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2021-01-21 12:15 26278913 Anonymous How the fuck do I do crypto taxes? (1611036572411.gif 1295x864 1054kB)
I made literally thousands of trades across hundreds of shitcoins in the past year. The records are all on etherscan and cex's, but it will be a nightmare to go through them. What in the actual fuck do I do?

1 min later 26278974 Anonymous (1_HJsr0PZ0EZ0fCIL11-vqAw.png 1024x768 637kB)
>>26278913 fugget about it

2 min later 26279015 Anonymous
>>26278974 Bless you.

2 min later 26279020 Anonymous
>>26278913 Oops too bad you're just gonna have to track through them all and write them down Guess you should have learned your tax obligations before trading :)

2 min later 26279034 Anonymous
Literally just don't pay. Fuck the government. All of your crypto gains got lost in a boating accident.

2 min later 26279036 Anonymous
>>26278913 Koinly can go through CEXs and if you link your ether wallet it might be able to process them too. It's not perfect but should give you a good idea.

8 min later 26279254 Anonymous
>>26278913 Don't pay em, duh

11 min later 26279402 Anonymous
>>26278913 Same position bro, heard good things about coinily. Hope it works otherwise im fudged haha

18 min later 26279748 Anonymous (1585744815207.jpg 724x615 73kB)
Koinly shows me what I made and what I owe, but I have no clue how to submit the actual required forms for the IRS because I've never done taxes before. I haven't submitted anything for 2019 either so I already feel fucked as it is. I haven't made many trades and only made about a couple hundred dollars in profit for 2019 and 2020 but I'm still stressed about this every day. No idea where to proceed. Wish this shit was easier and that I wasn't retarded.

22 min later 26279875 Anonymous (1566838036551.png 500x500 211kB)
>>26278913 >How the fuck do I do crypto taxes? >Prepare 1099 tax form as usual >Have you ever traded or did you start trading in cryptocurrency in the last year >Yes, No >Check No >??? >profit

22 min later 26279898 Anonymous
>>26278913 just grab your ankles and let Uncle Sam stick his wrinkly old dick in your butt, with his low hanging balls smacking against your ass, and his wiry old grey pubes rubbing up against your asshole.

27 min later 26280112 Anonymous (NrYFs8z6_400x400.jpg 256x256 8kB)
>>26278913 desu the current tax laws dont make sense with crypto just come up with a cost basis for each "currency" and report it and pay some tax if they audit you later they can calculate that shit themselves and you can just feign being a retard

29 min later 26280223 Anonymous
Don't listen to the idiots that say don't pay them. You will get flagged by your bank if you deposit anything over 10k(depending on where you live). Talk to an accountant. The first cashout is always the one where you get scammed the hardest but everybodys gotta learn desu

37 min later 26280520 Anonymous
>>26278913 You have two legal choices: 1) create spreadsheets of ALL of your trades and let the spreadsheets calculate your net tax liability, or 2) declare that you had zero basis cost on all trades and pay 28% of your sales price on all trades. Otherwise, your choice is: 3) sit and wait and hope the IRS doesn't confiscate everything you possess.

56 min later 26281312 Anonymous
>>26278913 >paying taxes to an illegitimate government Shiggy

57 min later 26281334 Anonymous
>>26278913 do you really have to pay tax for every trade? kek

1 hours later 26281537 Anonymous
>>26280223 >The first cashout is always the one where you get scammed the hardest huh?

1 hours later 26282285 Anonymous
>>26280520 >2) declare that you had zero basis cost on all trades and pay 28% of your sales price on all trades. Jesus Christ no no no, don't fucking do this. The IRS doesn't get your calculations you can guesstimate quite a lot of it and just pay what you think is fair. They only have 7 years to audit you and then you're free as long as you don't do something stupid like >>26279875 and lie on a form to the government outright. >>26279748 If you're that confused, hire a tax accountant and have him figure it out. Or, since it's just a couple hundred dollars, just do your best and treat it like a learning experience. The IRS won't really care about a small fry like you and the worst thing that can happen is they send you a letter saying they calculated differently than you and they'll ask for either what they think you owe or an explanation of your calculations. For crypto, they don't really know what they're doing so they'll actually listen to your explanations and will consider it.

1 hours later 26282424 Anonymous
>>26278913 cointracker.io I paid 279$ to get them done this year. The more transactions, the more it costs. I had over 1300 transactions in 2020. You basically just pull the .csv file from etherscan/exchanges and upload it to the platform. It spits out a capital gains summary that you would then upload to whatever you use to file taxes. (I use turbo tax. It's even advertised on there to use it.) t. Did it last year with no problems from the IRS.

