Crypto tax

[Anonymous No.29337857]

Why are governments so fucking retarded and entitled? Oh, you traded your magic meme money for another magic meme money? Gibsmedat
Why not tax only what you cash out? Our your yearly fucking meme coins gains?
I wouldn't bat an eye paying 10-30% (or even more if it was a filthy amount) of the money I cash out at the end of the year, if it were this simple I would gladly pay my taxes and the government could save a ton of money since they only had to check with the bank or exchanges that I use to cash out. Simple, efficient, everyone's happy. Plus if it were that easy it'd be likely that less people would try to dodge taxes.

If you absolutely needed to pay taxes on crypto, no way you could dodge it, what would be the ideal system?

[Anonymous No.29337956]

Capital gains should be 0% for anyone making under $100k a year

[Anonymous No.29338067]

>I wouldn't bat an eye paying 10-30%
>37% (if you "made it")
>state income tax
>CPA fees
>tax attorney fees
I wish it was only 30%

[Anonymous No.29338349]

>>29337857
Plus more people would be making money by swinging between coins, which the government could steal from you. For example I could've swung my coins and been at $1mil by now but instead I'm only at 100k because I'm not going to trigger taxable events. Have fun with my 33k gov

[Anonymous No.29338456]

>>29337857
I'm retarded and I make less than zero in crypto.

[Anonymous No.29338487]

>>29337956
This. Retail investors on the low end make less money than corporate investments and major players. Who wrote this shit system? I invest in crypto to fuck it over.

[Anonymous No.29338498]

>>29337857
>>29337956
>noooo I shouldn't get taxed this much, much I'm not a rich guy, muh 1%, they have a lot more
taxation is teft you fucking retards
you're just angry because you happen to be the one taxed
guess what?, in india or south america you'll be in the top 1% of earners and everyone will think you will need to be taxed up the ass
it would still be the same money and you can buy the same things
you're pathetic and ngmi if you think this way, because you are setting a top bar for yourself relative to the rich arround you

[Anonymous No.29338575]

>>29338487
Sorry have more taxes removed I should say

Lol I’m horny and jerking off thinking about b00b13s ^__^” :-P :-P :::::——pPPPpPp

[Anonymous No.29338586]

>>29338349
You want to stay poor to stick it to the man?

[Anonymous No.29338667]

>>29337857
because governments are controlled by people who hate you and want to replace you with lower IQ populations who are not intelligent enough to overthrow the system & existing elites. Thus they squeeze you with taxes every way they can and hand those tax dollars to immigrants who reproduce at higher rates than you (partly because of the tax/wealth transfer I'm describing) until your demographic loses all political power and is subsequently crushed.

[Anonymous No.29338704]

>>29338498
Eh I think we need an army. If no one else paid taxes we wouldn’t need to pay taxes, but other systems exist so thus we must pay. I don’t understand how we spend this much on our military to be honest. We have enough nukes to destroy the world and Russia seems to be beating our ass by hiring a million people to spam message boards not to wear masks on Western populated forums, message boards and comments sections.

[Anonymous No.29338903]

>>29337956
anyone complaining about tax is already poor. the tax man is inevitable and people with money understand this. capital gains is also why millionaires pay less income tax than waitresses, so you really don't have anything to complain about

[Anonymous No.29339310]

>>29338498
>>29338667
>>29338903
I'm not complaining about the % taxed you mongs
I wouldn't mind paying whatever the current % is as long as it was an easy fucking process, and not something fucking retarded as it is now.
>Cash out ~1M
>pay ~400k or whatever
>done

as opposed to
>sell EGG for CAKE (or other even more retarded name)
>pay ???

[Anonymous No.29339703]

>>29339310
you're only having problems because you were retarded and didn't record the USD value of each coin at the time of the trade. that's literally all you need, it's the most basic shit. the tax system didn't change at all for cryptos, it's still straightforward and only tracks 3 data points, USD cost, sale date, and net gain/loss. that's it. but retard people like you don't track those 3 simple points and now you're fucked

[Anonymous No.29339927]

>>29337857

I'm not paying the tax kikes so they can feed their nigger hordes and neither should you

[Anonymous No.29340160]

>>29338704

I think Big Tyrone must plow your ass until you can't ever walk again for the good of the people so I convinced a bunch of guys to vote for that and to make you specifically pay for it.

