CRYPTO TAXES

[Anonymous No.3532692]

A friendly reminder:
The closer we get to tax season, the higher Monero is gonna go.


The global market cap is crypto raised by over 130Billion since January, and it's still only September, recovering from a recent China/WSJ fiasco.


130B is a Fuckload of money, and uncle sam knows you fuckers made bank off this...they want their share.

I will pay my taxes, and advice you to do so too. But I know MANY people will try to avoid them; The only surefire way being Monero.


This creates immense opportunity for gains even if you plan on paying your tax...ride the train up with the scumbags while taking no risk.


I have no skin in Monero right now, as it's way too early to plan for this. Just know as time goes by, don't forget about this. Just remember how much 130B is.

Assume only a third of that is American.
43B.
Assume 90% of people pay taxes.

4.3Billion dollars seeking the best untraceable privacy based coin...Monero. This is grounds for Insane gains.


Not to mention, that is based on the grounds that 90% of people pay their taxes...which we all know will probably not be the case. Last year there were less than one hundred people who reported taxes on crypto to the IRS. Let that sink in.

Just trying to keep /Biz/ Ahead of the game.

[Anonymous No.3532716]

If you purchase Monero off an exchange, and the exchange is audited, won't that transaction be known? They'll know you purchased monero, correct? you will at least be held accountable for the gains up to the purchase.

[Anonymous No.3532724]

>>3532692
im just gonna report it as long term capital gains for like 10% tax. what the fuck are they going to do about it

[Anonymous No.3532726]

>>3532692
You are a legend

[Anonymous No.3532914]

Quick question. Is monero the standard payment in darknet markets? I havent been on any of that in a long time(and never actually got to buy anything) but im thinking of it soon.

>>3532716
>Send BTC/ETH to your wallet
>Make account on exchange that doesnt require ID(plenty of them)
>Send BTC/ETH to this account
>Buy monero
>HODL or sell off later

If you wanna be hardcore take measures to hide your IP/internet connection. The government has no way of knowing where your wallets are.

[Anonymous No.3532972]

>>3532692
You don't have to pay taxes if you don't cash out

[Anonymous No.3533049]

>>3532972
This.

It's just like you don't have to pay tax gains off a property you own until you sell it. Say you bought a house and it's value increases; the government doesn't increase your taxes on it based off the increased value. They only tax you property gains/loss at point of sale/transfer into fiat.

[Anonymous No.3533146]

>>3532972
Yes, you do....and this has been established in every thread related to this. As much as I don't like it, it's the way the IRS wants to run things.


They count EVERY transaction as a taxable event, even coin to coin. Doesn't have to involve fiat.

The IRS is gonna have to clarify the crypto rules or be left with billions unaccounted for and a Monero moonride.

[Anonymous No.3533161]

>>3533049
I thought they did

like if value goes up your property taxes also go up

[Anonymous No.3533307]

>>3533146
so im going to be taxed hundreds on my crypto trades that I spent under 1k on? gay

[Anonymous No.3533367]

>>3532914
Not yet, but it's one of the top coins used, and will become more and more popular as they role out multisig and mobile wallets.

Bitcoin is still the top coin used, even though every transaction made gives a public fucking record.

I think this whole crypto game is an idiotic bubble LARP, except for monero or whatever the next privacy coin will be.

[Anonymous No.3533458]

>>3533307
Most people have the same attitude as you, just on a bigger or smaller scale depending on their financial situation.

Hence the giant opportunity available for Monero.

[Anonymous No.3533678]

>>3533307
I did some massive bookkeeping. Not knowing trades are a taxable event, I now found out I will be looking to pay close to $9000 in taxes...money I have yet to see in my bank account. It was based off a capital gains of $32000.

I've been trying to trade for LOSSES wait a couple days and rebuy my position. Since crypto are not securities, the WASH SALE rule does not apply. HOWEVER, there is a clause that says a loss must demonstrate you hurting your gains. By waiting a few day before buying your position, you can claim you were scared about a volatile market and thought it was going back up.

If ANYONE has massive losses, sell and buy back in a few days. Start harvesting losses. I wish I had known about this sooner.

[Anonymous No.3533769]

>>3532692
>Assume 90% of people pay taxes.

[Anonymous No.3533791]

Uhh..yeah.. I'm defiantly paying taxes on digital tulips

[Anonymous No.3533796]

>>3533678
>>3533307

STOP SPREADING THIS BASELESS FUD. Nothing is taxed until it is cashed out to fiat.

[Anonymous No.3533833]

>>3533678
Claimed losses are capped at $3,000, but can be rolled over to the next tax year if they are greater than 3k.

