Crypto to crypto trades are a taxable event

>mom found the crypto portfolio and saw i wasn't paying my taxes

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Not true because of FIFO rules
Look up first in first out

Example:
You buy 10 ETH for $100 each
You buy 2 more ETH for $120 each
You immediately buy 240 LINK (worth $1 each) for 2 ETH (worth $120 each)
You now owe capital gains on $40
You buy 1 more ETH for $150
You immediately trade 1 ETH for 300 XRP worth 50 cents each
You now owe capital gains on $50 (taxed on $90 total so far)

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what the fuck

can you break that down a little simpler for an autistic brainlet

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>Link a dollar each
If that happens I’ll eat my own shit

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>Uncle Sam: prove its not yours or we will put you in jail or take money directly out of your bank account.
>you: y-yes sir let me get my paperwork s-sir

Bring ketchup

>t. doesn't know how the law works
is this the new FUD?
I miss China bans

>he wants to convert his btc to worthless fiat money
>he pays actually taxes on top of that

you will never make it

>he thinks that the IRS works on "innocent until proven guilty" and isn't explicitly the other way around

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See you in jail friend

you gon get raped user

Currently deployed on a base somewhere in the middle easy that allows us to get 2 free redbulls per meal. Please continue to pay your taxes.

>thinks he can win against the IRS

this is how it works and its the main reason day crypto traders are exclusively using stable coin pairs to prevent the crypto to crypto tax from effecting them in general. believing anything else is simply being misinformed.

/thread

>OP IS AN IRS NIGGER FAGGOT WHO NEEDS TO KILL HIMSELF WITH A CHAINSAW IN A PUBLIC LIBRARY WHILE STREAMING IT

lol. if the IRS has you in their sights you best prove that you havent done anything wrong. If you cant prove that you DONT own that account, you fucked boi

thebalancesmb.com/fifo-inventory-cost-method-explained-398266
Its okay to be ignorant but dont let it stop you from learning

Or just hire a CPA, he'll teach you
Otherwise you may need to higher a tax lawyer if you get audited
They charge by the hour

That's 1.5% whenever you buy or sell? That would effectively be like having trade swings over 5.5% just to break even? Risky

You also have to pay quarterly estimated tax if your capital gains are significant, just like how your income tax is withheld from your paychecks.

>thinking the IRS is some omnipresent entity that can track your thousands of shitcoin trades
Don't report those, cash out, file for unemployment, and pay the 1.5% tax.

Where do you live? I'm in usa and that's def not true here

Are you retarded? They are not tracking anything. Only when you cash out they'll ask you to tell them EXACTLY how you got that money. YOU have to provide prove, NOT THEM.

Just say you held bitcoin

only faggots pay tax.

>YOU have to provide prove, NOT THEM.
Yea, but if you don't you'll just get taxed on a zero cost basis. So, if you put in $1,000 and your shitcoin explodes, you're going to owe tax on most your gains anyway. Bothering to sort it out trade-by-trade is only beneficial for you if you have a substantial initial capital investment that you want to deduct from your gains. Then you need to prove it.

i wont pay taxes. how will a state institution confiscate my crypto?

Good luck providing proof.

Or, if you want to qualify for the capital gains rate, instead of the income rate, you'll need to prove your trades.

Ok well it'll just go to my Canary Islands account then :)

nigga is u tarded?

>day crypto traders are exclusively using stable coin pairs to prevent the crypto to crypto tax from effecting them in general.
How does this prevent the tax? How are you taxed if you're trading stable coin pairs?

Actual Daytraders have their own section in the tax regulations. If you're averaging a certain amount of trades per day, then you get a different accounting method.

For US anons:
>Mr. Davidson (for himself and Mr. Soto) introduced the following bill
>to amend the Securities Act of 1933 and the Securities Exchange Act of
1934 to exclude digital tokens from the definition of a security
>to create a tax exemption for exchanges of one virtual currency for another
>to create a de minimis exemption from taxation for gains realized from the sale or exchange of virtual currency for other than cash, and for other purposes.

congress.gov/bill/115th-congress/house-bill/7356/text?format=txt

Perhaps if you're trading shitcoins as your business. How does the IRS view cryptocurrencies? Property?

There should be no extra tax if you use crypto for buying something just like with fiat. I think Germany has this already? I doubt every country adopts that though.

imagine being a burger and paying taxes on crypto

jesus christ

Imagine how retarded this pic becomes when you realize they had to pay a complicated tax event just for buying a cup of coffee lol.

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yes

amounts under 600 bucks they don't give a shit about
just don't go buying a car with crypto, unless you have the USD equivalent in crypto to cash out to pay the tax

They do care according to the law

"The CryptoCurrency Tax Fairness Act," was introduced in the House by Rep. Jared Polis and Rep. David Schweikert and transactions where you buy something worth under $500 with cryptocurrency would be exempt.

The CryptoCurrency Tax Fairness Act wasn't adopted.
Its not the law.
The law says you have to pay capital gains tax on all transactions made with cryptocurrency.

BTW;
the law also says you have to pay taxes when bartering goods.

>taking a picture of you committing tax evasion

great idea guys

I'm pretty sure a lot of CPA's won't have any idea how this works. I'm pretty close to getting my license, and I plan on taking classes about taxes for crypto, but at the moment I don't really get it. It was not touched on in my college education and I don't think I even got any questions about it on the exams.

I honestly think they just wanna slap the most retarded tax and not think about it too much while hoping the whole market just goes to zero lol.

