure does, faggot. Sure does. Kys still though

[Anonymous No.26097676]

>>26096688
I pay mine 300 but he has his shit together. Worth every penny

[Anonymous No.26097677]

Here's what you do. Run your shit through tor, tumble cryptos till it take 100 years to manually reverse engineer them, only swing using stable cryptos through swap aggregators and run that shit through REN bridge and use a hardware wallet. World is collapsing by next year anyway but for now staying anonymous breaks no laws you decide what to do a year from now. Your goal is a tax haven. DOYR you'll find which ones are easy and cheap to get into.

[Anonymous No.26097675]

>>26094877
the state of muttmerica

[Anonymous No.26097692]

>>26097670
Life-tip: don't ever shoot the messenger.
I saved you.
Faggot.

[Anonymous No.26097709]

>>26097677

> forgoing US citizenship to save $100,000 in taxes.

You realize Chinks pay $1.8M to become burgers right

[Anonymous No.26097737]

>>26097636
Lol

>>26097669
ty

[Anonymous No.26097742]

>>26094877

But both coins of the trade have the same USD value, officer, I didn’t make profit at any time.

[Anonymous No.26097749]

>>26094877
Just write them a letter saying:
Peepee Poopoo
You didnt believe in my money
So fuck you

[Anonymous No.26097759]

>>26097600
I was referring to ones for people to report their own taxes.
But the answer is yes, I work for a private firm but there are IRS auditors who review blockchains, wallet addresses, and lots of data from exchanges some given willingly (ie reported) and some obtained through other means, some even related to other criminal investigations. Blockchains (other than monero for example) are a wet dream for the IRS in proving tax evasion, and they absolutely review it. Ive heard rumors in the industry of an osint program they use similar to palantir torch except for crypto blockchains specifically, which is frankly terrifying not even just for US residents.

[Anonymous No.26097764]

>>26097692
You didn't save me, retard. Everyone else did. But yes. I get it. Aim for long term capital gain status on assets and if a shitcoin dies, sell at the bottom and rebuy it asap.

[Anonymous No.26097779]

>>26097621
>>26097656
If you can't substantiate your cost basis by showing every transaction they will assume it is zero and tax you on the whole $500k. And they'll probably tax it at the short term rate too.

[Anonymous No.26097803]

>>26097779
Damn. They will really fuck your ass up.. Evil mother fuckers.

[Anonymous No.26097804]

>>26097759

Based, thanks anon.

HODLers vindicated once again.

[Anonymous No.26097821]

>>26097709
>$100, 000
NGMI. Anyway if you like being good goy tax cattle in Rome 2.0 being milked by psychopathic state gangsters and stressing over to figure out how they can steal from you every year be my guest. Those of us big into DEFI and the concept of the citadel know what's coming and aren't only here for the money.

[Anonymous No.26097829]

>>26096378
Uniswap for eth chain, changenow.io for everything else.

[Anonymous No.26097842]

>>26097779

By taxing the whole profit you mean 33% of 500k right? Or like charging me $500k so I have zero (muh inifinite recursive cost-basis of zero goy, you owe us everything)

[Anonymous No.26097852]

I bought 3 ETH from coinbase back in September, sent them to my Metamask and then swapped for RSR. I then swapped my RSR for LINK a few weeks ago and am up like 30% on the trade. Do trades like these need to be in my yearly taxes? Or if I decide to cash them out finally I then need to detail all the transactions and amounts? Basically what I'm asking is: can I just buy shit on regular exchanges, send to Metamask, fuck around on uniswap, tether up and then send back to Coinbase to cash out?

[Anonymous No.26097871]

>>26097803
The precedent is from USA v. Thanh Quoc Hoang. It decided that if your records are incomplete, the basis is zero also.
>>26097842
Some% of $500k.

[Anonymous No.26097874]

My account told me I don't have to pay shit until they are realized gains upon cashing out. Are they wrong?

