TAX SEASON EXTENDED BY 6 MONTHS

[Anonymous No.9027171]

Who else here getting JUST'd by TurboTax Business Edition

[Anonymous No.9027189]

>>9027171
>he fell for the cryto to crypto tax meme

[Anonymous No.9027198]

How bad is it to do taxes if you day trade? Sounds like a living nightmare.

[Anonymous No.9027236]

Its really easy unless you have to go back and find 1000s of trades on a bunch of different exchanges

Took a while but I'm up to date & will be all good, just have to file now

[Anonymous No.9027241]

>>9027198
I filed with HR block and the consultant was only interested in the overall profit gained from trading. Each trade was not taxed with some magical taxable event tax. The IRS accepted it.

[Anonymous No.9027261]

>>9027241
Well perhaps you can file a lawsuit against them after you get out of federal prison. Because each trade IS taxed.

[Anonymous No.9027295]

>>9027171
H&R Block's software plus bitcoin.tax worked for me well anon, my condolences

[Anonymous No.9027317]

>>9027261

>each trade IS taxed

yeah, but it’s not enforced. The IRS just wants their share of your gains. The resources they would expend trying to trace each and every one of your trades would far outweigh their potential profit.

[Anonymous No.9027319]

>>9027261
kek

[Anonymous No.9027338]

>>9027317

Its true the IRS has endured another year of drastic budget cuts and personnel reductions.

[Anonymous No.9027345]

>>9027317
Theyve been consulting though with blockchain service companies/cointrackers/etc. In 5 years your ass is getting tax penaltied out the ass bro

>t. CPA

[Anonymous No.9027371]

>>9027241
>>9027261

If you aren't claiming a cost basis they don't give a fuck about your crypto trades. They only care about money you cashed out. That is if you sold $10k of bitcoin, and you are claiming $10k of income.

You're an idiot if you fell for the "every trade is taxable" meme. That's only necessary if you want to prove your cost basis if put in a ton of money and didn't want to pay double tax on the principle. In crypto since the gains are like 10x no one gives a fuck about proving that.

But if you bought $10k of bitcoin, did some trades, and sold $20k of eth, you probably need to report all the trades you did to prove how only $10k of that $20k is income. If you just pay taxes on the whole $20k they don't care.

[Anonymous No.9027392]

>>9027241
So your initial cash in and the final amount when you cashed out x 40-50% if you day traded or 15% if you accumulated, but never sold?

[Anonymous No.9027394]

>>9027338
KEK I can see you don’t keep up with the world. The new budget recently signed into law increased the irs budget. Also amazon just got a patent for tracing coins. The irs has 7 years to get you for last year.

[Anonymous No.9027396]

>>9027345
Nah as long as you file on what you earn they don't give a fuck.

>t. also cpa

[Anonymous No.9027408]

>>9027371
Youre costing yourself money via capital gains tax or capital loss deductions if youre not claiming cost bases. Bitcoin.tax is super easy to generate your API keys, and only requires some slight tweaks in case its wrong.

>he didn't pay $30 for a service that saves you thousands

[Anonymous No.9027444]

use bitcoin.tax or make a program to import all your trades from every exchange for 2017 then import in turbotax you absolute brainlets
takes 30 mins at most

[Anonymous No.9027474]

>>9027408

I know. My point is a lot of people bought bitcoin / alts, made 10x gains, and cashed out a fraction of that. If you reported every trade you would owe taxes on almost your entire amount if you bought / sold a lot. But since your principle is only 1/10 of what you cashed out its not a big deal just to claim the fraction of your portfolio you cashed out as 100% income. Eventually you're right, you'll pay more in the long term since eventually you have to cash out. Unless you believe eventually crytpo will take over and you will never have to cash out.

The IRS knows that. The way audits go is they look at your banks and they see x amount of money going in, and you have to pay taxes on that unless you can prove you don't. They really could care less if you bought some shitcoin on binance.

[Anonymous No.9027511]

>>9027474
how do you know all this? t. ?

Because if you import all your trades into bitcoin.tax or cointracking, you have to pay crypto to crypto taxes which is way more than just what you cashed out. I know this because I only owe 15K on what I cashed out, but owe 60K based on the crypto to crypto bullshit.

What's stopping these two platforms (knowing that every crypto CPA uses them) from becoming KYC and then being in cohorts with the IRS?

[Anonymous No.9027554]

>>9027474
The lingterm vs short term rate can be like a 10-15% difference, which really matters when going by FIFO and which coins are traded out rather than the method you suggest. Which will most likely always be reported for short term capital gains tax or challenged by the IRS to do so, if you dont have good records youll have to. I'm specifically sitting on certain coins for over a year to do that (way over a year for some), and swing trade other guys without worry

[Anonymous No.9027656]

>>9027511
>What's stopping these two platforms (knowing that every crypto CPA uses them) from becoming KYC and then being in cohorts with the IRS?

Privacy rules I guess. The IRS would have to subpoena bitcoin.tax for the info, but bitcoin.tax's data isn't authoritative, its just info users entered, I'd doubt it'll be worth anything to them.

