If I have a big pile of BTC and ETH and I sold them in diffe

>>2268830
It says on the form description of property. So say I buy the ETH with fiat, then trade for BTC, then cash out the BTC for fiat. What do I put on form f8949 as the price I sold the ETH for if i traded them for BTC?

>>2268830
did you deposit in bank account? Just only feed $5k a month and you should be fine

>paying taxes

fuck those guys

Also why does this form have like 30 columns for me to enter data when I've made hundreds of trades. Da fuck is wrong with these kikes?

>paying taxes on cryptograins
what the f*ck? just use localbitcoins and deal in cash

>>2268844
No, but I've been trading fiat for bitcoin on gdax the last few days and im paranoid now. I was trying to tally everything up and this shit is ridiculous. I've only made about 9k and don't understand how I'm supposed to tell them that I bought ETH and then traded it for BTC. I don't know what the value of BTC was when I sold it and I traded ETH for BTC so many times I have no idea when I traded the ETH I bought originally. I'm so confused.

>>2268877
I have like 27k on the exchange. I'm not doing localbitcoins. People are getting arrested selling on there. This is too much money to just avoid the IRS. I'm not trying to risk going to prison.

>>2268879
You really think they care about your 9K ETH? Just cash it out with localbitcoin in a crowded starbucks and get over with it.

>>2268895
It's 27k and like I said people are going to prison for selling on local bitcoins.

http://www.coindesk.com/9-years-localbitcoins-trader-sentenced-latest-money-transmission-case/

http://www.coindesk.com/localbitcoins-trader-pleads-guilty-money-transmitter-charge/

They only sold $1900 worth of BTC.

This makes me want to give up trading all together. I don't understand how it's possible to calculate this shit when you're not trading against fiat.

>>2268887
Get that shit outta the exchange nigga.

How am I supposed to make thousands of transactions a year trading different alt coins and then report them as property bought and sold??

>>2268956
It's USD on GDAX. It's FDIC insured. I haven't re-bought any bitcoins because I need to figure this shit out before I dig myself into a bigger hole. I have like 20 pages of buy and sell orders from bittrex and three pages of buy and sell orders on gdax. This shit is a nightmare.

monitoring this thread because I have the same exact concern

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I know the IRS considers crypto property but how do I report what I sold my ETH for when I didn't sell it. I traded it for BTC then sold the BTC for USD. HELB

>>2268993
Same here. Someone here must know the answer to this..

Stop paying taxes.

>>2268830
Listen if your exchange doesn't report to the IRS, there is no way for them to believe that you are trading crypto

>>2269074
>>2269079

Gdax is owned by coinbase and they were ordered by a federal judge to turn over their data to the IRS. They still haven't and some republican lawmakers are trying to stop it but if they eventually do. I'd be fucked. I don't want to risk going to jail and since I've been trading BTC against USD I'm not sure if that technically counts as "cashing out".

>>2269079
Pretty sure they all handover everything. Coi base is complaining to let people know.

>>2269139
Nope they didn't comply.

http://fortune.com/2017/03/19/irs-bitcoin-lawsuit/

https://www.forbes.com/sites/kellyphillipserb/2017/03/20/irs-tries-again-to-make-coinbase-turn-over-customer-account-data/#26cf8b52175e

https://www.forbes.com/sites/kellyphillipserb/2017/05/19/congress-questions-irs-on-efforts-to-access-coinbase-customer-data/#6afc27622763

FTA:

>Here is a paragraph from Utzke's affidavit that states only 802 individuals filed a bitcoin-related Form 8949 in 2015(emphasis mine):
The IRS searched the MTRDB for Form 8949 data for tax years 2013 through 2015. I received the results of those searches. Those results reflect that in 2013, 807 individuals reported a transaction on Form 8949 using a property description likely related to bitcoin; in 2014, 893 individuals reported a transaction on Form 8949 using a property description likely related to bitcoin; and in 2015, 802 individuals reported a transaction on Form 8949 using a property description likely related to bitcoin.

>>2268920

1st one. They were running an unlawful money business and the younger one plead guilty to a narcotics distribution conspiracy charge.

2nd one. He was running an unlicensed money service.

As long as you're legal activities and pay your capital gain taxes you won't have an issue.

Here's a bump

>>2269132

"The IRS is seeking Coinbase user records from between 31st December, 2013 and 31st December, 2015. "

Not anything from 2016-2017. So if you just started last year you're fine.