Basically the whole claiming losses thing isn't all that great, unless you're playing with a pretty small stack

[Anonymous No.3533849]

>>3533796
dont see how that helps seeing as capital gains tax is 50%

[Anonymous No.3533866]

>>3533849
In the US it's like 30% or less. Where do you live?

[Anonymous No.3533897]

If you move your coins off the exchange to a cold storage wallet, can they still tax you?

[Anonymous No.3533949]

wow, the lengths people go to shill your coin

You are taxed on your cashed out amount. The government isnt taking money out of your trading accounts, its the same as the forex. whatever your annual income turned out to be, you are taxed on that only

[Anonymous No.3533972]

A reason I think BAT is going to do so well is that it will be able to be written off as a business expense. Advertising budget can be used to launder money.

[Anonymous No.3533991]

>>3533049
Yes they do you fucking idiot via rates!
Tgey do an annual valuation on every property in the state and your rates are based of that value- which are always under market.

[Anonymous No.3534135]

>>3533866
capital gains tax is 15% in the usa

note you only pay this when you are net positive, you dont pay tax when you lose money trading

[Anonymous No.3534202]

>>3534135
that's only if you hold it for over a year I thought.

[Anonymous No.3534566]

It seems like no one here is really sure about how taxes are paid, me included. I booked a consultation with a bitcoin attorney for later this week, what should I ask him?

[Anonymous No.3534577]

>>3534566
...juist dont pay

[Anonymous No.3534591]

>>3534577
Self preservation is a trait I possess.

[Anonymous No.3534622]

>>3533146
wrong

[Anonymous No.3534660]

>>3533796

Please link source for this

[Anonymous No.3534692]

Unless you cash out to fiat, all crypto for crypto should be 1031 like kind exchange, right?

[Anonymous No.3534709]

>>3534660
just google IRS virtual currency guidance.

[Anonymous No.3534824]

>>3533796
you're an idiot. PROPERTY in EXCHANGE FOR ANOTHER PROPERTY must be reported!!! You pay capital gains based on exchange!

These apply to the old school bartering law. You can't even claim a like-kind 1031. There are NUMEROUS explanation from tax attorneys online about all this shit.

No where in your image even claims when its turned into fiat you pay taxes. Because bitcoin is defined as "property", now need to look up how the IRS handles "property".

Stop spreading YOUR MISINFORMATION!!!

[Anonymous No.3534845]

>>3533897
technically, as long as you NEVER turned any of your cryptos into fiat, you could get away with never reporting HOWEVER, if you hit it big, be prepared for the big stick in your ass.

You will either need to report it, or you will be nigger-rich or mexican-rich. Always having to resort to shady cash transactions without securing any of it in other assets like a house.

[Anonymous No.3534847]

>the closer we get to tax season, the more retards who actually think Monero is anonymous are going to appear on /biz/

[Anonymous No.3534850]

>>3534566
ask him why you are such a dumbass that you had to book an appointment with a "bitcoin attorney."

[Anonymous No.3534879]

>>3534850
the attorney can save your fucking ass. Like if you have a written statement advising you that it's ok to claim crypto trades as a 1031 like kind exchange. Which allows you to defer the capital gains until you actual sell your position. Like other idiots are claiming, "only when you change to fiat".

If the IRS pulls shit on you, you have your ass covered by the attorney.

[Anonymous No.3534880]

>>3534850
ok

[Anonymous No.3534885]

Are you guys dumb, by the way?

Why aren't you just withdrawing your money from Bitcoin ATMs in small increments?

[Anonymous No.3534898]

>>3534879
That's what I figure, use some of my mad gains to secure most of the rest, instead of getting my anus audited. I don't plan on retaining him for defense or anything but yeah I think a letter or something would at least show that I tried to do right by the law

[Anonymous No.3534903]

>>3534885

>every day withdraw a few hundred dollars from a Bitcoin ATM
>it's literally just money coming out of a machine with no paper trail leading to you

[Anonymous No.3534957]

>>3534903
>>3534885
You'll get raped by transaction fees though

[Anonymous No.3534961]

>>3534957

As opposed to 30% tax?

[Anonymous No.3534963]

>>3534903
living nigger-rich isnt my style.

[Anonymous No.3535070]

I have a question about crypto taxes. So from what i understand the "right" way would be to pay taxes on every fucking trade you've ever made. Suppose you use different exchanges and make a fuckload of trades a year. I would guess theres some way to request all your trade history from the exchanges?

