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/biz/ - Business & Finance

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5011528 No.5011528 [Reply] [Original]

If you arbitraged ltc by buying cheap off of bittrex/binance and then selling to gdax, you judt fucked yourself.

Gdax sends info to the irs.

>> No.5011571

I wanted to, but goyemdax requires a fucking webcam I can’t just upload a photo so I couldn’t proceed with their cuntish verification. Tbh I’m ok with never using their shit exchange.

>> No.5011592

And?

>> No.5011669

>>5011528
its literally legal

>> No.5011711

>>5011528
How long to confirmations take from transferring?

If ltc goes down a lot you can lose your shirt waiting for transaction.

>> No.5011945

And every transaction you might have to pay capital gains.

>> No.5011983

>>5011945
>might
lol the tax fud's done wonders

>> No.5012030

>>5011983
Unless it’s a 1031 exchange.

>> No.5012124
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5012124

>>5011528
unless you take it out for USD youre not going to get in trouble you retard. what kind of an idiot bluepill reports crypto to crypto tradings to the IRS? jesus christ

>> No.5012157

>>5012030
Cant do like-kind exchanges from what I've read online

>> No.5012191

>>5012124
You can go to jail.

>> No.5012201

nigga i just made $1500 off doing this but now my stack is stuck in ltc cause something is wrong with cuckbase and it just went from 350 to 300 in a second. just.

>> No.5012260

>>5012157
I’m just wondering is the exchange doesn’t provide usd transactions how do they determine the profit basis of your transaction since different exchanges differ wildly on the crypto/usd price.

>> No.5012315

>>5012260
You'd just report it as whatever it was trading on that exchange. As long as you can substantiate it with their info you should be good. But I actually dont have any idea how to really do this. It's not like a Schedule D where you show stock trades, it'd have to be something else, right? Didnt go the tax route after school lol

>> No.5012341

>>5012260
And convert from bitcoin to whatever amount of fiat that bitcoin is trading for. Effing hate taxes though, really not looking forward to have to sit down and do it all

>> No.5012355

>>5012315
That’s what I was asking. Some exchanges don’t exchange for USD. Only crypto/crypto.

>> No.5012417

>>5012191
crypto to crypto trading im not fucking reporting. thats just retarded. if i took it out for USD and added it to my bank account, i would report that. im not paying taxes on crypto holdings that i havent cashed out to USD.

why would anyone claim taxes on crypto holdings that can lose all of their fucking value the next day? claim taxes on crypto to USD liquidations but not crypto to crypto.

>> No.5012463

>>5012417
Yeah but what if you get audited?

>> No.5012475

I'm not even amerifat.
Hahaha, get cucked by your big fat govt.

>> No.5012503

Why are people memeing that arbitrage is illegal?

>> No.5012535

>>5012355
Yeah, meant to say you'd have to convert it from the bitcoin satoshis to the BTC/USD amount at that date on the exchange (I guess like the average between bid and ask price or high/low, not entirely sure though), and each trade would be your new cost basis. Otherwise you'd get taxed loads of times on the same amount. So when you trade bitcoin for an alt the amount of fiat increase bitcoin got at that time is taxable

>> No.5012570

>>5012417
You gonna get audited bro

And you can report losses too, up to $3,000 off taxes and can carry above that forward to later tax years. I'm definitely reporting my ANS/SIA/Bancor losses at least

>> No.5012594

>>5012535
What I was saying was that some exchanges DON’T provide BTC/USD or LTC/USD prices. So if you converted BTC to LTC how would you price the cost basis?

>> No.5012625

>>5012191
Oh give it a rest with your FUD.

You live in the dark ages where the tax office rules over the little folk with a medieval iron fist.

First, even if you get "caught", an accountant can offset the returns and the "The Man" could end up paying you for losses.

>> No.5012667

>>5012594
What exchange is that? I know bittrex only shows actual cost amounts in sats but you could just go back to the chart at whatever time it was sold, and youd have to calculate it like that, multiplied by whatever .000etc

>> No.5012691

>>5012594
But yeah if there is no BTC/USD, not sure. You'd have to just use coinbase's prices I'd suppose and calculate it like that

>> No.5012734
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5012734

>>5012463
Then you tell them you had no idea how or if you were supposed to file taxes on crypto. How stupid are you exactly? you literally can't get in trouble for accidentally missfiling and they're not going to try and screw you for it, you'll just have to pay what you owe.

>> No.5012749

>>5012463
>>5012570
exactly how are they going to subpoena a website for my information specifically? i work a full time job and pay my fair share of taxes. for my income bracket ive already paid them and a lot more. im reporting my W2 and until i withdraw crypto to USD i will not report my crypto holdings. i rarely trade at all, i only hold. when i sell my holdings for USD then i will report but until that happens im not saying a fucking word.

>> No.5012786

>>5011528

>buy low sell high is literally illegal activity in /biz/ hivemind

>> No.5012808

>>5012503
It's like wikileaks. You can't look at those unless you're a reporter, and you can't arbitage unless you're certified by Goldman Sachs

>> No.5012828

>>5012749
If you trade cumulatively over 20,000 in USD on Coinbase or gdax the IRS automatically gets your trading data from them.

Why do you think bitfinex pulled out of US trading?

>> No.5012850

Ironically this shit going mainstream prevents the taxman from fucking everything over hard. Too much of a normie reaction at this point.

>> No.5012851

>>5012749
They've been cracking down it seems brah. Especially exchanges in the US. But even if they dont get you then, it could potentially happen like 5 years down the road where there is not only the amount you owe, but penalties with interest for however long it's been due...