1 hours later 26282461 Anonymous
>>26278913 You will need to learn to code. Remember that gas fees and crypto to crypto and CEX fees paid in different coins that the one you are trading. All of that needs to be mapped back to you national currency and if this is not USD you will be wanting to custom code something to normalize all of that + sequence the trades, withdrawals and deposits so that your stacks actually change to reflect your actual holdings. Going zero cost basis can actually end up being less damning if you did a lot of trading. Especially if it looks like you succeeded and did more than a casual investor would have. That shit will get it declared a profession in most countries and taxed accordingly.

1 hours later 26282497 Anonymous
>>26282285 This, crypto is still relatively new and our government is made up of technologically inept boomers. Either it sorts out years after they die or you denounce your citizenship and flee the country to cash out.

1 hours later 26282599 Anonymous
>>26278913 unironically just do your best and take a good guess this is a lesson to stop trading shitcoins like a retard, even if you win you're gonna have to pay 25% because you're certainly not holding them for over a year as long as you actually try a little bit to file it correctly you probably wont go to jail

1 hours later 26282730 Anonymous (monero_revolution_shirt_dark_version-rc4365dc299824bfa8575d9e781078ba7_k2gm8_307.jpg 307x307 28kB)
>>26278913 Move profits here.

1 hours later 26282947 Anonymous (124CAA02-7265-4E45-AF29-19F25ADAF40B.jpg 657x527 60kB)
>>26282424 Beautiful, thanks anon. I’m a complete newfag but I’m doing well and it’s spooky. Dumb question: about how much did you end up owing? (% wise, I guess) I’ve made a couple dozen grand in profit but don’t have anywhere near 30% of that in my bank account, so I guess I’ll have to cash out to pay taxes (?) Fml

1 hours later 26283114 Anonymous
>>26278913 Check out the 1040 self employment from and it gives you guidelines. it sucks but its legit and the last you want is fuck with the irs.

1 hours later 26283160 Anonymous
>>26282947 I made 24k, and only cashed out 7. Started out with 15k (already payed taxes on that.) If you made less than 40k and you're single, not sure for married individuals, but if you're single, that a 12% deduction from gains. I owe around 2800-2900 in taxes on my new gains, which is little more than I was expecting (over 12%), but idc, they can have it.

1 hours later 26283261 Anonymous
>>26282947 IF it's anything like earned income, IF you made around 30,000, Then the first 9,700 will be taxed at 10%, or in this case, you'll owe 970. It entirely lays on how that consider that income. Then the rest of that 30,000, or in this case, 20,700, will be at 12%... or in this case, 2484. You will then owe in in this example, 3454. This assumes 0 exemptions, which you will have... to the tune of 12,400 if you're single, which means 12,400 of that isn't paid at all. It's yours. That would make your new owe in about 2000 bucks.

1 hours later 26283315 Anonymous
>>26282497 >or you denounce your citizenship and flee the country to cash out. This doesn't work, the IRS will still track you down for their tax money and they have extradition treaties in most countries. Renouncing US citizenship doesn't make sense when it's the country with the best gun laws, just build a bunker innawoods or innahills and call it good.

1 hours later 26283375 Anonymous
>>26280223 What if..You deposit less than 10k every day or, let's say every week, or every month. Will that work?

1 hours later 26283498 Anonymous
>>26283315 its funny if you think about it because millions of third worlders from around the world would give an arm to be here. but some of these guys want to leave for a few grand they owe in taxes kek

1 hours later 26283531 Anonymous
>>26283375 Eventually, you'll deposit enough that eyebrows will raise. This is usually how rookie drug dealers are caught. https://www.youtube.com/watch?v=ez6 xH-su2xI I know it's breaking bad, but this is actually a really good explanation of the process. Am I saying to launder your money? Of course not, I'm just pointing out the government will find out that tactic. It's best to just not fuck around and pay up. 10% for anything over 12,400 but below 22,400, 12% for the next 20,000 you earn over the first 22,400. Don't worry about paying in if you make less than 12,400, that's in exemptions. If you make any more profit over 44,400, then just hire someone to do your taxes. You obviously make enough and it just saves you a huge fucking headache.

2 hours later 26283886 Anonymous
>>26283498 Nah, it makes sense. Taxation is theft. Just like how third worlders want to flee their oppressive governments, Americans want to flee their own oppressive governments. If crypto had existed 200 years ago there'd be no taxes on it at all unless you exported or imported it. The US government has completely lost its way.

2 hours later 26284288 Anonymous (1611018299458.jpg 451x489 69kB)
>>26278913 you guys are paying taxes?

