How do Burgers do their Taxes

>Also they are most in NY

What a coincidence that NY has super strict rules and regulations against crypto exchanges. WOAH, WHAT A COINCIDENCE!

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Of course they have it by percentage, Israel is the size of a foreskin.

But New York, New Jersey, D.C., Florida, Pennsylvania, California? We have the most.

>Aren’t they going to jail you anyway even if you pay penalties?

Here is the problem with crypto and taxes.

> If they come after you too hard then you are much more likely to destroy or hide your keys.
> The trouble of going after crypto holders is not worth the trouble of dealing with lost or destroyed keys.
> If this keeps happening they keep wasting money and resources going after people with no real way to profit.

They are at your mercy as long as you hold the kill switch for your coins. If you don't own anything super expensive then you are basically untouchable. They know if they try to go after you then your keys are at risk. If they try to play nice you give them what you think they deserve.

> As long as people like the above exist and get away with it then its officially, actually unfair, to punish honest law abiding citizens.
> Taxes are simply not possible past a certain point of adoption unless its done on chain as part of a coins smart contract. (Similar to transaction fees, which is Bitcoin taxes)
> Even then you cant really force anyone to use a specific coin for every transaction.

this is true. also all the kids who play trading card games like magic and yugioh need to get a personal property appraiser on retainer if they want to continue going to their local game store or school playground to trade magic the gathering cards. if the market value of the cards involved in a trade isn't recorded and reconciled to show where the gain went, we are opening up a pandora's box of money laundering concerns

Thanks user. This honestly makes me feel better.

I still fucking hope whoever wins the next presidency streamlines tax payment for crypto and just cryptocurrency in general.

Seriously fuck this bureaucrats and the bureaucratic mess they made.

>This honestly makes me feel better.

If you own physical assets or have a ton of money in the bank you are fucked though. Only crypto lifers who own very little can probably get away with this.

why would you pay tax on something they dont even know what it is?

>170k LINK
>live with parents
>800 USD in bank account

Are there even WORDS to describe how comfy I am?

>Are there even WORDS to describe how comfy I am?

Get a good dapp based business started up and you can even have a job. Either that or do freelance work for crypto directly.

The government is going to have an interesting time dealing with shit like this. And its really honestly much cooler than being a normie right out of the gate.

>The government is going to have an interesting time dealing with shit like this.

governments cant compete. we are legitimately going to see governments toppled over fake internet money and its going to start with the most authoritarian ones run by brainlets that make the worst decisions. pretty sure bitcoin has done better than argentina's currency every year since its inception including the years we dump by 90%. think about that for a moment. in these countries you're effectively forced to barter and dump your paper ASAP. cryptocurrency could be absolute dogshit and its still better than what they have right now. give it 10 years and any of the people in these countries that aren't brainlets will be using monero or something similar, and there will be no cashing out. they'll just use it as money because there's no alternative and because fake internet money is actually money.

government can :
>get even more hilariously orwellian, probably still fail to pull in tax money
>become more like a business and actually offer services that aren't shit for their tax money

former will likely happen but they're gonna get blown the fuck out.

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so if I live with my parents and own crypto only on cold storage what could they do if I "lost" my private keys? I trade options on robinhood so Im doing taxes but just wondering

You only pay taxes if you are a U.S citizen.

The IRS doesnt care abour your feelings, they will come and get you for their due. You can try and be sneaky now, but there will come a day when they will figure it out, and fuck you royally for trying to hide your gains from years ago.

>t. IRS coping agent

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>authoritarian homo who probably browses reddit

Small time investors are probably safe but unironically this. They'll simply pass you a bill for whatever they determine you owe them based on subpoenaed trade history and it's your job to pay it off whether you lost the keys or are hiding them

Convert to XMR, hold it offline, and delete all your prior exchange accounts.

If you want fiat after that you have to either use it to buy a solid asset online and resell the asset, or go off shore like Caymans or Bermuda.

*blocks your path*

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>take vacation to free country with no crypto regulation
>wire yourself money and start crypto trading there
>don't associate anything dumb like credit cards or bank#'s that might identify you with your crypto accounts
>take another vaction to same country when you want to cash out
Easy peasy.

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>retard thinks you can hundreds of thousands of dollars on a plane without raising alarms
Nice plan idiot

And this is exactly the reason why we need more games like ethercraft.

