CryptoCoinsInfoClub.com

Crypto Taxes Reddit

Error | Credit Karma

Error | Credit Karma

Credit and Finance Articles Credit Karma Community Credit Card Reviews Financial Calculators Credit Karma Blog What is a Good Credit Score? Quick Tips for Your Credit Health Free Credit Report Free Credit Monitoring Free Credit Score Credit Scores 20072016 Credit Karma, Inc. Credit Karma is a registered trademark of Credit Karma, Inc. All Rights Reserved. Product name, logo, brands, and other trademarks featured or referred to within Credit Karma are the property of their respective trademark holders. This site may be compensated through third party advertisers. iPhone is a trademark of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. The Equifax logo is a registered trademark owned by Equifax in the United States and other countries. Continue reading >>

The Absolute Fucking Impossibility Of Reporting Taxes On This Shit - Cryptocurrency

The Absolute Fucking Impossibility Of Reporting Taxes On This Shit - Cryptocurrency

The Absolute Fucking Impossibility of Reporting Taxes On This Shit EDIT: PLEASE STOP ASKING ME FOR DAY-TRADING TIPS. LEARN BY DOING. I'm in the US. I day-trade cryptocurrencies and have made tens of thousands of orders across many pairs and exchanges (and have made substantially more than I would have by just "hodl xd", even with short-term penalty added, thank you very much). Uncle Sam wants his pie. Okay, fine. I know exactly how much I've made by simply tallying the deposits and withdrawals from by bank to my fiat gateways, and I'm willing to be taxed on that, but... The IRS expects me to report every single transaction on a form with each interval gain and loss step reported in USD. Every single one of my tens of thousands of orders and partial trades, most of which having no actual valuation or realization in USD, yet somehow I'm expected to calculate the imaginary USD gain/loss of each when BTC/USD fluctuates by whole percents every other minute on the reference fiat exchange (GDAX, say). No matter what painstaking diligence is paid to reporting the notional USD gain/loss for every alt pair and perpetual swap trade by cross-referencing those irrelevant data points, I will inevitably end up with a totally fictional sequence of numbers that deviates significantly from my known, actual USD gain from what hit my fucking bank and what is presently on my exchange accounts. This especially when transaction and trading and funding fees are taken into account, as well as the nightmare of slippage and partial fills. Also Bittrex completely wiped out my trade history, and everyone else's from what I hear, but my deposits/withdrawals are still there and that should really be all that matters (but not to the IRS apparently). I also had a stint on poswallet.com, same situation Continue reading >>

Think Cryptocurrency Is Confusing? Try Paying Taxes On It

Think Cryptocurrency Is Confusing? Try Paying Taxes On It

Technology |Think Cryptocurrency Is Confusing? Try Paying Taxes on It The room was full of stressed-out cryptocurrency traders. And for once, they werent nervous about the price of Bitcoin, or the roller coaster swings of the virtual currency markets. No, the subject of this gloomy affair was taxes. Specifically, how and whether to pay them. With this years April 17 tax filing deadline fast approaching, many virtual currency traders are sweating over their tax returns. Theyre confused by the complicated rules, many of them stemming from guidelines issued by the I.R.S. in 2014, governing the taxation of virtual currencies. Theyre afraid that the windfall profits created by last years cryptocurrency boom, which sent currencies like Bitcoin and Ether skyrocketing and created a new class of crypto-millionaires, have left them with huge tax bills. And, of course, theyre worried about drawing the eye of the Internal Revenue Service. Ive lost sleep over it, said Shaun, a trader who said he was still figuring out how to properly account for last years cryptocurrency profits on his taxes. Shaun, who asked that his last name not be used because he has been audited in the past, said he was scared that increased scrutiny of the cryptocurrency market could lead the I.R.S. to pay special attention to cases like his. I dont want to be made an example of, he said. This gathering, which took place last week in Manhattan and was organized by Blockmatics, a research and education company, featured three accountants who specialize in cryptocurrency tax preparation. For an hour, the audience peppered them with tax-prep questions that ranged from common (Do I have to pay taxes on Bitcoin if I havent sold yet?) to esoteric (If my Bitcoin wallet got hacked and all my coins got stolen, can I d Continue reading >>

