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21160268 No.21160268 [Reply] [Original]

Just beware If you check no, and you’re lying. The IRS will destroy your life.

>> No.21160425

>>21160268
Why would I check no?

>> No.21160463

why is that?

>> No.21160499

>>21160268
Chainlink is not a currency

>> No.21160536

>>21160499
hyper woke alert

>> No.21161107

>checked yes
>wrote off my losses

>> No.21161143

>>21160268
>all in XMR and checking no.

>> No.21161215

>>21161143
If all in is .85 cents you're probably gonna be ok.

>> No.21161289

>>21160268
How about I check neither?

>> No.21161453

>>21160268
didn't even know this was an option..I use turbotax, and automatically assume "virtual currency" as online poker chips.

>> No.21161554

What if you were unemployed that year and still traded crypto?

>> No.21161623

>>21161554
surprised you're not in cuffs yet

>> No.21161650

>>21161554
Threshold for filing is 5k income. If you made less than that you don't have to file.

>> No.21161762

>>21160499
chainlink is not virtual either

>> No.21161770

>>21161650
I see. How would it work then if, say in years after the unemployed, unreported year with crypto trading, I wanted to take potential gains (and was working at that point, thus requiring tax filing)? How do I not get fucked by the IRS?

>> No.21161795

amended tax return
checkmate

>> No.21161827

has anyone ever gotten audited for crypto?

>> No.21161879

>>21161650
This...
OP is retarded and probably got scared by some other retard. We all know that the massive majority of people on this board don't meet the threshold.
Coinbase, which I know all of you faggots are using, states this clearly around tax time. This thread makes me think that all you faggots just bought in like a month ago or something.

>> No.21161895

>>21160268
there's no tax for hodling

>> No.21161921

>>21161143

and did you buy that anonymously? if not you better check yes

>> No.21162015

>>21161650

Wrong. Try $12,400. (Standard deduction.)

If you make more than $400 freelance income, then you need to report.

At the state level it varies.

>> No.21162051

Yes.
>writes off losses for free tax deduction.

>> No.21162052

>>21160268
Kek why do you irs shills keep trying to spook people here? There are multiple threads up relating to irs niggers

>> No.21162085

>>21161770

Why would you get fucked? Just state cost basis, your gains, and pay what you owe. Act in good faith, don't try to hide things, and you should be just fine. The IRS wants you to pay up like a good boy, they're not actively looking to fuck you over unless you're actively trying to evade taxes.

>> No.21162110
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21162110

>>21160268
this actually counts wow/runescape gold
fyi
gonna be cool when teenagers go to jail for not reporting their fortnite vbucks

>> No.21162196

>>21162085
Oh I was under the impression that if you failed to report on that specific year, then it's a red flag or something. So how would I then report x year crypto trades on y year report?

>> No.21162246

>>21160268

If you are worried, just pay any gains when you cash out as short term capital gains instead of long term. They wont care then because they will have been paid the max.

>> No.21162275
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21162275

>>21162110
>getting taxed on video game gold
sounds like a self defense situation GAMERS RISE UP

>> No.21162294

I only buy tokens. Not currencies.

>> No.21162309
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21162309

>>21162246
>Just pay double the taxes you actually owe

>> No.21162339

>>21162196

I mean, if you didn't make more money than the standard deductible, why would they care? Think about it. You wouldn't owe them anything.

Why would you need to report x year's trades on y year's report? I don't understand the question. Year x is year x, year y is year y. If you didn't exceed the standard deduction in year x, you didn't owe anything that year.

AFAIK the only exception to this is FICA - if you work independently you have to file if you make anything past $400 so you can pay your social security and Medicare taxes that would ordinarily be extracted from your checks in a regular job. But crypto trades aren't the same type of income; they're either short-term cap gains or long-term, and FICA doesn't apply.

>> No.21162345
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21162345

>>21160268
>>21162110
I have a stack of emeralds on a minecraft economy server am I ok?

>> No.21162351

>>21161107
based

>> No.21162381

I traded about 15 dollars along three or 4 coins

How much taxes do i pay on that ?

>> No.21162393

>>21162345
you have no choice but to defend yourself against the IRS preemptively through their bedroom windows at 4am, in minecraft

>> No.21162417

>>21162381

100%. I'll give you the IRS's Bitcoin address you can send them to

>> No.21162461

>>21160268
>the irs will destroy your life
no they won't, they'll ask you kindly for your money and if you play nice they'll help you figure out and pay what you owe plus a little extra

if you're ultra uber retarded and try to hide or fuck them over, then you're going to big boy jail

>> No.21162466

>>21160268
“I do not recall”

>> No.21162496

>>21162466
also, this

>> No.21162504
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21162504

>>21160499
so you never took your link off exchanges? or you wouldve needed to get some gas

>> No.21162524

>>21162339
Considering that crypto to crypto is a taxable event, I thought that any profit based on the cost basis of the coin at the time of trade would still apply if I report it years later. But if/when I go to "cash out" on year y, wouldn't I have to report the trades from year x? I'm just trying to make sense of it

>> No.21162672

>>21162524
>crypto to crypto is taxable
proof?

