this is why you hodl. you pay tax on every profit you make from a trade. if you plan to trade for profit in the future take out some of the profits and stack them as a tax fund. on the other hand if you didn't actually make profit buying and selling. Coinbase could of reported the wrong information to the IRS. They report the total volume you trade, not what you have made profit on, you got to report that yourself with your trades buys and sells.
CP2000 from IRS
Mason Gray
Jace Smith
I didnt lose money but I only made $1000 profit
Jose Miller
Yeah. Just renounce your US citizenship. That’s great advice.
They just give it back if you ask for it
Adam Barnes
you had $1000 gain as of December 31, 2017?
Anthony Allen
Can someone please explain these horror stories of people making small profits in crypto trading but getting nailed with $100,000 in taxes? How the fuck does this work?
Adam Adams
They will have records of all Wallet transfers and USD to bank transfers. Either you are lying, or Coinbase fucked up and reported to the IRS that you made a profit of 90k.
David Ward
Colton Brown
you have to refile your taxes.
Nolan Collins
Then you should only have those $1000 tazed as capital gains
File the Gains and losses together and show that you only made $1000 total at the end of it
Coins are a commodity and are treated as such
Caleb Adams
They are probably untrue. The IRS would go after you for getting CASH deposited into your bank from Coinbase or somewhere else. These sites keep detailed records of these transactions. The IRS isn’t going after the guy who got a $5000 deposit from Coinbase. They are going after the retards getting these insane lump sums and not reporting it