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6849972 No.6849972 [Reply] [Original]

>Bought 40 Bitcoins in 2016.
>Decided I would actively trade with 10, and leave the other 30 in cold storage and never touch them for a year to take advantage of long term capital gains.
>Buy and sell the 10 bitcoin hundreds of times throughout 2017 for alt coins.
>Import everything into bitcoin.tax
>Discovered that when you use the First In First Out method, you're not just trading with the 10 coins.
>According to FIFO those 30 bitcoins you bought a year ago and were sitting in cold storage were actually being "actively traded" because it keeps eating up the cost basis of the first coins you bought.
>They no longer qualify for long term capital gains.
>If I choose LIFO then those coins are left alone and my taxes are a thousand times lower.
>Call an accountant.
>Says I HAVE to use FIFO, I can't use specific identification or LIFO..

WHAT THE FUCK. THIS RUINS MY LIFE. Now I owe short term capital gains on a MILLION dollars instead of the small portion I was actually trading.

I can use LIFO right? This accountant is bullshitting right? WHY THE FUCK DO I HAVE TO PRETEND I WAS ACTIVELY BUYING AND SELLING THE COINS THAT WERE JUST SITTING IN COLD STORAGE FOR A YEAR?!??!

>> No.6850050

>>6849972

Take your bitcoins and run off to a third world country

>> No.6850071

Get a better accountant
This LIFO FIFO bullshit is "up to follow as is good tradition and accounting norms"
Its not in law, its not gonna get the IRS chasing you for chosing LIFO

>> No.6850112

>>6849972
Accountant is a fucking moron. Can you’re LIFO, just have to keep it consistent for all trades. Take your money elsewhere this guys gonna work you

>> No.6850122

>>6849972
Just call a different accountant.

>> No.6850143

>filthy bastard gets justed
I don't see a problem. I hope you die in a car accident, fuck face.

>> No.6850184

>>6850143
That's not very nice.

>> No.6850186

Alternatively: On the next accountant, say you lost the other 30 coins when you put it in cold storage. Conveniently find it later.

>> No.6850253

>>6849972
If you can show the coins were stored in seperate account then you should be fine. Accountant might not know the difference.

>> No.6850328

This is hikikomori larp

>> No.6850404

>>6850112
>>6850122
>this
Only pay an accountant who will help you do what you want. Don’t pay some douche to help you lose money

>> No.6850521

>>6850143
>filthy bastard
where did he get that from? kek
the dude just talked about his gains and THE MAN trying to dildo up his ass

>> No.6850540

Brainlet Amerifag here.

If I spend this year trading crypto-to-crypto and never cash out, will I still have to file it on my taxes?

>> No.6850616

>>6850112
Thank fucking fuck. You got any sources that say I can use LIFO? If I use FIFO I have a 1 million dollar short term gain and owe like $400,000. If I use LIFO I have a $300,000 short term gain and owe about $100,000. Worst part is this is all on crypto to crypto gains, not on anything I cashed out, and my portfolio lost value this January. I'm paying taxes based on peak prices of last year.

>> No.6850640

>>6850540
Yeah. On any year. The accountant also said "Like-Kind never applied" I think he's right on that one.

>> No.6850657

Run it on 2 separate schedule Ds like you would if you were trading stocks in 2 separate brokerage accounts.

>> No.6850658

>getting justed

My CPA looked at trade export, said there were (6) ways to report them.

>> No.6850723

>>6850616
your source can be me, a CPA.

for a better excuse, crypto is a non-security property. that means you can use whatever method you want.

you should already find a different CPA if he's giving you trouble this early though. just find one that's from big 4 and does side work

>> No.6850735

>>6850143
>>6850328
Oh you're one of those newfags who believes no one made money?

>> No.6850833

>>6850616
see
>>6850071
You are allowed to choose between the two as long as you are consistent. And with regards to prices, they probably have a specific dat which you have to base your taxes on. In my country that is January the 1st and I'm allowed to choose any price that occured on that date. So naturally I just pay taxes over the lowest price. I dont know how you get to choose your price in the US tho, but I gues it would be the same, opening price, closing price or average price.

>> No.6850852

>>6850540
starting this year (2018) yes

even if you're a gigantic poorfag, it's not worth what you'll experience when the IRS comes knocking on your door

>> No.6850896

>>6850640
Is it worth doing if it's less than $10K though?

>> No.6850902

Invest in a good rifle and steel core 5.56 to take down the glow in the dark niggers that come for your gains.

>> No.6850976

>>6850833
I have a record of all the actual prices I bought and sold at. I'm in the US. What country are you from?

>> No.6851078

why not claim you lost the login to your trading account or got hacked or some bullshit?

no trading history????

>> No.6851091

It would be weird to include those 30 BTC when doing FIFO calculations seeing as they aren’t your trading stock and can never be part of your trading stock

>> No.6851197

>>6851091
Exactly I fucking said that to the accountant and he said. "It doesn't matter which coins you're actually trading, First in first out is... it's just an accounting thing, this is how the IRS expects you to do your taxes, I strongly advise you use FIFO."

>> No.6851230

>>6849972
>jews lying about jews lying about jews
Oh look... it's our hourly "kike lies about his taxes coincidentally the day before kikes buy a bunch of bitcoin" episode...

>> No.6851345

>>6850976
The Netherlands, our country is like a European crypto paradise for cashing out. On top of the price manipulating you are allowed to do we pay our crypto taxes in the following way:
For the first 75.000 euros you pay 1.63% taxes on 67% of the amount and 5,39% on the remaing 33%.
For the next 900.000 you pay 1.63% on 21% of the amount and 5,39% on the remaining 79%.
From there on you pay 5,39%.

>> No.6851876

>>6850723
Can i please have your contact info? do u have discord?