Why do you retards get off on killing middle eastern kids for israel anyway? Was 23 trillion national debt for Israel's territorial wars not enough for you?

[Anonymous No.29340201]

>>29339703
So what actually happens if you didn'tt track it?

[Anonymous No.29340224]

>>29339703
But I'm never selling for USD until I cash out. It's not the same as other stuff e.g. stocks
It wouldn't hurt having a simpler system tailor made for crypto, specially since crypto is much more easily relocatable.

[Anonymous No.29340236]

>>29339703

Hahaha look at this proud slave

[Anonymous No.29340363]

>>29337857
Tether, USDC, and DAI.
Can't tax my unrealized gains if they're still in crypto.

[Anonymous No.29340384]

0% crypto taxes in many European states lolololllllllll

[Anonymous No.29340480]

>>29340201
you should consult an accountant, but if you don't have any record of your cost then you'll likely need to pay capital gain tax on the amount of the entire sale vs. just the net profit. if you have no records for anything, then i can't help you i have no idea

[Anonymous No.29340568]

>>29337857
There are things you can do to minimize how badly you get fucked in the ass by taxes.
>stagger your fiat withdrawals between different years. Taking out more all in the same year will land you in a higher tax bracket.
>don't withdraw until at least a year after investing in order to get long term capital gains rate
>swap to stablecoins on a DEX. Only declare gains when converting back and withdrawing to fiat (hurr durr crypto to crypto is taxable! yeah we know, just don't do it on a KYC'd CEX)
>stay within the crypto ecosystem as much as possible. For instance, don't withdraw to fiat just to wait until next year to start DCAing back into the bear market. Just park in stablecoins and swap back from there
>whenever possible, pay for small everyday things directly with crypto. Whether the payment process accepts crypto directly or using a crypto-backed debit card. Yes, technically you're supposed to pay tax on that too, but fuck off.
>if your amount is large enough, temporarily move to a state with no income tax before withdrawing.
>if your amount is REALLY fucking big, consider moving to puerto rico temporarily for no capital gains tax at all, just PR's local tax

[Anonymous No.29340590]

>>29337857
Lol I don't even pay regular tax

[Anonymous No.29340645]

>>29340384
If I do make some life changing gains I'll just move back to my motherland and cash out there lol.

[Anonymous No.29340702]

If you have millions might as well dissappear.

[Anonymous No.29340725]

im a cuck and genuinely want to pay my crypto USA tax but it's so fucking confusing for a smooth brain motherfucker like me. IRS gonna take all my money in a few years :(

[Anonymous No.29340843]

>>29337857
Reminder that XMR can't be taxed

[Anonymous No.29340858]

>>29340363
They can and will.

[Anonymous No.29340951]

>>29339703
>sold 500$ BTC
>received 500$ GRT
>difference of 0
Gee what a great system!

[Anonymous No.29340976]

>>29340568

Hey brainlet, the tax people still work on mainframes from the 70's. Just say some shit and pay some taxes if you worry about such bullshit. They aren't going to check. The whole idea of taxes is that they fearmonger people into paying because they can't do shit if you don't.

[Anonymous No.29341008]

>>29340384
For now.

It's actually cute that you think it won't come to your country.

[Anonymous No.29341046]

>>29340858

Fuck off jew, we'll send more niggers to Israel

[Anonymous No.29341094]

I lost all my XMR in a boating accident

[Anonymous No.29341173]

>>29340725
just use one of the many services that let you upload your trades and calculates the cost. it probably won't hold up too well in an audit because you have no idea how the service did the exact calculations (the IRS checks for price ticker cherry picking as an attempt to reduce your tax exposure), but it's better than committing tax fraud

>>29340951
you really are retarded man. the only taxable event there was the selling of $500 in BTC. you'd pay tax on the gain or loss from when you bought that specific amount of BTC. so if you bought that BTC for $500 previously, then yes you will owe $0 tax because there was no gain or loss. if you bought the BTC for $100 then you pay tax on $400 profit from the sale of BTC. the GRT won't be taxed until you sell it now that you have a starting cost of $500. sell the GRT for $1000 and you'll be taxed on the $500 gain from the GRT sale. it's really not hard

[Anonymous No.29341213]

>>29341046
I don't like it anymore than you do, but assuming you're in the US, they're going to expect their cut of any money we make so they can pass it out to free riders and illegal immigrants. If you know a way to avoid paying, I'm all ears.

