/biz/ - Business & Finance

[Anonymous No.28005172]

Tax season is coming. I hope you have your transaction history ready.
How much money do you have to make before you should consider hiring an accountant?

[Anonymous No.28005417]

How is it fair that donald trump paid $750 in taxes and I'm paying 25% on every trade ahhhhhhh

[Anonymous No.28005420]

>>28005172
fuck em. i'm saying no. but not no to their question. no as in im not answering their question. they can tell me how much i owe. but frankly, it's none of their business how i spend my time or taxed income when im not wage slaving. fucking tax niggers.

[Anonymous No.28006512]

>>28005417
Most casual day traders don't realize how fucked they are come tax season.
If you plan to day trade: incorporate a business.

>>28005420
You really really don't want the taxman knocking on your door.

[Anonymous No.28006563]

Good thing I'm leaving the US forever this year. I just wish I had more gains to avoid paying taxes on.

[Anonymous No.28006667]

>>28005172
Everybody that got unemployment since April is in a for a bad tax season too lmao

[Anonymous No.28006733]

I got a 1099-R for my Roth IRA.

I transferred 6k into Roth, bought stocks, and had 21$ left over which i transferred back to my brokerage account. Fidelity sent me a 1099-R indicating that the 21$ was "early distribution"

how the fuck was that early distribution? it was simply the left over cash I didnt invest and is not a taxable event

[Anonymous No.28006739]

>>28006667
why

[Anonymous No.28006751]

>>28005420
im sure the irs will understand anon

[Anonymous No.28006841]

>>28006739
You need to pay taxes on unemployment. Its treated as an income. The bad part is that they don't remove the taxes from unemployment checks as many are used to when they get a check from their employer.

[Anonymous No.28006864]

>Determine how much USD you've put in your portfolio throughout the year
>Close positions 12/31
>Subtract those numbers to determine your total net

[Anonymous No.28006980]

>>28006512
>don't want the taxman knocking on your door
what's the worst that can happen?

[Anonymous No.28007005]

>HAVE FUN WHEN THE IRS KNOCKS ON YOUR DOOR
>HEH I REALLY SHOWED THEM!!

[Anonymous No.28007265]

why do you need to pay taxes on a loss?

[Anonymous No.28007403]

>>28007265
you don't pay, it's a write off

[Anonymous No.28007408]

>>28005417
20% on profits in consideration of Tx fees (short-term rate)

[Anonymous No.28007422]

>>28006980
They seize your bank accounts and financial assets in the middle of the night.
You wake up to an email from your bank saying your account is frozen and you cannot access it. Then a letter arrives in the mail telling you that you owe fines and penalties. You run to McDonald's for some chicken tendies but your debit card doesn't work. True story.

Never fuck with the IRS, they play hardball and they never lose.

[Anonymous No.28007457]

>>28006667
There is going to be so much rage this tax season. People are already at their breaking point, this is going to send millions over the edge.

[Anonymous No.28007462]

>>28006733
You can withdraw up to the amount of your original ROTH contributions at any time without penalty so yeah sounds like Fidelity fucked up

[Anonymous No.28007498]

>>28005172
nothing, crypto has nothing to do with the money grubbers in power. fuck em good luck getting your hands on my private keys and seeds

[Anonymous No.28007626]

>>28007265
depends on the legislature. in finland we had this retarded-as-hell system for a long time where you had to pay taxes on every single crypto transaction - even if you sold at a loss.

[Anonymous No.28007637]

>>28006841
Been on unemployment since April and can confirm you get taxed at the normal rate. You can even log into your account and change it like normal. Stop being a faggot

[Anonymous No.28007689]

If I buy some ETH on cuckbase and send it to a metamas wallet
Then I 10x that ETH swapping coins on Uni
If I swap those for XRM and use it to buy gold, is there anything else to consider?
I doubt they follow transactions to random anonymous wallets, and even if they did they can't do anything with that info.

[Anonymous No.28007747]

>>28007462
>You can withdraw up to the amount of your original ROTH contributions at any time without penalty so yeah sounds like Fidelity fucked up

exactly. I'm thinking maybe they just have to report any time money is withdrawn from a Roth just to cover their own ass

[Anonymous No.28007798]

>>28007265
Which is why I always trade at a loss. And people said I was doing it wrong.

[Anonymous No.28007842]

>>28005172
sorry, not going to waste my time manually calculating cost basis and profit/loss on thousands of transactions. if the IRS wants me to pay tax on trades, that's fine. just make a tool to do it for me because i'm not your nigger slave.

[Anonymous No.28007932]

Thats why you never sell. Take out loans against the value of your crypto when you need cash. Play the long game, sell when your cap gains are lower or never.

SNX/Reef and others than you can use to trade for profit, without actually trading, is going to be big. Build your stacks with those projects, loan against your new and improved stacks.

[kill yourself No.28007944]

>>28005172
Hehehehe tax man. Tax man coming. I make thread about tax man :)

Good thread op. Commit suicide

[Anonymous No.28007955]

>>28005417
the government is a criminal organization based on fucking over workers in favor of billionaires.

[Anonymous No.28007981]

>>28006512
Tax man!! Hehehe tax man

[Anonymous No.28008049]

>>28005417
post proof of $750, stupid nigger.
I will wait.

[Anonymous No.28008050]

>>28007842
so what's your plan?

[Anonymous No.28008143]

>>28005172
Yep, finished mine the other day. Thanks to following the /biz/ theory of investment, my total shitcoin profit for the year is $106.
God damn it..

[Anonymous No.28008162]

>>28007637
Good job for being proactive. Now consider whether all the niggers out there do the same.

[Anonymous No.28008196]

>>28007422
Unless it’s Scientology then the irs and all its agents are the biggest bitches in the history of the world. Funny how that works.

[Anonymous No.28008210]

>>28007637
you job does this for you then.
99% of them don't.

[Anonymous No.28008230]

>>28005172
thank God I only have capital gain tax, and after gas fees deduction I will not have any capital gain on paper or pay any tax.

[Anonymous No.28008251]

>>28005172
Taxation is theft

[Anonymous No.28008267]

if i lost $1000 in the stock market and then gained it all back, do i need to file the 1000 "gain" on taxes?

[Anonymous No.28008329]

>>28008162
great job dodging that you're a faggot that makes shit up

[Anonymous No.28008344]

>>28008267
1000-1000=?

[Anonymous No.28008415]

>>28007842
That's OK.
They'll eventually calculate your trades for you, but they'll do it without deducting against your losses. They'll only look at the gains. Then they'll add on interest, penalties and fines. Then they'll rape you when you least expect it. Good luck.

[Anonymous No.28008414]

>>28008210
that's literally not a fact

[Anonymous No.28008425]

>>28008196
I don't know why anyone would form a corporation over a religion considering the tax advantages.

[Anonymous No.28008539]

>>28008329
No, he's right.
Maybe in your state unemployment is automatically taxed, but in mine it's not. You have to tell them to withdraw taxes, and it's not even in a convenient place to find. Most people aren't gonna know that.

[Anonymous No.28008544]

>>28007626
Swedens system is a bit more fair but actually declare your 200 uniswap transactions is absurd. But nobody at Skatteverket seems to care as long as you end up paying your 30% on capital gains

[Anonymous No.28008548]

>>28008267
Capital losses offset capital gains, up to the yearly cap. You can also carry losses over into future years if you are above the yearly cap

[Anonymous No.28008604]

>>28008267
If both the loss and the gain were realized (meaning you sold, creating a taxable event) then yes.

[Anonymous No.28008638]

>>28006667
BIDEN HELP ME!!! I NEED ANOTHER STIMULUS TO COVER MY TAXES BECAUSE I UNCHECKED THE “WITHHOLD TAX” BUTTON ON MY APPLICATION.

I DIDNT KNOW IT WOULD BE TAXED. GOVERNMENT ARE THIEVES

[Anonymous No.28008665]

>>28007005
>>28007498
Learn how to write it off like a pro, that's what proper richfags do.
Heck you can write off your computer, car and rent as a business expenses depending on your state if you trade under a business.

