Do you have to pay taxes on crypto in the US? It doesn't

>>2514925
If you cash out at an exchange you will have the IRS at the door if you suddenly gain tens of thousands of dollars, so you will need to pay capital gains tax


LAND OF THE FREE

>>2514956
This. Be wary of digital trails.

>>2514956
Is there a minimum amount that would need to be reported? Also wouldn't you just have to wait for tax szn? Why would the IRS immediately get on your ass?

>>2514974
I'm wondering the same. If I pay all my cap gains tax at tax season why would they be coming after me immediately?

>>2514956
Just tell them you held them for more than a year before you cashed so you at least only have to pay 15% on it. There's no way they're going to know anyway.

>>2515023
I heard cryptos are one step down from money laundering. I'd be careful with that stuff.

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If I trade in a US exchange from the UK and I make "USD", do I owe the IRS anything?

>>2515058
Yes, all of it.

The limit is ~30 K for a single person and ~70K for a married person. That amount is tax free, and you pay 15% if you make any more

>>2515132
This only applies if crypto is your only source of income.

>>2515023
I'm thinking (or at least hoping) that what the dude meant is that the IRS will be at your door at tax szn

>>2515167
>>2515132

Wait wait wait wait. Citation needed.
crypto IS MY ONLY SOURCE OF INCOME
DOES THAT MEAN I DON'T HAVE TO PAY TAXES

>>2515365
>Relying on 4chan citations when it's your own ass that will be fucked by the fed
Yep you're a retard

>>2515024
no way they will know. until coinbase is forced to hand over records that clearly show you purchased them less than a year ago. idiot.

>>2515167
No, which is why most NEETs on here dont even have to worry about capital gains tax.

If you fall in the 25% tax bracket or any other tax bracket from a higher income then you have to pay capital gains taxes. So if you are like a NEET meaning you dont have a job you only have to pay cap gains if your income is somewhere above 30k from crypto. Remember to report it anyway.

If you are wagecucking then add your crypto income to your regular income. If you fall in the 25% tax bracket because of your extra crypto income you now have to pay 25% income tax plus 15% on your crypto and any other cap gains.

This is so we can pay for degenerate social welfare programs and a horribly inflated military budget which at this point is also another degenerate social welfare program. if you are in the military you now exactly what I am talking about.

>>2515132
>>2515167
This is correct. cashing out crypto counts towards your income for the year. if you're a single neet who makes no other income you can cash out around 30 grand and not pay a dime on it legally.

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>buy crypto anonymously for cash
>sell crypto anonymously for cash

>>2515480
And never spend it on real estate, land, lambos, or anything fun ever unless you want to get fucked by the IRS. I guess it works for someone who only needs to budget for a 4chan pass once a year and some ramen but the rest of us won't fair so well. Especially with actual gains.

>>2515365
If crypto is your only source of income and below around 30k/year then you pay the regular 15% income for that tax bracket. If crypto nets you more than 30k/year then you have to pay 25% income tax plus 15% on your cap gains, which if crypto is your only income and only cap gains then they basically tax your income 40%.

If you have a job and add your crypto gains to your job income and you still fall in the 15% income tax bracket then you just pay 15% on all of it, but if your job income leaves you in the 25% tax bracket then you have to pay 15% on any cap gains including crypto, or if your job income lands you in the 15% tax bracket, but then your crypto earnings bump you to the 25% tax bracket then you have to pay 25% income plus the cap gains on crypto and any other cap gains.

>>2515465
>>2515441
>>2515365
I looked into this for stocks before and I remember it being for long term capital gains only. Double check before you report 30k of short term gains thinking itll be tax free.

Also, if you make 50k long term with no other income, it gets taxed in brackets so the first 36k is tax free and next 14k gets taxed in that capital gains bracket.

>>2515465
No dummy its still income so you still have to pay 15% if you cashed out <30k. If you made more than 30k now you have to pay 25% income plus 15% fr cap gains.

/biz/ is retarded.

>>2515441
Military pays for my crypto, but don't make that much for being a network engineer 50k/year

It's the pensions that are fucked for 20+yrs

>>2515545
Correct. And don't forget about some other loopholes. Say you make 50k a year at your job. And you want to pull out 14k of profit from crypto. You would normally pay 15% if held over a year and regular income tax rate if held less than a year. However if you gift someone that crypto, and they are low income, they don't pay capital gains when they cash it out. So say you "gift" it to your pothead friend who makes like 5k a year at a pizza shop. You can gift him up to 14k a year and you don't pay any tax and due to his bracket he doesn't pay capital gains. He can just hand you back the cash and you're good to go.

Now in this same situation say you're still making 50k. You could go find a friend and get married so you can file jointly that year. then you could pull out up to 20k or so of crypto and still be within the income bracket to not pay long term capital gains on it.

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>>2515548
Not on long term. Even on short term you could cash out like 12k before seeing any tax due at all.

What if I cash out around 75K in the course of a month through Coinbase directly to my bank account? Will I be good if I just print out my purchase history and use that at the end of the year when I file my taxes?

>>2516263
Source: https://smartasset.com/investing/capital-gains-tax-calculator

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>tfw ukfag trading on kraken
>suddenly realize you might have to deal with the IRS

>>2515436
Please use proper grammar... I have no idea what the fuck you're trying to say.