2 hours later 26284367 Anonymous
>>26284288 No, we have a daily tax thread where people scare newfags into thinking the government will audit them for not reporting their noob gains

2 hours later 26284590 Anonymous
>>26278913 If possible move to a country that doesn't tax crypto to crypto transaction. If not hire an accountant

2 hours later 26284771 Anonymous
>>26284367 It's not a bad thing to want to pay in, but in most cases, you're on the nose here. You generally will not make enough to draw attention. It's not even worth reporting if it's less than your exemption, which is 12,000. If you make more than that in crypto, which I'd be surprised if like more than 80% of people here do that legit and aren't just lying about it.The IRS does not fucking care if you made like 5,000 bucks off a day trade, and it doesn't care if you made like 2600 trading your sliver of a bit coin to some douche-bag in Russia.

2 hours later 26284879 Anonymous
>>26284367 Lol even I'm getting nervous and I'm pretty sure all I have are noob losses :)

2 hours later 26284972 Anonymous
>>26279748 If you only made a few hundred dollars just forget about it. You know the standard deduction is lile $25,000 right? You probably wouldn't owe anything even if you tracked and accounted for every transaction. The IRS isn't going to come after you for $40 in crypto tax.

2 hours later 26285132 Anonymous
>>26284771 this is how i feel, i'm not sure exactly how much i cashed out but it's probably less than $5000 via coinbase pro. i'll pay my taxes when i make it off link but right now it's a hassle and i don't see the point in doing it now. i really dont think its worth my or the irs' time to chase me over such little money but i'm worried of the repercussions

2 hours later 26285153 Anonymous
>>26278913 if you're making any actual money with crypto just hire an accountant to take care of all of it.

2 hours later 26285173 Anonymous
>>26284972 Depends. Single is 12,400. Head of household is 18,600 Married jointly is actually around 25,000 (24,800) but you have to be married. If you're legally blind, you actually get an extra 1000 or so for the deductions. It's really fucking weird that is the case, but it's the truth.

2 hours later 26285185 Anonymous
>>26278913 Don't use etherscan, use ethplorer. You can export to CSV with the value of each transaction, including token transfer which Etherscan doesn't fucking do.

2 hours later 26285213 Anonymous
>(((tax authority))) Domestic terrorists

2 hours later 26285258 Anonymous
>>26285153 Accountant an hero rates up %200

2 hours later 26285267 Anonymous
>>26285132 If you have another source of income, then find out what your total owed is at the end of the year, and then pay in 500 more if you somehow made over your deduction... Somehow. If you are making a substantial amount, that's entirely up to you. For general note, you're supposed to report gambling wins as well, but fucking nobody does it and the IRS doesn't go seeking it out.

2 hours later 26285357 Anonymous
>>26283531 Will I be ok if I just submit the coinbase forms and be done with it? As far as I know coinbase makes it easy.

2 hours later 26285445 Anonymous
>>26285173 I don't know why, I thought it was 25k single and 50k married. My bad.

2 hours later 26285619 Anonymous
>>26285445 Don't feel bad, the system is a fucking wreck and not even professionals even know about how it works anymore. It's like that on purpose too. I desperately wish we could do what the Japs do and just have no say in the tax. You get what you owe at the end of the year, you have no say in it. In all honesty, it's not your responsibility to pay in, and if the government cared so much, they should hire someone to do it for you. >>26285357 Entirely up to you, but as I said, if it isn't over 12,400, you do not need to worry. Logic there is even if SOMEHOW the tax man looks at you and says, THAT MAN JUST DEPOSITED 12,000 BUCKS AND HE DOESN'T HAVE A JOB, but you do not make more than your exemptions, then they still get no money from seeking you out. It's figuratively, literally, and financially not worth it, so they don't seek you.

2 hours later 26285741 Anonymous
>>26285267 yeah im poor i made 27k this year and my refund is actually 1100 without entering any crypto transactions

2 hours later 26285903 Anonymous
>>26285741 Then you owe in 600 if you care enough to do it. For what it's worth, if the IRS finds out you owe in cash, and asks about it, they GENERALLY are ok with you if you pay up promptly or have a good explanation. They are not going to jail you for chump change. They just want their money. Now, if you get into the upper thousands, then you're going to get the scary side of the IRS. No one here is going to ever get that high except for a few choice people, and when you get enough money to do that, you can hire a tax agent and not worry about it.

2 hours later 26286170 Anonymous
what if I convert everything to e.g. LINK and say I bought X amount when it was worth Y, and only report that, and the amount of fiat I started with?

2 hours later 26286211 Anonymous
>>26286170 If you lie and they catch you they'll tear you a new asshole.

