I already filed taxes and didn't report any of my 2017/2018 trades. Suppose we have a bullrun and I want to cash out 10-30k, how likely is this ploy to work after this summer:
Say I bought ETH in summer of 2017 and never sold.
Say I traded it for shitcoin x summer of this year (making my 'eth gains' longterm) and held shitcoin x for a year (shitcoin x is a coin cherry picked that I don't own which mooned) cash out around november 2018/early 2019 and claim I held that shitcoin for a year so all my gains are long term.
am a poorfag student in the lowest income bracket so cashout with no taxes to pay.
Question is: How risky is this (US gov) I risk other people doing this but this is the only place I can hope to get real advice
Actually for this to work I would have to cash out around summer 2019 (1 year for eth long term, 1 year for shitcoin long term)
Thoughts? will I get thrown in jail?
Adam Price
I wouldn't sweat it user. The IRS has been understaffed for over a decade. They don't have the resources to go after most people, especially crypto taxes.
Hudson Jackson
>Say I bought ETH in summer of 2017 and never sold.
this is when i bought most of my ETH as well. my plan is to just convert my shitcoins back to ETH, send to coinbase, claim i held for a year, and pay capital gains tax on the ETH. we'll be long dead before those retards at the IRS figure out blockchain analysis
plan b, 10-30k is also enough to leave the US.
Ayden Gutierrez
Can you get away with it? Yes, if you’re lucky. But if they decide to audit you, they can easily show that only did you not report trades and profits, but you deliberately lied on tax return. You’ll get a lot of edgy responses in this thread but the IRS will send you to jail, they don’t do slap on the wrist things for first time offender.
Noah Wright
I'm mainly trying to exploit the long term cap gains for low income ppl which I believe is 0%
Julian Taylor
Yes the IRS does slaps on the wrist you retard. I've gotten three slaps on the wrist since 2004, for seeing how far I could push them and how much I could get away with.
Twice was for underpaying taxes, and the third time was for not paying taxes at all for five years. All three times I got no penalties at all. People don't realize how understaffed the IRS is and how few people they have the time to go after.
Justin King
I’m doing the same. Bought ETH in March of 2017. Haven’t sold anything to fiat since. Moved a portion of eth into 3 alts on etherdelta and then binance. Eventually I’ll transfer all to ETH when want to cash out. Obviously I can only cash out the same amount of eth that I started with max if I want to make it look like I have only been holding eth the whole time. Fuck the IRS they have no idea I bought alts on ether fucking delta unless they audit all my wallets. Even so oh well I didn’t know there were no clear rules and I will pay my taxes on any transfer to fiat I make in the future.
Daniel Thomas
yeah basically this. I'm planning on cashing out a small chunk to pay off a loan which will be under the total # of eth I bought. I'll figure out some sort of fabricated trade and wait a year to justify long term gains if I cash out completely.
