Can someone explain the legalities of crypto for me? I'm

>>3175715

Anyone able to provide some insight?

when you cash out to $ you just pay the tax

File: IMG_0164.jpg (255KB, 1914x745px)

255KB, 1914x745px

Bumping

>>3175741

From what I've been reading that couldn't be further from the truth.

Depends where you live, here in Aussieland you pay capital gains tax on sales of crypto to fiat over $10k AUD.

>>3175763

It looks like in the US you're expected to keep careful track of all trades and to report capital gains / losses for every. Single, transaction.. but I don't know how that could possibly be right?

>>3175756
Thats the truth though
It would be ridiculous to document every single trade. And pointless as fuck.

Pay tax on profits earned at end of the financial year
That simple

>>3175773
if you can find even one person who has done that i'd be really surprised.

>>3175756

The IRS just wants "their share" of whatever profits you make.

If you pay they do not give a fuck about your accounting.

>>3175773
is it possible to just pay taxes on what you know you profited off of but not file every single transaction? seems very fucking annoying to do that, I know what I started with, so I know what I'll be paying in the long run

>>3175715
>>3175773

that probably goes for stocks where you are always trading with fiat

in crypto, it's a bit obscure and you can probably get away with not reporting your trades because every trade is with other cryptos. there's also NO POSSIBLE WAY the irs can track your every trade because guess what...CRYPTOS ARE ANONYMOUS TRADES. EVERY TRADE IS ON THE BLOCKCHAIN ONRY.

when you cash out however, you will have to report it as you are now trading with a fiat pair. just pay the taxes when you cash out and you'll be good.

>>3175773
>>3175775
>>3175789
>>3175800

I understand the IRS just wants their share. But how the laws read it seems like we're supposed to log and report every individual trade.. not just cashing out..?

>>3175855
you are right. and irs is def monitoring. you can buy crypto local with fiat and transfer without exchanges, but if you're trading you're fucked. every transaction is short term cap gains assets.