Basically the IRS follows the path of least resistance. They get your income from w2s, 1099s, alerts from large bank deposits, and check if you didn't report that or claim losses against most of that then they have a problem. If you reported all your income and every deposit to you bank it is way too much work for them to subpoena every single crypto exchange you might be using to tax you on income they will eventually tax anyway when you cash out.

>>9027554

If you are holding long term then you don't have any taxable trades anyway. The problem is for people who traded their whole portfolio but only cashed out a fraction.

[Anonymous No.9027694]

>>9027656
I'm aware that logistically for the IRS it could be a nightmare. Then, why did my crypto CPA tell me I have to pay taxes on crypto to crypto trades otherwise I am fucked. And basically saying all those who didn't this year eventually will be fucked in couple years to come?

Is he just saying this to cover his ass? I had to file an extension to pay off the remaining 45K but I paid 15K for the cash out taxes. I am currently underwater

[Anonymous No.9027709]

>>9027656
>If you are holding long term then you don't have any taxable trades anyway. The problem is for people who traded their whole portfolio but only cashed out a fraction.

Right, but what about people that cash out of certain coins in their portfolio rather than not? It sucks if affording the 2017 tax is hard and seems overly high, but you also get that money back in capital loss carryforwards. If you only report tax on the money you made from cashing out, not only will that mean 0 cost basis and suck, especially when putting in more money during the bear/etc, but also means the short-flterm rates for the FULL amount. Rather than both long-term and short-term gains segregated like how I did it, and a bunch of ETH capital loss trades I'll report in 2018, saving me money when things get bigger.

[Anonymous No.9027724]

>>9027694
Sorry anon, but your crypto CPA is right. Just know that it'll be beneficial for you in the long term

[Anonymous No.9027807]

>>9027694
Isnt there a way you can set up with the IRS a payment plan? I'm sure theyd be more understanding of your situation if you reached out to them with some tact. Pretty sure there's a program out there you can run with them if you cant currently afford the tax.

Also know that your future tax will be less over the years as a result, a lot less

[Anonymous No.9027821]

>>9027724
>>9027807

:(

Yeah I'm going to figure all that out in a little bit. I might have to do the plan unless we see another large bull run and I make enough gains to pay it off

[Anonymous No.9027827]

>>9027171
> paying taxes on crypto to crypto transactions
Literally cucked

[Anonymous No.9027848]

>>9027198
My broker prepares the 8949 for me, just have to fill out the schedule D

[Anonymous No.9027859]

>>9027694

Because hes legally required to tell you to follow the law to the t. If coinbase didn't send a 1099 to the IRS and you have no deposits in your bank account it would be retarded for you to pay $45k in taxes for income you never made.

[Anonymous No.9027878]

>tfw he's not a slavshit immigrant and doesn't have some russian lady handle his taxes for $100 and get double the return of your friends who use turbotax
Stay pleb

[Anonymous No.9027918]

>>9027656
LOL that's not how it works.
>"known" drug dealer
>tap cell phone
>put argus on him
>figure out when he is making a deal
>nab him in public with felony amounts of drugs

They do recon illegally and then patch together a legal framework. EG pull off of that website plausible, big movers... check their account statements, know BTC addresses, assets, etc.

It's all about knowing where to look for LE. It would be stupid to do it any other way.

[Anonymous No.9027938]

>>9027918

What does drug dealers have to do with this? Hundreds of millions pay taxes, you're not some drug lord an entire team at the DEA is interested in.

[Anonymous No.9028277]

>>9027241
So is this what they did? Because that's just begging for an audit.

>>9027396
How exactly do you file on what you earned?

[Anonymous No.9028300]

>>9027241
>>9028277
Fuck forgot picture.

[Anonymous No.9028399]

>>9028300

You probably wont get audited, its true, but do you have any idea of the actual cost basis?

[Anonymous No.9028426]

The irs doesn't care about your 5 digit poorfolio lmao

[Anonymous No.9028446]

>>9028399
I'd never file it that way but I'm just wondering if that's what people are doing when they say they're just paying overall on what they cashed out.

[Anonymous No.9028686]

>>9028446

>>9028300

Here is why two CPAs can tell you different things

1. CPA has gotten paid for doing extensive cost basis analysis in the past and can't get away with it in past

2. CPA pretends not to know and you're just another retail customer whose optimal filing on your behalf is marginally less important than getting you to agree on a figure and filing as he moves to the next client.

If you made 100k, you had a sizeable cost basis. So you overpaid, and they can still audit you, but CPA #2 won't be held responsible for fraud. And neither will you, as long as you pretend to be only negligent. Your tax liability remains, and there are no consequences for the CPA.

