/biz/ - Business & Finance

[Anonymous No.4359441]

Riddle me this boot lickers
>be tax day
>kept every record of every transaction like a good boy
>my shitcoin went 5x it s initial value
>didnt cash out cuz /biz/ said it s a taxable event so i would have to pay taxes anyway
>convert exact ammount of my shitcoin to usd
>pay 25% of my gains
>next day the CEO of my shitcoin announces he will support CP cryptography
>Shitcoin tanks to oblivion
>Lose all my money
>i havent even cashed out

it does not make any fucking sense to pay taxes without cashing out

[Anonymous No.4359488]

>>4359441
If your 5x shitcoin makes you a capital gain that goes over any sort of tax threshold in your country - you should convert it ALL to fiat and KEEP the %'age that is subject to tax. Then you can feel free to re-invest the rest back into whatever shit coin you want. When the tax man comes knocking and says "you owe this amount" you have it ready in your bank account.

[Anonymous No.4359495]

>>4359488
To add, the capital gain only counts when you dispose of it (that is, a trade for another coin OR selling it directly for fiat. You don't pay capital gains on something you're holding and not touching.)

[Anonymous No.4359563]

>>4359488
US
Right, so because i want to avoid the situation above, i have to cadh out completely? Thats ridiculous and unfair for investors. the future is uncertain for shitcoin, it could moon or drop to zero but i cant do anything with the shitcoin yet. Why should i be forced to cash out?
>>4359495
but there is zero capital gain when i trade my bitcoin for the equivalent ammount of shitcoin?
>shitcoin costs 1 btc
>pay 1 btc
>coin is stagnant for 3 months
> this is considered hodl
>coin sudenly 2x
in the above situation do i pay taxes or not? because the trade from btc to shitcoin generated zero profit

[Anonymous No.4359578]

>>4359441
You are retarded.
>it does not make any fucking sense to pay taxes without cashing out
If you've paid taxes on your gains then you've paid in USD. The gubment doesn't accept bitbeans. You will have to cash out the amount of your payment.

As for the rest, yes there is always a risk of losing all your shit and taxes has nothing to do with it. That would be a capital loss.

[Anonymous No.4359584]

It does retard:

1 Shitcoin moons

1.a.1 you DECIDE to sell / trade it back to BTC

1.a.2 You take out your capital tax and convert it to USD-T at the end of year you convert that to USD-T and pay taxman

1.b.1 You decide to HODL

1.b.2 No capital gainz are owned

1.b.3 Shitcoin tanks because it's a shitcoin so you panic sell

1.b.4 You check how much you lost and convert USD-T you put aside for taxes back to BTC to play with. (You can substract losses)

At the end of the year you convert your USD-T taxes to USD, give it to the tax man toghether with your trades in .csv BOOM! done

That's it.

[Anonymous No.4359606]

>>4359563
bitcoin.tax

[Anonymous No.4359623]

>>4359563
if you have more USD you pay tax, simple as that. The goverment expresses shit in USD (for now) not BTC like so many BTC maximalists are doing around here

[Anonymous No.4359653]

>>4359563
>i have to cadh out completely?
Not necessarily. Lets say you live in shitland where capital gains tax is 50%.

You invest $2000 into bizcoin and then the price goes up x10, and now you own $20,000 in bizcoin. You convert 50% your bizcoin to fiat ($10,000 USD) to pay taxes. You are then free to do whatever you want with the other 50% of your bizcoins (you can trade it for other shitcoins etc if you want. You already paid 50% of your gain so you don't need to worry until you make again again.)

Someone can feel free to correct me on this method, little bit drunk

[Anonymous No.4359668]

>>4359578
>>4359584
>mr taxman please mercy
>my hardware wallet broke
>my paper wallet got water on
>x exchange got hacked
>i dont remember my btc turning into shitcoin
>all my shitcoin are donations from 4 chan and reddit
>the feds closed down my favorite exchange where all my money was held
>i know my shitcoin mooned 5x but why do i still taxes
>mr taxment please oh god please i dont want to go to jail i didnt even have sex yet i am gonna miss my mommy oh no please my oneitis is gonns get chad oh taxman please i have lost everything please
you cant refute any of the above reason

[Anonymous No.4359669]

>>4359584
but usd-t is not 1:1

[Anonymous No.4359686]

>>4359653
Actually, I made a mistake. Your capital gain would be $18,000, not $20,000. So you would convert $9000 worth of bizcoin to fiat and then do whatever you want with your bizcoin.

[Anonymous No.4359714]

>>4359686
so my shit coin crashes the next day and i gave uncle shitsam the money i need , what now?

[Anonymous No.4359756]

>>4359714
Uncle sam doesn't care if your investment crashes. If your investment crashes, that's on you - you shouldn't have money invested that you can't afford to lose.

[Anonymous No.4359767]

>>4359441
Yeah pretty much but you're getting one part of it slightly wrong. The gain is realized when you sell the shitcoin for something else, whether it's another crypto or USD. So it would be more like:

>Buy BTC
>Use BTC to buy $1000 worth of shitcoin.
>Shitcoin moons 10x and now worth $10,000
>You owe no taxes at this point.
>You trade shitcoin back to BTC.
>NOW you owe capital gains on the $9000 difference in value.
>You trade BTC back to the shitcoin.
>End of year
>Pay $2250 or whatever.
>Shitcoin tanks to 0
>Now you're out of the tax money and your investment
>IRS won't give it back, will only let you write it off as a loss for next year.
>The end

[Anonymous No.4359788]

>>4359714
You have until April 15th to make enough money to pay. If you can't pay you pay what you can, get sent a bill for the remainder and work out an installment plan with the IRS. You also might consider suicide.

t. not tax advice

[Anonymous No.4359796]

>>4359788
Actually you can even file an extension past april 15th so there's always a way to delay these things.

[Anonymous No.4359818]

>>4359767
Thank you so much that make much more sense about it only being taxable when shit coin moons and proceed to convert shitcoin to bitcoin (since you are getting more bitcoin)