3 hours later 26286379 Anonymous
>>26284288 >you guys are paying taxes? Of course not. We buy high and sell low here. Can't pay tax if you don't make any money.

3 hours later 26286400 Anonymous
>>26286170 Look, this isn't too difficult. As a general rule, take the FINAL amount of what you made and add it to what your job is. Fuck off, I know you have one, you aren't doing this solely for living, only like a couple hundred lucky fucks here are doing that. Is it under 12,400? Fuck off. Is it OVER 12,400 but UNDER 21,700? Take that number, subtract 12,400, and divide by 10. Give the IRS that much. Is it OVER 21,700, but under 43,700? Take the number and subtract 9700 from it. Add 970 to what you owe the IRS. Now take the number, divide it by 100 and then multiply the result by 12. You owe that much + 970. Is it over 43,700? Pay a tax agent, you're probably are gonna fuck something up.

3 hours later 26286499 Anonymous
>>26284367 I’m not worried about the tax on my noob gains, I’m worried about the questions when I try to cash out. I doubt the IRS & exchanges will just gloss over how someone made a shit ton of money and is only trying to pay taxes on the off ramp...

3 hours later 26286564 Anonymous
>>26286499 That's the beauty of the blockchain anon, you can trace literally every transaction back to when you started. Or rather, your lawyer can when they sue you or charge you with something. Don't overthink it too much, they understand people make money on crypto.

3 hours later 26286680 Anonymous
What I meant with >>26286170 is, suppose I start with $5K I trade several different shitcoins on both cexes and dexes and I end up with $30K Instead of reporting every single trade, if I were to convert those 30K to LINK and then sell to fiat, could I report just that, as if I held LINK the whole time and sold it just now? Considering the final profit is the same.

3 hours later 26286774 Anonymous
>>26286680 Yes you can just report it like that, but you should take care to keep everything split up by tax year. Just keep in mind that because your transactions are less than a year and a day, you'll be paying short term capital gains tax which is the same as income tax.

3 hours later 26286791 Anonymous
>>26286680 Hire a tax agent, I've explained this like 6 times now.

3 hours later 26286812 Anonymous
>>26285213 Quite literally a legalised mafia. Right down to the hired muscle/thugs (police).

3 hours later 26286881 Anonymous
>>26280223 >The first cashout is always the one where you get scammed the hardest but everybodys gotta learn desu what does that mean?

3 hours later 26287029 Anonymous
So if Ive never cashed out or bought low and sold high, i have nothing to worry about? I've only bought shit on coinbase like eth or btc, sent to different exchanges and stacked different coins after exchanging either of those for the one I wanted. I have no basis for reporting anything correct?

3 hours later 26287119 Anonymous
>>26286881 I believe he means the first cashout is when you learn what trading behaviors severely increase tax owed and you later learn how to trade in a way that minimizes tax owed.

3 hours later 26287187 Anonymous
>>26287029 If you buy 1 BTC at 20 ETH, then sell your BTC for 30 ETH one month later, you have 10 ETH of capital gains to report.

3 hours later 26287190 Anonymous
Just getting into crypto and wanted to ask. Does the IRS actually expect a retarded list of transactions or just the usual total profit approximation? I read that a trade is technically considered a taxable event, but I only ever "trade" by directly buying ETH off of an exchange and immediately swapping for an equivalent value of shitcoins. The way I'm reading it, they'd only care about trades if, say, I made a 100x return off said shitcoin and then swapped back to ETH. In this scenario, I just need to keep track of however much money the ETH I traded in for was worth at that particular time right? >>26287029 No, apparently the IRS views trading/swapping as you selling the first asset for cash, and then immediately buying the new asset. They want capital gains from this imaginary sale of the first asset.

3 hours later 26287297 Anonymous
>>26278913 Just surrender and go to jail.

3 hours later 26287320 Anonymous
>>26287187 I clearly stated that I've never bought low and sold high. I buy Eth or Btc at 12pm, at 12:01pm I send the full amount to a different exchange. at 12:02pm it arrives. at 12:03pm I buy a different asset indefinitely. That's all I've ever done. how much tax can really be incurred in the 5-10 minutes it takes to do this?

3 hours later 26287377 Anonymous
>>26287187 It's a bit more complicated than that though because you have to convert everything to fiat at the time of trades to figure out what the laws say you owe. If BTC and ETH were in the middle of crashing you might actually have a paper loss.

