So is this what Tax Man is gonna do now

[Anonymous No.6383843]

Lets say Single Joe starts with $10K on Jan 1st which he turns into $310K by June 1 first by good coin picking. He then takes out the $310k from DerpCoin and put it in PotatoCoin. He switches coins and now owes almost 100K to Tax Man cuz his earnings are stupidly treated as short-term capital gains which is treated as income. So, as far as Tax Man is concerned, Single Joe just worked a job that made 300K in 6 months.

Next his 310K in Potato coin crash to 10K cuz it turns out to be a scam coin. So has the same10K at the end of the year. Am I correct to understand that the Tax Man will still demand almost 100K in income tax, despite the guy not having any money but his initial 10K, and only allow him to write off 3K (each year or something?) from the losses?

If the answer is no, then WTH is the diff. between coins being treated as short-term or long-term gains?!?!?

I am confused.

[Anonymous No.6383889]

So fucking glad I live in Canada with much less cap gains tax and much simpler taxes.

[Anonymous No.6384013]

>>6383843
No, you can write off those losses for a refund for 3 years after paying

Or something like that

Still obnoxious though

[Anonymous No.6384044]

10k jan=> 300k jun
Are you gordon gecko? Teach me.

[Anonymous No.6384147]

Well if you sell once you hit the $10k that loss would cancel out the gain. But if not you would owe the tax on the initial gain.

The way I see it is of you're up a large amount like that is to sell and convert to Fiat. Leave about 30% in the bank for tax man. Then you can do what you wish with the rest. Problem is this becomes a pain in the ass at times.

[Anonymous No.6384229]

>>6383843
The way I understand it, you take the difference in Btc value and add all the positive and negative proceeds up and get your overall btc gains or losses and then convert to fiat and that is what you are taxed on

[Anonymous No.6384239]

1.) ain’t nobody making that much in 6 months
2.) if you’re so worried about taxes, stop fucking daytrading. You don’t look like wolf on Wall Street, your “trading rig” is reddit, and you’re a fucking faggot. Hold and be done with it.
SAGE this reddit thread

[Anonymous No.6384283]

>>6383843
realize losses by selling potatocoin and you arent to pay taxes. Provided your realize those losses in the same fiscal year, otherwise you're fucked

[Anonymous No.6384440]

>>6384147
Yeah but selling before a year triggers short-term capital gains. I am thinking it would have been better for Single Joe to hold until it is over a year, then cash out the tax in fiat before Tax Man collection day. That way even if it crashes he only owes 15%.

But my main point is: If someone has no other income, will Tax Man refund him his 100K or whatever amount if he loses the money made? Be it in one year or ten or whatever?

[Anonymous No.6384574]

>>6384239

Selling after six months is day trading now?

[Anonymous No.6384688]

>>6384574
Considering holders plan on holding for years, yes

[Anonymous No.6384774]

EGAS has a 13 mil max coin supply and the price is sub 10cents right now. Even if it turns out to be a scamcoin it will definitely get pumped to $1 before then and that will only put it at 13m market cap.
Take a look@ https://coinmarketcap.com/currencies/ethgas/

[Anonymous No.6384783]

>>6384440
Remember anon the IRS sees each trade as a taxable event. Trade 1 for $300k is taxable. Trade 2 where you lose is also taxable. Seeing as you never sold the tax man still sees the first gain as short term.

Like I said op it sucks but that's how it is.

[Anonymous No.6384893]

>>6383843
The tax mans thread from the other day i copied to a blog with his permission.
cryptoaltcointradingblogspotcouk/2018/01/crypto-trading-and-taxation.html
(put a . before and after blogspot and after co)

[Anonymous No.6384951]

>>6383843
No you fucking retard capital losses can be used to offset capital gains in the same tax year.

[Anonymous No.6385115]

>>6384893
> i copied to a blog with his permission.
Holy fuck, leave

[Anonymous No.6385483]

>>6384893
Thats a U.K address. American tax issue here.

[Anonymous No.6385513]

>>6383843
>be European
>your government doesnt give a shit about crypto

[Anonymous No.6385557]

>>6384951

Well if thats the case, then are you screwed then if you hold Potato coin past Dec 31st? If you sell it in January, what would you do then? Pay almost 100K of tax when you don't have that money in fiat or crypto?

[Anonymous No.6385678]

>>6385115
Its called respect you little faggot, learn it.

[Anonymous No.6385810]

>>6385483
The first part applies to almost all countries

[Anonymous No.6385868]

>>6385678
>>>/r/eddit

[Anonymous No.6385989]

>people suddenly realizing that barter trades are taxable
Lol

[Anonymous No.6386017]

I don't have to pay taxes if I trade for a loss

Thanks XRB!

[Anonymous No.6386066]

>>6385513
>Be from shithole
>Government wants to tax crypto but they're so damn incompetent its going to take them 10 years to come with legislation to do so

[Anonymous No.6386088]

>>6383843
you pay tax on your NET capital gains for the year

so in your example, where he gained and then lost, the NET gain is zero right? so no he would not owe taxes on that shit

[Anonymous No.6386124]

>>6383843
Tax man failed at math and doesn't realize that it is the same whether you realize your losses/gains at the end or realize them after every transaction. That is why tax man is pushing pencils inside hard working people's asses instead of doing something productive for once in his life.

[Anonymous No.6386138]

>>6384013
No, the big risk is when you make a shit load of gains in December and then lose all your money in January. Capital Gans are paid on a yearly rate so you can completely fuck yourself in this way.

[Anonymous No.6386150]

>>6386124
It isn't the same you dumb fuck if you hold one over a year

[Anonymous No.6386166]

>>6385513
>>6386066
What country plz?

[Anonymous No.6386178]

>>6386124
It isn't the same you dumbfuck learn to do basic arithmetic.

[Anonymous No.6386320]

>>6386150
forgot about the year hold thing

>>6386178
is this the new level of trolling?

Assume 25% tax:
A: buy 10 sell 20 pay 2.5 in tax
B: buy 20 sell 40 pay 5 in tax
Total tax 7.5

Let us do this again but with easier math:
A: Buy 10 sell 20 gain 10
B: Buy 20 sell 40 gain 20
Total gain 30, taxing this gain will give us 7.5 in tax

Now get the fuck out of here you absolute mouth breathing shit for brains retard.

[Anonymous No.6386473]

>>6386320
Fuckard.

A. Buy 10, sell 20, pay 2.5 in tax, have 17.5 left over
B: Buy 17.5, sell 35, pay 4.375 in tax, have 30.625 left over

B. Buy 10, sell 40, pay 7.5 in tax, have 32.5 tax left over

[Anonymous No.6386544]

>>6386088
Am in burgerland. Is this the correct interpretation?

[Anonymous No.6386621]

>>6386473
this is a whole other level of retard, way beyond me. i am outta here.

[Anonymous No.6386723]

>>6386621
You're the fucking retard.

[Anonymous No.6387071]

>>6386166
vivaldi is shitalian so context clues say albania

[Anonymous No.6387214]

Good god, glad I don't live in Murica