>take one way plane trip
>cash out
>take cruise ship back and enjoy counting your millions while hanging out with a bunch of drunk boomers
There's a million ways to get back but you zoomers don't think outside the box

>cash out $150k or so profit in 2018
>pay $43k in taxes
>could have used that money to buy LINK instead

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blame dead family member of stealing your identity.
>they traded the crypto you knew nothing about it, until investigating their laptop and finding your kyc id pictures on there.

California state taxes added a ton, one reason it was so high. An extra 12k or something.

And you even pay an exit tax when you renounce your citizenship
Land of the freeeeee

Move

Can't until I finish school, but I'm considering it.

Gotta pay for your replacement population, goy.

> I don’t mind paying my fucking tax for when i eventually cash out
Cuck.

Be European. Potugal exists. Comfy 0% capital gains. Nice place for a cash out vacation

Is it legal? How you do it?

just move to puerto rico.

this. just identify as a guatemalan

>paying taxes
get the fuck out of here, communist pig

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>but there will come a day when they will figure it out, and fuck you royally for trying to hide your gains from years ago.
Try telling that to all of the online poker and casino players who have been cashing out for years and not caught.

>you thought this was a free country
randy_marsh_with_pants_down.jpg

Just be all in LINK, wait 1year+, and pay long-term capital gains. Hopefully you’re in a state without state capital gains as well.

>cashing out LINK within the next 10 years
Fool

All you do is report your initial investment and then what you cashed out. Pay a percentage on the gains. It's really not that hard. If you calculate every trade as separate you still end up with the same end result.

This. In the off chance that I actually make a decent profit, I don't want to be looking over my shoulder. Tax minimalization, not tax avoidance. Figure it out now, because the more money you make the bigger chunk you'll lose to taxes. For most people, it will be the single most consequential gross income to net income detractor you'll experience in the span of your life. Private schools for the rich teach tax law to their kids in primary school as part of required curriculum.

Attempt to correctly claim tax owed but with mistakes is pretty much a slap on the wrist via back taxes owed. Admittedly the chances of getting caught only really show up on the radar with deposits of 10k or more, or multiple smaller deposits within a timeframe. If you don't pop flags, no one asks questions.

That said, not knowing what kind of profit I'll be receiving from my crypto activities means I had to choose a path early on. I chose tax minimalization, and mining. I claimed the mining as a schedule c business venture on my personal taxes, and deducted all monies spent on the operation including electricity. My tax return went up by 2,500 dollars last year from this. It also established a basis of me claiming long term capital gains. This cuts your tax burden nearly in half.

My method uses an Excel spreadsheet template I whipped up in 30 mins. I start a new spreadsheet each month. I record all mining income, and it calculates electrical expenses based on how many days there are in the month.

1/2

2/2
The IRS wants to see attempt to comply and reasonable accounting methods. For me, that means I record value of coins as received by the closing value for the day. This means if I want to trade for something, I receive the mining payout and trade it all in the same hour. I just mine and trigger the payouts whenever I'm ready to make a trade.

Since I record the payout as profit, taxes are calculated based on that. The trade, since it is made in a short time frame, is by my accounting methods an equal exchange of value and thus no additional taxes are owed as no profit or loss is recorded.

I trade for long term holds, because of the taxes. So far this year I've been able to aquire the coins I want to hold, either through mining or trading, and my profit is about 2400 after electricity. Yet my taxes due are 86$ so far. This is all totally legit, just utilizing the tax code and finding ways to comply without fucking myself.

My spreadsheets are done in line with standard accounting practices, and those practices are consistent. This record is acceptable proof of records for the IRS.

And I now not worry about taxes. If I do make it, my overall burden will be about 15% up to 170k, 18.8% up to 380k, and 23.8% for anything 380k+

And I don't have to worry about the tax man, or my banks freezing funds for mandatory report of suspected tax evasion or illegal doings. My records bypass the bank flags, and conform to IRS regulations to the best of my knowledge.

Playing this field hoping for massive gains but not having a smooth exit strategy to fiat, if I wanted, seemed silly to me.

Just presenting my take and/or solutions

I didn’t specifically say it had to be after 1 year, just long enough to be taxed as long-term capital gains. When you cash out after that is up to you.