[Anonymous No.28008723]

>>28008329
I'm not? lmao
You'll find out later when niggers start rioting again in April. Then you'll remember i9QOoPgi's post.

https://www.cnbc.com/2021/01/13/how-being-unemployed-in-2020-could-lead-to-a-surprise-tax-bill.html

https://www.marketwatch.com/story/millions-of-americans-who-were-unemployed-last-year-face-another-shock-a-2020-tax-bill-they-cant-afford-11612458465

[Anonymous No.28008738]

lost my crypto history in a boating accident
never selling so where is the taxable event?

[Anonymous No.28008755]

>>28008049
>here's how trump can still win

[Anonymous No.28008779]

>>28008267
>if i lost $1000 in the stock market and then gained it all back, do i need to file the 1000 "gain" on taxes?
>>28008604
its a "taxable event" if he made profit. since he broke even on the trade there's no gains to tax

[Anonymous No.28008781]

>>28005172
>owe $190k in taxes for 2020
I'm sad bros, I thought it would only be around $150k this year.

[Anonymous No.28008809]

So if someone who used to use Uniswap got the UNI airdrop that was worth thousands of dollars by the year's end, but never went back to check it and has no idea that they even got it do they still have to pay taxes on it?

[Anonymous No.28008964]

>>28008050
7.62x51 full metal jacket

[Anonymous No.28008986]

>>28005172
Dude you can hire a cpa for like $400 it's not expensive and worth every penny because if there is a problem with your return they are on the hook and will resolve it.

[Anonymous No.28009046]

>>28007689
>where did you get the gold anon?

[Anonymous No.28009123]

Brainlet here. What if you sit on a shitcoin to make a bunch of money but then convert it to Ether so you can convert it to cash? Are you paying taxes twice then on your profits? That could end up being well over 50%

[Anonymous No.28009141]

>>28008544
Swede here, I've been holding my crypto since 2018 but recently sold this week with a loss of about 1k kronor from my initial 2018 investment. Do I even have to bother with Skatteverket?

[Anonymous No.28009218]

>>28008049
STOP THE COUNT!!!

[Anonymous No.28009245]

>>28008781
if you are making this much, why not hire an accountant?

[Anonymous No.28009354]

>>28008210
>unemployment
>your job does this for you
How retarded can you get?

[Anonymous No.28009361]

>>28005420
Imagine a private business taking your hard earned income and people not slaughtering them like dogs.

[Anonymous No.28009385]

>>28005417
His tax liability was $750. He actually payed millions.

[Anonymous No.28009425]

>>28006841
fffuuuu
maybe biden will waive it?

[Anonymous No.28009535]

>>28006667
>>28006739
>>28007457
>>28008638
I was the only person that had my taxes withheld when I got laid off from my job. I know everyone else is gonna be turbo fucked this season. I already filed mine, including my crypto, unemployment, etc. and I’m still getting a refund lol.
Normies are so fucking dumb.

[Anonymous No.28009570]

>>28005420
Unless you're a multi millionaire or above, your odds of them discovering you didn't file taxes are only around 2%. I know many people who haven't filed in 20 plus years

[Anonymous No.28009577]

>>28007637
Not all states gave people the option to pay taxes on the extra 600 through ui, the base amount yes, but not the supplemental 600 or 400 being given right now,

[Anonymous No.28009627]

>>28005172
>buy and hold
>owe nothing

gee i wonder why people say hodl, makes the noggin start joggin you could say.

[Anonymous No.28009784]

>got unemployment for 3 months, government didn't withhold taxes for 2 of them for no reason
>worked as a contractor for 3 months
>traded a ton of crypto
>sold shit on eBay
>got poverty health insurance when I lost my job

I am so fucked bros, it's going to be a nightmare. How do I report trading 1 eth for 2 aave? Like it was an even trade when I made it so what am I supposed to report? I don't get it

[Anonymous No.28009798]

>>28005417
Because he didn’t take a salary as President.

[Anonymous No.28009925]

>>28006667
>not getting your taxes taken out automatically

Only the most putrid of idiots did this.

[Anonymous No.28009940]

>>28008738
Only if you sell or convert cryptos.

[Anonymous No.28010023]

>>28008809
Probably not unless you sell it.

[Anonymous No.28010053]

>>28009940
Which I have a question. How is swapping taxable? In theory, $100 or BTC swapping for $100 of ETH with still be $100.

[Anonymous No.28010201]

I’m so mad every time I bought crypto on Coinbase I accidentally sent it to the wrong address and I have no control over it, idk who owns it or how to access it and I just kept putting money in there like an idiot fuck I’m so stupid guess I can’t realize any gains

[Anonymous No.28010204]

>>28008544
It's not as retarded anymore as it used to be, now crypto is taxed more like stocks are. It's still fucked up in a way since we need to file taxes on every trade regardless of the used trading pair. Crypto/crypto, crypto/USDT, crypto/EUR... all are taxed at 30% or 34% capital gain tax rate, depending on the amount of profit.

[Anonymous No.28010217]

>>28008251
https://lbry.tv/@alittlebitofeverything:2/aaron-russo's-documentary,--freedom-to-facism-:a
Taxes are voluntary.

[Anonymous No.28010299]

>>28010053
I don't know shit about taxes on cryptos. In stocks they don't even treat it as taxable until you cash out.

[Anonymous No.28010332]

>>28008809
I doubt it if you haven’t sold. What could they tax? Maybe it counts as a gift which has some ridiculous cap like $11 million lifetime before they start taxing gifts.

[Anonymous No.28010357]

>>28010201
>I’m so mad every time I bought crypto on Coinbase I accidentally sent it to the wrong address and I have no control over it, idk who owns it or how to access it and I just kept putting money in there like an idiot fuck I’m so stupid guess I can’t realize any gains

until you go to spend or trade those cryptos and then you're tracked

[Anonymous No.28010365]

>>28010217
Yes we know that, but everyone has volunteered

[Anonymous No.28010382]

>>28010204
Seriously? You got any content you can provide? I heard from other Bizfaggots that if you only made a few thousands it wasn't worth reporting it. Or more like the IRS wouldn't care. Unless it was 10K

[Anonymous No.28010490]

>pay if you sold at a loss
What the actual fuck.

[Anonymous No.28010592]

>>28010357
I’ll pay taxes if I ever somehow realize those gains, until then it’s just magic internet money locked in unknown wallets.

[Anonymous No.28010598]

>>28010382
I'm a Finn :D I'm talking about Verohallinto, not IRS

[Anonymous No.28010609]

>>28009141
Skatteverket are usually very strict but I doubt they care about chickenshit transactions like 1000 kronor, eitherway if you're making 10k+ SEK profits I would def write down what I paid for the coins at the time and what you sold them for, skatteverket are probably happy as long as they get their 30% cut, doubt they'd ask more questions and it's honestly impossible for them to tell what you paid for a coin at the point you bought it.

[Anonymous No.28010666]

If you cash out more than 10k in profit you should claim it as a capitol gain or you'll get audited unless you can prove it was a gift in which case gifts are not taxable.

If you lose money you can claim your losses on your taxes as a capital loss

[Anonymous No.28010709]

>>28010592
>I’ll pay taxes if I ever somehow realize those gains, until then it’s just magic internet money locked in unknown wallets.

you dont pay taxes on unrealized gains anyway, so you dont really need to hide your crypto

[Anonymous No.28010796]

>>28006512
>If you plan to day trade: incorporate a business.
You're tossing pearls before swine.

[Anonymous No.28010896]

>>28010365
>well if they volunteer information thats on them
>>28010592
Pretty much this. At this point if it hasnt been converted to USD then its literally WOW currency. I dont see the IRS taxing that.

[Anonymous No.28011003]

>>28005172
I'm just filing my 8949 alongside my W-2.
I just linked my coinbase account with CoinTracker and paid the $59 to add my transactions and it turns out that a lot of my trades actually are a tax benefit.
The 1100 LINK I turned into 32 ETH, and the 16 ETH of that I turned back into 1250 LINK were tax benefits.

[Anonymous No.28011158]

>>28010490
Why do you think we say buy and hold? It gets taxed to shit if you don't know what you're doing even if you're selling at 2-3x.

>>28010796
We really need threads on how to use richfag tricks. I don't want anons getting bent in a decade.

[Anonymous No.28011188]

>>28008665
>writing off stuff like a pro is what the middle class do, >eventually get audited
>IRS finds you have been claiming non deductible expenditure
>has to pay back interest on that outstanding tax and fines
Structuring your financial activities properly so you don't pay any tax is what actual rich people do, but that's what ur family office is there to work out for you

[Anonymous No.28011278]

>>28007842
Some other Anon here shilled bittax or taxbit or something and it looked like the only decent option I've seen to not make it a total pain in the dick, but it's expensive for a poorfag

[Anonymous No.28011381]

>>28009784
How much you sell on ebay? They only report if you do 200+ sales totalling 20k+.