[Anonymous No.29341337]

>>29337857

Listen to this as you do your Taxes. Makes it easier:

https://www.youtube.com/watch?v=oZ94TcRqdq8

[Anonymous No.29341376]

>>29340384
Here in the Netherlands its 0 euro for the first 50k (100k if you have a partner).

And even then your profit is fictional. You are assumed to have made like 4% profit (and pay 30% taxes over just 4%). Which is fantastic in crypto.

[Anonymous No.29341445]

>>29341173
Yeah, I'm the moron and not this stupid ass bullshit system.
If I'm supposed to pay taxes on my money going up, I expect the government to give me money back due to inflation.

[Anonymous No.29341446]

>>29341376
So you don't have to keep records either. As your trades are irrelevant.

[Anonymous No.29341506]

>>29341173
What if you convert instead of selling.

[Anonymous No.29341625]

>>29341446
At what point does an American realize that he is bullshited about low taxes and in fact he pays the same ammount as Eutopoors?

My country is 15% on total profits, we don't even pay that as our IRS is made of illiterate boomers.

[Anonymous No.29341633]

[Anonymous No.29341658]

>>29341213

Call them racist on twitter and encourage them to hire even more incompetent diversity hires. I just don't pay. Haven't for years. Anything that isn't taken out of transactions automatically I just don't report it. Even with crypto you can buy gold and such without much hassle.

[Anonymous No.29341686]

>>29341506
still pay cause our government is jewish

[Anonymous No.29341725]

>>29337857
I would have been swing trading if I didn't have to worry about those taxes. They do this to keep you poor.

[Anonymous No.29341742]

Don't cash out through conventional means. Either buy gold or buy drugs to then later turn into cash.

[Anonymous No.29341757]

What about exchanges like if you’re a burger and have been using binance or huobi? Is the tax higher or do you get in trouble for using them?

[Anonymous No.29341796]

I’m curious, do they ask for documentation of every single trade? Why not just make some numbers up and just pay the tax on what you cash out?

Seems kinda like a scouts honor kinda deal.

[Anonymous No.29341840]

>>29338487
allowing this funny money is just for them to humor you. Crypto security means nothing with a gun to your head kek. Who were you to think you could go around the monopoly on violence

[Anonymous No.29341897]

>>29341506
You pay whatever the USD gains are at that time. It's retarded and I myself will go to jail before I do this. I am going to pay taxes on cex trades and realized gains, but I absolutely will not pay anything for my dex swaps. Absolutely fuck no.

[Anonymous No.29341898]

I spent the weekend tryin out different cryptotax software and finally went with koinly cause it was the only one that I had no issues with all of the different exchanges & stuff I used. It was actually pretty easy and fairly priced. Hope it did my shit right. It said for last year I had $1 for capital gains which seems funny as hell but I had left crypto for the last year and didn't do much in 2020. But i've done a lot so far in 2021.

[Anonymous No.29341932]

>>29341173
good goy

[Anonymous No.29341994]

>>29341173
>bought $100 BTC
>infinite number of trades can go here
>sell GRT for $1000
>tax those $900
>still keep the record of all your trades because anti money laundering legislation, just if it ever comes up

[Anonymous No.29342081]

>>29337857
You really think they know much money I have in my binance account?

[Anonymous No.29342185]

>>29338498
B-B-B-B-BASED!
It's a shame most people don't understand this

[Anonymous No.29342268]

>>29341994

It's cheaper to just pay a fine or go to jail if they can't prove shit. All they can really do is threaten you anyway since crypto can't be seized and they can't prove you control an address.

[Anonymous No.29342288]

>>29341173
Okay. Jumping in here, if I bought BTC at say $100, and then converted it to XYZ, when BTC was at a price of $70, that’d be a loss? I haven’t sold XYZ yet.

I’m at a profit from holding smartly from some things, I’ve only made a small number of loss trades and have annoyingly learned my lesson to just buy smarty. I actually want to get it right thx.

[Anonymous No.29342410]

>>29341173
which is a retarded system because:
Assuming tax of 40%
>$100 to $500 = $400 profit, $160 tax
>$500 to $1000 = $500 profit, $200 tax
>total taxes = $360
Whereas
>Starting capital $100
>make a ton of transactions
>final capital $1000 = $900 profit, $360 tax
>total taxes = $360
just track the difference from the starting capital, the result is the same.