2017 Taxes - We Need To Get Serious : Cryptocurrency

2017 Taxes - We Need To Get Serious : Cryptocurrency

I want to make this post a meaningful discussion about American taxes that has three goals: Helping those of us with significant crypto holdings become informed on how to proceed with 2017 taxes Strengthen our position as legitimate law-abiding citizens Not holding anyone legally responsible for "legal advice" who contributes to this discussion thread (this is about getting our bearings) If you are like me you found 2017 to be a very good year for you. I'm not talking to the people who got in on this in early December and made $1,000. I'm talking to those of us who saw our modest yet respectable holding of bitcoins grow to jaw-dropping prices and then continued to diversify our digital portfolio to the point that we may now be holding dozens of currencies traded at various times on a variety of exchanges. What we are doing is legal and has been legal for years. I am one of those alleged 802 people who pays their taxes on Coinbase . And let me tell you, the professional accounting firm I use to pay my taxes charged me a pretty penny for basically knowing the one thing everyone does know about cryptocurrency - that you have to pay long-term capital gains tax on cryptocurrencies you've held for over a year and sold for American dollars . So that's what I've been doing and I've been doing that with each bitcoin being considered at 100% profit because I bought all my bitcoins from Mt. Gox! Maybe you've never payed taxes on all the bitcoin you sold but let's face it - in 2017 you better pay your taxes and you better know what you're talking about and doing. A lot of us have found ourselves with serious money that we did not have until 2017. The real problem comes from the variety of exchanges we've joined and the amount of trading of currencies on these exchanges. Many of th Continue reading >>

Ask Hn: How Do I Pay Taxes On Crypto/token Trading | Hacker News

Ask Hn: How Do I Pay Taxes On Crypto/token Trading | Hacker News

Ask HN: How do I pay taxes on crypto/token trading 48 points by beedrillzzzzz 78 days ago | hide | past | web | favorite | 33comments From what I have read and can assume, in the USA trades between tokens should be treated as tax events to apply short/long term capital gains and not like-kind exchanges - tax should be paid immediately (current tax cycle), rather than when exchanged back to fiat. Does anyone have any useful resources or authoritative info & suggestions on how to go about calculating and reporting taxes on crypto and ethereum tokens? My friends and I have been building out tech in this space. (no we're not doing an ICO= we've been asked if we are by so many people, jesus) The 1031 laws change things for people, feel free to ping me if you have deeper questions. Zenledger is a nice startup idea. I thought that Coinbase is sending out 1099 (K's or MISC) to users and the IRS though already? I wonder how many US citizens will just ignore their tax obligations thinking crypto trades, profits are untraceable. Do the previously vague 1031 laws mean one should file 2017 and 2018 taxes differently? Is it legally valid to treat tokens as like-kind assets in 2017? I deal more on the marketing/branding front. (it's being redone, don't panic lols) We have a hardcore CPA/IRS founder on team, I will ask them and get back to you. Do you support optional 1031-like kind for 2017? What about optional currency-to-currency for those looking to be aggressive? I use bitcoin.tax and it's made things so much easier. You can import trading history from the major exchanges and for any non-major exchange trading you can import manually or with a CSV. It's free for up to 100 "events" (trades, mining, gifts, income, etc) and a reasonable $20 per year for anything above that. I'll be Continue reading >>