[Anonymous No.28011504]

>>28010382
do not fuck with the IRS pay your taxes

[Anonymous No.28011594]

>>28010490
The way they view it is that you realized a gain when you traded for a profit. That was the taxable event. You losing overall when you get back to cash is your problem.
Kind of like how if you roll your winnings in the stock market, get up to 2000% gains somehow, and then blow up your account so you're in the red, you still owe money for all the profits you made.

[Anonymous No.28011600]

>>28010299
>>28010053
Then the tax payment for the swap is zero, but that's assuming you started with 100 in BTC and it never changed value. You're actually saying "I got in at 1 BTC for 5 dollars and after it accrued value, I traded it for 1 ETH worth 10 dollars. You're paying the tax between the 5-10 increase when you trade. It winds up being very similar to just waiting until you cash out, but it stops the loophole of people using coin as currency before cashing out to fiat

[Anonymous No.28011606]

>>28010053
Its taxable if you bought the 100$ in btc for 99 or less dollars. If swapping instantly from ETH to shitcoin you're losing money on every trade due to gas fees. Of course if you shitcoin moons you need to wait for a USD pair to cash out without getting double taxed.

[Anonymous No.28011609]

Y'all are fucked HAHA

[Anonymous No.28011682]

>>28007689
The IRS will watch your purchases and if they're really serious and think you've committed fraud they'll have actual people physically investigate your assets. If its a lot, they will nail you. If its small, they may just put it on your file and use, it as leverage in the future in case you one day actually make money. I know a guy who ran his fairly low income business without paying taxes for a long time, but one day he was approached to sell it for half a mil, and the second he did the IRS seized all the money and used his non tax paying as the reason.

[Anonymous No.28011708]

>>28008964
based

[Anonymous No.28011826]

>>28007932
If you hold for over a year you also have to pay long term tax. Even if you don't sell. Same with stocks. Yes its fucking horseshit

[Anonymous No.28011830]

>>28011278
Pic related is from CoinTracker.
If you have less than 100 transactions for the year like any non-coomer trader, it really shouldn't be too bad. I cashed out over $25k and the cost basis can actually a good thing if you have money.

[Anonymous No.28011964]

>>28005417
>not having at least 1 business to launder your money through
Not gonna make it.

[Anonymous No.28012017]

>>28011826
>If you hold for over a year you also have to pay long term tax. Even if you don't sell. Same with stocks. Yes its fucking horseshit

Not in the US. You only pay taxes on REALIZED gains, meaning you cashed out or sold

[Anonymous No.28012045]

>>28011826
Only on realized gains you moron.

[Anonymous No.28012121]

>Are crypto capital losses tax deductible?
When filing your tax return, you have a few options if you have a loss. Your losses in crypto can offset other capital gains, or you can carry forward the losses to future years to offset gains in crypto or other capital gains.

You can also deduct up to $3,000 of your losses from your income. If you deduct $3,000 from your income but have more losses than that, then you can still carry forward the rest of the losses to deduct from future years or to offset future gains.

You can only deduct if you have total capital losses across all your assets. If you have crypto losses but enough capital gains with other capital assets to have an overall capital gain during the tax year, then you cannot deduct the losses, but your crypto losses will still offset capital gains in other assets.

>>28011830
You have to declare every trade though, so that's still filling out the information for ~100 transactions. It will take awhile, but at least crypto leaves a solid trail.

[Anonymous No.28012145]

just stay under the radar, never sell, never kyc

[Anonymous No.28012251]

>>28012017
>You buy crypto x for $1000
>It goes to $10,000
>You trade it for crypto y, under current guidelines you have a $9,000 capital gain for this exchange
>Your crypto y cost basis is now $10,000
And so on.

[Anonymous No.28012272]

>>28011600
better off not goijg back to fiat and actually use the cryptocurrencies
https://www.getblockcard.com

[Anonymous No.28012360]

>>28012251
But you’ve never realized any gains right? None of it ever turned to cold hard USD, just one crypto to another.

[Anonymous No.28012388]

>>28012272
You're still liable for the gains between each transaction for that year, though. The gains are "realized" when you swap as >>28012251 explains

[Anonymous No.28012433]

>>28005417
>25% on every trade
25% on the profits of every trade.

Not implying this is your case, but I wonder how many people here read shit like that end end up paying some obscene amount of taxes because they tried to calculate it themselves.

also ghostfrens how the fuck do i track my esh swaps done on mcafeedex

[Anonymous No.28012442]

real shit, i forgot to report a couple hundred dollars in capital gains and like 30 dollars in dividends (i do most of my trading in my roth account) Will these people come after me? I already filed and paid them like $2,500.

[Anonymous No.28012458]

>>28005172
Can someone please explain how crypto to crypto is taxable?

If I have $1k in ETH and I use it to buy $1k in LINK, I have just traded like for like. What the fuck are they taxing?

[Anonymous No.28012465]

You’ve gotta be a dumb fuck if you really think the tax man is gonna find your gains. The only record they have are your sells from Coinbase and cashapp. i made 500k in 2013 and they haven’t caught up yet

[Anonymous No.28012491]

>>28012360
That isn't how it works.
>You pay taxes on trading profits / realized cryptocurrency gains via capital gains tax. Gains are realized when you sell, exchange away, spend, or otherwise dispose of your crypto. If you buy crypto and hold it at a gain without touching it, you won't owe tax yet.

[Anonymous No.28012596]

>>28012360
Crypto to crypto is taxable. This isn't up for debate. There's a lot of misinformation about crypto taxes due to the shitty verbiage, but it's written pretty clearly that crypto to crypto is taxable. If you had a 2019 capital gain of $9000 from swapping ETH to LINK, you were expected to pay taxes on that in 2019 and likely owe back tax.

[Anonymous No.28012604]

>>28012388
Sorry no you do not. Show me your tax form that says so otherwise its fud. With that scenario people buying ERC-20 shitcoins will always lose money since every transaction is a taxable event. Lol in this economy when millions of people are unemployed and waiting for their stimulus money? Fuck off show me your tax form proof.

[Anonymous No.28012612]

>>28009570
Is this true? What about if I file taxes but just leave all crypto shit out of it? I was KYC'd on CB Pro like an idiot but I'm a hodler, from trades I probably only owe like 500 bucks tops

[Anonymous No.28012624]

>>28009123
Well the biggest tax is your initial crypto purchase into Shitcoin and the profit you make when you sell for ETH. If you then sell the $5000 worth of ETH for 5000 dollars there's no monetary gain, so no taxes. It's still a taxable event that needs to be reported, but you're not paying any more tax (unless the price of eth goes much higher before you sell for dollars again). Remember, every trade you make has a dollar value. If you have more than when you started, a gain. Less, a loss. Each trade you close starts it's own tax event. You turn 100 into 200, that's a 100 profit to be taxed. However you can still use that 200 to trade, and with your next trade that 200 is your base. So any money you make over 200 is now considered profit. Repeat from there if you decide to reinvest and eventually kill yourself when you realise you've done this hundreds of times over multiple shitcoins and exchanges

[Anonymous No.28012634]

God you crackers are so brainwashed to think your government is all knowing. You fucking trade on a non kyc - non ID platform like uniswap then u fucking go pay taxes like a faggot

[Anonymous No.28012635]

>>28012121
I'm pure coinbase for 2020, there is really no reason to bother with other exchanges now that LINK is on it.
I've lost my old binance account, but it wasn't KYCed. But I only traded USD for ETH for LINK for all of that, and since my USD cost for 2017-2019 was less than $10k I'm not very worried even if they try and collect on it.

[Anonymous No.28012703]

>>28009245
>anon, why not just pay some bitch nigger to look at all your private investments?
fucking kek.