[Anonymous No.9028706]

>>9028446

Some people are literally overpaying by tens of thousands of dollars and still have a potential tax liability on top of possible fraud

[Anonymous No.9028740]

>>9028446

putting a hard round number like 100k on a tax form is basically raising a flag that algorithms will find quite easily. Its obviously a made up number. Amateur fraud is the easiest to detect and those returns are going to be toward the top of any list

[Anonymous No.9028972]

>>9027171
For all the people who aren't able to follow this very well, here's a quick rundown:
>You hold for a year you pay capital gains tax in the US, the gains are taxed at 15%.
>You sell a stock or crypto before a year, the gains are taxed as income so it is relevant to how much you made that year.

Also if you make on average four transactions on almost every trading day, then you may have a difficult time if you don't know how to organize all that information. See an accountant if you have the transaction information organized. Get it right because it's not worth prison time.

[Anonymous No.9028988]

>>9028740
Yeah the $100k was arbitrary just as an example.

>>9028706
I agree you're stepping into potential fraud territory if for example you bought BTC, did a bunch of shitcoin trading, had a huge taxable gain for 2017, then lost everything in the January crash but you don't want to pay your taxes for the shitcoin trading capital gains last year, so you just cash out and report it as one transaction with 0 cost basis. Well it wasn't one transaction, and it wasn't 0 cost basis so technically you are frauding and you are underpaying.

[Anonymous No.9028993]

>>9027261
lol

[Anonymous No.9029022]

>>9027171
>business edition
>can't handle pattern trade exchange frequencies at an autistic level

[Anonymous No.9029036]

>>9027317
good luck with that buddy. you might get away with it but have fun looking over your shoulder for the next 7 years. everything is pretty easily traceable on the blockcahin.

[Anonymous No.9029130]

>>9027345
I'm going to make sure your job gets fucked in 5 years by automating the entire process anyway. So suck it.

[Anonymous No.9029206]

>>9029130
Lol, I'm not in tax but thanks. If audit ever gets automated, I'll pivor to consulting. Have fun getting arrested by the IRS, dweeb

[Anonymous No.9029233]

>>9029206
I detect a salty nocoiner!

[Anonymous No.9029243]

>>9028988
If you can't prove it with tx history because you used some shit exchange with no logins then you don't have an option. This is one of the few times where the burden being on you to provide documents is a good thing.

[Anonymous No.9029296]

>>9029243
>This is one of the few times where the burden being on you to provide documents is a good thing.

Nah there is nothing good about any of this stuff anymore. Any arguments where it could have been seen as logical for us to have taxation have been melted away by emerging technology that can do the same thing more effectively.

So its not a good thing. The entire discussion is a bad thing. The fact taxation exists in this form is a blatant waste of resources. This is being said without even talking about taxation being theft. I am literally saying the system used for taxation is complete shit and needs to be overhauled completely.

[Anonymous No.9029435]

can someone tell me when my state's tax return checks expire? new york, can't seem to find it anywhere.

[Anonymous No.9029438]

I wonder how many of you cheating motherfuckers are going to be sweating the next 5 years. If you fucked them out of 50,000 and somehow convince them that you didnt do it on purpose the total bill in 5 years will be $240,000.
You do realize that when you cash out after you "make-it" you will be audited. Say you cash out 1 million. That's 150,000 plus 240,000 plus another 100,000 in fines. Wow. You just lost half your nut. Hope you sleep well.

[Anonymous No.9029451]

>>9029435
it's just that I have one that's a year old by this month, and it's only a couple hundred bucks but I totally forgot about it in an envelope and could really use the money now. Just found it today

[Anonymous No.9029676]

>>9029438
First off I am not cheating them out of anything. But even if I was, I wont be using fiat for much longer anyway. So if they decide that they want to charge me a trillion dollars I guess that sucks for them?

Everyone of you super overly mad idiots keeps assuming cashing out is always on the table. But its fucking not. Cashing out is expensive, you instantly lose that money to taxes. The days of people cashing out are fucking numbered.

Its GOING to be a thing. People will run national businesses without having to go through governments for services.

[Anonymous No.9029694]

>>9027261
You realize it’s mathematically the same right? The only reason they make you write down every trade is because it makes it more annoying to launder money.

[Anonymous No.9029731]

>>9029694
If you do taxes per trade its possible to owe more money than you made. But if you pay only when you cash out its much harder to be in that kind of situation.

[Anonymous No.9030450]

>>9029022

Taxact maxes at 2000 transactions on the import, so all you can do is attach the statement at the very, very last step before filing... welp I'm done

>>9029243

The truth is there is probably going to be no personal investigation. If you move more than 10k anywhere in the future your file will come up again. Heres where more flags get added and eventually someone might look into it, comparing multiple years of your returns and your bank account information they might determine you did in fact have undeclared gains. At which point they may make a formula estimation and send you a certified letter containing their estimated bill, which will include a late penalty and interest.

[Anonymous No.9030535]

>>9029243
You would still owe the money even if you had the tx history of you losing everything in January because losses don't carry backwards in years.

[Anonymous No.9030548]

>>9029694
It's not the same in practice because you have to cash out at the end of the year to pay taxes on your crypto to crypto instead of having them deferred until you cash out. A lot of people got fucked because they didn't cash out for taxes and ate shit in the January crash.