Reddit User Says He Owes The Irs $50,000 In Taxes Due To Crypto Activities

Reddit User Says He Owes The Irs $50,000 In Taxes Due To Crypto Activities

Reddit User says he owes the IRS $50,000 in Taxes due to Crypto Activities The great cryptocurrency boom of 2017 led to rise in fortunes for many people, as values of cryptocurrency soared at meteoric levels. The boom was heralded by the flagship cryptocurrency, Bitcoin, which shot from $1,000 to a high of over $19,000 in December 2017. People who cashed out during the boom period last year inadvertently racked up tax bills to the tune of thousands of dollars, as one Reddit user, who claims to have received an IRS tax demand of around $50,000. The Reddit user, named Thoway, claimed to have got a tax bill from the United States tax agency, commonly known as the IRS. The government agency has asked him to pay an amount of $50,000 as taxes. According to the Redditor, he had got eight Bitcoin for $7,200 early in 2017, and cashed out in December of 2017, when the cryptocurrency had soared to a new high. He further says in the Reddit post that he feels that he has ruined his life as he did all his investments before doing due diligence in terms of taxes and without giving a second thought to the risks and the taxes associated with the trade of cryptocurrency. He also says that he normally earns around $47,000 per year, as an office assistant, and he would never be able to cough out the money to pay such a high tax bill. He explained that the IRS views cryptocurrency as property, and thus has a high tax rate. The rate of appreciation of Bitcoin last year means it attracted a high tax rate. He says that the IRS reached a final amount of $50,000 after taking in account all federal and state taxes. Thoway also says that he was caught up in the frenzy last year, and instead of saving up his bounty, he reinvested the fortune he gained, around $120,000, in alternate digital currenc Continue reading >>

Warning, Crypto Investors: You Must Pay Taxes On Your Bitcoin

Warning, Crypto Investors: You Must Pay Taxes On Your Bitcoin

Warning, crypto investors: You must pay taxes on your bitcoin Even if you made just one transaction, you likely have to pay The celebration of bitcoins explosion may ease when newly minted millionaires have to pay taxes. Many people holding bitcoin have seen massive gains, some becoming overnight millionaires after the currency soared more than 1,000% in value over the last 12 months . Now comes the less fun part: Paying taxes. One office assistants struggle was shared on Reddit on Thursday , when he discovered he owed $50,000 to the Internal Revenue Service in taxes on cryptocurrency exchanges. The user, who makes about $47,000 per year at his job, said he bought eight bitcoins in 2017 for $7,200 and raked in a profit when bitcoins value soared in late 2017. After selling about $120,000 of coins, he found he now owes $50,000 in taxes but only has $30,000 left in crypto. He said he only has $5,000 in savings left. He either spent his windfall or invested in other coins, or both. I feel like I might have accidentally ruined my life because I didnt know about the taxes, he wrote. Its likely he owes some taxes on these exchanges, though the exact amount can likely be shaved down by a tax professional, a spokeswoman from personal finance website ValuePenguin said. In fact, anybody involved in cryptocurrency transactions should be paying taxes on them, said Kirk Phillips, a tax professional who specializes in cryptocurrencies and goes by the moniker The Bitcoin CPA , whether they have sold hundreds of thousands of dollars worth of coins or a made a single $2 purchase. Because bitcoin BTC, +2.85% and other cryptocurrencies are seen as property by the U.S. government, capital-gains taxes apply to every transaction made. It can be very tedious, Phillips said. I call it the cof Continue reading >>

Tax Information For Bitcoin And Other Crypto-currencies

Tax Information For Bitcoin And Other Crypto-currencies

Some governments have, or are, thinking about how to tax use and gains from Bitcoin and other crypto-currencies. This subreddit is for discussion about tax laws and treatments for any country. All posts in this subreddit are provided for informational purposes only and do not constitute financial or legal advice. It is not intended to be used by anyone for the purpose of financial advice, legal advice, tax avoidance, promoting, marketing or recommending to any other party any matter addressed herein. For financial or legal advice please consult your own professional. Do not give tax or financial advice unless you are qualified to do so For country-specific information, include the appropriate country clearly in your title if it isn't already within the title, e.g. [US] Tax information... Posts should be about taxes relating to crypto-currencies. Other posts are likely off-topic and may be removed. Continue reading >>