[Anonymous No.28012778]

>>28012251
>You trade it for crypto y

ah you traded it for another crypto tho so thats a taxable event. if you just held its not

What about this?
>buy bitcoin
>bitcoin goes up 100% doubling your money
>remove bitcoin from exchange into cold storage
>buy products with bitcoin without ever trading for USD
>no capital gains tax cuz you never "sold, traded, or cashed out of bitcoin"
>method depends on availability of the products you want to buy accepting bitcoin as payment

boom no capital gains tax

[Anonymous No.28012781]

>>28012442
You can file an amended claim later if you're worried. Nobody can say, but if you ever get audited, it will be held against you. Usually for petty amounts they just bill you if it becomes relevant, but you don't want a penalty of interest or shit.

>>28012458
Because the value fluctuates. Stablecoins typically don't have this issue, though you still have to report. The issue isn't that you're being overtaxed-- you aren't paying more than you would be if it were just done as it were taken out. However, the issue is if you never withdraw to fiat but you've made trades for the year, you actually do owe on your gains up to the last swap. All of these rules exist because shit like >>28012272 is possible. Crypto aren't stocks.

[Anonymous No.28012795]

>>28012604
It's only a taxable transaction based on the USD value.
If you shitcoin is down 20% against USD but up 20% against bitcoin, trading it for bitcoin would be a tax benefit on top of a satoshi gain.

[Anonymous No.28012819]

>>28012458
That's not how it works.
How much did it cost you to buy that ETH initially?
The selling price of ETH today minus the original cost of that ETH = your gains. Then you multiply that gains figure by your income tax bracket rate (probably ~25%) to get what you owe the IRS.
This really isn't rocket science. If you sell something for a greater dollar value than what you paid for it, you made a taxable gain.

[Anonymous No.28012896]

the first time i've bought crypto is this year and i've swapped it to another crypto. do i file taxes of it this year or next year?

[Anonymous No.28012923]

>>28005172
just don't pay lol what are they going to do seize your assets?

[Anonymous No.28012941]

>>28012778
>>buy products with bitcoin without ever trading for USD
It doesn't matter what currency you cash out to, you're still cashing out and making a gain.

[Anonymous No.28012972]

>>28005417
federal tax, retard

[Anonymous No.28012974]

>>28012458
The gain/loss from when you first bought the eth.

[Anonymous No.28013008]

>>28012604
Do you not understand how it percentages work? You're being taxed for the change in value of your coin upon swap. They don't just take 20% of your damn coin, they take 20% (or whatever rate you're in) of your profits from that exchange. This is offset by your losses, so in the end you'll only pay for your actual profits for the year regardless of your trade amounts. The real issue is that you'll need to pay the taxes on your stuff regardless if you're "still in" or not at the end of the year assuming you swapped around and didn't just hold a single asset "long term"

[Anonymous No.28013025]

>>28012896
If you bought in 2021, you file that with your other 2021 taxes in 2022. You're currently paying 2020 taxes, only including activities during 2020.

[Anonymous No.28013064]

>>28012896
Next year, since you're doing taxes from 2020.

[Anonymous No.28013080]

>>28013025
thats what i thought. thanks

[Anonymous No.28013111]

>>28012941
You don't even have to cash out to a currency. The gubbment sees bartering as a way to collect taxes if the value of the items changes. The better way of thinking about this shit is like having a car that changes in value. The gubbment is basing your tax liability on the perceived value of the car regardless of what you actually do with it.

[Anonymous No.28013171]

>>28012612
Oh yeah only retards pay taxes my guy in minecraft

[Anonymous No.28013179]

So let me get this straight. I get raped by selling at a loss, then there is further rape by the gas fees and finally when i have my poorfag cash the IRS is waiting for a bit more of anal rape? And even if i sell abd make a profit i still get raped by both the irs and the fucking gas fees?

What even is the point of crypto then?

[Anonymous No.28013232]

Even if you requested the government tax you for your unemployment gibs, you still owe state taxes (depending on where you are). This tax season is going to be terrible.

However, for all my zoomer friends. File as independent this time and find a form online that lets you claim the Stimulus Checks. You will get all the stimmie checks you were supposed to last year (if you were a dependent) this year. I forget what it's called, but you can find it.

[Anonymous No.28013311]

>>28013179
For the last time, the IRS doesn't collect on losses you retards. It's your net total of profits v losses for the year. Slightly more complex than that for calculating, but that's the simple of it.

[Anonymous No.28013327]

>>28012941
>It doesn't matter what currency you cash out to, you're still cashing out and making a gain.

you never cash out to a currency. you buy bitcoin, hold bitcoin, and then buy goods and services with bitcoin. there is no fiat involved besides when you bought bitcoin with fiat

[Anonymous No.28013335]

>>28007265

you don't, you pay taxes on capital gains

[Anonymous No.28013351]

cant tax transactions on uniswap
get fucked tax simps

[Anonymous No.28013360]

>>28012778
IIRC, taking your money out of the exchange is a taxable event.

[Anonymous No.28013365]

>>28009577
You can go straight to the IRS website and pay taxes throughout the year. Americans aren’t taught enough to know that though.

[Anonymous No.28013375]

The lack of info that usually comes from the threads and the amount “BRO YOURE SO FUCKED YOU HAVE TO PAY A LOT” shows how many people actually cash out even after all these years.

[Anonymous No.28013389]

>>28013008
How would the IRS know if I held a single asset or swapped them around? All the information is voluntary. Show me your tax form from your exchange.
https://lbry.tv/@alittlebitofeverything:2/aaron-russo's-documentary,--freedom-to-facism-:a

[Anonymous No.28013406]

>>28013171
Very funny, but I'm serious. I'm too far gone now. I KYC myself on CBPro and bought thousands of dollars worth of crypto last year, and did a tiny amount of active trading. I even transferred ETH to my metamask. I did all this before knowing about keeping multiple addresses, no-KYC, localbitcoin, etc.

I don't know how to fix this mess.

[Anonymous No.28013443]

>>28006667

I selected federal withholding for all my checks, am I saved by the tax man?

[Anonymous No.28013474]

>>28013311
But dont worry, soon the left will change that! Cant wait for that tax on every trade, no matter profit or loss, as so many aspiring authoritarians have talked about. This country is in a death spiral. Prepare accordingly.

[Anonymous No.28013485]

>>28013327
Technically you'd still owe small increments whenever you "traded" bitcoin for a soda.

[Anonymous No.28013511]

>>28013406
Youre not taxed for buying crypto...

[Anonymous No.28013524]

>>28013311
With your mentality that is incorrect. The only will not collect on maximum of $3000 USD net loss. If you lost your $10k in shitcoins then you are expected to pay $7k still. Fuck off and fuck off with that noise. Taxation without representation.

[Anonymous No.28013548]

>>28013360
>IIRC, taking your money out of the exchange is a taxable event.

>buy 1 bitcoin on coinbase
>immediately remove to cold storage

you could say that's a "taxable event" but you would not pay any taxes on it since there was no gain

[Anonymous No.28013622]

>>28013485
>Technically you'd still owe small increments whenever you "traded" bitcoin for a soda.

lol good fucking luck tracking that down, especially if you've washed the bitcoin through monero

[Anonymous No.28013624]

>>28006512
>If you plan to day trade: incorporate a business.
I fucking hate myself so much for not realizing this earlier. I am such a retarded nigger. FUcking hell. If I would have had that, then I would have sold LINK at the BTC pair top in summer. The only thing holding me back was the fucking disgusting tax nigger. I want to fucking rip their heads off. Who are you supposed to fucking make it, if you get fucked on every single fucking corner.
I want to kick their heads in. FUUUUUUUUUUUUUCK

[Anonymous No.28013627]

>>28013179
No. Check your math. If you're taxed at 25%, you will still have 75% of your profits after taxes.

But you're actually right that there is a major crack in the tax code code. This happened to a lot of people in 2018. They had capital gains on ETH from 2017 trades. In 2018, they hopped from ETH to a shitcoin as ETH started to crash, expecting the pattern would continue and the shitcoin would spike up, at least for a little. It went down too. Now, they're filling out 2017 taxes. The government wants $500,000 in taxes on $2,000,000 in gains. The holder's wallet is worth $10. They cannot pay their back taxes, and because the loss occurred the next fiscal year, they cannot write off their gains with the loss. They can only backdate it by $3000 every year.

[Anonymous No.28013631]

Does anyone know if buying gold with your crypto and holding it a year is a good way to offset high taxes?

[Anonymous No.28013664]

i set up gnucash a few months ago and its pretty fkn useful. free open source whatever for financial tracking.