[Anonymous No.26097879]

>>26097580
Thanks, I only ended up having 180 trades on binance so if I ever cash out for long term capital gains I should be able to show that I don't owe short term gains relatively easily. The only thing I'm considered about now is the LINK I bought on etherdelta before binance listed it, would it be sufficient proof to show that I bought ETH on gemini for a certain value and then within a reasonable amount of time transferred the LINK to a cold wallet? I really want to avoid paying the short term rate if I cash out.

[Anonymous No.26097891]

>>26097621
Technically they can, but thats the actual good thing about blockchains, they are some great proof of when you obtained crypto assets, and have an associated value at that time.
Ive had PLENTY of people that have had stocks for decades with no proof and Ive never had the IRS assume the basis was zero a single time, even had them accept values that werent able to be proven exactly when it was at least extremely close (PG stock that was transferred from one broker to another in the 90s and the original cost basis was lost, but the estimate was accepted since the year it was acquired was known as it was inherited in a specific year)

[Anonymous No.26097897]

>>26097759
>using centralized exchanges
>not using monero
pee pee poo poo what hardware wallet?I'm just a poor dependant schizo hermit

[Anonymous No.26097903]

>>26097871
>USA v. Thanh Quoc Hoang
It's Diep Hoang. Sorry Thanh. You're just a check bouncer lol

[Anonymous No.26097914]

>>26097871

Thank you for the help anon.

[Anonymous No.26097916]

>>26094877
0 TAX in crypto Slovenia chad here

[Anonymous No.26097934]

>>26094877
Taxes are based on overall gsins in a given year. If you turned a $5000 initial investment into $1,005,000 in 2017 and then sold in 2017 you had a profit of 1 million usd. You will have to pay taxes on that million in 2018. Taxes can be upto like 50% depending on the state. So 1 million taxed at 50% means that after 2017 ends you will owe $500,000 to the IRS. If before 2017 ends you lose the $1 million that you made previously you will not owe any taxes at all. At the end of the year you must set aside the governments tax money so as to avoid bankruptsy and to avoid being indebted to the IRS. The kid in the OP made tons of money in 2017 and then lost it all in 2018 but he still owes the IRS about 400k usd from his profits in 2017 that he cannot oay

[Anonymous No.26097935]

>>26097842
You can probably make it so its taxed at long term capital gains if its been in your wallet for longer than a year tho.

[Anonymous No.26097936]

>>26097897
I mined a ton of monero when it was under $10, still hodling it
Decentralized exchanges don't protect you like you think they do

[Anonymous No.26097949]

>>26097891

Yeah and I didn't even hodl just got scared since I didnt see full trans. history on huobi and got locked out of coinbase acct so I guess I could pay some autist here $50 anyways to go through etherscan and catalog everything anyways.

[Anonymous No.26097952]

>>26097821
Dude, we get they're fucking crooks (or at least the ones in here who aren't good little goys). The issue is these fuckers have no issue bending the laws they create themselves to get our asses in slings if we even make honest fuck ups. What a sick joke the IRS is: Make vague as fuck tax laws, make them complicated as possible and treat you like a criminal every step of the way.

I also just love getting attacked by the good little goys who will actually defend this bullshit and call me a baby for wanting fair treatment.

To hell with it all, I'm just using koinly to track my shit, handing the documents to a crypto accountant and praying the IRS don't decide to skull fuck me for some odd reason.

[Anonymous No.26097954]

>>26097580
>>26097879
Nevermind, my brain is fried and rusty, I just realized etherdelta transactions are literally on the blockchain and it's all in my wallet on etherscan. I want to thank you for your help again though.

[Anonymous No.26097972]

>>26097934
Oh so he cashed out but was too retarded to set money aside?

[Anonymous No.26097984]

>>26097934
thats not how it works. every trade is a seperate event, you cannot deduct losses past a certain point.