People Who Own Cryptocurrency Are Getting Slammed With More Taxes Than They Expected

People Who Own Cryptocurrency Are Getting Slammed With More Taxes Than They Expected

People Who Own Cryptocurrency Are Getting Slammed With More Taxes Than They Expected And some investors are opting to not pay taxes at all, according to accountants. In January 2014, Nevada-based attorney Tyson Cross wrote a Reddit post that attempted to make sense of cryptocurrency taxes. Bitcoin had experienced a small boom that year, and the IRS had yet to weigh in on how it should be taxed. Many people were lost when it came to paying the government for their gains. The IRS has since clarified that virtual currency is to be treated as property for US federal tax purposes, meaning any gains between the time bitcoins were bought and when they were sold (due to price deflation) must be treated as capital gains. Yet four years since Crosss Reddit post, paying cryptocurrency taxes hasnt gotten much easier. After Bitcoins biggest year yetwith a high of $19,000 USD for one bitcoin in Decembermost clients are getting hit with way more taxes than they anticipated. In fact, due to unexpectedly high taxes and currently low cryptocurrency prices to pay them with (one bitcoin is now worth $8,000), accountants told me that some investors are avoiding paying taxes on their virtual fortunes until good times return to the markets. I would say that most clients underestimate their capital gains, Cross told me in a phone call. They think that they made, lets say $1 million, but when we run the numbers it can come back with $1.5 million. If thats short term, thats an extra $3,000 in taxes they werent expecting to pay. In some cases this season, clients ended up owing as much as $1 million more in taxes than expected, Cross said. Read More: This Bill Would Finally Let You Make Cryptocurrency Purchases Without Paying Capital Gains Taxes Why the disparity in expectations vs reality? Ther Continue reading >>

I Didn't Pay Capital Gains Tax On Bitcoin Sales To Irs Today

I Didn't Pay Capital Gains Tax On Bitcoin Sales To Irs Today

I didn't pay capital gains tax on bitcoin sales to IRS today The last couple months there have been a lot of posts concerning the IRS ruling that bitcoins are to be treated as property and that it was required to pay a capital gains tax on the sale of bitcoins. Some people even posted that "bitcoin is doomed" because of the ruling. To prove just how silly it is for people to worry about this, I created this thread to call out the IRS to prove what I owe in capital gains due to bitcoin sales. So if there are any IRS employees trolling this thread, you're welcome to pour over the blockchain and tell me what I owe you. 12+ exclusive games The Bitcoin Casino by Primedice Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here. Who do you think you are? Some sort of cryptoana... oh. Quote from: cryptoanarchist on April 16, 2014, 12:00:48 AM The last couple months there have been a lot of posts concerning the IRS ruling that bitcoins are to be treated as property and that it was required to pay a capital gains tax on the sale of bitcoins. Some people even posted that "bitcoin is doomed" because of the ruling. To prove just how silly it is for people to worry about this, I created this thread to call out the IRS to prove what I owe in capital gains due to bitcoin sales. So if there are any IRS employees trolling this thread, you're welcome to pour over the blockchain and tell me what I owe you. Who do you think you are? Some sort of cryptoana... oh. Did you report your gains and say the tax rate you need to pay is zero, or did you "forget" to report the gain? good judgment comes from experience, and experience comes from bad judgment is it really smart poking the buffalo with a stick? i hope yo Continue reading >>

