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TAX THREAD
Been lurking for a while, have seen people argue the following tax tactics (people with measly $500 blockfolios need not read this, no one cares if you pay taxes. This is for the 100k club members and above)
Route 1) Only pay taxes on gains you've realized (aka cashed out from coinbase into fiat). The rationalization behind this is that the IRS has deemed that crypto is to be treated like property. Therefore if you 1031 exchange every time you trade, you will only pay tax on the final amount of gains.
Route 2) Literally calculate every single profit/loss from every single trade you've ever made, because technically every time you trade a coin you are "selling" it and thus must pay tax on profits you've made.
Discuss
>pic related. MFW the IRS' giant cock ass rapes you
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>>3293240
btw for anyone that cares: for sauce on OP's pic just google "alli rae blacked"
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Why would I buy shitcoin fiat.
>Unlimited supply
>Centralized
>Inflation
Topkek
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>>3293255
We know that the source is BLACKED
You don't need to tell us
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>>3293240
>log into exchange from russian VPN
>trade all eth for XMR, withdraw it
>tell gubbamint you got hacked
what is stopping me from doing this?
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>>3293269
But goyim, without the source how will you develop a debilitating addiction to observing the degredation of your people? Better safe than sorry!
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>>3293269
Bunch of cucks around here.....
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>>3293240
>Route three
Never trade on exchanges that take KYC information
Sell coins on Coinbase claim long term gains on every sell.
Have been doing it since 2014.
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>>3293240
Jesus fuck just hire an accountant. They only cost like $200 for a few hours of doing your taxes, which it probably won't even take that long.
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>>3293344
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>>3293240
smart money says 1031 like kind exchanges will NOT be allowed, and all trades will need to be taxed.
ex: IRS does not allow like kind exchanges between gold coins and silver coins, so they will not allow them between BTC and ETH, especially for speculators like us.
https://klasing-associates.com/possible-1031-exchange-bitcoin-ethereum-electroniccrypto-currencies/
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>>3293240
I'll worry about taxes 5 years from now when I've got millions to cash out. I'm sure by then the tax issue will be fairly straightforward. Until then I've got nothing to claim.
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>>3293434
don't larp
also no one fucking pays a maid 100 bucks an hour to do their quarterly taxes unless you are fucking them
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>>3293381
>we have decided to retract this, please see this link
>link is a 403
In other words they don't have a clue either.
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>>3293486
yeah, pretty sure that just happened today. I had the link saved so I just saw it now too.
fuck me running.
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>>3293381
The IRS LITERALLY said crypto currency will be treated as property. 1031 means like-kind exchange, in fact 1031s are most commonly used in real estate.
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>>3293255
Glad we got that out of the way
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>>3293530
I know, but the key difference here is we are "professional traders" ie: speculators in the eyes of the IRS.
we're not buying a owner-occupied house to shelter our wife and child here on /biz/, we're trying to make as much fucking money as possible by any means necessary.
that's why I don't think the IRS will allow 1031 exchanges between cryptos, unless you have a one-off situation and the help of a tax attorney.
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Stupid question.
What if I started mining in 2011 and now I want to cash out, I never bought at an exchange or anything, how are my taxes calculated in that case?
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>>3293586
you're EXCHANGING the bitcoin for fiat.
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>>3293586
You still pay tax but you can claim power and hardware expenses back.
>Goodluck figuring out your realistic power expenses over the last 4 years
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>>3293530
https://www.forbes.com/sites/greatspeculations/2017/08/15/cryptocurrency-traders-risk-irs-trouble-with-like-kind-exchanges/#db63a1926a8b
odds of it happening are slim
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>>3293240
just cash out via btc card unless you wanna buy a house with gains or some shit
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>>3293240
Route 3) Move to some other country and live like a king.
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>>3293563
>I know, but the key difference here is we are "professional traders" ie: speculators in the eyes of the IRS.
>we're not buying a owner-occupied house to shelter our wife and child here on /biz/, we're trying to make as much fucking money as possible by any means necessary.
This actually has very little to do with whether the IRS would classify you as a professional trader. What's more important is how many trades you average daily. I'd say that those of us who hold for longer than a day on average are fine while the daytraders are fucked.
>>3293586
Technically you were supposed to be claiming those every year as self-emplyment income at the price they were when they were mined. Good luck with that, I'd probably say fuck it and say I bought them from someone.
https://www.irs.gov/pub/irs-drop/n-14-21.pdf
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>>3293652
Fuck you. If I go mining and find gold on my own property do I have to pay taxes on that? BTW if I gamble with my own income which has already been taxed, explain why the fuck I should have to pay taxes on my winnings after taking on 100% of the risk? I don't get a tax deduction from my income for losses.
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>>3293240
unfortunately it's route 2
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>>3293240
Newfag here, what percentage of your crypto gainz do they take in the US?
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>>3293761
>Fuck you. If I go mining and find gold on my own property do I have to pay taxes on that?
You're supposed to.
>explain why I have to claim gains on gambling
Because that's what the tax code states.
>I don't get a tax deduction from losses
You can claim losses to offset winnings if you itemize.
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If you use a btc debit card is it considered a taxed event? I only used around 400 bucks. How would I go about filling this.
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>>3294093
When I say used I mean transferred btc to usd which was around 400 403 dollars that I bought gas and groceries with.
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>>3294115
Okay no problem thank you. Would this be considered capital gains or just exchanging as a tax? I want to do my taxes correctly.
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>>3293240
>paying taxes
>not cashing out via ATM
are you goys literal cucks?
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>>3293676
isn't that money laundering? a more serious offense than tax evasion?
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