Swingers Get Taxed

> longterm hodler sells
> creates taxable event
> successfully swings and add 10% to his stack
> realizes he has to pay more in tax than he made swinging
> forced to sell more linkies than if he had just held

reeeeeeeeeeeeeeeeeeeeeeeeeeeeee

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Kek

Swinging can be a major mistake from the tax standpoint esp if you swing after holding for over a year. Lot of people did that lot of people gonna get fucked. Let’s say you made 500k in profit and swing. Then you buy back in and the end of the year there is no change in link price. Now you pay tax on 500k profit. Then jan2 link dies and goes to 0. The following year you will only be able to write off 3k. Your majorly majorly fucked. Never fucking swing if you are in long term cap gains or after major profit.

Is this really how it works? Sounds pretty crazy desu

The way you overcome this is you hold that money aside for taxes. None of you will tho but if you don’t then you’ll be going to jail most likely so be careful and do not fucking swing.

thats based on the assumption that the price of Link won't go up anymore this year. also kys, I made nice 500% gains in single day with my short turned to longs play with Link.

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enjoy the tax man

Read the 3rd post better hope it keeps going up bro. Do not swing

Literally this simple. The most degenerate behavior possible is putting the tax liability back into a literal card flip asset that can and historically will loose 99% of its value.

you do realize that I make nice gains even after taxes? imagine being so scared of tax man that you don't want to make a living.

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No, as usual is a retard, an example of dunning Kruger. He thinks he's this smug genius for not selling at $20 when he is in fact just a retard

we all know swingers are degenerate and put everything back in

That literally is how it works though. This is common knowledge.

Just report your initial investment and your final number when you finally cash out. IRS isn’t interested in every little transaction

if it goes down in the same tax year, I just sell and buy back. that way I can reduce the losses from taxes. what are you fags on about?

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Listen up retards the bizfucks posting in this thread are using advanced techniques to keep you holding while you get dumped on

Your getting taxed no matter what, keeping track of your buys and sells will be sufficient for the irs and it's really not that hard

Don't get dumped on because your scared to do simple arithmetic

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>Make initial investment
>Trade
>Extract initial investment
>0 gains
>report it
>Pay no tax
>Use gains on crypto card for everyday expenses
>In case of wanting to cash out more, wait a year, tax free 100% gains
Works since 2013

Oh wow you said it's common knowledge, that means you're right

I don't understand you fucking pussies.

It doesn't matter if you're getting fucking taxed at 15-20% per swing. It's not like it's compounded or exponential.

YOU'RE PAYING A FLAT 15% ON ALL YOUR COMBINED PROFITS. DO. THE. MATH.
Imagine not making an extra 200+ a day AT THE LEAST because you're afraid big bad govie is gonna take up to 20% of that maybe.

Okay they can have my 40$ and eth network can have my 10-15$. Still profit. Still able to increase my swinging strength. Still able to invest more.

You can only write off 3k in loss what the fuck do you think.

>he doesn't know crypto to crypto is a taxable event
>he is going to get ass blasted by tax man

You can do it maybe you’ll get by but this is 100% why they said crypto to crypto is taxable event. If you’re using exchanges that report which all of them are required too (if you bought before ‘18 and are still holding you may be ok) then you simply can get taxed on each event. Better understand what you’re getting into or you’ll be fucked. Just hold it’s that simple.

Your an idiot there is no limit to how much your loses will offset your gains, your probably talking about carrying loses over from year to year which there is a limit on

buying isnt taxable, the solution is never fucking sell

>paying taxes
try harder kikes

Wrong idiot I’d you lose it all next year you’re fucked and that can 100% happen.

Is it really only 15-20% for burgers? Thought it was higher.

Yes year to year so if you have 500k profit in 1 year and then the next year you lose 95% of it. Well you’re fucked. You need to save for tax that’s not rocket science. Now if you didn’t swing you don’t owe shit that year

Easy to posture like this when you've never made any sizeable gains faggot.

What does that have to do with taxes? This is crypto of course you could lose everything that goes without saying

what's a good strategy with staking with tax? should i sell my long term initial stack and "replace" it with new staked link where i turn it into a long term hold?

You don't have to report the cost basis of sales in crypto? This only works if they don't know the number of coins you're selling to cash out your initial investment. If you get audited you're fucked

>hehe lol have fun wif de tax man !

You will never lose money when you realize a profit. That's why it's called capital gains tax.

The only "doom scenario" you can even give is where you sell and buy lower and then the token goes to $0.

Yeah but dum dum just fucking cash out before the end of your fiscal year.

Which is an entirely likely scenario in crypto

Ok so you just cash some of the 500k gains before the year is out, never go all in crypto

Only in USA, Canada, Australia
I am a europoor so i can swing all day long and only thing that matters is the amount i cash out

Oh ok so now you're moving the goal posts, congratulations

Ok let’s go slow for fags ok. I bought link in 2017 for 12k at $19 I was at 905k a shit ton of profit. Let’s say I swung and rebuy at 16. Well now I owe 890k in taxes for 2019. Let’s say I’m dumb and don’t take money out to save for tax. And next year it crashes to 0. Guess what I still owe that 890 in tax for fy20. If the exact same thing happens and I didn’t swing guess how much I owe, nothing.

He's presenting a plausible scenario where swing trading leads to ruin. If you make a very large swing trade then your coin dumps in January, how the fuck are you going to pay taxes unless you put some aside?

>IF IF IF IF IF

You shouldn't be here. You shouldn't even be investing.
Go be emotional like a woman somewhere else.

pay ur taxes good goy! fags gift tax exemption from overseas is 100k/yr send crypto to ur conbase declare as gift from foreign fren buy 8k gold coins from several online dealers easy reach 50k no need to declare any shit

Read the above it will save you from jail

How can you be this much of a brainlet. I hope you get rekt by tax but you'd need to make gains first

You think that considering plausible hypotheticals regarding your finance is emotional? Blind idiot

Just treat it like a Form 8949. It has all the transactions on it but the only thing at the end of the day is your initial cost vs proceeds

Ya I get that but you do need to file it in the year of taxable event otherwise you’re fucked. That said maybe they won’t catch you but that’s how it works. Or just don’t swing it’s that easy.

Yeah I'm sure Binance is going to file my unverified account info with the IRS lmao. Or the decentralized exchanges.

Burden of proof is in the IRS and all they'll have is your bank statements and maybe the wallets you sent your coins to if their software gets sophisticated enough in the future.

No you only have to pay for your gains. There is no instance where you would have to pay more in tax than what you made.

>being a bank cuck
All of my crypto funds and cash outs have been exchanged through physical cash on local crypto. I don't even own crypto on paper.