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3691755 No.3691755 [Reply] [Original]

So do I have to pay taxes on this shit while I'm still holding the coin?

The only time I've cashed out was a couple times in July to hold fiat and buy back in. I ended up losing money every time. Now I just held since then and I've tripled my earnings. Do I have to pay 30% on that tripled amount now or when I actually take the money out?

>> No.3691868

>>3691755
Everyone's gonna answer a different opinion. The truth is the IRS still hasn't clarified proper crypto tax procedures, but should do it this upcoming tax season.

Just wait.they'll give proper procedures...if they dont then a bunch of neets are gonnaend up buying monero, which is bad. Puts a negative light on crypto, more regulation, etc.

>> No.3691888

>>3691755
>be from denmark
>can't deduct losses, but don't have to pay taxes on winnings made in crypto

Just fine by me.

>> No.3691890

Just hold it until youre ready to cash out and pay taxes on that, people will tell you all sorts of retarded shit but thats the easiest and painless way to do it.

>> No.3692085

>>3691890
But I technically already cashed out.

Making trades on gemini from Fiat -> Eth back to Fiat back to Eth a couple times means I have to pay on every one of those transactions right?

>> No.3692393

>>3691868
it's not a matter of opinion, its the same as any other currency or good you buy, then has asset appreciation.
OP you pay capital gains tax only when you convert to USD. You only count your net gains, you can subtract your losses out.

as far as selling and reinvestments go, I'm not sure but I think it would qualify as a 1031 eschange

>4. 1031 exchange. If you sell rental or investment property, you can avoid capital gains and depreciation recapture taxes by rolling the proceeds of your sale into a similar type of investment within 180 days. This like-kind exchange is called a 1031 exchange after the relevant section of the tax code. Although the rules are so complex that people have jobs that consist of nothing but 1013 exchanges, no one trying to avoid paying this capital gains tax fails. This piece of valueless paperwork does the trick.

It should qualify in my moral opinion (as opposed to legal or technical opinion) because its a highly risky asset and if you lose it you didn't really make anything
from selling it the first time.

so if you invested $1k, then sold $2k, ($1k profit), and then reinvested $1k, you'd be paying 0 capital gains taxes because all your money is still in the asset and hasn't been converted to USD.

>> No.3692575

>>3692393
but when you cash out the profit you technically are converting to USD, no?

>> No.3692607

>>3692575
that's where the reinvestment clause comes in and its more complicated.

but basically if you buy $100k house, it becomes worth $200k, do you pay capital gains?
No, because you haven't sold it yet. It might become worth $50k in 2 days from now and why should you pay taxes on the $200k when you didn't make any money from it yet?

>> No.3692629

Every time you make a trade, even if it's between BTC and an alt coin, you have to report it and pay taxes on the profits.

>> No.3692643

>>3692607
>thinking a house is an investment

>> No.3692645

all i know is i ain't paying shit because i never cashed out a dime. and no fucker here is going to tell me that this is somehow tax evasion because it isn't.

>> No.3692658

>>3692629
no. kys, nigger

>> No.3692692

>>3692629
Fuck of IRS

>> No.3692696

>>3692658
If you're an American, you have to do that. Assuming you've made enough money, of course; the IRS says they don't care if you've made less than $600 in capital gains.