What Are The Best Crypto Tax Tools? - Stellar

What Are The Best Crypto Tax Tools? - Stellar

I've used this. Don't use the API imports for coinbase though, it fucks that up pretty bad. Use the CSV import. It works well for other sites though. We create a Tax Reporting Application ( ) where you can report your taxes across crypto wallets, trades and exchanges. In addition, the tool will create an official tax return document for the country of your residence. We start with the German market, but will gradually expand the tool with the tax logics of other countries. Bitcoin.tax is working well so far. Im going to use it with turbo tax in the next couple days. If it imports everything easily then I would say its well worth the money. Ill get back to you. I used bitcoin.tax and turbotax. I vaguely remember there being some sort of issue importing my tax data, but I resolved it somehow and filed my taxes in early February. I was pretty satisfied with the experience. More broadly, I performed trades on four different exchanges as well as giving some gifts of XLM and some trades in person. It was reasonably easy to import or input all of these data into bitcoin.tax, and it had options for how to track the gains (FIFO, LIFO, Avg Cost, etc), which was important last year. Any tax sites work with SDEX (I use Stellarterm.) Do you have to fill up taxes even if you bought and HOLD a small amount of coins? In the US, currently any trades of crypto to fiat or crypto to crypto are considered taxable events and must be reported on that years taxes. You must also handle the bitcoin cash fork correctly. Basically anytime you consider trading, remember to put aside your taxes before you reinvest. I wish there was a checkbox on every exchange for US customers that states that you acknowledge the tax implications. It's far too easy to get caught out by taxes if time is short. Be ca Continue reading >>

Crypto Investor Reportedly Hacked For $2 Mln On Live Stream, Internet Calls Foul

Crypto Investor Reportedly Hacked For $2 Mln On Live Stream, Internet Calls Foul

Crypto Investor Reportedly Hacked For $2 Mln On Live Stream, Internet Calls Foul Crypto investor and advisor Ian Balina has reportedly been hacked for $2 mln in crypto, but a number of Twitter and Reddit users have suggested foul play. Ian Balina , a cryptocurrency investor and advisor, was reportedly hacked for more than $2 mln in crypto while doing a live stream on his YouTube channel Sunday, April 15, that he advertised as Hacking the System. ICO Review Live Stream - April 15, 2018 pic.twitter.com/6o29bR9216 Ian Balina (@DiaryofaMadeMan) April 16, 2018 Watching the live stream of Balinas Initial Coin Offering (ICO) review, viewers can see the point where Balina was unexpectedly logged out of his Google Spreadsheets, which is most likely the moment when the hack would have taken place: After the live stream ended earlier than planned, Balina then posted the following tweet: Crypto Family, I need you now more than ever. I ended today's live stream b/c I am being hacked. I'm not worried about the money. I learned my lesson. I only care about catching the hacker. Please email any information to [email protected] Thank you all the support. $ETH $BTC Ian Balina (@DiaryofaMadeMan) April 16, 2018 This plea to the crypto community was followed by a second tweet, almost immediately deleted , that stated that his missing coins were about to be sold on crypto exchange KuCoin: Hacker has stolen my funds and is about to sell on @kucoincom.Please help in contacting them. $ETH $BTC $KCS The quick deletion of this second tweet instantly got the Twitter and Reddit community interested in the reported hack, with many users on both platforms suggesting that Balinas account of the hack is an elaborate maneuver to avoid paying taxes to the US Internal Revenue Service (IRS). Crypto per Continue reading >>

Crypto-currency: A Guide To Common Tax Situations : Personalfinance

Crypto-currency: A Guide To Common Tax Situations : Personalfinance

STATUS: Majority of questions have been answered. If yours got missed, please feel free to post it again. Based on the rapid increase in popularity and price of bitcoin and other crypto currencies (particularly over the past year), I expect that lots of people have questions about how crypto currency will impact their taxes. This thread attempts to address several common issues. I'm posting similar versions of it here, in several major crypto subs, and eventually in the weekly "tax help" threads r/personalfinance runs. I'd like to thank the /r/personalfinance mod team and the /r/tax community for their help with this thread and especially for reading earlier versions and offering several valuable suggestions/corrections. This thread is NOT an endorsement of crypto currency as an investing strategy. There is a time and a place to debate the appropriateness of crypto as part of a diversified portfolio - but that time is not now and that place is not here. If you are interested in the general consensus of this sub on investing, I would urge you to consult the wiki while keeping in mind the general flowchart outlining basic steps to get your finances in order. Finally, please note that this thread attempts to provide information about your tax obligations as defined by United States law (and interpreted by the IRS under the direction of the Treasury Department). I understand that a certain portion of the crypto community tends to view crypto as "tax free" due to the (actual and perceived) difficulty for the IRS to "know" about the transactions involved. I will not discuss unlawfully concealing crypto gains here nor will I suggest illegal tax avoidance activities. This section is best for people that don't understand much about taxes. It covers some very basic tax principle Continue reading >>

