Can I get some tax advice biz bros?

I got into crypto with 5k early 2017. Made thousands of trades and worked up to 130kish by EOY. Mid January my portfolio peaked at 450k. I held to the bottom like a cuck and now am left with 120k.

Just plugged almost all my trades into cointracking. my cap gains for 2017 is 166k and I'll owe 55k total.

I'm not willing to walk with a paltry 50k after seeing half a mill just months ago. essentially a 22 year old NEET.

My cointracking info is not 100% legit either. Some exchange info is missing because it's no longer available. The number is probably higher than 166k in actuality. The IRS won't be able to know that, because Liqui for example is about to close shop. But supposing I'm audited and exchanges like binance turn over withdrawal/deposit info my records won't match. Does this matter? I don't know. I'm not hiding money. I'm simply forgoing paying on capital gains which I no longer have. In the future I'd be able to claim it as a loss anyways.

I really thought the market would have recovered by now. If I pay my taxes now, I'll have to cash out nearly half my crypto. Just for fucking taxes. Being able to claim 3000 cap loss for the next decade does not excite me at all.

If I just file my taxes, but pay later, then I'm on the books for that amount. If the market crashes further, I'm fucked. I'll be left with next to nothing, and the past year of my life will have been a waste

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I'm considering fudging some transactions on a defunct exchange like Liqui to bring down my capital gains to 120k (what I really have). This lessens the bill and gives me more breathing room. It's not theft, as it's just preventing me from paying on additional gains I no longer have, with money that I'd be getting back from the gov anyways thru losses.

But again, my withdrawal and deposit history will be out of whack, and if the IRS ever gathered it from say binance then my records would be off some. But as it stands, my records are off even now. How much does this matter? What do I do?

I was going to pay a crypto accountant 400$ to glance at my 8949 and file FBAR. It'll give me a cpa stamp, which is nice

Back everything up in cold storage, leave the country, and hide in a cave.

You dont pay capital gains until you cash out. Just wait the time limit until your max tax percent is 10. It only takes like a year and a half, youll be fine

if they tax my crypto, can I use the crypto they're taxing to pay the tax?

cause I don't intend to cash out

Cash out make up some bullshit trades pay the taxes...Unless you get audited then you are fucked...

Not true man

I don't like having to bank on not being audited.

Do what this user says jfc. Even if it’s not true, start believing that it is. Say you didn’t know if you get audited and pay the penalty then if that happens. Keep your money man, don’t be a moron

What difference does it make

Unrealized gain or loss: The profit or loss you have on paper but have not actually cashed in on. You do not pay taxes on unrealized gains until you sell, at which point it becomes a realized gain or loss.

dude why dont you just go on a payment schedule? you know the market will come back soon. just pay as little as possible right now, you will be kicking yourself for taking a huge chunk of your crypto

I will. Should I fudge my 2017 cap gains down to the amount I currently have though?

The safest play would be to file for an extension. It's free, you can do it online, and you get until October 2018 to figure things out. Plenty of time for another bullrun.
I paid my taxes this year, but I borrowed the cash. I wasn't willing to part with my crypto.

USD is only worth as much as the crypto it can be traded for, and besides that why pay the fees to cash out? why not just pay in crypto? since it's what they're taxing

An extension on filing or just to pay? Won't you be accruing massive penalties?

So what would happen if someone didn't pay this year but assuming they get lucky and go 1000x and try to cash out what happens? Do they just get a penalty for what they didnt pay last time?

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You'll file an extension and won't have to pay until October. Yes, you will be accruing interest, but it's only a few percent, less than a credit card, no massive penalties, the IRS doesn't buttfuck you if you play by their rules. Check with a CPA first just in case but to me that's your best and safest option.

I'd just get it out of the way if I were you. Crypto isn't going anywhere for a while, and if you don't make the decision now, the market might make the decision for you. It could shoot up tomorrow, or it could crash even further and youll only walk away with 30k next week. And then only 10k if you wait the following week.

It's best to get it done with and not have the performance of the market dangling over your head.

Tempted but I've heard extensions increasing your chance of being audited

be german

>It's not theft
theft is the goverment giving your money to fucking negroes and debt jew parasites.

Ultimately it's up to you. Keep in mind the IRS has gone through a lot of budget cuts and audits are at an all-time low. But I also understand not wanting to have this hanging over your head, and if we get another bullrun your 50k can be turned into another million.

Sensible post. Thanks

I guess that depends on likelihood of audits. I think your best bet is hire a couple different accountants or financial advisors, and ask them. I wouldn't wanna be worrying about tax audits either.

If I only cashed out $500 once, on 2017, that is the only transaction I must report, right?

guys now that I think of it, how the fuck are people recording taxes from liqui or exchanges that delisted tokens. like liqui doesnt even fucking show trade history done last year for tokens that were removed...

That's what I'm saying...

you have to report every transaction even if you bought goods or made 50 cents

I actually got my start trading altcoins on Liqui so I'm kind of fucked in that regard

I also did a lot of arbitrage between Waves Dex and Cryptopia and Waves Dex doesn't have trade history.

A then there's the hundreds of airdrops/bounties I got last year when doing that stuff on Bitcointalk.

This whole tax situation is so fucked up I don't think it's even possible to report accurately.

If I only made like $500 off crypto in 2017 (got in the last week of the year), should I bother reporting?

Just report anything you cashed back out to fiat through CB if you did. If not, fuck it and roll the dice that you won't get audited and that you will have enough money down the line to refile or deal with it if they come after you. That's what I'm doing. Sleeping comfy. The IRS doesn't have close to enough time figuring out your shit right now. Once you do make a few million, get a good tax lawyer and deal with it then.

Hell no man.

Yes. You probably won't end up paying any taxes, it'll just make your return smaller, depending on your income.

Reminder that you do NOT have to file tax returns. Tax preparation companies meme people into thinking they'll get audited if they don't file. The IRS legit doesn't give a shit if you file or not. The only way you get audited is if you lie about how much you owe on a return. Don't file the shit if you owe.

t.user who has a grandma that's a retired bank teller

>I'm not willing to walk with a paltry 50k after seeing half a mill just months ago
well neck yourself faggot and stop complaining

Do whatever you can get away with.

I was keeping info from non-standard transactions (like icos) in a notepad file, then added them manually along with the importable stuff from more solid exchanges. I guess this doesn't work in hindsight. Still if you are concerned, and you remember the approximate dates, you can always use cmc and a block explorer to figure it out.