>> No.5012866

>>5011528
arbitrage is legal

>> No.5012895

You've taken it too fucking far normies.
TOO FUCKING FAR.
IT WOULD TAKE YOU TWO FUCKING SECONDS
TO GOOGLE
ARBITRAGE
AND SEE
ITS LEGAL.

OR USE YOUR BRAIN FOR TWO SECONDS AND REALIZE IT'D BE STUPID TO BE ILLEGAL.

>> No.5012912

>>5012895
It might be legal but the IRS will get every transaction you make and if you don’t report it you’re fucked.

>> No.5012939

>>5012828
i dont trade on coinbase for this very reason, only buy.
>>5012851
omg. what are you not understanding here? how the fuck can they even KNOW how much money i HOLD in cryptocurrency? all of my holdings are on cold wallets. i dont trade any of my holdings, so i have next to no history. like i said i would report any holdings that i liquidate back into USD but until that happens i will not report a cent.

>> No.5012987

>>5012939
The prices are higher on Gdax. How exactly are you arbitraging by converting usd to btc/ltc on gdax?

>> No.5013002

>>5012912
so mr bluepill here says that if i buy $100 in ethereum i have to report that to the IRS? NO. the IRS would never be able to find the time to come after you for buying cryptocurrency they would only notice AND come after you if you didnt REPORT and PAY TAX on the USD THAT YOU LIQUIDATED YOUR HOLDINGS INTO. how is this a hard concept for you to understand?

>> No.5013047

>>5013002
We’re talking about converting crypto to crypto.

>> No.5013061

>>5012987
where did i say i was buying on gdax lol? i only buy ETH on coinbase and send it to binance or bittrex, buy my crypto holdings, and hold them. i never swing trade or day trade. like ive already told you a thousand times, i will report my holding liquidations but i will not report my unliquidated holdings.

>> No.5013097

>>5013047
and im telling you that reporting crypto to crypto is fucking retarded and unnecessary.

>> No.5013123
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5013123

>>5013061
Youre in for a painful redpill when you get JUSTed by the IRS in 2020 brah...

>I tried to warn him

>> No.5013186

>>5011528
>Arbitrage is the exploiting of price discrepancies within different markets of a similar or identical assets in order to generate low-risk to no-risk profits, after accounting for transaction and information costs. Arbitrage trading is not only legal in the United States, but should be encouraged, as it contributes to market efficiency. Furthermore, arbitrageurs also serve a useful purpose by acting as intermediaries, providing liquidity in different markets.

>> No.5013207
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5013207

>>5013123
>tfw being this bluepilled

like it takes a special kind of retard to not understand the IRS has a LOT BIGGER FISH TO FRY than some fucking guy holding less than 10k worth in crypto.

>> No.5013491

>>5012570
What's stopping people from claiming they got Confidoed?

>> No.5013578

>>5013491
Yeah how do you report that?

>> No.5013625

>>5012912
Why is it a big deal to report it? Your just paying short term capital gains on the profit you made just like any other trade.

>> No.5013667

>>5013625
Then you have to automatically pay tax on your cold coins even if you don’t want to sell yet.

>> No.5013707

>>5013578
You'd just report it as a loss, that offsets your other gains and up to $3k of your tax bill, and if no taxes owed, carry forward the loss and do less withholding the next year so you can utilize it.

You'd claim that and if they wanted to see proof, you'd have to show the address you sent it to or some other way like that.

As for the question "whats stopping people from just saying they lost it", probably the fact that it's illegal silly

Seriously though, I'd take no chances. And as a soon-to-be CPA it's even more important to do so.

PAY YOUR F A I R
S H A R E
H
A
R
E

>> No.5013755

>>5012355
For foreign currencies we use the average of the year or the dec 31st price whichever is more advantageous. I image you can do the same with crypto but none of our clients have it so haven't researched it.

>> No.5013795

>>5012570
what a fucking imbecile

>> No.5013819

>>5013755
Average of the year?

WTF?

You can owe more than you made.

>> No.5013861

>>5013819
Foreign currencies are more stable than BTC I haven't seen an IRS ruling yet so there is no official ruling.

>> No.5013892

>>5013819
Yeah, I'd think it would be the average of the day you traded. Crypto are classified as capital assets so I dont think foreign currency reporting would apply.

Pretty pissed that 1031 is more of a redflag though. Was going to fill out the forms and everything this year since they technically *should* be like-kind assets of a similar nature/etc, but ehh.

>> No.5013940

>>5013707
>Pay federal tax, healthcare, medicare on income
>taxed AGAIN whenever I buy something
>taxed A G A I N when I take a risk and it pays off

meanwhile tyrone's sired 8 kids with 7 laqueeshas and none of them will ever have a job

fuck you

>> No.5013948
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5013948

> Arbitrage is illegal
Fucking financial illiterates pls go

>> No.5013997

Fuck, I guess we are all going to jail. It's been fun bros.

>> No.5014001
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5014001

>>5013940
>if I take a risk and it pays off

But if it doesnt pay off, you still get to utilize those losses as future tax savings, so it smooths it out in all fairness.

Not paying your fair share is degenerate, you leppo

>> No.5014309

>>5013892
If you trade x for BTC it is the same as if you traded x for CAD the average BTC price for the year will be most advantageous. Until the IRS audits and someone petitions there will be no ruling.

>> No.5014484

>>5014309
>you sell for 50k
>bitcoin keeps rising to 200k
>owe taxes on 175k year average

Lel

>> No.5014551
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5014551

>mfw live in a third world shithole and crypto is in a legal vacuum and nobody cares