Its property
Its taxed the same as property, stocks, bullion
You fill out form 8949 with every single trade
irs.gov/pub/irs-pdf/f8949.pdf
If you know how to deal with stocks or bullion then theres nothing to learn

Andrew Yang says he'll make the guidelines clear and friendly and pledges to "have fun with crypto in the white house".
Whatever that means

ccn.com/bitcoin-president-andrew-yang-fun-crypto-white-house
coindesk.com/andrew-yang-neeraj-agarwal-consensus-2019
cointelegraph.com/news/2020-presidential-hopeful-yang-says-blockchain-crypto-must-be-big-part-of-us-future

But Im definitely not saying I support the man

this is how it works in my country, really makes you ponder over the whole "taxation is theft" saying.

my government haven't really done any work to earn their cut when i click buttons on an exchange hosted in a different country. and if i tell them to piss off men come and take me away.

taxes on sales happening inside the country i can at least see how it fits into using the country's resources (roads, buildings, personnel educated in the country, whatever) but me daytrading crypto on an exchange? not so much

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I'm not convinced that trading crypto for crypto is the same as sale of stock. It appears to me to be more like bartering. If you exchange on a market goods with equal fair value how is that a taxable event? I understand if there is money involved, but not when it's exclusively crypto.

Its just the law
IRS clarified that its property and taxed as such
TurboTax even asks if you traded cryptocurrency these days
TurboTax correctly lists them on your Form 8949 and calculates your tax burden according to your trades

Its very easy to do this shit with services such as bitcoin.tax, cointracking.info, bear tax, token tax etc etc
Or you can just hire a CPA

Cryptos are not considered money, but they are somewhat looked at as securities (without any of the regulation). You are exchanging "securities" according to the current market exchange rate, which is akin to bartering. How could they proclaim a taxable event if the profit of trading is not money, but itself a security? These things are not fully worked out at this point.

fucking amerimutts they make me laugh.

>get sick
>get bankrupt

>trade some shitcoins
>get bankrupt by the IRS

>go to college
>either get shot or bankrupted

frogposting is a taxable event

1.5% ONLY ON GAINS AND ONLY IF YOU MAKE OVER $15,000

Underrated post

AHEM
*tink tink tink*
YOUR ATTENTION PLEASE
TAXATION IS IMMORAL AND ALL BASED INDIVIDUALS ARE WITHIN THEIR VIRTUE TO REFUSE IT
>Janny runs in, trips on his paycheck (just kidding)
>"BUT WHY ARE TAXES BAD?"
Good question Janny. First, Fuck Jannies. Second, ALL TAXATION GOES TO THE FOLLOWING THINGS
1. Kikes and their illegal wars
2. Single moms and their niglet babies
3. Welfare Queens
4. Faggots
5. Worthless government pencil pushers, bureaucrats and rubber stampers
6. CIA Niggers
7. Medicine for Boomers who should have croaked outside burning man 20 years ago

REFUSING TAXATION IS MORALLY RIGHTEOUS. GIVING MONEY TO THE GOVERNMENT IS FOR FAGGOTS. THAT IS ALL

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You could do LIFO if you're consistent about it.

Youre correct
But the people on this board are too stupid to understand FIFO so theres no way they could do LIFO
Youre also likely to be audited using LIFO
The CPAs Ive spoken to advised me not to attempt LIFO
But you can theoretically use LIFO if youre consistent, in which you can never change back to FIFO

TAXATION IS THEFT!!! Said the guy who lives, uses and depends upon infrastructure put in place thanks to taxes.

yeah, this whole "land of the free" thing feels a bit off

Freedom isn't free

>If you exchange on a market goods with equal fair value how is that a taxable event?
It's called they have the guns. Income tax works the same way. You trade your labor for wages. Equal value.

>>get sick
>>get bankrupt
The fucking eurocope. We're alive and bankrupt. We don't die waiting in line for free chemotherapy.

>lives, uses and depends upon infrastructure put in place thanks to taxes.
>Said the guy who attacked his own strawman
>Only the government can build bridges
>Only the government can pave roads
>Only the government can lay fiber
>Only the government can build power plants
>Only the government can put out fires

It’s already happened once

I have slowly come to the terrible revelation that none of you know what the fuck you are doing. I have a Master's in Accountancy with a Minor in Finance. I work for a fortune 100 as a corporate accountant with a CMA and CPA. I used to have some faith in user. None of you know how to actually value a company. You have no fucking clue how taxes work. You can't read financial statements. For fuck's sake you think TA works and the entire field of decision science churns out dissertations every other day highlighting their absolute dismay at the fact that brainlets ever consider using it. You have no idea what Dunning-Kruger is. You don't know what survivorship bias is. You are too fucking uneducated and stupid to comprehend how fucked you are.

Idk why I'm even posting this, fucking goodluck kids.

>Taxo to taxo filings are a cryptable event

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They aren’t because the IRS will never find out about them.

Shut up fucking goofy nerd, go brag somewhere else. Fucking spread sheet money.

Yes the US is in dept. They tax all they can.

Would the government know that if you bought cypto at an atm with cash anonymously and then proceeded to trade the anonymous lowkey decentralized exchanges through a usb drive?

or do they just 1984 everything in fuck you in the ass with fines?

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gl ever cashing out though

Probably not but what's the point if you can't ever cash out to fiat?

you can buy small stuff directly like food and stuff, but yeah no anonymous real estate.

Because the Dollar is worthless there's no need to cash out, crypto is the new standard currency

How will the IRS know about transactions on a foreign exchange? I never submitted KYC. When I am ready to cash out, I will say I've been hodling for years. I doubt the IRS will care enough to seriously look into it.

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Laugh at this fucking dork spreadsheet monkey. Your job will be automated soon.

They don't even have to look into the foreign exchanges. All they have to do is monitor bank accounts for any deposits from any exchanges and then tell you to explain where it came from.

Did this bill pass?

That's a really nice pic user.

That's why you cash out with fiat in person, and stable coins the rest.