[Anonymous No.26097985]

>>26097949
Honestly with the coinbase IPO coming, I think they may actually get fucked eventually in locking customers out and preventing them from even being able to get their transaction history, frankly if they locked me out and I couldn't establish a cost basis, I'd be on their ass through appropriate channels

[Anonymous No.26098009]

>>26094877
There's no way I'm paying taxes.
I'm moving all my money to offshore bank accounts and LEAVING THE COUNTRY as soon as I get enough money.

[Anonymous No.26098024]

>>26097985

Yeah but since its muh blockchain new paradigm everything is stored on the PUBLIC WHOLESOME CHUNGUS LEDGER anyways so can't you just point to things coming in and out to your wallet on etherscan as proof? Some anon correct me if I'm wrong, but you don't need to rely on the exchanges to establish cost bassis right?

[Anonymous No.26098030]

>>26097879
No because you aren't proving how much you paid for the link. IRS can argue that you paid nothing for it and made off with the money. You can't get records from etherdelta?
>>26097972
OP kid can amend his previous years' filings to show them if he actually has losses to offset the gain.

[Anonymous No.26098037]

>>26097936
A world of difference between that and self-incriminating yourself up the ass to be allowed to trade crypto. Again the ultimate goal for peace of mind after making it is a tax haven, which are comfy as fuck. Or you can stay here in country full of nigger loving niggers it's up to you.

[Anonymous No.26098049]

>>26097972
He didn't cash out, he just made a bunch of crypto-crypto trades when the prices were high, which is how you're taxed. Crypto tanked but he still owned that money to irs.

[Anonymous No.26098056]

>>26098030
Yeah makes sense if he bought back in

[Anonymous No.26098107]

>>26097972
In the US at least, a crypto to crypto trade is a taxable event. Meaning selling LINK for ETH is viewed no different to cashing out to the US government/IRS. If the sale of your crypto for another crypto resukted in a profit in terms of USD the IRS will want a cut at the end of the year even if it means you are forced to convert some of your crypto to USD.

[Anonymous No.26098110]

>>26098030
I don't even remember how etherdelta works, but the way it went was:

Buy ETH on Gemini (have full records of all purchases)->wallet (not a taxable event)->traded ETH for LINK (shown on blockchain), shouldn't that show a sufficient cost basis at every step along the way?

[Anonymous No.26098142]

>>26098024
Yes youre wrong
The problem is with centralized custodial exchanges like coinbase for example, you don't have any blockchain to go from, you rely on them for the data, and even within a minute the prices can fluctuate so much you need the actual trade history for a truly accurate cost basis, not to mention it factors in maker/taker fees ect which won't be on the blockchain

If you just go on a custodial exchange, I'm not sure why you think there is any blockchain data to even reference

[Anonymous No.26098174]

>>26098037
I'm a dual citizen anyway, I intend to leave here eventually

[Anonymous No.26098213]

>>26098174
See you on the other side brother

[Anonymous No.26098274]

>>26094877
No, if you make a profitable trade and then it tanks you just have to trade out and back in real quick to realize your losses, which can then be counted against your capital gains tax. You're only screwed if it tanks right at the end of the fiscal year.
Taxes are fucked here, but most issues stem from people being retards.

[Anonymous No.26098324]

>>26098110
That's ok, assess the eth->link transaction using the spot values of them at the time of the transaction. You can use either the exchange's spot price or a global average spot. You need to treat it as selling eth for cash and then buying link with that cash.

[Anonymous No.26098341]

This is my first year playing stonks in two countries. (canada and australia) Any advice for filing my taxes? or moving the capital around wisely?

[Anonymous No.26098345]

>>26098274
Ya. so basically you can't just leave your dead shicoin alone. You have to cash out (but can rebuy) once it dumps to all hell. It's hilariously dumb. Stupid crypto taxes aren't even done right

[Anonymous No.26098366]

>>26098324
Okay cool, I'm sure it will be a bitch to do all the math on this (or a lot of money to pay an accountant) but it's a small price to pay if I /make it/ and don't want to be assraped by the IRS. This has been giving me slight anxiety for like 3 years to be honest and now that I'm archiving the trades from every exchange I used I feel like I actually won't be fucked when the time comes to sell.