Still have to clear customs brainlet

fuck outta here reditor fuck your blogpost too

I've probably been here longer than you, pleb

Yup. Undeclared cash caught at customs above a certain amount is seized. Pretty hard to hide anything metal, i.e. gold, or any amount of money above 10k. A genuine option would be private jet and private airstrip, but you'll forever be paying in cash hidden in your mattress and/or walls and any large purchases such as a home will pop flags. Unless you then start money laundering, but all for what? 20% tax on gains max means I can enjoy my life.

Just go to bitcoin.tax and pay for the upgrade, and connect the apis from your exchanges, or download them. It’s easy af, and then you don’t have to live in fear of the irs. You really think they’re going to just wave off billions in tax revenue (and interest) that they can collect from crypto? Plus interest/penalties? Tax evaders will get just’d so fucking hard.

Also not correct. If you buy 1 coin A for 1$ and it goes to 100$, then trade for 100 coins B at 1$ each, but then coin B goes to .50 cents, you still owe taxes on the coin a to b trade as it's considered realized gains at that point. That's why some traders cash out owing more taxes than they made in profit. Uncle Sam wants all the " realized gains" tax while you carry the risk and STILL pay if you lose those gains. It's a bullshit system, but it comes with archaic tax structure not prepared for this new asset class. If crypto truly goes mainstream there will be enough pressure this will change

been here since link was on delta go back to redit blogfag

You don't see that by being so careful and trying so hard, you're just fucking the rest of us? Mass disobedience is our only chance, and you're defecting. Faggot, kill yourself. I bet you register your guns.

you reditors are literally the reason why people pay tax in the first place. Uncle sam says pay your tax and your tiny brain immediately says how much sharipes uncle sam? go fuck yourself you have zero fucking balls to stand up for yourself. fuckinf redditora paying txes to a system that doesnt even recognize crypto, you are the pure definition of BITCH

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It's not realized gains until it's in your bank account you dumb fuck.

The gains/losses are realized when you trade for another asset, retard. I don't like it either, but "crypto" is not one general asset. Each coin/token is it's own asset. You could risk it and not report anything, but good luck when something triggers an audit and you have to provide documentation on how you made your money.

I don't think you understand what realized/unrealized means in the US, fren. It has nothing to do with cash hitting your bank account.

Again, the irs doesnt give a fuck. They just see numbers, and you owe them.

I can tell most people itt are between the ages of 16 and 20 and have no concept of how fucking monstrous the irs can be.

Yeah I sold a lot of RuneScape gold and never even realized that technically that should’ve been taxed. What a crazy system.

Ie zoomers

Lol. That's your time span? 2017? Lol.

If either of you think big players aren't doing what I'm doing, you're retarded.

Good luck with tax evasion. Me taking care of my business isn't fucking you. You are fucking you. Which will make Mikey fucking you in prison a nice change for your sex life. Don't forget your lipstick.

You're still fucking wrong. What you've described is a "like kind exchange" which was for real estate and explicitly outlined in 2019 tax code to not include crypto. Any time you make a trade, it's considered taxable. Not just when you cash out

What the fuck happened to this board? Biz used to have an IQ above 70. Now theres so many fucktards, not here to share knowledge or learn, but impatiently waiting to post some stupid chest beating response to other anons, emphatically spouting yet more incorrect bullshit about shit you clearly don't know about. Fucking keyboard warriors, whining about how they have to do anything productive in society, or pay taxes for the public benefits they receive, like the welfare neet lifestyle they'll brag about in the next breath.

I hope there's still some oldfags here, trying to actually make some money for a better life. If there are, you need to post more often.

Kek

I have close friends that made above 1MM in crypto, and haven't paid a dime

If you are not planing on evading 100% of taxes, you are sub 80iq with no balls

The whole point of crypto is to say fuck you to the zog, you fucking nigger. If i could cash out only paying 1% on all my portifolio, i'd still avoid paying it

people say this a lot here on biz and never actually give a solution on how to avoid taxes

Just because the IRS hasn't caught up to them yet doesn't mean they won't. If you want to freely enjoy your gains and not constantly worry about hiding them from the govt, recommend you pay your taxes, because something will trigger an audit in the future. Or you can post here again in 5 years and beg for help on how to doctor your transactions to explain your money to the IRS.