[Anonymous No.29342500]

What's stopping you from using a third party ti cash out is some Euro country with much lover taxes and wiring the money?
Cant be 2x taxed as per international law.
Of course it would need to be someone you trust or an signed agreement etc.

[Anonymous No.29342571]

>>29341633
Kinda helpful. So doing coinbase’s free giveaways would be having given crypto, and is in of itself taxable as well? How’s that work?

[Anonymous No.29342770]

>>29341994
>>29342410
exactly

>>29342500
tax the third party
tax you
it's not double taxation just because it's the same money, what maters for international law is that you don't tax the same person twice for the same money
in this case you'd be taxing crypto gains for the thrid party and you for receiving a donation (presumably)

[Anonymous No.29342877]

>>29342770
Anon if you have made it in crypto, its your duty to make the best of it.
For if there is a will, there is a way.

[Anonymous No.29342997]

Hey, I’m not trying to be annoying but does anyone have any insight on my question please :(

[Anonymous No.29343286]

>>29340568
>>if your amount is REALLY fucking big, consider moving to puerto rico temporarily for no capital gains tax at all, just PR's local tax

Doesn't work that way, you have to pay tax on any gains from before you moved even though they are unrealized. I looked into it

[Anonymous No.29343998]

>>29343286
Prove that wallet is in my control. That is, if you even know about it.

[Anonymous No.29344557]

I don't get it. Is there anyone here who has actually received a letter from their country's tax authority which calls you out for a swing trade you did going from $NIGGER to $BNB back to $NIGGER? I don't buy it. I sincerely doubt these agencies have the manpower or ability to figure out your wallet address and track all of your trades. I mean, I'm sure they COULD do a special investigation with people that know how to navigate crypto, but for the average cuckposter on 4chan? Come on.

[Anonymous No.29344710]

>>29344557
If you are under a certain ammount it costs more to bother with you than they can get from you.

[Anonymous No.29344825]

I filed my return today. All I had to do was upload my Robinhood .csv file and it populated all my crypto sales. It will be more difficult next year, since I started using Coinbase. I’ll have to track my cost basis and account for staking rewards, etc. The only crypto I own is ALGO.

[Anonymous No.29344836]

>>29337857
does binance even report data to taxauthoritys asking as an europoor

[Anonymous No.29345183]

>>29344710
That's what I figure. Once you've made it, just put all your shit in a stable coin or keep it in btc if you want to take the risk. Then withdraw maybe $10k a month. This only seems like it could be a problem of you withdraw a huge sum of money out of nowhere which could trigger an audit. I imagine it's very easy to evade crypto taxes otherwise.

[Anonymous No.29345652]

>>29345183
If you're to the point you can withdraw $10k a month almost indefinitely, just bend the knee and pay the taxes, as someone whose fought the feds in court it's worth it to sleep at night and be able to buy big ticket items like a house or car outright.

[Anonymous No.29345921]

>>29345652
this. i think the more developed your country is the more risk you are facing. burgers are fucked on cex trading already. i think it will not be long till there are data leaks not unlike those with swiss banks where costumer data was taken by staff and sold to taxauthoritys. i guess if you live in some shithole you are fine.

[Anonymous No.29346053]

>>29337857
>Oh you traded your stock in company xyz for cash and then immediately bought company abc with that cash? No reason for me to consider the first transaction as P&L
This is your logic
You can bitch about taxes, but this is just a retarded comment

[Anonymous No.29346188]

>>29346053
>eth
>cash

[Anonymous No.29346564]

>wwwahhhhhhh i wannna be rich but i dont wanna pay taxes waaahhhhh

Just fucking make double to compensate. Whiny faggots.

[Anonymous No.29346861]

>>29342997
What was it

[Anonymous No.29347138]

>>29343286
Just wash trade it after moving, then claim it was earned while in PR

[Anonymous No.29347322]

>>29340201

Most likely, if you're really unable to trace several of taxable transactions, then you'll have to accept that you had a $0 cost basis on that tx. Happened to me last couple of years. Fortunately, it was only 5 transactions with minimal gain. Imagine selling 10 CORE at 8k with $0 cost basis, would've fucked a lot of people here.