[Anonymous No.28013688]

>>28009535
>gets a tax refund
>calls other people fucking dumb

[Anonymous No.28013726]

>>28013627
The government doesnt accept shitcoins as payment?

[Anonymous No.28013819]

IRS is in a massive backlog right now btw.
>but they're freeze my bank accounts!
I don't have have a bank account or fixed capital. I'm a dead ghost haunting a desolate wasteland.

[Anonymous No.28013822]

>>28013179
>What even is the point of crypto then?
Ideally to be used as a currency. The problem is we have a bunch of people speculating and creating shitcoins every other day instead of moving towards making an actual cryptocurrency that scales well and can be used in everyday life. Life would be much easier if we all focused on that instead of trading these things like stocks.

[Anonymous No.28013843]

>>28013688
Hey m8 I might have gotten rugpulled by a pajeet in 2019 when I first started, but I didn’t get rugpulled by the government.

[Anonymous No.28013861]

>>28013524
>NET LOSS
What is NET LOSS. What you're trying to figure out is what >>28013627 explain here, where people who swapped out didn't take into account their taxes owed and continued to trade/spend the amount.

[Anonymous No.28014071]

The only thing decent of my shithole EU country is that crypto isn't taxed because it doesn't fit the countries legal framework for capital gains tax.

Literally the only reason why I got into crypto

[Anonymous No.28014104]

>>28013389
>>28013622
You guys aren't wrong in that it's not impossible to evade taxes right now, but that's entirely different from owing them. It's retarded to suggest to people to try and evade taxes. Also, trying to abuse the system is a good way to get it super fucking regulated. I really don't care if the IRS can/can't or will/won't look at wallets to track the money from bank accounts and wants all the dots in place. I'm just clarifying for Anons what the literal rules are

[Anonymous No.28014149]

>>28010709
The POINT is that trading a crypto for crypto is considered a "realized" gain if the fugazi "value" of your internet funny money went "up" before swapping it. It's a joke.

[Anonymous No.28014210]

>>28005172
Fuck off feds nobody is paying you shit and you don’t have the resources to go after 99% of us

[Anonymous No.28014298]

>>28014104
I kinda want to try and see if the SEC is going to have a bunch of turncoat neets mulling through the ethplorer to BTFO the non-compliant people.
If you're here SEC, hit me up.

[Anonymous No.28014357]

>>28005172
Keep in mind the feds dont care if you give them your best guess. So long as you're paying something.

[Anonymous No.28014402]

>never cashed out from RobinHood, Cuckbase or any exchanges.

Wut do

[Anonymous No.28014406]

>>28011682
>I know a guy who ran his fairly low income business without paying taxes for a long time
>ran a business
Same old same old. Why are all you acting like a bumbling bloated understaffed bureaucracy is the some high tech cia/fbi god like form the movies?

[Anonymous No.28014508]

lmfao at people thinking the IRS is the one that needs to tell you how much you own. It's YOUR responsibility to have a history of every single trade you did. If you can't provide that, guess what they'll assume. It's hilarious how many people think that they can avoid taxes by not telling the IRS anything.

[Anonymous No.28014541]

>>28014104
then show me your tax form from your exchange. The IRS even put a pathetic bounty of 1.2 million dollars trying to crack Monero’s privacy algorithm. It should be more like 1.2 billion dollars. Also I dont know why someone would go crypto and change it back to fiat. usdebcltclock.org. If you havent been following the physical silver run, the USD is dying. If you havent watched the nees, Biden is printing more fucking money for stimulus for undocumented immigrants and niggers. With our tax payer dollars and driving the USD down to the ground and giving 38 BILLION USD to Israel. Yeah good luck fucking getting taxes. Especially crypto. Show me your tax from from an exchange.

[Anonymous No.28014567]

Lol

[Anonymous No.28014684]

>>28014508
>reporting every since trade to make things more complicated for yourself instead of just revenue and expenses
You love nigger cock.

[Anonymous No.28014688]

>>28011830
100 transactions is NOTHING unless you're just some boomer that buys a little BTC on Coinbase like once a month.

[Anonymous No.28014823]

>>28014104
>You guys aren't wrong in that it's not impossible to evade taxes right now, but that's entirely different from owing them

No no no my friend, you are using the wrong language. "Evade" is not the right word. Right now the tax law is setup in a way that says "if you just buy shit with bitcoin and dont swap to USD first, then there's no capital gains taxes." this encourages people to pay with bitcoin

the same way the tax law has a statute: "If you cash out your stocks for a gain, but use those profits to buy a house within 6 months, you do not pay capital gains tax on those stocks you cashed out." This encourages people to buy houses

you are not "evading" taxes, you are merely playing by the technical rules because thats how they wrote the tax law. this is what rich people do

[Anonymous No.28014909]

>>28014508
Only fucking burgers think it's normal to have an institution with so much power tell you you owe money but not tell you how much.

It's fucking absurd that you need to do their job for them, I don't think this happens anywhere in Europe.

[Anonymous No.28014988]

>>28014508
Rope yourself you absolute cuck

[Anonymous No.28014992]

>>28006733
easy out

[Anonymous No.28015144]

>>28014541
This.

[Anonymous No.28015187]

>>28014992
Oof

[Anonymous No.28015256]

>>28014992
yes, i am disabled.

[Anonymous No.28015305]

>>28006512
>If you plan to day trade: incorporate a business.
>>28010796
>>28011158

how would incorporating a business lower your tax burden? by bringing your tax rate down to the flat 21%? your "trading" business has no overhead, employees, or costs; you would not be able to reduce your taxable income because you literally just keep all the money and have no expenses.

you are not allowed to write off your education, trading platform, computers / monitors unless you are an approved "Qualified Trader" by the IRS

[Anonymous No.28015332]

>>28008755
>>28009218
still waiting....

[Anonymous No.28015355]

>>28014909
Hah you think the people that lost all their money in GME is going to file taxes because they can utilize a $3k maximum loss. The tax system is broken and its voluntary. How would the IRS know about the homeless people that are in crypto? They cant. Unless those homeless people voluntarily gives information.
https://lbry.tv/@alittlebitofeverything:2/aaron-russo's-documentary,--freedom-to-facism-:a
I provided proof with this Aaron Russon documentary even with former IRS agents admitting they do not file taxes. For you guys that want to debate about crypto taxes, show me the tax forms from your exchange. Taxes are theft and not enacted by law from congress. There is no law that shows proof and the documentary proves that. Show me your proof

[Anonymous No.28015402]

>>28014688
100 transactions encapsulates my entire 25k LINK stack, 16 ETH, and 4 BTC.

[Anonymous No.28015493]

Every year I tell TurboTax I traded, and every year nothing comes of it. They just move on to the next prompt.

[Anonymous No.28015519]

>>28005417
Trump pays his taxes in lump sum in advance you retard. He has an estimate of how much he'll owe and pays it ahead of time. Whatever document or twitter post you saw that says he only paid $750 is ridiculously misleading and the poster likely doesn't understand how business taxes work

[Anonymous No.28015527]

>>28005172
What's the point of any of this if it's on the books?

[Anonymous No.28015602]

If I moved some ETH from Coinbase to Uniswap, how would they know about my trades there?

[Anonymous No.28015738]

>>28015355
This. But like he said the IRS is the mafia, so dont be surprised

[Anonymous No.28015845]

>>28013365
Yeah I didn't even know you could make an online account with the IRS until this year lmao
>>28013443
You'll be fine, you may have to pay state income taxes if they aren' taken away though.

[Anonymous No.28015846]

>>28015355
Wouldn't GME gains be for next tax season, not this one?

[Anonymous No.28015943]

>>28012251
This is some bullshit. Isn't the government admitting that crypto to legal currency with this logic?

[Anonymous No.28015969]

>>28015602
Coinbase knows which wallet you send it to. They associate it with you. Blockchain Trades are public.

[Anonymous No.28015974]

>>28015527
Exactly. If the IRS wants their tax dollars, they should be doing the legwork if its enacted by law. There is no law that gives them the power to do so. Notice how the kikes stopped their fud and responding? Show me proof. I will spread this documentary like sand. Anons watch it. Why do you think the ubderage neets are making it. Because they dont voluntarily give this information. Its actually unconstitutional.
https://lbry.tv/@alittlebitofeverything:2/aaron-russo's-documentary,--freedom-to-facism-:a

[Anonymous No.28015977]

>>28015602
Do you ever intend on cashing what you get on uniswap back out?
If you transfer it to coinbase to do so, it will have no cost basis and as such will be taxable to a full 20% short term capital gain. You'd be better off telling them how much you paid for the token.