[Anonymous No.26098408]

>>26098341
Hire an accountant to file for you. I promise it's a meager cost to avoid the headache and adverse consequences if you get it wrong.

[Anonymous No.26098421]

>be irs
>create a coin
>artificially inflate the price to $1,000,000 by only trading with myself
>airdrop shitcoin into everybody's wallets
>everybody owns taxes on that $1m

[Anonymous No.26098437]

>>26098421
Delete this

[Anonymous No.26098457]

>>26097984
Your losses can be deducted from your gains at no limit as long as the losses and gains in question happened in the same year.

[Anonymous No.26098459]

>>26098345
You can literally just sell and rebuy a minute later to realize gains/losses. I sold a bunch of crypto on Dec.31 that i rebought on Jan1 for that reason. You can use the system to your benefit, the problem is people that are rarted, esp being rarted enough to not know thieir rarted and should get professional help to make up for it.

[Anonymous No.26098467]

>>26094877
NEET here. I have 500k+ in crypto and I haven't cashed out or did any tax bullshit since 2018.

Is the only way to escape the tax man is to get a crypto debit card and use that instead of fucking bank shit? I will never fucking cash out to pathetic beta fiat ever. I also don't know if I'll be fucked. What if I move to a new country and become stateless or get a citizenship somewhere else? How tf are they gonna stop me lmfao

[Anonymous No.26098492]

>>26098341
This >>26098408
Not just because its my job

[Anonymous No.26098493]

>>26094877

[Anonymous No.26098504]

>>26098421
>Be me
>Recieve irs coin worth "one million dollars"
>Everybody receives the coin at once and nobody will actually pay a million for it
>Sell to coinbase at a loss for 0.001 eth
>Suddenly have a million dollar tax credit
>???
>Profit

[Anonymous No.26098507]

>>26098467
Negro you're going to make it hard after this bull run of to Monaco you go.

[Anonymous No.26098509]

>>26094943
trading crytpo to crytpo is considered a taxable event in the us

[Anonymous No.26098524]

>>26098421
Damn son, wanna have a job at the goverment? You have great potential

[Anonymous No.26098538]

>>26098504
based

[Anonymous No.26098546]

What if I donate all my crypto to some guy in China? No taxes then.

[Anonymous No.26098565]

>>26098546
Donations are only tax deductible to US registered 501c3 organizations

[Anonymous No.26098568]

>>26098504
Hohohoho

Not so fast! airdrops are taxed as ordinary income. Not as capital gain/losses. Hand over the taxes.

[Anonymous No.26098591]

>>26098546
Sadly seen a bunch of stupid boomers donate to non-deductible entities, some basically scams larping like they are by using some name that sounds like one, frankly its a problem theyre allowed to operate like they do

[Anonymous No.26098594]

>>26098546
You would get taxed for sending him a gift lolololol

[Anonymous No.26098615]

>>26098459
This basically means panic selling is a good thing as long as you rebuy asap, huh?

[Anonymous No.26098643]

>>26098507
thanks. I'm sick of this country anyways. I'm glad I'm a fucking NEET. IRS can't fuck with me.

[Anonymous No.26098668]

>>26096378
Stakenet DEX

>interchain trades over the lightning network: instant, cheap, private, safe

Coming soon. Goodbye IRS.

[Anonymous No.26098672]

>>26098615
it can be at least, for now
the scary implication is if they decide to apply that wash sale losses are nondeductible, which hasnt been ruled yet for crypto but I wouldnt be surprised if they did eventually, id be fucked in that case since I used a big chainlink loss last year that otherwise would have been a nondeductible wash sale and rebought after

[Anonymous No.26098683]

>>26098568
>Send my irs coin to a for-profit synagogue
>It is considered a tithe/ religious donation
>I get a million dollar tax credit
>For-profit religious institutions are not tax exempt
>Jews have to pay taxes on it

[Anonymous No.26098707]

>>26098683
1800 cars for kids BTFO

[Anonymous No.26098734]

>>26098467
If you're really that adamant about not paying taxes, Puerto Rico is a good option for US citizens.