[Anonymous No.29347404]

Hypothetically, What if I lost my wallet keys?

[Anonymous No.29347422]

So has anyone come across this shit on Coinbase Pro yet? Any idea exactly what "info" is missing? Like if they don't have my info that means they can't send my shit to the tax brigade anyway right?

[Anonymous No.29347836]

>>29342288
yes you can claim a $30 loss against your other gains. there is a limit to how much losses you can claim per year

[Anonymous No.29348175]

>>29347404
I also had this thought but I think I'm fucked since I didn't transfer to a wallet in 2020

[Anonymous No.29348397]

>>29347404
nothing will happen until your bank account gets hit with the real money and the automated suspicious activity reports go to the treasury. also you won't be able to use the funds to quality for anything like a mortgage, unless you plan on lying and going down that road. if you can manage to keep all the money out of the financial system completely, then congrats

[Anonymous No.29348602]

At least when you buy stonks you get a 1099 and it's easy.

[Anonymous No.29348619]

What if you buy a deflationary token used to create arbitrage in algorithmically balanced index funds and end up with a greater supply than originally

[Anonymous No.29348798]

>>29348397
Just use an ATM

[Anonymous No.29348838]

>>29338704
Defense spending is mostly defense contractor spending.

I know I guy that worked for Lockheed and they had some silly proprietary GEOINT system they were selling the air force that amounted to outdated laptops built like nextel i530s with some peripherals. This guy got sent to Best Buy to pick up HDMI cables to include in the kits and spent the day stripping the tags so it wasn't obvious they were just consumer grade HDMI cables - the Air Force paid $400 per HDMI cable.

[Anonymous No.29349330]

>>29338498
You are amongst the dumbest dumb shits to post. Bet you use roads, water, and utilites. Obviously there have to be taxes for a functional society. But no cap gains for people under 100k is a fair compromise. You want investment firms not paying taxes as they steal all the money?

[Anonymous No.29349358]

hey im a fucking idiot and have never had to pay taxes before. claiming losses would just mean i have to pay less tax, correct? Like the losses would just come off of the total tax?

[Anonymous No.29349528]

just be poor then he IRS doesn't care. they don't have time to audit poors and they don't want to audit poors anyway since they want $ not poors tears.

[Anonymous No.29349929]

>>29337857
Listen the IRS isn’t going to go after some faggot with 2k in gains, they want to biggest bang for the buck. If you’re in the six figure mark and you’re fucking moving money in and out of your bank you will get caught. Banks report large movements of cash to the IRS

[Anonymous No.29350166]

>>29337956
>Capital gains should be 0% for anyone
ftfy

[Anonymous No.29350198]

I have records of all my transactions thanks to Koinly but I just don't know how to file. The option for Turbotax that files virtual currency is like $100 which is absurd considering that I don't need to file anything else for my taxes (I'm a NEET).

[Anonymous No.29350366]

why the fuck is it the responsibility of the individuals to come up with the right amount to pay the govt their taxes, if they want what they think is rightfully theirs they should document everything and send me the bill instead of making me take time out of my day to come up with an invoice for them

[Anonymous No.29350455]

>>29350366
they used to send a bill, but this would piss people off and they would start asking questions like "why is my tax bill so high" and "why do i have to pay for shit i don't use" etc.

so the IRS changed the game, takes it out of your paycheck. they just dip their hand in their and scoop some of that income. and if they take too much it's up to you to get it back.

[Anonymous No.29350514]

>>29350166
Just make Jeff Bezos pay all the taxes

[Anonymous No.29350595]

>>29350198
you don't need to and shouldn't use their crypto option. just report it as "other" capital asset sales and it will go on form 8949 like it is supposed to. all you do is enter the name/amount, cost, sale date, and net proceeds and it populates the form correctly

[Anonymous No.29350681]

>>29338667
Hence why every filthy kike living amongst us has to be stripped of their power and deported back to their shithole Israel.

[Anonymous No.29350862]

>>29338575
>Lol I’m horny and jerking off thinking about b00b13s ^__^” :-P :-P :::::——pPPPpPp

[Anonymous No.29351123]

>>29340201
You treat the entire proceeds as a capital gain if you can't track the transactions.

I'm only really tracking some of the money I put into crypto because it has significant cash basis while most of my crypto money has a low cash basis (bought $20 worth back when it was cheap and forgot about it)