[Anonymous No.28016017]

>>28005417
Don’t worry m8, your white person tax is coming soon

[Anonymous No.28016056]

>>28014071
A lot of Europeans can casually day trade crypto with a worry in the world, mad jelly. Americans are stuck with buy & hold unless they're incorporated and play the game waiting 1+ year to declare it as a long term investment.

Tokens and coins are taxed differently if I remember correctly.

>>28014402
If it's enough to put a down payment on a used car, I would suggest declaring it a business. Getting fined a decade later because of an audit from something completely unrelated in court will suck.

>>28014823
Anons are dumb posting on 4chan about breaking laws. I hope they're just shitposting turd worlders and not actual Americans.

>>28014992
Aspies have the most powerful gains. There are even special bank accounts for disabled people called ABLE accounts.

[Anonymous No.28016107]

>>28015846
Sure if that is the system you want to live in which is completely broken anyway.
https://lbry.tv/@alittlebitofeverything:2/aaron-russo's-documentary,--freedom-to-facism-:a

[Anonymous No.28016152]

>>28005172
>convert crypto to another
get fucked cucked americanos

[Anonymous No.28016242]

Just wait until Dr Dementia increases your Capital gains tax to 40%

[Anonymous No.28016314]

>>28016056
I'm not really involved in any way, but it seems to me you could fiat buy at one of the regulated exchanges, transfer to an arbitrary wallet and trade and exchange from those-- to realize gains in fiat you'd have to transfer back and cash out... but all the day trading could be pretty much anonymous, no? Again, I'm not really in on all this shit so I don't know... that's just what it seems like.

[Anonymous No.28016431]

>>28016242
I’m worried about this. Last year taxes won’t be so bad for me but this year I’m making huge gains and am going to be so fucking pissed if it’s 40% next year.

[Anonymous No.28016448]

>>28005417
>How is it fair that donald trump paid $750 in taxes

because he lies about how rich he is and looses money hand over fist running busineses like a retard, he managed to run a casino into the ground, how can anyone be that retarded?

[Anonymous No.28016461]

>>28016152
as crypto gets bigger other countries will tax the same way anon.

[Anonymous No.28016516]

>>28011381
A lot. I'm boned fren.

[Anonymous No.28016551]

>>28016461
Again, if your crypto is on their books [ie: they know your name and address], you missed the fucking point entirely.

[Anonymous No.28016580]

>>28013822
No.
SOME of them are meant to be currencies, but not all.
Blockchain is much bigger than that.
Get with the times you fucking ideological boomer.

[Anonymous No.28016617]

I've put maybe 400 into crypto. I'm not paying taxes on it.

[Anonymous No.28016705]

Can my stock market capital gains loss cover my crypto gains?

[Anonymous No.28016727]

>>28005172
So if I convert $500 of ETH for an even $500 of Link that is a taxable event? And at what rate? I was only going to report money in (cost) and money out (cash out)

[Anonymous No.28016733]

>>28015977
getblockcard.com and use crypto as a currency instead of trading back to USD. usdebtclock.org

[Anonymous No.28016772]

>>28016056
>Anons are dumb posting on 4chan about breaking laws. I hope they're just shitposting turd worlders and not actual Americans.

I agree but I think there is quite a distinction between "tax evading" and "using the tax structure to your advantage"

[Anonymous No.28016882]

>>28009535
You gave the government an interest free loan. Congrats.

[Anonymous No.28016889]

>>28007842
Delete this post or it will be reported to the FBI.

[Anonymous No.28017058]

i'm unemployed and have no money outside of my metamask the tax question is a legitimately absurd and comical worry to have.

IF/WHEN YOU CASH OUT then just consult an accountant. This is one of the biggest, most retarded fuds out there and it's mostly there to get you to panic and worry.

[Anonymous No.28017296]

>>28016772
Thats the whole point of the Aaron Russo documentary. THERE IS NO LAW passed by Congress. If there was one they can clearly point to it BUT THEY CANT. Meaning taxation is theft. Show me the FUCKIN LAW PASSED BY CONGRESS then its against the law. It should be fairly easy to find. Thats why its unconstitutional The documentary proves this
https://lbry.tv/@alittlebitofeverything:2/aaron-russo's-documentary,--freedom-to-facism-:a
Nothing wrong with being informed. Even former IRS agents stopped filing taxes. Also with the big DOGE advertisements on the superbowl will make moar and moar normies crypto owners.
Here is another one 30 minutes long which also references some Aaron Russo
https://lbry.tv/@ChadChaddington:d/Income-Tax-Voluntary,-I-Call-IRS:8

[Anonymous No.28017375]

>>28013406
You're only in danger if you cash out to fiat and if the amount of profit is greater than 10k (because faggot exchanges send a form to the IRS)

[Anonymous No.28017451]

>>28017375
So can I just cash out in installments of 9.9k?

[Anonymous No.28017577]

>>28017058
Because many anons are young 20-somethings trading with a couple grand and are terrified of how the world works. It unfortunately does work on them.

[Anonymous No.28017592]

>>28010201
Me too. I think it’s some Russian scammer I’m sending them to. Idk though

[Anonymous No.28017607]

>>28010709
Lol wait until Yellen says otherwise.

She has already tried to float the idea of taxing unrealized gains, and most people are too stupid to realize that this will fuck them hard and will buy into the "fuck the rich" argument.

Assuming you are American anyway.

[Anonymous No.28017639]

Is a trade and a conversion (like eth to link) the same thing?

[Anonymous No.28017688]

So if I trade all my shitcoins for monero and then send it to a brand new BTC address, I don't have to pay taxes because it can't be traced back to me?

[Anonymous No.28017715]

How do you tax a fucking Ponzi scheme?

[Anonymous No.28017717]

>>28011594
No you don’t because those capital losses offset the capital gains

[Anonymous No.28017791]

>>28005172
I dont need to, I know the exact amount I started investing with so the capital gains calc is EZ. why would this be hard, yall some zoomer retards who never did taxes before lmao

[Anonymous No.28017897]

>>28014406
The problems occur when you have to go to court at one point and an audit is ever ran on you. Even minor stuff they'll try to peg you with fines for back taxes.
IRS knocking on your door red flags don't go off unless you try to buy a house, deposit tens of thousands of dollars or a car with shady money, because they'll just assume you're a drug dealer or something sinister.

>>28017058
>taxes are FUD

Not really, maybe for brainlet day traders, they're something adults have to worry about and consider when making investments. Crypto taxes and laws are getting passed every year.

[Anonymous No.28017956]

>>28017451
if the exchange works at all like banks do, doing multiple transactions just under the reporting limit will also get you flagged

[Anonymous No.28018001]

>>28017451
why would you? Just getblockcard.com and use the cryptocurrency as intended as a currency.

[Anonymous No.28018041]

>>28017607

I know about Yellen. try getting wall street to go along with taxing unrealized gains. say goodbye to the stock market and say hello to everyone putting all their money into gold and hiding it from the government. what gold? what gains?

>>28017688
>So if I trade all my shitcoins for monero
you would have to trade them on a non-KYC exchange. if you did that on coinbase it would still tracking you trading your shitcoin for monero, which is a taxable event

[Anonymous No.28018139]

>>28017715
You do realize that the entirety of the US economy is a ponzi scheme, yes? They're just pissy about the competition.

[Anonymous No.28018173]

>>28017058
If you're unemployed the first $40k of capital gains is taxed at 6%. Actually, anyone who earns under $40k can claim capital gains as ordinary income up to $40k.

[Anonymous No.28018190]

>>28005417
Don't fall for the memes. His personal income is low, but his corporations pay a fuck load.

[Anonymous No.28018289]

luckily i have one wallet where i just bought and hodl link and another wallet for my degen trading on uniswap. using taxibit looks like i my taxable gains are 22k.

[Anonymous No.28018385]

>>28018041
They passed these taxes because they want to slow down it's growth. The government really needs blockchain professionals and lobbyists otherwise boomers will pass dumb laws because they don't understand nerd money.

[Anonymous No.28018481]

>>28005172
>paying taxes
I wonder who made this thread.

