Crypto Taxes

The only trades I've made this year are USD to Ether to LINK. I don't think I made any gains on those transactions but I don't want to cash out next year and have the IRS try to fuck me over by saying I never filed those initial trades. Should I report them?

not true. if you buy an alt and sell it after it pumps, you technically realized a gain even though you didn't actually realize a gain.

it is all so murky, though. the rules for btc are somewhat defined, but eth, let alone some unknown alt on an unknown exchange? unless you're dealing with high 6-7+ figures, i don't think the irs is going to give half a shit what some spergs trading literallywhocoin on a chinese exchange are up to and i don't think they have any resources handy to track it down if they wanted to.. at least for now.

Also, do you think the IRS wants to give tax credits to tons of newfags that lost 80% of their money after the crash? You are allowed to carry tax loss harvesting for years, they know this and therefore won't go after anyone besides obvious 7 figure traders not reporting gains

So I know the yearly limit is $3,000 for losses. But can you just claim $3,000 year after year after year?

I have way more than $3,000 in losses btw but I trade like a maniac in January. Buying, selling, all crypto to crypto but still.

look up capital loss carryforwards my man

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Nope. Every trade is a taxable event if you're a burger. If you didn't make much you may get away with not reporting but if you make a lot next year or the year after they can audit you up to 7 years in the past. A lot of fags on this board are going to get rekt

this. I've been filling all crypto trades correctly for 5 tax years and am an expert in it, but I refuse to help biztards and I'm massively looking forward to watching everyone get destroyed

This is my situation, and exactly what I'm wondering. Might have to bite the bullet and pay to ask a tax professional.

Buy gold from jmbullion
/End thread

yes, if you plan on getting rich in the future you need the full chain of sales to avoid getting fucked over in a back audit

> Another thread where the IRS keeps trying to convince people about crypto to crypto trade taxes mattering.

They say it over and over again desperately in hopes people actually report themselves.

Just sell yourself a crypto kitty or wash all of your coins through Monero and you can report your earnings in the same year you decide to talk about crypto.

sure if you're a poorfag

KYS FGT

>sure if you're a poorfag

If you are a poorfag then just pay when you cash out. Your capital gains wont even cross 10k most likely and if you pay what you cash out its probably barely even above dodging 5k taxes.

considering all my exchange wires are larger than $10k I don't have the luxury of tax evasion

Ok, so as long as I have the records of all my trades, and haven't made any yearly profit, then I can just report everything when I cash out? Planning on holding Link for at least a year before cashing any out to get that sweet long term capital gains tax break.

>considering all my exchange wires are larger than $10k I don't have the luxury of tax evasion

Monero then. Look you will end up paying either way, but if you want to make things simple just fucking wash through monero or sell yourself a crypto kitty like literally everyone else is doing. And pay it off as income for that year.

no, each trade is taxed at a different rate depending on the date of the sale, and you might have some losses you can claim too. you need to report them for the correct tax year. use bitcoin.tax or hire a CPA of you can't do it on your own.

nigga I've been doing this for years and can calculate federal and state tax by hand, and have to pay estimated taxes every quarter to avoid penalty. you have no concept of what managing high income entails.

Ok so say I put $1000 into a coin in numerous trades over the year, and then I sell it all for $800. That's a loss of $200 right?

Say I put $1000 into another coin and only sell $200 worth and save the rest of my stack. I haven't seen a gain or a loss yet because I haven't cashed out my initial amount right?

no every lot (sale of x units) will have a cost per unit from when you bought it and the gain or loss will be the sale amount minus the cost. you total initial cost doesn't matter at all, just cost per unit per sale and bet gain or loss per unit. use bitcoin.tax or hire someone. every transaction will be different.

That's what I'm thinking. I have yet to realize a total gain (actually only realized losses), although I have unrealized gains from holding. Why do I need to report a small loss that year if I am going to report all gains as they are realized? I'm sure the IRS won't mind me effectively giving them a loan by not reporting a loss, since it will all get credited/debited against what I owe later. It's not like they can hit me with tax evasion if I didn't owe anything, and my record of trades nullifies any money laundering charge.
So, how exactly am I fucking up? I'd really like an explanation of the exact law I'm breaking if I were to go about it this way.
Probably going to pay a CPA for this when I have enough money that doing so won't hurt so much.

Only lets me download last 3 months trading history

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I filed 2017 taxes and paid way less than I thought I'd have to pay. It's not so bad as long as you stay in the lowest tax bracket.

Taxes are so easy with crypto. Calculate how much you put in, calculate how much you took out. Not hard lol

You know trading isn't done on the blockchain, right user?

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>Wait as long as possible to submit my taxes so the bear market will run its course
>On the day of taking my tax invoices to H&R block sell everything
>After I declare this loss I'll just buy back in and repeat this next year, either it goes up or the govt subsidies me fuck yeah
>Tax accountant says I can't submit my losses until next year's period since I'm submitting them at the end of October
>fuck it fine I'll just do this next year
Oh but if I buy back in now I'm going to have to sell again and the fees on this bullshit is already costing me over a grand
>Well I didn't hold this long to sit on the sidelines when we're so much closer to the bottom
>buy back in
>November rolls around everything starts plummeting again
Feels pretty Bogged.

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Taxation is theft.

dubtrips of controversy

Paying taxes on every single trade you ever made since the beginning. It's so unbelievable that to this day people's brains cannot comprehend it as possibly being true

we /taxevasion/ now

tether the bottom you genius

Explain the crypto kittie sale pls

Dont try to dodge taxes with crypto if you're american you fucking idiot. Uncle Sam always gets his cut, and if he doesn't, he'll throw you in a cage full of feral niggers. It's not worth it. Bitcoin.tax is fucking easy as fuck.

If the tax is too high, exchange some shitcoins back and forth that's currently lower than when you bought it, so you can claim the loss. You're obviously too stupid to effectively dodge taxes.

I haven't traded since January but owe around 2.5k. If I trade everything for btc, and trade it back again the next day, since prices have gone down in the last few months will that reduce the amount I owe?

You don't have access to the keys with crypto on shit like binance. There is no actual trading going on. For taxation purposes I send 1 btc to binance, make 9001 trades a second, but they aren't real trades, I'm just going up in sats constantly on binance. Then I cash out 69 bitcoin. As for as real trades go that is one btc traded for 69 btc, cost basis of $6,000, profit of 408k which is taxed. It's not my fault they don't put any guidelines on crypto out there. What is a trade? It's not what's occurring on binance by any stretch of the term. Only sending one btc and receiving 69 can be seen as a real trade, since we're actually seeing shit move from one address to another. They don't even have staff to analyze the nonexistent rules for non-existent transactions. Only out of kindness of my heart am I even reporting this one.

You'll also be losing that much though. Very good idea to do out of spite, but financially it's the same whether you allow taxman to rob you or let it go on the market. You aren't coming out ahead either way.

I'm not disagreeing with you but that's not how the u.s. government sees it. Crypto to crypto trades are taxable and even coinbase conveniently reports capital gains from trades done on their exchange to the government as shown by that redditor who ended up owing $400k from daytrading.