So go for it. There are ways, though it was easier years ago. To me it's a stupid play with your money. Crypto isn't the end goal. I'll pay the 20% to put the money on the books legally, then roll it into cash cow assets and make my fortune there.

You think it's about balls. I think you're retarded for Chuck-e-cheese e-tokens being your end-all set for life plan. I'm sure many here will hodl through the next boom, like all the other moonbois, waiting for that magical portfolio number to appear on your phone because you won't "make it" without six figures, then cry about 90% losses for another four years, forever waiting for the magic crypto pony to shit out millions. Id rather set my cash out line lower, with a way higher probability of hitting it, and having the money to bankroll a large storage unit facility or a car wash. To each his own.

because the federal reserve prints money out of thin air, lends it to the government and the government taxes people through the IRS to pay back the debts to the federal reserve.
the jews have created the perfect scam

I’m not reporting shit Binance is kicking us burgers off their main platform so I doubt they’re going to report any of the trades that were done on there if you didn’t have kyc

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Yes, user. You'll be totally in the clear. No worries on buying that house, car, or anything else with your gains. As long as CZ never reports you to the IRS, they'll never have a clue about your money. Audits are only triggered when an exchange, bank, brokerage, etc report your transactions.

Yeah, and the the whole system is slavery through debt, like a gerbil on a wheel. It's totally fucked. Fractional reserve banking practices are just as bad. Not to mention pretty much every government program, every government worker all has to be paid out of the taxpayers wallet, so as the government self-welfare machine grows, the people get poorer.

Sadly, travel around to a few places and you realize it's still one of the best places to live. Not the very best, but there are far more people born into a shittier lot in life than burgers, even in other first world countries.

You can comply with the laws without following the masses into the rabbit hole and end up pretty comfortable though.

>he thinks that's a long time
bless your heart

Cali pay 13.3% income tax.... on top of 20% Federal long term cap gain, and 3.8% obamacare tax.

It was all short term capital gains too, so even worse

Actual intelligent, useful info..... biz is dead. No one even bother replying. Good for you user. If you owe a heavy bag of Link. You need to start thinking about exit strategy with real tax implications. Especially if you're a burger.

Cashing out/letting the government know you have crypto is peak brainlet.

I don't

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I have not payed regular taxes in about 7 years. I did receive a letter once but nothing has come of it since. The IRS is nothing but a boogeyman

>What the fuck happened to this board? Biz used to have an IQ above 70. Now theres so many fucktards, not here to share knowledge or learn, but impatiently waiting to post some stupid chest beating response to other anons, emphatically spouting yet more incorrect bullshit about shit you clearly don't know about.
Have you been in a coma since 2017 and just now woke up?
That's the edgy 15 y.o. conspiracy theorist's version of how inflationary currency works.

Remember to report anyone who mentions the Jewish people in a negative light. We don't tolerate this behavior whether its on the internet or in real life.

they don't tax crypto payments as realized gain, their tax it as capital gains, property, that's why you get taxed out of your mind, if i remember only ausfags and burgerland taxes crypto as capital gain property

It's sad. Crypto ruined this board

>being american

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Every idiot who thinks the IRS will put in jail... just fucking kill yourself. You’re wasting my O2. How do they collect if your ass in jail? They don’t. They work with you even if you owe millions UNLESS you’re a complete brainlet and either admit to purposely defrauding them or it seems blatantly obvious that you purposely impeded their attempts to prove you owed money. As soon as the IRS catches wind you get a lawyer and your kike ass lawyer will cut a deal that you pay backtaxes + fees. That’s it.

Thanks...I dont put the effort out to read myself talk, I do it to help other anons... Just sad it isn't the biz of old where it was more common. People playing me the Reddit card, while shitting on the board......

No, but the accompanying charges that come with intently trying to hide gains and yet still make use of them goes far beyond the typical case where nothing more than back taxes and slap on the wrist is involved.

A group of people will get smacked to set an example and where crypto wasn't on the radar last run, it certainly is now and Uncle Sam is taking it seriously. As evidenced by the recent actions of even oversea exchanges. It's just a stupid risk compared to setting yourself up for a 20% tax for making 450k+.

Self employed or family business?

so explain how they did it you dumbass, otherwise you are just a larp