[Anonymous No.28018517]

>>28018289
I have a friend that has 20 wallets of just BTC

[Anonymous No.28018621]

>>28008162
>Good job for being proactive. Now consider whether all the niggers out there do the same.
not my problem, thats the irs problem

[Anonymous No.28018644]

>>28018041
I'm pretty sure anyone with any degree of investing knowledge knows how bad an idea taxing unrealized gains is for any level, but I think the issue is that another of congressional Democrats feel the need to "prove" how far left they are, and they will absolutely push for it.

Honestly the biggest reason it may never see the light of day is because of how corrupt the executive branch is now. If they did push this through, those soft paychecks would pretty quickly dry up and then their whole charade comes crashing down.

[Anonymous No.28018679]

>>28018289
wow taxbit is super neat. it fills out the entire tax form for you. moving forward i'll probably keep my tx's to a minimum. https://taxbit.com/

[Anonymous No.28018767]

>buy BTC at $10k
>BTC runs up to $20k
>you used BTC to purchase CumCoin
>CumCoin had a rogue dev who dumped all his tokens, the project is dead and you are left with pennies of your initial investment

Do they count the $10k that was not realized in USD, as a USD profit? Or is it JUST when you sell back for actual USD. I’ll pay tax on USD income, the US has won wars to earn that privilege, but they’ve never run a node or helped develop ANY crypto.

[Anonymous No.28018817]

>>28006563
Anon, US in itself is a tax haven, hire a jew accountant and ask him how (you) can legally pay 0 taxes. Yes tell him zero so he knows you want the good stuff.

[Anonymous No.28018976]

>>28009141
how did you manage to lose money from 2018 to now?
que?

[Anonymous No.28019029]

>>28018644
The democrats are all rich too, dont forget. They dont want unrealized capital gains taxed either

[Anonymous No.28019467]

I usually just report if I cashed out any amount of fiat. For example put in 16k this year cash out 30k I pay taxes on 14k in gains even if I have 50k sitting in Link in a ledger or something. If I eventually cash out that 50k I'll just pay taxes on the full 50k.

The IRS is severely underfunded and they don't have time to track and calculate the taxes on 100,000 transfers between tendycoin to slurpcoin and neither do I. The people fear mongering everyone about this should fuck off. Also I change wallets like every month and have accounts on exchanges that completely closed down, it's impossible to calculate any other way than this.

[Anonymous No.28019980]

>>28016448
all of Atlantic City crashed you morally destitute tranny faggot

[Anonymous No.28020213]

>>28007422
Say you have the majority of your net worth in crypto stores in a hardware wallet, defi protocols, and private wallets.
You can now still buy shit online, order chicken tenders via bitrefill gift cards, and generally say fuck you to the IRS indefinitely.
What is their next move here?

[Anonymous No.28020361]

>>28014071
What country, fellow EU shitholer?

[Anonymous No.28020427]

>>28020213
>"hello McDonald's this is the IRS. Here is a list of wallets we have blacklisted due to suspicious activity. if we notice any funds being transacted to you from this wallet you will be severely penalized".

[Anonymous No.28020587]

I made like 2k on uniswap, transferred ETHover from coin base pro, you think the IRS will bother me?

[Anonymous No.28020654]

I don't think regular coinbase sends 1099s according to their site seems like only coinbase pro does.

[Anonymous No.28020672]

>>28018817
Whenever you make a sizable amount of income from a venture you ought to declare it as a business to protect yourself from liability and tax purposes. You can even get grants and fun stuff like that.
A lot of streamers and onlyfans whores are gonna get their shit shoved in.

>>28019467
It's not fear mongering, it's the legal game and /biz/ is a law abiding board of peace nor do we support any money laundering.

>>28020213
Buying stuff directly with your crypto is the best idea instead of converting it to fiat. So the crypto debit and gift cards aren't a bad idea.

[Anonymous No.28020690]

>>28020587
pay your fucking taxes freeloader

[Anonymous No.28020726]

>>28020587
no. not if you're going around trading with 10k or 20k then you might have a problem. just limit the transactions you make and just buy and hodl projects you like etc.

[Anonymous No.28020873]

>>28020672
precious metals sites accept crypto

[Anonymous No.28021023]

>>28005417
>How is it fair that donald trump paid $750 in taxes
Real estate guys don't pay taxes.
>>28008251
Based. It is, but the realization of the fact doesn't matter unless you can get literally everyone to agree to non-compliance.

[Anonymous No.28021053]

>>28005417
Imagine still believing the 6 mainstream media oligarchs in the technological age

[Anonymous No.28021082]

>>28020726
If I set recurring buys, then I’m gonna be in on the radar? 30+ buys will cause coin base to send info to the IRS? Planning for next year.

[Anonymous No.28021365]

hcheckit:
-1000 usd short term gainz
900 le gas fee fee
4200 staking/airdrops
kek
cost basis $5200
2021 going to have a lot more staking gains and fewer trades.

also some tax free hodl gains

[Anonymous No.28021372]

What are taxes?

[Anonymous No.28021420]

>>28005420
I left the question blank last year on my taxes. I really dont know how they expect me calculate shit from before laws were enacted, that I used a VPN on bitfinex and traded shitcoins daily for years back in 2016-17. I can calculate the cashouts but trying to establish a cost basis for coins that have been swapped 100 times some of which don't even exist anymore is absolutely insane. I also dont understand what exactly I am being taxed on if I swap because I actually lose money on the fees and exchange rate so what the fuck am I actually paying a tax on?

[Anonymous No.28021459]

>>28021082
Their website shows the reasons they send it in, looks like 200+ transactions, but it seems to only apply to coinbase pro... As of now. Someone correct me if I'm misreading.

[Anonymous No.28021491]

>>28021082
not if you're just buying and holding. now if you have 30+ transactions of selling into fiat all worth 20k or so then cb will send you that info.

[Anonymous No.28021601]

https://www.coinbase.com/learn/tips-and-tutorials/crypto-and-bitcoin-taxes-US#determine-if-you-owe-crypto-taxes

[Anonymous No.28021859]

>>28020427
but another wallet and transfer the funds?

[Anonymous No.28021941]

>>28018173
How does this work?
I made $20k at work in 2020, I will be getting tax money back
I profited $2k off crypto; if that crypto gets taxed as income tax, then will I receive returns on that?

[Anonymous No.28022003]

>>28020427
I dont think mcdonalds accepts crypto, but even if it does, you're buying your tendies with untraceable gift cards.
And you can just make a new wallet and transfer funds from cold storage to it.

[Anonymous No.28022023]

Do I have to file trades made in 2021 on my 2020 taxes? Or will I have ti wait a year to find out how fucked I am? Do you get taxed on trades that are a net loss?

[Anonymous No.28022108]

>just sold the top of UNI for $16000 yesterday
Next year is gonna be fun.

[Anonymous No.28022606]

How the fuck does the IRS even know you've been investing in crypto?

[Anonymous No.28022623]

>>28012795
This is the smartest thing ive read in this thread (Im stupid btw). This is ingenious, but goddamn you probably need impeccable timing far too often for it to be worthwhile.

[Anonymous No.28022752]

>>28022023
No, they go on next year’s
Deduct losses from profits for total tax liability. Do not claim current profits, just when you sell, same as stocks

[Anonymous No.28022871]

>>28022023
No. You wait a year. Also no, it's your total gains - your total losses = what you're taxed on. You can write off 3k in losses from your income tax if you're in the net red per year.

>>28021420
The exchange rate is you giving up money/worth for a service. In explicitly technical terms it is subject to tax (as you are using, say, ETH and trading it for the service), but as far as I know, it's just kind of considered a transaction fee which is and always has been a grey area for the IRS (pretty much unless you're making profits on transaction fees, they seem to mostly be ignored). The taxable event is whatever your (est market value in fiat) value was that you are swapping before anything happens to it. So if you had bought 3 ETH for a dollar and it went up to five dollars, when you go to swap your 3 ETH for DOT, the taxable event is 5 - 1 = $4 of taxable gains.

[Anonymous No.28022974]

>>28005420
if everyone did this we'd be ok

[Anonymous No.28023115]

Fucking wild thing happened, I was on this boat with all my money and you wouldn't BELIEVE what happened

[Anonymous No.28023155]

An even trade from $500BTC to $500ETH has a trade value of $500 or $1000? I want to see where I'm at so far this year....