>>2269191
>As long as you're legal activities and pay your capital gain taxes you won't have an issue.

The whole issue is how to calculate my capital gains tax when I traded my ETH for BTC and then BTC for USD. The form 8949 tells you to list the property you bought and what you sold it for. I bougth ETH with USD then traded it back and forth for BTC many many times. Then I traded all my BTC for USD. It's not like I just bought 1 btc and then sold 1 btc. I don't understand how it's even possible to calculate this.

>>2269204
Until they demand this stuff again two years from now and I get fucked. They can audit you up to 5 years in the past. That's why they are asking for the records from those years. only 800 people filled out the form 8949. Which is the form I'm trying to understand how I'm supposed to fill it out. If i trade everyday I will have thousands of transactions by the end of the year. I already have a few hundred.

Why do they make this so complicated? No wonder only 800 people filed that form.

>>2269240
I don't know but it pisses me off. If this new bill passes people are going to get fucked hard by the IRS if they don't pay.

https://www.crowdfundinsider.com/2017/06/101329-senate-bill-may-regulate-digital-currencies-targeting-terrorists-tax-evaders-cartels-crooks/

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>>2268830
>mfw crypto is not taxed here

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>>2269332
Lucky fuck. I don't understand how I'm supposed to tell them what I sold my ETH for when I didn't sell it and I traded it for BTC then traded my BTC for USD. Kill me

>>2268830

Sounds strange surely if you just show profits when you cash out.

>>2268830
>>2269395
You faggots need to do your research. Trading BTC for altcoins is a 'like kind' transfer of similar property. You should only be paying taxes on the total capital gain when you well for USD or another national currency:

https://money.stackexchange.com/questions/74789/do-altcoin-trades-count-as-like-kind-exchanges-deferred-capital-gains-tax

There are more detailed explanations if you google 'like kind altcoin' or something like that.

>>2269456
cont'

All I plan on doing is totaling up the USD that I have put into Coinbase, then say I choose to cash out a portion of that at a later time, I'll use a ratio to figure out how much the capital gain is on that portion.

Alternately, just hold until you have enough where seeking professional help is worth it. That's my plan. Millions or bust.

>>2269456
Very helpful but you need to report what you bought and sold them for on this form. I don't think you even read over this shit at all. I bought ETH with USD not BTC then traded it for BTC then traded BTC for USD. So what would I report I sold the ETH for since I have to report I bought it.

https://www.irs.gov/pub/irs-pdf/f8949.pdf

How does this entire board full of crypto trades not know how to pay taxes on them. Jesus christ

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>>2268993
>>2269060

Ok guys I figured it out!!! Well not really but I paid for bitcoin.tax premium service and you can just upload all your data onto it and it figures out the tax for you!!! YAY

https://bitcoin.tax/

>falling for the taxation jew
Unless you are making 100k+ a year then don't bother

>>2268877
>>2268844
This. I don't get these taxcucks. It's like they want to be poor.

Hahaha, ok noobs listen up. It is as simple as 1, 2, 3.

>register offshore individual bank account
>withdraw from exchange to the said bank account
>use VISA tied with bank account to make payments

Durrrr

>>2271545
Ok lets say i make 100k next year.. How would I explain my earnings to the IRS?

>>2271713
I'd rather not go to jail and have everything I owned seized by the FEDs

>>2271866
Lol jail

>>2271866
>Ok lets say i make 100k next year.. How would I explain my earnings to the IRS?
Basically the same as income tax. Just keep track of how much profit you made each month. Only if you cash it out into USD though. If it's still bitcoin then you don't have to report anything. If you want to be a faggot you can record every individual transaction.

>>2269132
According to the IRS ( https://www.irs.gov/pub/irs-drop/n-14-21.pdf )

Any action you do must be reported not just value at cash in cash out. You even fucking breath on that coin you better report it.

>>2271978
You have to report the transactions on the 8949:

https://www.irs.gov/pub/irs-pdf/f8949.pdf

So what im saying it lets say i make 10k this year and don't report it (sure probably nothing would happen ) but next year I make 80k. If i want to cash out I have to give a detailed report of every trade including when you bought and sold it and I would have no way to explain the extra money without lying. You'll pretty much be fucked if this happens. If you get caught lying they will put you in jail. Might as well pay the taxes desu.. They aren't much different than income tax.