>> No.21162750

>>21162672
Its true in the US at least.

>> No.21162757
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21162757

/biz Oldfag here. We saw these tax shills come out from their holes during the 2017 bullrun. They mostly operate during Israeli time and their job is to scare retail investors out of the market. The fact is that if you are a US citizen that makes under 40k (the vast majority of US citizens) you pay no capital gains taxes. Legally speaking, cryptos have been classified commodities and there should be no tax on commodity to commodity exchange (they were never classified as securities, go ask the CFTC).

That said, it's important for you to protect your money in case regulations change. Use a VPN or Tor to hide your IP when using a wallet or exchange. Use non-kyc exchanges like flame.exchange, saturn.network, logicDEX, uniswap, balancer etc. Invest in privacy projects like XMR and 0xMR.

>> No.21162781

>>21162524

Yes, crypto to crypto is a taxable event - in the year in which it occurred. If you made gains in that year that you OWE taxes on - IE gains that exceeded the standard deduction and personal exception in that year (Trump rolled the exemption into the deduction with his tax bill, so now it's just the lump-sum personal deduction) - then yes you should have reported those and paid what you owed.

But if you didn't owe anything that year, I don't know why you would have to ever bother reporting them. If the IRS asks, then yes, give them your trades from that year. They may ask, I suppose it's possible. But if you didn't owe them anything then you have nothing to worry about. If they decide you *did* owe them something, check your records and pay if they match; otherwise dispute.

When you cash out soon, you do have to report the cost basis on what your selling - so you have to check the price at which you bought the holdings that you just sold. But the entire trade history, no, I don't see why that would be necessary.

Again, the IRS may *ask* you for past years' trades. That's their prerogative. But you shouldn't be worrying about it unless you neglected to pay anything you may have owed from those years. And even if you forgot to pay something, you'll probably just have to pay a little interest. You aren't going to jail unless you willingly and knowingly try to evade taxes.

>> No.21162785

>>21162466
kek

>> No.21162787

>>21162750
proof?

>> No.21162810

>>21162393
I already have quick charge IV on my crossbow

>> No.21162811

>renounce us citizenship and move to signapore

Fuck the us and fuck niggers!

>> No.21162815

>>21162787
>>21162672

https://cryptotrader.tax/blog/when-do-you-owe-taxes-on-your-bitcoin-and-cryptocurrency

Here, dumbass.

>> No.21162875

>>21160268
Fuck off IRS.

Just the daily thread by the IRS agent trying to make his job easier. Go fuck yourself.

>> No.21162884

>>21161650
Cool i only made 500k guess im ok

>> No.21162892

>>21160268
How do they know unless you used your bank account to buy in? Will they really go through all our wallets?

>> No.21162957

so if I just don't have a job the year I decide to cash out I don't owe capital gains? sounds based.

>> No.21162984

>>21162815
Nah I'll just pay capital gains based on my cost basis and what I cash out in fiat. Close enough and fuck off IRS cuck

>> No.21162994

>>21162875
this. all IRS niggers must die.

>> No.21163173
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21163173

>>21160268
VERY STRONG BUY SIGNAL, UR GLOWING. COME AND FUCKING GET THESE TAX DOLLARS MOTHER FUCKER.

>> No.21163318
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21163318

>>21163173
What about my WOW robux and minecraft coins. I sell them on ebay do I have to pay taxes too? My mommy and daddy will get mad at me.

>> No.21163349

>>21160268
Why don't you burgers just move to a fucking tax haven before dealing with crypto? Damn

>> No.21163385

>>21162875
>>21162757
What makes it so that crypto to crypto isn't taxed? I thought they were securities if they had an ICO?

>> No.21163432

>>21160268
It seems like a touchy subject. If you have enough money to warrant minimizing your tax duty, how difficult is it to legally pull this off with minimal strings attached?

>> No.21163464

>>21163432
>>21163349
Tagged wrong poster.

>> No.21163915
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21163915

>>21162345
You're getting Waco'd, bud

>> No.21163953

>>21160268
Why do people stress so much over this. I've been reporting for three years. Paid taxes. Sent them thousands of transactions. They took their money and everything was fine.

>> No.21164031

>>21162781
>>21162815
So if I have an altcoin, swap it to USDC, cash out the USDC to USD, I pay taxes on both transactions?