Investors In Bitcoin And Other Cryptocurrencies Face Hefty Tax Bills

Investors In Bitcoin And Other Cryptocurrencies Face Hefty Tax Bills

Investors in Bitcoin and other cryptocurrencies face hefty tax bills According to the Internal Revenue Service, anything purchased using a digital currency is liable to be taxed as a capital gain First published on Sun 18 Mar 2018 06.00EDT A tax accountant explains that cryptocurrency is not like Paypal or a gift card, and not merely a conduit of exchange.Photograph: Gillian Flaccus/AP The rollercoaster ride for some cryptocurrency investors could be about to take another tax-time lurch, according to experts, as the taxman looks for his share of transactions made using bitcoin and its like. Wild fluctuations in the value of digital currencies bitcoin surged from less than one dollar in 2010 to $997 at the start of the 2017 to nearly $20,000 before settling back to around $8,500 on Friday have exposed investors to tax bills the value of their coins may no longer meet. Bitcoin and cryptocurrencies what digital money really means for our future On Reddit earlier this week, one contributor, under the heading I just discovered that I owe the IRS $50k that I dont have, because I traded in cryptos. Am I fucked?, wrote they had ended up with a $50,000 tax liability on trades after they sold $120,000 worth of bitcoin to buy different coins. The current value of those coins is about $30,000. I feel like I might have accidentally ruined my life because I didnt know about the taxes, the poster wrote. One complication for crypto investors is that digital currencies that were, in part, devised to operate outside of government and banking industry oversight, are still of interest to the US tax authorities, who look at cryptocurrency as property and not currency. According to the Internal Revenue Service, anything purchased using a digital currency is liable to be taxed as a capital g Continue reading >>

Let's Clear This Up: Taxes On Crypto : Litecoin

Let's Clear This Up: Taxes On Crypto : Litecoin

EDIT #2: WOW! Thanks for the massive response to this below. Amazing how quickly this blew up. I know many of you are looking for actual tax advice, and I can only go so in depth here. Please check out my LinkedIn here: If you are seriously interested in having tax professionals assist you in tax endeavors, please reach out to me here or at my LinkedIn/Email: [email protected] Again! Thanks for the civil engagement and discussion about an important topic in our crypto world! According to the IRS, gains and losses on crypto currencies are treated as capital gains/losses (see IRS Notice 2014-21 below). Short-term capital gains are considered to be short-term when the asset is held for less than ONE year. In this case, if you bought $100 of LTC in January 2017 and sold for $1,000 in December 2017, you would be taxed on the gain of $900 (sold $1,000 - $100 basis). Short-term capital gains are taxed at the SAME rate as your marginal tax bracket (10%, 15%, 25%, 28%, 33%, 35%, or 39.6% - see below). Long-term capital gains are considered to be long-term when the asset is held for more than ONE year. In this case, if you bought $100 of LTC in November 2016 and sold for $1,000 in December 2017, you would be taxed on the gain of $900 (sold $1,000 - $100 basis). Long-term capital gains are taxed according to 0%, 15%, or 20% according to WHICH marginal tax bracket you fall in (see below). Hopefully this clears this up a bit more for people who dont know about taxes and crypto currency in the US. As a tax professional, I highly advise you report any gains you incur, whether its $2 or $100,000. The IRS doesnt have the records of crypto currency holders unlike real brokerages that must report to the IRS. If you do NOT report, you run the risk of the IRS receiving information Continue reading >>

More in ethereum