/biz/ - Business & Finance

Why would you pay taxes?

>>26436501
so the irs doesnt rape me. id rather pay them now and be done with it then have them audit me and fuck me over even harder later

What are the chances of the IRS auditing me and fucking me in the ass if I dont report 400k of gains?

>>26436663
They'd only do that if you were to cash out. Otherwise there would be no evidence of you having crypto whatsoever.

>>26436663
high

>>26436663
probably high enough for it to not be worth the risk imo.

anyone know if you need actual transaction logs or if you can just file with a $0 basis and use 'Various' for the dates? i assume if youre paying tax on all of your gains it wont matter but still would like to know

>>26436417
If you don't have actual transaction logs from when you bought in, you will have to pay short term cap gains tax (40%) instead of long term (20%) which fucking sucks

>>26436597
No taxation without representation faggot.
Taxes are for wagies.
You disgust me.

>>26436417
Just borrow against the crypto as a collateralized loan
No taxes + you keep your crypto and it's gains.

>>26436663
low

>>26437066
how the fuck does this work exactly? Loans come with interest though? How do you never pay off the loan? Is the loan from a bank? None of it makes sense. Do you plan on defaulting on the loan so they seize the crypto? Forgive my finance retardation

>>26437011
F i read that somewhere earlier but also saw i could also just file with a $0 basis. i might just hire a professional who has done it before before i fuck something up

>>26437049
taxes are shitty but i have to pay my bill somehow

>>26437066
where? and how does that even work more info please anon

>>26436417
Do I have to report unrealized gains? I just buy and hold.

>>26437651
no not until you cash out (at that point it becomes a realized gain).
there is talk about Janet Yellen wanting to tax unrealized gains but nothing has happened yet and other people would have to vote on it for it to ever become a thing (unlikely)

>>26437651
Under Biden you will. He’s already talking about unrealized gain taxes.

>>26436417
TaxBit

>cashing out in government fiat ever
>not moving to a tax haven
>not claiming a seat on the Kleros court
So much NGMI

>>26437392
>>26437502

You borrow against your crypto to buy actual investment assets. The revenue pays the loan. Once the loan is paid you have your crypto + an investment asset.
You haven't made it yet

>>26438139
What's confusing them is why you don't have to pay taxes on whatever financial boon those assets bring in.

>>26437710
Those are just Jewish fud tricks unironically

as long as i dont withdraw the usd from my wallets im fine right?

>>26439226
Yes but converting crypto to crypto is also taxable desu

>>26438053
looks like a nice service but i dont have my exchange account/transactions from when i bought in so doesnt look like taxbit would work

>>26439194
probably but i would rather just do it the correct way and reduce my risk here honestly

>>26439226
yes afaik. once it hits ur bank it becomes a realized gain

>>26436417
HEY FAGGOT only pay if you get a 1099 or other tax document dont fucking pay if you are not tracked.

Just take the total amount you've invested in crypto. Calculate the value of your holdings, factor in for any withdrawals you may have made, and figure out what you profited. Then just multiply that by whatever percentage your income bracket is (for short term cap gains) and pay.

>>26436417
keep a list of your buy prices and anything that can be a deductible, because crypto trading is a business. not sure what that entails, best to speak to a professional.

deduct the buy price and business expenses from the sell price.
this is your NET.
multiply the NET by your tax rates, which may be progressive.
pay the tax.

can't put a price on peace of mind can you?

What if you created a fake online business selling intangible shit (like a subscription maybe) and only accepted crypto payments. Then set up a solo 401(k) into which you can funnel 56k “profit” every year. I have no clue how viable that is, I just thought of it. Any anons have thoughts on it?

>>26438139
how do i borrow against my crypto to buy investment assets lmao this doesn't make any fucking sense to me. wtf revenue are you talking about. someone pls explain.

>>26440162
Like buying a house with the loan and renting it out.

I used CoinTracker this morning and made a thread, no one was helpful. Everyone is somehow comfortable accumulating 6figures from a 4 or 5 figure investment, and not expecting the IRS to butt fuck them if they get the chance. I’d rather be comfy with my money and not worry about back taxes.

I thought investments were a tax write off....

>>26436663
Will never happen as all previous institutions built on trust have violated their contracts due to crimes against humanity. This period prior to link replacing all contractual agreements is known as dark winter.

>>26436417
do I have to input get the price of eth at each gas fee I paid? or is there a website that gets that for me?

>>26441165
Koinly is good, not if they do that or not tho

>>26436417

If you don’t have transactions then technically you have to use a $0 cost basis on the SHORT TERM rate. Can’t claim long term.

Most of these tax threads are literally being made by low level IRS employees. There’s like a 1% report rate, they want to get those numbers up.

>>26437502

Obvious IRS post. Geez man, why are you working on a Saturday

>>26441519
this is pretty much what i figured, as there would be no way for to prove that it was invested for 366+ days, thnx.
>>26441552
and no just looking for advice. ive seen other threads that are just copy pasted daily and theyre usually ignored

>paying taxes
I shiggy diggy

>>26441519
But if you get like $40,000 (or a hell of a lot more) profit won't it raise red flags if you drop that shit into your bank account from coinbase?

Bump

>>26436663
look into magic circle banks in london

>>26442000

Of course. Why are you asking dumb questions IRS man?

>>26443497
Well I want to actually cash out. And I'm pretty sure there isn't any way to avoid tax while dealing with large sums of cash into your bank.

>>26436417
Just use koinly to track all your trades across exchanges and wallets. Hire a crypto-specialized accountant.

>>26436417
Oh I'm going to enjoy what you have

>>26436947
I want to know this.

>>26440445
Cointracker is alright. It has some bugs with the way they tack staking coins and can't really track ADA well. Can't track legrage trading well

>>26443739
cash out into stable coins and only real cash out to your bank little amounts like 4-7k every month.

i bought gold with my crypto. does this qualify as realized gains?

>>26437710
what if i cashed out so i could put it back into a different crypto through a different account?

>>26436417
>wallstreetbets start shilling on /biz/
>suddenly every other post is about taxes

newfag redditors mad that we are always ahead of them.