Do people here pay taxes on crypto, or they do dodge them? Are we really expected to log down every trade we make and the specifics, or can we just one day withdraw $10,000 worth of DAI and just pay taxes on that amount? Nobody is clear about this shit
Taxes
Hudson Scott
Other urls found in this thread:
irs.gov
investopedia.com
en.wikipedia.org
twitter.com
Jackson Martin
Long term capital gains tax applies to gains realized on assets held for longer than 1 year. Anything shorter than 1 year is Short term capital gains.
Crypto-to-crypto exchanges are not like kind exchanges, and so everytime you exchange to another coin/token you should record the initial USD (or any other applicable currency) value of that position and you should also record the USD value of the position when you're exiting out of it (to fiat or another coin/token).
Doing this will allow you to calculate any gain/loss realized on that position. You can also look into things like FIFO and LIFO methods and choose whichever one makes you owe the least tax.
Aaron Kelly
>buy $1000 of coinA
>sell $1500 of coinA
>taxable amount: $500
>buy $400 of coinA
>buy $600 of coinA
>sell $1500 of coinA
>taxable amount: $500
>buy $1000 of coinA
>sell $1500 of coinA for coinB
>taxable amount: $500
>buy $1000 of coinA
>sell $900 of coinA
>sell $600 of coinA
>taxable amount: $500
Benjamin Howard
what about if i lose fucking money cause sergay nazarov, fifth czar of russia, just proclaimed an ukase for the 3rd time this week selling 2.1million linkies?
Michael Gray
If you made no gains then you don't need to pay tax
Michael Perez
>pay taxes
Yes. I love supporting single mothers, Abos and useless Sudanese.
Adrian Edwards
I don't like paying taxes either but is it safe for us aussiefags to dodge taxes?
Michael Parker
Could i count the loss towards my total income? Like if i made 100k, put 10k in crypto and lost all that 10k. I've technically only made 90k this year. Assuming i realized the losses.
Grayson Lewis
No, but whats life without risk? I'd rather risk imprisonment than support those our lubed up government "acknowledges are the rightful owners and original custodians of the land we live on"
Matthew White
yeah I do
I probably do it wrong
for awhile there I was just paying for what I cashed out
I have no idea how I can even find txs from 2 years ago from exchanges that don't even exist anymore if I get audited.
Andrew Jones
No you can't, but you can reduce a capital gain and therefore be liable to less tax (in Australia at least). E.g. you made $1000 in 1 trade, but lost $200 in another, so you only made $800 and only that $800 is taxable
Caleb Sullivan
Yes, you can. There are specific limitations to loss gain.
Jayden Scott
US perspective, but check out Australia:
investopedia.com
>Capital losses will offset capital gains and effectively lower capital gains tax for the year. But what if the losses are greater than the gains? Two options are open. If losses exceed gains by up to $3,000, you may claim that amount against your income. The loss even rolls over, and any excess loss not used in the current year can be deducted from income to reduce your tax liability in future years.
But this user is right if your capital gains exceed your capital losses (aka Net Long/Short term Capital Gain).
Thomas Jenkins
you buy something for $1000, and it's worth 1000 apples. the government prints money, so then it's worth $1050, but still only 1000 apples. so capital gains, but no gains in purchasing power.
real inflation is 5.3% by the way, the cpi lies so boomers can jerk off over their real estate and stock "profits".
the government now wants to tax you, every fucking year for "capital" gains, caused by them printing money, even though you already pay income tax, sales tax, etc.
what the fuck
Jayden Jones
i'll just do OTC SNTVT -> BTC -> local bitcoin in japan for cash, so who cares.
Noah Richardson
Then the government will happily obligue and pay those taxes to you, obviously.
Benjamin Jenkins
Free gibs don't pay for themselves. Someone gots to pay for my free stuff.
Fuck wagies, fuck savers!
Lincoln Price
The kikes are taxing money
Jaxon Gonzalez
But how would they know how many trades you made?
Mason Stewart
en.wikipedia.org
In Italy you pay about 26% on your annual actual gains only if above 50k€, too bad country is full of fascists and hipsterical people
better places will be East Europe, Spain
Tyler Cruz
japan has cucked crypto laws, better off doing localbtc in a shithole country with lots of rich ppl like india
Brody Foster
Personally I don't like my money being stolen.
Luis Brooks
>Taxes? Never heard of those.
>Who is that IRS and why did he send you here to die?
Caleb Davis
I pay taxes on gains I withdraw to fiat. But I cba to keep track of every crypto-crypto trade.