3 hours later 26287388 Anonymous
>>26287190 So if I bought $100 of ETH at $250.00 and ten minutes later I buy say REN on a different exchange after transferring the ETH and the price is $255 when I change ETH to REN, I owe $5? sounds pretty jewish

3 hours later 26287422 Anonymous
>>26278913 its pretty simple convert it all to what it cost you, convert to what you sold it for, and give them their ℅. And write down your calculation and save it in case they try to fuck you later.

3 hours later 26287445 Anonymous
>>26287190 It's the latter. If they say nuh uh you owe this much then you can come back with the list of transactions and an explanation of how the math works. If you can't come to an agreement one of you sues the other and it gets figured out in court.

3 hours later 26287479 Anonymous
>>26287388 No, you made 5 bucks in profit, and you owe .50 cents.

3 hours later 26287495 Anonymous
>>26287388 well actually it'd be less than that. $2. This is so fucking retarded

3 hours later 26287525 Anonymous
>>26278913 >live in a country where crypto taxation is not a thing, and even if it was the government is too inept to be able to have any records >????????? >PROFIT

3 hours later 26287626 Anonymous
>>26287190 you're only taxed on the capital gains son, not the entire asset

3 hours later 26287678 Rubic
>>26284972 They will

3 hours later 26287701 Anonymous
>>26278913 dont pay it. them trying to tax crypto is the most illegal shit I've ever heard. If I exchange a bunch of money for euros, and the value of the euro goes up/ dollar drops they think I owe that "profit" to the government. go fuck yourselves. they cheated the election anyways.

3 hours later 26287791 Anonymous
>>26278913 Most all your keys in a boating accident fren

3 hours later 26287871 Anonymous
>>26278913 >buy link >cost basis 1k eoy >free write offs forever

3 hours later 26287915 Anonymous
>>26280112 This is exactly what I've been doing anon. Nobody knows the rules yet and they're changing throughout the year so a sob story goes a long way while keeping 90% of my gains due to guesstimating. As long as you're paying something they're happy.

3 hours later 26287927 Anonymous
A couple questions. How much do you actually have to profit to have to report it? Also,if you never turn the crypto into usd and withdraw it, do you have to pay anything? Technically I didn't make money if I never withdraw it from the exchange app.

3 hours later 26287964 Anonymous
>>26278913 bitcoin.tax

3 hours later 26288167 Anonymous
>>26278913 You never heard of microsoft excel faggot?

3 hours later 26288200 Anonymous
>>26282424 same here, super fucking easy. integration to tubo tax is awesome. taxation is still theft.

3 hours later 26288219 Anonymous
How many transactions we talking? Like even a couple thousand of buy sell transactions shouldn’t take more than an hour to ten key in to figure your net gain/loss less fees.

3 hours later 26288303 Anonymous
>>26278913 Hodlrs win every time. I keep a spreadsheet of every purchase, but have never made a trade. When I cash out I will do it all at once per holding and have very simple calculations for what I owe. Just use the Excel sum function to determine my total investment and subtract it from my total sale value to determine my long term capital gains.

3 hours later 26288403 Anonymous
>>26288303 very based

4 hours later 26288428 Anonymous (sweety man.jpg 600x600 41kB)
I just submit the Normiebase and Robinhood forms on Turbotax like a good little goyim. If they have a problem they can fucking take it up with Turbotax. >h-hopefully that's alright Mr. Taxman, I didn't mean to make you angry

4 hours later 26288457 Anonymous
>>26278913 >tax >crypto dude do you even understand the point of crypto?

4 hours later 26288646 Anonymous (1595728799523.jpg 1242x909 595kB)
>>26278913 Just guess. I'm dead serious. Take an honest, good faith effort to calculate how much money you have at the end of 2020 that you didn't have at the beginning. Report that as income. Pay the taxes on that income. You're done. No one gives a shit about a thousand little trades, least of all the IRS. They just want you to pay (at least close to) the amount you owe.

4 hours later 26288891 Anonymous
>>26288457 Well depending on where you trade and what country you live in and if you did kyc shit, they’ll get you.

4 hours later 26289063 Anonymous
Also >dont work >claim liquidate 40k each year >tax free Ezpz

4 hours later 26289070 Anonymous
>>26288646 Yup. Believe it or not, its ran by underpaid, very VERY tired people, who just want to do their job and go the fuck home like anyone else. They don't get paid enough to care about a 100 buck deficit. Now, if you owe literal thousands (read, 100,000 in profit or so) and decide to not pay it, you've pissed them off.

4 hours later 26289129 Anonymous
If I buy on a non-kyc exchange like bybit, and trade for years and build a juicy amount of eth and btc, cant I just say I bought it all like 5 years ago, i cant remeber where, and heres the capital gains tax on it all?

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