>> No.21164045

>>21163953
I'm worried I'll owe more than I have or I'll have to sell something to pay it off which would mean less gains and another tax. Do they tax conversions the same way as when you sell for fiat? Is there a percentage?

>> No.21164063

>>21163953
Fuck off IRS

>> No.21164092
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21164092

>> No.21164130

>>21160268
I lie all the time to the IRS.

>> No.21164160

>>21161650
NEETs win again

>> No.21164168

>>21164031
yes, assuming you are in the US, you pay taxes on every transaction, but obviously only if you made money on it
ie:
>trade altcoin for USDC
if your cost basis for the altcoin was $100 and you sold it for $110 worth of USDC, you made $10 profit and will owe capital gains tax on that transaction.
>cash out the USDC to USD
you most likely didn't gain/lose any money if it's 1:1 so no tax implications here.
similarly, if you lose money on a transaction (say you used 0.5 eth ($200) to buy a shitcoin, shitcoin dips and you sell the shitcoin for 0.25 eth ($100), you have $100 of capital losses which can be used to offset capital gains

>> No.21164184
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21164184

>>21161827
Let me tell you about audit rates...

>> No.21164199

>>21164168
Ah ok. I didn't think about the 1:1 ratio with the USDC. Thanks for clearing that up.

>> No.21164206
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21164206

>>21161827
>>21164184
They're nice and low in normal times...

>> No.21164217

>>21160268
unironically what if I report coins that lost me money but not those that made me money?

>> No.21164230

>>21162524
All that matters is what you sell not what you buy. If you make under the standard deductible in a year, then you would only mark down your most recent purchase as the initial investment. How you got the funds for that purchase in a year below the standard deductible doesn't matter, even if it was crypto to crypto.

>> No.21164244

>>21161827
>>21164206
But with crypto, you're betting on the government/USD collapsing. And it's a hypothetically giant tool for capital flight.

So you can see where that leads.

>> No.21164278

Pfft I was in crypto 2017-2019 and didn't report shit. The gains I made were laughable and they went straight to bills so fuck them.

>> No.21164294

>doesn’t file taxes because hes a neet
fuck irs anyways

>> No.21164323

>>21164217

Fraud. Jail.

>> No.21164377

All I did this year was buy link, some XRP and then turned $60 of XRP into link. Not ever selling. IRS can fuck off.

>> No.21164446

>>21164184
>>21164206
Only 0.45% for 2019.
Am I an idiot for recording every single trade and being totally honest?

>> No.21164535

>>21160268
Financial interest?
No, fundamental.
Guess that's a no from me.

>> No.21164588

>>21164446
Peace of mind. I'm doing the same.

>> No.21164613

>>21163953
Glowing

>> No.21164824

>>21164446
Like >>21164588 said, not at all. You can run the numbers of stress + fees + having to pay the taxes anyway if you get audited vs. the savings for rolling the dice if you don't.

Keeping an extra ~20% really may not impact your life as much as looking over your shoulder constantly.

>> No.21164880

>>21164446
No, I'm doing the same. I'd rather just lose out on some gains and not have to worry about getting audited.

>> No.21164959

I don't know what THAT means. I'm retarded.

BTC is not called anything else.

Fuck off

>> No.21165056

>>21161650
What if you made -90k? A-asking for a friend

>> No.21165087

is there any software where you input your public keys, and the amount of fiat you've spent and calculates your gains/losses?

>> No.21165116

>>21165056
L-linking for a friend https://www.investopedia.com/terms/c/capital-loss-carryover.asp

>> No.21165213

>>21165116
I actually asked my accountant friend who works at Deloitte and he said nothing is more misunderstood than this law, the limit for capital loss carryover is 3k FROM OTHER SOURCE OF INCOME.
If you lose 300k in 2009, due to poor investments, you can only write off 3k of it from OTHER INCOME (like your job), but if you make 1 million the next year from investments you can write off the full 300k. Bankers and hedgefunds would literally go broke if it worked any other way. I hate how newfags always fall for this stupid bait.

>> No.21165226

>>21164880
It makes no difference to me getting audited vs having to conjure up all my trades from dead exchanges as it is.

>> No.21165490

>>21165213
You can only claim up to 3k deductions against your ordinary income (AFTER capital losses are measured against capital gains), but capital losses have no limit on offsetting capital gains. Is my understanding correct?
What exactly were people thinking otherwise? I don't see how you could misunderstand it
Are you saying some people thought you could only use $3,000 in capital losses per year, even against capital gains? LOL

>> No.21165500

>>21160499
based

>> No.21165551

>>21161762
virtual currency is a compound word. it means near currency. They could argue chainlink is close enough to be a virtual currency.