[Anonymous No.28023185]

>>28008162
They get a free pass because they are not white.

[Anonymous No.28023370]

>>28023155
You're looking at it the wrong way, Anon. What was the price when you bought the BTC and what was it when you traded it? The amount of ETH you got is irrelevant to this particular transaction as the value of BTC being taxed is not being weighed against the ETH. Then, say, later you swap the ETH to ADA. The difference of your initial ETH and as you trade it for the ADA is your gain/loss. The ADA is irrelevant until you decide to swap it. If it helps you, think of it like owning a car. You can't just give a car to someone or sell it for a dollar and only tax the dollar-- the tax the gubbment wants is based on the "fair market value" of the item at the time of sale.

[Anonymous No.28023480]

>>28022606
If you bought using a KYCd exchange, they know. Or if you used your bank or credit card etc they can find out if they really want to. Otherwise they won't, until you suddenly start buying houses/cars/other expensive items or making big deposits randomly that can't be explained by your job

[Anonymous No.28023505]

I made an assload of transactions because I tried swinging like a mong. Can I just report the gains that I made until the last trade, or do I have to drudge up and report every single swap?

[Anonymous No.28023579]

>>28006980
lol, don't fuck with the IRS

[Anonymous No.28023596]

>>28023370
One of coinbase's criteria are over $20,000 worth of trades. So I'm trying to understand how they get to this number, your saying it's only on the realized gains after the trade? If so, then I wouldn't know until 12/31/21 correct?

[Anonymous No.28023707]

>>28023155
To follow this up: you can use your total change in profits/losses to track what will actually be taxed for that year. The only way this doesn't work or gets complicated is that if you trade between tax years and don't cash out, you still technically owe the taxes for the previous year's trades. The only exception of this is if you hold your assets without trading at all. Then you aren't taxed until you do. Anyone arguing against this in the thread is just saying they don't feel they should have to pay the tax and how will the IRS catch you? Those are separate issues. If you want to be on the up and up, that's how it is.

[Anonymous No.28023742]

>>28023505
Wondering the same. Ive kept a spreadsheet of purchased and was goin to report total cost and total cash out only. Wouldn't that be equivalent to digging up hundreds of microtransactions?

[Anonymous No.28023844]

>>28023707
>you trade between tax years and don't cash out, you still technically owe the taxes for the previous year's trades.
So you pay those taxes and possibly those cryptos lose money the next year and now what?

[Anonymous No.28023879]

>>28018767
Technically yes they do from my understanding. If you traded the cumcoin or sold it after the dump though you would have a net loss.

[Anonymous No.28023982]

>>28005172
I hope tax season crashes the normie stock market. I hope there are a lot of people who need to sell their stocks to pay their taxes.

[Anonymous No.28024000]

>>28023596
20k limits have to do with rules about hobbys vs running a business and when they are obligated to report to the IRS, etc. It's the same shit as ebay or even doing stuff on the Valve marketplace. You are technically supposed to pay taxes on any profit, but the 20k / limit on trades is when they send out a 1099k. It's a bit more complicated with ebay since selling old items for a loss is different... but I digress

[Anonymous No.28024006]

>>28005172
>People claiming our elected government officials are a fraud.
>stocks market is a fraud
>Billionaires and corporations get away with tax evasion
>fiat currency is failing

>Why pay taxes if they can just print money?
>Why did they give billions of our tax dollars to foreign nations?


You see the slippery slope? I think millions of people are waking up and they will try to start some sorta tax strike movement this year. Along with the hundreds of thousands of people scamming to get PPP loans, unemployment fraud, etc etc.

[Anonymous No.28024049]

>>28016448
No one wants to go to Atlantic City because Philly is closer

[Anonymous No.28024075]

>>28006980
>what's the worst that can happen?
They fine you, and you end up paying 10X what you owe.

[Anonymous No.28024269]

>>28023844
You're still thinking ahead a swap. Assuming you cash out some or pay out of pocket for your taxes for the previous year so you're good with the IRS... and then let's say you turn into a pink wojack afterward and you are left with nothing after a pajeet rugpull... you'll owe nothing because you lost money before you traded or pulled out your current assets.

>Year 1, start investing in BTC
>Don't touch the whole year
>Year 2 begins
>Owe no taxes
>Decide to get into ETH, so you swap half of your BTC to ETH
>Year 2 ends
>Year 2's taxes has you paying whatever change in BTC from your first buy in at year one until you swapped for ETH, but only for your half you swapped out
Tax rates may be different, but when you actually pay is the same

[Anonymous No.28024511]

>>28008809
You pay for what it was worth when you claimed.

[Anonymous No.28024519]

>>28023505
>>28023742
You supposedly have to fill out the transactions via a form to the IRS. That's why some Anons were recommending software to do this for you as it's tedious. It's retarded and I can't tell you whether the IRS will even actually care. I'm not them nor a tax expert.

[Anonymous No.28024852]

>>28024000
>, but the 20k / limit on trades
As in $20K of gain on trades?

[Anonymous No.28024934]

>>28023707
>>28024000
>>28024269
And what if year 3 you lose money, tax rebate? Sage advice

[Anonymous No.28024949]

Breathing, eating, sleeping, and shitting are all taxable events.

[Anonymous No.28025451]

>>28024852
Yeah, I believe so, but once again, that only really matters to the company having to send you a form and report it. Your obligations are different and don't change. I want to be clear here: I'm just telling you what's expected of you. I really don't care if you try to skirt around paying your taxes, but I want you to know when you're skirting and when you aren't.

>>28024934
Even if you lose money, you're supposed to report your transactions. From there, you can indeed rebate up to 3k in losses and it's technically possible to roll over more losses from that year into another year. The IRS explains it better than I can.

https://www.irs.gov/taxtopics/tc409

[Anonymous No.28025601]

>>28019467
This seems like the fucking reasonable way to do it. I was planning on doing this since I have no fiat (no income) to cover my profits so far unless I cash out to pay them. Anyone have experience doing it like this?

[Anonymous No.28025778]

Suppose I made a series of trades like:
+$1000, -$1000, +$1000, -$1000, etc.
At the end of this, I still have to report my transactions, but I will owe $0 in tax, correct?

[Anonymous No.28025823]

>>28024000
I could not find any exact number on what is a hobby or business, but the 9 factor rule on the IRS website.

>>28024852
Ought to read up on the tax laws and consider speaking to a professional accountant since each country and state is different slightly. You would have a very hard time saying crypto currency trading is a cottage industry and non-profit.

[Anonymous No.28025960]

>>28024934
>>28025451
I guess I should be more specific since someone earlier didn't understand this properly. Figuring out roughly what you'll owe in taxes is fairly straightforward in that your change in balance on trades from the start of the year to the end of the year should reflect either a net gain or loss. Net gains will be taxed and you can deduct a net loss. The per-trade complications are really for two things only: reporting and giving a paper trail to the IRS, and trying to reduce your taxes slightly with some trickery.

Say that you buy BTC, hold it for a month, buy some more BTC, hold it for a month, then decide to trade out half of your BTC. As long as you are consistent about it, you get to decide whether to tax the first BTC you bought or the second. (first in, first out, etc)

>>28025778
Correct. In fact, you can deduct the 2k in losses.

[Anonymous No.28025976]

>>28010299
Not anymore. Like kind exchange deferment only counts for real estate as of DEC 2017

[Anonymous No.28026126]

>>28025823
It doesn't matter much for Anons here anyways. The business v hobby has more to do with whether you can deduct expenses and such. Like, if you set up a company and said your net/computer were expenses for your crypto day trading. We're getting far beyond the topic at hand though. I agree with your post 100%.

[Anonymous No.28026153]

>>28020672
>Buying stuff directly with your crypto is the best idea instead of converting it to fiat. So the crypto debit and gift cards aren't a bad idea.
still a taxable event

[Anonymous No.28026239]

>>28010666
Receipt of gift counts as income.

[Anonymous No.28026905]

>>28026153
Sales tax perhaps, using it to buy other crypto or fiat is taxed which is considered 'cashing out'. Might depend on how the debit card works though.

[Anonymous No.28026965]

>>28011594
>Kind of like how if you roll your winnings in the stock market, get up to 2000% gains somehow, and then blow up your account so you're in the red, you still owe money for all the profits you made.

No you dont. You made capital gains of 2000% and then subsequently capital losses of 2000% = 0 profit