>Crypto to crypto is a taxable event

Is this true?

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hello newfriend

Only if they catch you.

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Only if you made gains, Jow Forums buys high sells low so this is not relevant here.

200 people reported crypto-to-crypto to the irs last year US-wide

How the fuck is the IRS even monitoring exchanges like Idex or Binance?

so legally, yes. like tips are taxable and have to be reported in exact quantities.

this is only true for the US and a few euro countries though

cope

this

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they arent. you will get flagged for large movements of $10k or more in your personal bank account and that is how they will go after you

Well yeah, you'd be a dumbass to not report any crypto you pull out, I'm talking about the various trades in between.

this is not how it works

fiat to crypto
crypto to crypto
crypto to fiat
are all taxable events

you ask how they are gonna track it?

Once you pull out and report the fiat gains they will ask for a detailed list of trades and if there are crypto to crypto trades beyond the current year your a fucked beyond belief

>MFW I was one of those 200 and I watch the rest of you fags get hauled off to jail

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Not if you cooperate. Its not like you are deliberately avoiding it. There are not enough rules and regulations to understand so if you get audited then you just have to cooperate

...Until you realize that when you larped as a day trader during the bull run you created a tax liability of $500,000 but the current net worth of your crypto right now is only $5,000 and you can't pay the IRS so they haul you off to prison.

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The irs rarely audits people anyway

This. Also long term capital gains tax (federal) if your income is under 34,000 is 0%. Kek guess I’m set

Any crypto to crypto is taxable. But they don't monitor exchange balances, only total trade volume on US exchange (definitely coinbase, gemini, probably not bittrex or kraken but maybe). So if you traded $1000 back and forward on coinbase 100 times coinbase will tell the IRS you traded $100k, so you need to report at least $100k worth of total volume on your taxes or you will get audited.

On other exchanges though its extremely unlikely they report anything, definitely not on binance or similar foreign exchanges. But they can still catch you the old fashion way of monitoring large cash deposits. Any time you put around $10k+ into your bank without declaring income on your return might raise a flag. So if you only traded on non-conibase exchanges and didn't cash out, very unlikely you will get caught.

>tfw I withdrew 9.5k twice by chance and realized it might look like I was structuring so I filed this year :(

So say I trade crypto to crypto for a full year without ever pulling it into Fiat and I report all these transactions to the IRS, they'll be expecting me to foot a bill in fiat for money I technically don't have, or only when I pull out? I have no issue with paying the taxes themselves, I'm just not looking to get ass raped on assets that I don't technically have liquid money to pay for.

Its only when you realize the gain or loss ie sell.

Sell back into Fiat? Aren't I realizing a gain if, say, I buy into a shitcoin, it moons, and then I transfer it back into Bitcoin? What I'm asking is, will I owe taxes that year on that trade.

Yes in that case when you go crypto to crypto you need to pay taxes on the USD price of that transaction at that date.

I only know this shit because I just paid the bullshit on it.

Pay your tax goyim. Isreal needs that money.

>Once you pull out and report the fiat gains they will ask for a detailed list of trades and if there are crypto to crypto trades beyond the current year your a fucked beyond belief

that's cute but I bought all my monero with cash. now, what capital gains tax bracket do I owe? I'm a good goy :^)

Any realized gain you owe roughly 30% of the FIAT equivalent value gained at the time of the trade whether or not you actually traded into FIAT or not is irrelevant. Yes, its retarded. This is why you have people that day traded crypto to crypto Dec 2017 and then held all the way through January 2018 when the bear market started and now owe more than their entire portfolio is worth because the loss they incurred happened in a different tax year and does not offset their gains.

crypto to crypto is taxed unless it's immediate and no gains or losses are incurred. like you buy $1000 btc on coinbase, immediately send to Binance and use it all to buy link

technically thats still taxed, but its unlikely you're going to make a gain when doing it

2017 it wasn't a taxable event, only for the 2018 year do you need to report.

based cat brusher

With fees it's pretty unlikely you make any gains though

>yes, good, only report gains.

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