[Anonymous No.26098741]

>>26098615
actually now that I think about it, did it again recently with XRP buying before the flare airdrop, selling right after the SEC lawsuit was announced, rebought it at just over .20 and selling it again a few days later at a gain and ended up right at even overall. It would be a nondeductible wash loss on the first sale if they applied wash sale rules to crypto

[Anonymous No.26098763]

What is the best program to cover all of my swaps to give to an accountant?

[Anonymous No.26098783]

>>26098763
see >>26097669

[Anonymous No.26098828]

>>26098734
Nah man I was thinking of resigning my US citizenship. Probably I'll get Thailand or something just pay it off through some tumbler or 3rd party so I can get the embassy to give me.

[Anonymous No.26098990]

I still don’t know why us living in the U.S haven’t gone to the federal reserve branches with AKS and DEMANDED change this is absolutely unacceptable and taxing is theft.

[Anonymous No.26099025]

>>26098492
>>26098408
Yes but when do I hire this accountant? Australian tax season starts in July and Canadian starts in January and I need to file both. Or will I have to hire the fucker twice.

[Anonymous No.26099053]

>>26098783
ah nice, however for some reason it is unable to import my exodus or uni CSVs how do I fix this?

[Anonymous No.26099074]

>>26094877
So theoretically if a friend were to withdraw cash then buy 3 or 4 of those prepaid gift cards, and use them to buy monero via changenow.io then exchange that to BTC, the tax jannies would be btfo right?

[Anonymous No.26099149]

>>26099053
The best thing you can do is go to a crypto accountant that pays for the software, I know of two that import CSV, actually my tax software imports CSV but its almost 7k (ultra tax cs suite) a year regardless if its crypto or not but im pretty sure I uploaded CSV to cointracking last year iirc

[Anonymous No.26099176]

>>26099025
I dont know enough about canadian or australian tax otherwise to know anything else, some of those programs are mainly focused on US residents anyway, seems like you need to call both accountants now and figure that out if thats the case.

[Anonymous No.26099234]

>>26099149
I just figured the cryptotrader.tax app would do it, since it seemed to have all those kinds of options but it just fails to function sadly.

[Anonymous No.26099340]

>>26099074
Yes, but the real question is what would you use that BTC to buy without the tax jannies catching on.

[Anonymous No.26099448]

>>26099340
Well anon this isn’t for me it’s for a friend of mine but I’d imagine he’d just want to HODL for a time then cash out via small BTC ATM withdrawals or via p2p. My friend just would prefer if the IRS didn’t have access to any potential gains in the meantime also to fuck over Jews

[Anonymous No.26099470]

>>26099448
I think your friend would be safe in that case, although you should consult him about his antisemitism.

[Anonymous No.26099565]

>>26099470
I’ll do that anon he’s always going on and on about how “kikes run the banks, the IRS, and the fucking kike fed!” He also has a lot of thoughts on the myriad of reasons Israel should be glassed. Crazy stuff right?

[Anonymous No.26099679]

>>26099149
Ah thanks. I tried cointracking, and I think this will work for what I have. It seems to have a very clean record of my shit with 10k of realized gains, which honestly adds up with what I was thinking

[Anonymous No.26099764]

>>26095749
>This faggot ass government needs to leave poor people alone already.
>$870k in pure profit
>poor
Pick one.

[Anonymous No.26099786]

>>26096378
Kucoin

[Anonymous No.26099787]

>>26098828
Your plan is to renounce and find a way to bribe thai embassy workers to give yoiu citizenship?

How much do you plan to cash out?

