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/biz/ - Business & Finance

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4618524 No.4618524 [Reply] [Original]

As we approach 10k and everyone is getting ready to cash out it's important to think about our tax obligations. So when are you actually on the hook for capital gains tax? If you trade crypto for fiat but leave it on the exchange are you taxable at that point? Or is it only when the fiat goes from the exchange to your bank account?

>> No.4618548

If you live in the US then you are on the hook when you sell your crypto for USD or trade for another crypto.

>> No.4618692

>>4618548
I honestly don't mind paying taxes on what I feel like is free money, but it's really not clear at all how to properly pay taxes on this stuff. It's been so long since I have bitcoin I don't even remember what I paid for it. Hell, if I cash out now it'd essentially be 100% profit.

However, I can't pay taxes on it if I don't have the date purchased or the amount I payed. I've been researching this for days. I just want to make legal money trading crypto and I'm going to have to end up hiring a CPA and tax attorney just to pay taxes on money I legally made.

>> No.4618708

>>4618548
or for literally anything else

>> No.4618715

>>4618692
>However, I can't pay taxes on it if I don't have the date purchased or the amount I payed

You would merely end up paying on 100% profit

>> No.4618723

>>4618715
how do I file that?

>> No.4618753

>>4618723
no you don't fucking file that you find something showing when / where you got them for a start

>> No.4618797

>>4618753
I don't even remember the fucking guys name, I knew him from community college. some guy seriously gave me 4 bitcoin to buy him lunch because he forgot his wallet, but that shit isn't going to fly.

>> No.4618833

>>4618797
oh i see you're that fucked... well even if it does fly you're pretty much paying on 100% anyway

>> No.4618850

>>4618524
I can't wait to start seeing US anons getting locked up for not paying tax. Some of these idiots probably owe more than their current holdings already.

>> No.4618865

>>4618833
should I preemptively hire a tax attorney?

>> No.4618886

>>4618865
Preemptively speak to some pros and see if they think they can be of value. If it's literally just 4BTC you received and want to cash out or whatever then I really don't know how much is in it, depends what else you have going on

>> No.4618943
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4618943

>>4618524
>>4618548
>>4618692
>>4618708
>>4618715
>>4618723
>>4618753
>>4618797
>>4618833
>>4618850
>>4618865
>>4618886
>being an amerishart
kek

>> No.4618957

>>4618886
I grew it to a significant sum of money trading over this last year. Only about a week ago found out that every crypto-to-crypto trade is MAYBE/SORTA taxable

I did read somewhere that the IRS is getting shit for not having clearly defined rules on taxing crypto so hopefully that will be my saving grace because it's really fucking not clear

>> No.4619010

>>4618957
I see OK all I can really say is get a specialist ASAP so you have time to make any adjustments before tax time. If none of this shit is actually traceable back to you I guess you could take a risk and leave it until the tax shitstorm next year

>> No.4619030
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4619030

>tfw all in monero

even if they try to use this message as evidence against me, I could just say I was larping

besides, I only made like 500 buckaroos

>> No.4619047

>>4619030
the IRS gives no fuck about our buckaroos mate, your 500 is going to be of shit shed proportions come our tax time

>> No.4619074

>>4618865
>basis of $12.75 for 4 BTC, sells for $44,000, paying $110 of exchange fee to market order at the peak

How about you just say they were a gift (basis $0) and pay fucking 0.2*12.75=$2.55 more in taxes.

>> No.4619252

>>4618524
leave the fuckin country