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7568617 No.7568617 [Reply] [Original]

If I cash out on coinbase but put it in my US Dollars account and then reinvest am I theoretically supposed to pay taxes on that or do I just have to pay capital gains taxes when I cash out for real to my bank account?

>> No.7568669

>>7568617
lol there is no "theory" about it - when you exchange crypto for literally anything yes it is a tax event in the united states

>> No.7568729

>>7568617
You also have to pay taxes exchanging from one cryptocurrency to another. Look up bitcointax if that sounds like too much of a pain in the ass. Idk if they're legit but they get mentioned a lot.

>> No.7568735

>>7568669
Shit, I'm a 19 year old college student and don't really know anything about paying taxes apart form having some taken out of my paycheck. How do I report gains?

>> No.7568744

>>7568617
>not cashing out only what you invested and transferring the rest to wallets and other exchanges to make more
When you hit it big, buy assets with it. I used to buy stuff off steam then re-sell those items for PayPal deposits.

There was a tax loophole about buying digital assets for digital assets returned for cash.

>> No.7568932

>>7568735
use turbo tax and literally google "reporting capital gains on turbo tax" its easy as shit as long as you have the date buy and sell price

>> No.7569542

>>7568932
I'll look into it, do I still have to file if I wait a year and have a zero percent tax rate?

>> No.7569585

Why the fuck do you think tether exists?

>> No.7569624

>>7569585
Tether does nothing to save you when it comes to taxes.

>> No.7569662

>>7569624
Only crypto to fiat is taxable. Crypto to crypto is not

>> No.7569677

I thought only norman paid taxes

Do you not know how to internet properly?

>> No.7569691

>>7569662
>Only crypto to fiat is taxable. Crypto to crypto is not
You are so fucked.

>> No.7569707

>>7569585
Tether still exists?
huh

>> No.7569727
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7569727

>>7569691

>> No.7569742

>>7569662
if you're a burger you're going to jail

>> No.7569770

>>7568669
My sister is a cpa and she told me just worry about cashing to fiat, don't worry about crypto to crypto

>> No.7569792

>>7568735
Look up the "kiddie tax." You're about to get double fucked by the IRS.

>> No.7569795

>>7569742
>pajeet
I trust you

>> No.7569813

>>7569770
Your sister is incompetent.

>> No.7569823

if small gains under 20k just ignore do you guys really think IRS have that much manpower to check everyone they will only target big ones

>> No.7569850

>>7569795
I seriously hope you're trolling or not american because every crypto transaction is taxable since Jan 1st

>> No.7569855

>>7569691
>>7569624
It depends on the country. In the UK crypto to crypto is legally a 'like-kind exchange' and therefore not taxable. Only crypto-fiat (actual fiat NOT crypto-fiat) is taxable.

>> No.7569888

>>7569855
>Depends on the country
Are you illiterate? This entire thread is specifically about the US.

>> No.7569890

>>7569813
She's a partner at a big 4 firm

>> No.7569941

>>7569770
>>7569795

>"Every single exchange of virtual currency is a taxable event — whether to buy a cup of coffee or exchange one type of virtual currency for another. Not just transactions where it’s sold for fiat," says Tyson Cross, tax attorney with Cross Law Group
https://archive.fo/dRZg4

>> No.7569960

>>7569890
>implying she'll be held accountable for her actions if she's wrong

>> No.7570042

>>7569941
Ok. What IRS statute does he reference? Or am I supposed to trust Mr random lawyer in a random Forbes article?
>>7569960
She trades crypto too

>> No.7570103

>>7568617
realized gains

>> No.7570119

>>7570042
>trusts his imaginary sister
>doesn't trust a real tax lawyer
I suppose you could listen to the podcast linked in the article

>> No.7570204

>>7570119
K. Just trying to help.

A cpa is legally allowed to offer tax advice.

And no I'm not listening to a whole podcast hoping they reference the actual statutes.

>> No.7570370

>>7569890
Still incompetent.

>> No.7570390

>>7570204
crypto trading was treated as "like-kind exchanges" which allowed the payment of capital gain taxes to be deferred because the properties being swapped were of a similar nature, so long as the exchange was completed within the space of 180 days.
With the new tax rules this exception no longer applies to crypto
but I supposed all these articles and lawyers are all lying and your imaginary CPA/Crypto Trader sister knows best ;^)

>> No.7570443

>>7570390
>like-kind
Majority of the people who talk about like-kind are too retarded to realize that even if they wanted to utilize it they'd still have to report it by filing an 8824 form for every single trade. Not to mention that its still likely to be disallowed just as they disallowed precious metals from like-kind treatment retroactively.

>> No.7570466

>>7570370
this. listening to women's advice is bad practice.

>> No.7570494

>>7569770

Did she tell you this before Jan 1? The law has changed, bro

>> No.7570561

>>7570390
>>7570466
>>7570494
It's funny that you guys are so unsuccessful even the idea of having someone mildly successful in my family is unbelievable lol.

Not sure if she meant u don't need to worry due to the letter of the law or don't worry because the IRS doesn't have the resources and as long as u pay capital gains it's ok.

>> No.7570707

>>7570561

bitch I didn't say anything about your family

>> No.7570752

>>7570707
My bad

>> No.7570774

>>7569890
Oi vey, you stupid goyim... don't believe an actual trained and certified accountant explaining to you how taxes actually work. Believe a random lying kike on a mongolian ice fishing board instead!

>> No.7570912

Like-kind exchanges in America have always been restricted to very specific circumstances like physical property trading, and excluded securities, stock, currencies, etc.
The fact that the new tax rules specifically disallow like-kind exchanges for crypto neither confirms or denies that the IRS was treating it as such before.
Regardless, like-kind exchanges require documentation anyway, you're still required to tell the IRS exactly what you're doing and they can reject it at that time. It's not an excuse to refuse to do record keeping for years. It's not just about tax obligation, it's showing where your income came from, proving you aren't engaged in criminal activity and are actually reporting all of your income.

It's true they can't realistically keep track of crypto trading one exchanges, especially if they're located outside of the US and you didn't use your real identity, but you can't cash out from somewhere like Coinbase without them finding out about it. Your bank will report that. You'll have to demonstrate how you turned a 1 BTC purchase on CB into 10.

>> No.7570922
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7570922

Not a burger but I'm about to get royally fucked with a 20k tax debt on monday, wish me luck getting a discount, I only have 5k saved fuck

>> No.7570948

>>7570390
"like-kind" has never applied to crypto, Mr. Noseberg.

>but I supposed all these (((articles))) and (((lawyers))) are all lying
You mean like the articles claiming China or Korea was banning all crypto? Those completely truthful and always honest (((journalists))) and all...

>> No.7571026

>>7570752

your sisters a cunt

>> No.7571456

>>7570774
well she has given him wrong information. he doesn't need to listen anyone and can just go to the fucking IRS website and read for himself

>> No.7571577

Just use bitcoin.tax or cointracker. Both will export a file you can load into turbotax.

>> No.7571609

>>7569850
>since Jan 1st
since forever

>> No.7573155

>>7570390
I didn't keep track of all the coins I traded. What should I do?