A "thai elite visa" costs $15k for 5 years right now. Overall, Thailand seems to be a tough visa situation and the elite is a cash grab unless you're truly loaded.

[Anonymous No.26099843]

Also should I use cointracking, since they have a nice realized gains/unrealized gains table, would I just give this to my accountant? where is the best place to even find a crypto accountant?

[Anonymous No.26099878]

>>26099764
that's 1 year's worth of daily inflation bro

[Anonymous No.26099904]

>>26099786
kucoin KYCed the fucked out of me when i traded futures

[Anonymous No.26100328]

>>26097282
This. Trump paid like $100 in income tax lmao. The trust fund parasites like him at the top are literally trained on this

[Anonymous No.26100573]

Before this thread dies, can someone confirm if you sell your btc for usd for a quick scalp, it will make it no longer be a eligible for the "long term capital gain" tax? (i.e. spot trades on say binance)

Also, does the same apply for leverage trades such as bybit trades?

[Anonymous No.26100614]

>>26100573
LOL obviously not long term anymore burh

[Anonymous No.26100733]

>>26100573
Let's say you held BTC for 5 years, then sold yesterday for USD. That's taxed at long term CG. If you rebought the BTC today and then immediately sold it, that would be short term capital gains, and you'd have to wait a year from the new purchase to qualify for long term again.

Basically don't fucking sell unless you are cashing out.

[Anonymous No.26100762]

heres one from playing at an indian casino
>lose 1300 on slots
>hit a good run on one machine, cash out 1500. im in the machine for 500 so im only down $500
>whoops my machine balance is over some arbitrary threshold like 1200 or some shit
>now i have to pay taxes on $1000 even though im doen $500 total
yeah fuck the JewSA. been a pleasure watching that place burn the last 9 months

[Anonymous No.26100786]

>>26100762
maths off. meant to type $300

[Anonymous No.26100788]

>>26100733
I fucking hate this country. So this also applies to bybit leverage trades? God damn it

[Anonymous No.26100911]

It amazes me how many of you retards live in the US and don't understand taxes and yet still make trades left and right
I couldn't facepalm harder if I fucking tried. How do you even have money? How did you log in to your computer today? Do you wipe your own ass?
Absolutely fucking retarded

[Anonymous No.26100913]

>>26100573
You buy btc at 10k
2 years later it hits 20k
You sell for a 10k profit taxed as long term capital gain.

Next day you rebuy at 15k
BTC jumps to 25k the following day
You sell for a 10k profit taxed as ordinary income

[Anonymous No.26100937]

>>26100913
But this applies to leverage trades on bybit too?

[Anonymous No.26100957]

>>26100937
as in leverage trades = no more long term capital gain tax?

[Anonymous No.26100982]

>>26100911
What's your networth, fuckface?

[Anonymous No.26101082]

>>26100937
Nothing changes when you margin trade. If you open a position for longer than a year then its long term capital gain tax, if not, ordinary income.

The only tax deductible stuff is interest expense you pay to your broker.

[Anonymous No.26101185]

>>26101082
By margin trade, I mean like longing/shorting in short time frames i.e. a week, not a yr long position

[Anonymous No.26101246]

>>26101185

Then its all ordinary income. As far as the taxman is concerned, you just bought the underlying asset. The loan is between you and the exchange.

You are only taxed on your profits tho, everything you have to pay back to the exchange is considered expense.

[Anonymous No.26101267]

I had some ideas to reduce tax money

[1] Use defi - borrow money ; pay back in usdt from non-kyc exchanges or sell in non-kyc exchanges. I'd do this a couple times however much collateral I can take. Then pay taxes on the rest.

[2] Start vlog/only-fans for unemployed relatives and friends ; donate to each of them from a non-kyc exchange. They pay very little taxes

[Anonymous No.26101360]

>>26101267
People with only fans pay less taxes? FUCK. It's like you get fucked if you are actually contributing to society while everyone else gets the benefits