>if i trade btc/USD and eth/usd pairs on gdax, will i owe

Yes small capital gains tax. I withdraw daily and have a ledger. About 50% of my profits goes to freedom.

And you have to pay quarterly. This is of course only if you choose to be honest.

I have a family so I don't want the tax man to come knocking. A shitload left after taxes from a fuckton before taxes, is still a nice chunk of change.

>>2815211
Do you have to pay if you use BTC to purchase another cypto?

>>2815211

50%? Are you in the US? That's ridiculous...thought it was closer to 25-33%.

I dont know to be honest. The only thing I'm concerned about is paying taxes on the money I withdraw exiting.

Money I'm moving around in the crypto world is in the crypto world with not so clear rules. When I leave crypto world and reenter old economy with gains I pay on those.

I talked with CPA that specialized in crypto taxation and got a nod of approval for this strategy.

>>2815228
He might be Canadian. Canadians have a 50% capital gains tax.

>>2815211
50%? Get an accountant or tax lawyer. No way 50% should be going to tax. Even if you are making over 250k a year, your top marginal rate is 39.6%. Id recommend setting up an llc or s-corp that does the investments for you to reduce your income on that.

>>2815238
>Money I'm moving around in the crypto world is in the crypto world with not so clear rules. When I leave crypto world and reenter old economy with gains I pay on those.
Can you go in depth? I would hate to get fucked over by the tax man because of crypto

>>2815238

so you are saying if you have USD profits sitting on your coinbase/gdax wallet, you aren't worried about it until you withdraw back to your bank account?

>>2815228
25% Fed 15%Selfemployment 5% state fuck the USA.

I high ball the numbers so I don't every owe. I also am using that tax guy this year due to much larger gains.

>>2815252
until they are withdrawn back into my bank account it is my understanding that you haven't realized profits.

You can dodge small gains tax by holding over a year I think. I daytrade and like I said have a fmaily so I need the money today.

File: bitcoin price evolution.jpg (241KB, 2954x939px) Image search: [Google]

241KB, 2954x939px

This is why only buy and hold.

>>2815251
Sure.

If I'm trading ETH and LTC today and bought them at $150 and $50 each and the market is being diffficult or slow, I may shift over to another coin with more volume/volatile.

When I exit ETH or LTC on the exchange to go to a new coin I don't consider the money I have made on those two coins to be taxable. I'm simply readjusting my portfolio and moving into a different area.

Now, say after moving out of ETH and LTC into XMR I end up making .25 to .50 BTC I withdraw to Coinbase or Gemini then sell back into my bank account.

That is me reentering the old economy with new money, thus I pay taxes on it. At least thats what me and the tax guy have come up with. haha

>>2815287
You shouldn't be paying self employment tax on capital gains. Your tax guy should be able to structure this for you so that you owe way less (or verify that you do owe SE tax - in some cases you do). Get to that tax guy soon.

File: 1386560080.jpg (44KB, 720x480px) Image search: [Google]

44KB, 720x480px

>>2815347
Yeah... he needs to be informed!

>>2815347
Thank you I will look into it. He said it may be cheaper to form a business or llc type thing so all things related to trading become deductions. (i.e internet cost, trading fees on the exchanges)

Its a fucking headache trying to do it legit, and I see more and more why no one in the US even tries to make it on their own. Government makes it as hard as fucking possible to get rich.

>>2815333
Well it's good enough for me because there is literally zero info on what to do

>>2815383
I don't think there is anything definite on paper as far as crypto goes except for small and larger capital gains.

That's how early in the game we are. The government hasn't found a way to effectively tax it.

Let that sink in. :)

>>2815402
I thought you had to pay taxes when moving between crypto, I would have made so much money if I had just moved everything to tether in the last dip

kms

>>2815402
It's treated like any security where when you "realize" an actual gain on it (convert to fiat) you have a taxable event. I doubt we will ever get taxed on crypto differently than on stocks and securities.