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15593937 No.15593937 [Reply] [Original]

my father recently informed me that I cant turn my bitcoin into other currencys such as ETH without paying some sort of tax?

im based in the US and I cant really find any information regarding this subject. please advise

>> No.15593986

>>15593937
> I cant really find any information regarding this subject

are you an idiot? use google and ur boomer dad is right

>> No.15594025

>>15593937
yes dumbass.

>> No.15594037
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15594037

>>15593937
please advise haha god damn i didnt think i was checking my fucking microsoft outlook on a tuesday at 2:00pm with some dumb HR roastie to scared to type "let me know" because its a demanding non-pc verbal assault

>> No.15594061
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15594061

ok so how does it work? say i turn 1 BTC into 55 ETH then how much taxes do i owe?

>> No.15594086

>>15594061
post more frogs and ill tell you

>> No.15594094
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15594094

>>15594086

>> No.15594098

>>15594061
Depends on how much you gained since you bought the BTC that your now transfering.

>> No.15594131

>>15594094
download cointracker

>> No.15594203
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15594203

i have no idea what im doing and no one contacted me so im just gonna stay quiet, trade crypto, and play video games

>> No.15594346

>>15594203
based fuck the SEC

>> No.15594439

>>15593937
>>15594061
Essentially you just owe taxes on your gains for the year. Every exchange compares the fair market value of what you got (ETH) to the gain/loss you made on what you gave (BTC). So if you bought at $9.9 and sold for ETH worth $10.4, you have a gain of $500 x [amount of BTC].
The good news is you get to subtract your losses for the year from your gains for the year--so in the end you're just taxed on your total gain.
The bad news is the IRS treats exchanges of crypto like bartering, not like exchanges of stocks, bonds, etc. So you face a top tax rate of 35% instead of the 20% you'd get for capital gains.

>>15594203
Don't be a child, OP. The IRS doesn't fuck around. It'll take a lot more of your time working to pay for audit defense than it will to just start bookkeeping now

>> No.15594449

>>15594439
You glow

>> No.15594460

>>15594037
Holy shit i'm dying

>> No.15594517

>>15594439
>bookkeeping
Bookkeeping what trades? You can't make a single trade if you always have a 20% premium nobody else has.
>be burger
>find a once in a lifetime 19% arbitrage opportunity in one trade
>not worth it, wait for something better

>> No.15594566

>>15594037

kek

>> No.15594582

When did people forget that governments need you to break their stupid laws en masse? Next thing you know the EU will be demanding popup warnings on all websites with cookies.