But is this the governments job, or your job? like if you just cash out and try to pay capital gain tax(or even normal tax rate) and they say, no you have to do it the "right" way.....do you just tell them to figure it out?

Can they really force you to look up each and every fucking trade with the threat of you going to jail or something?
I feel like i'd be inclined to tell them to fuck off and figure it out themselves....I dont see how they'd have the manpower to have someone try to figure out every time you sent money to an exchange and traded.
Then theres things like constantly putting chunks of your paycheck on crypto and using a crypto card like TenX to make a shitload of purchases throught the year.

Retard question, but i have no experience dealing with the IRS and ive always gotten the impression that as long as you pay something they wont look too hard.....Unless you cash out 10million and they really want all their money i guess

[Anonymous No.3535080]

>>3535070

It's always your job, I don't think you really needed to ask that question

[Anonymous No.3535113]

>>3535070
This is like asking if every trade in the stock market needs to be recorded for tax purposes...

Of fucking course it does!

[Anonymous No.3535133]

>>3535070
The tax code says all americans must report their taxes to the best of their knowledge.

So basically, if it sounds reasonable, and the IRS is happy with their share, then make up your own calculations. Report a portion of it and take the other half to localbitcoins.

Or you live like a mexican, and do shady backdoor deals with cash.

[Anonymous No.3535143]

Any comments on LIFO or FIFO?

[Anonymous No.3535147]

>>3532692

If coinbase records all the transactions and gives this info to the feds, can't the IRS fuck you and claim you owe them money for buying coin at some time?

[Anonymous No.3535225]

>>3535080
>>3535113
>>3535133
>Or you live like a mexican, and do shady backdoor deals with cash.
got it ese

i guess the question was more...if you just do it the easy way:
>go on coinbase, look up your records:
>This is how much i cashed out in 2017
>This is how much i put in
>Total profit=Cashout-investment
>heres your % of my profit.

if you cashed out lets say 20k and said it was capital gains tax are they really gonna audit you and look through all your trades?
What if you just declare crypto as income and pay the appropriate tax bracket for your income that year? they'll still try to find all your trades....seems fucked

[Anonymous No.3535594]

>>3533796
When you trade property for property, you owe the IRS USD based on the fiat value at the time of trade minus the cost basis, unless you can get it deferred as a like-kind exchange, which requires a 2 page form.

https://www.irs.gov/pub/irs-access/f8824_accessible.pdf

Good luck filling that out for EVERY SINGLE TRADE. I've never heard of even one person who reported alt-coin trades as like-kind. And not once has the IRS said that it considers alt-coin trades as like-kind.

[Anonymous No.3535711]

Op is a no coiner who keeps posting this shit about being taxed on every transaction

[Anonymous No.3535811]

this is fucking retarded I tried using bitcoin.tax and thought it would be simple seeing I only use coinbase gdax bittrex and binance and it cant realize that the bitcoin i bought with a credit card was used immediately and is reporting it as 0 bucks for cost basis holyshit

I got to pay 200 bucks in tax for 700 bucks spent on crypto and 0 gains

[Anonymous No.3535830]

>>3535594
The IRS obviously doesn't care about alt coin trades whatsoever.
The only reason they don't issue proper guidance on it is so that gullible retards overreport their taxes.

[Anonymous No.3535974]

>>3532724
>10%
Don't forget state tax on top of that. 15% in cali, so 25% total

[Anonymous No.3535996]

>>3534824
Where did you see that 1031 won't work?

[Anonymous No.3536990]

>>3534850
this

[Anonymous No.3537062]

>>3535996

See

>>3535594

[Anonymous No.3537190]

>>3533146
this is stated as NO in every thread and idiots like you keep repeating this. It can't be a taxable event as there is no way of pairing that pricing at the time to fiat and no one is going to do that level of meticulous auditing. stop posting this retarded shit.

[Anonymous No.3537980]

>>3537190
>Implying that the government isn't r retarded, and can't expect you to do retarded things under pain of retarded penalties
This is the basic way they operate on a good day.

The only good news here is there's a legislative fix in the pipeline that actually had broad support and could soon pass through the festering shithole that is Congress. I think it explicitly excludes transactions under $600... I'm not 100% sure whether it fully resolves the token-to-token trading issue though.

[Anonymous No.3538000]

>>3537190
>>3537980
https://polis.house.gov/news/documentsingle.aspx?DocumentID=398438

[Anonymous No.3538067]

>>3535225
Over a course of years, you'll end up overpaying if you report as short term gains and underpaying if you report at long term gains. Going through each transaction is the only way to tell what's what.