/TG/- Tax general

Daily reminder Mutts can never be free
irs.gov/businesses/small-businesses-self-employed/revocation-or-denial-of-passport-in-case-of-certain-unpaid-taxes

I fucked up the OP. Made a correction.

>Just gonna give an attempted kick off on this.
>How the hell do you deal with the IRS?
>So far it looks like your taxed once for holding, then taxed a second time for cashing out. Is there really any point to invest unless you can make over a million?

Where are you getting "taxed for holding" from? There's no tax for purchasing and sitting, only for selling.

Trading crypto is treated similar to stock investing for US tax purposes. The sale of crypto, whether to cash/fiat or another crypto, is treated as a capital sale, with the gain from the sale (sale price less original cost) being taxed at capital gain rates.

If held for more than 12 months, its long-term and taxed at a lower rate. If less then 12 months, its short term and taxed at your regular marginal tax rate.

There is no tax on acquiring the crypto or simply holding it. The sale triggers the taxable event.

As others have said, check with a CPA, especially if you are working with sizable amounts.

unless you're profiting more than like $5k just dont pay taxes

Why the fuck would anyone on Zig Forums protest against the rich?
Maybe you’re thinking of Zig Forums

>DURR LOOK AT ME IM PAYING TAX HURR DURRRR GOTTA PAY TO TO KEEP THE TAX MAN AWAY HEHE HURRRRRRR

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Kys dude we fucking told you already that you don’t remotely understand how this works and need to hire an accountant or tax lawyer before you cash out.
You don’t get taxed for buying or holding crypto, you get taxed when you use that crypto or trade it for something else, and the value of said crypto is more than what you initially paid for it.

Taxed once when cashing out. Exactly the same as buying a regular stock in the S&P500.

Price cashed out for - priced paid for = capital gain. It's not complicated brainlets.

Thanks anons now I have to amend tax returns

Most of the advice in this thread is a good starting point. Also, get acquainted with the concept of “good faith best effort” just in case someone comes knocking in the form of an IRS notice.

Should I contact the IRS now or should I wait till I file next year and submit amended returns?

What happens if you get hacked and you've lost control of it / someone stole your crypto?

Can you declare it as a loss ??

This

You are not taxed like this at all. Youre basically only taxed on your net gains once theyre fiat.

Do they have any kind of insurance we can get to safeguard against this?

I can't find the thread right now but, sometime last week an user made a thread about how is he going to track uniswap transactions for tax purposes and the idea came out about a "double tax" so that's were I got this thought from.

Yes, you can claim the loss as long as you are able to show/prove that the crypto was actually stolen. May get flagged by the IRS, but the burden of proof on tax evasion falls on the IRS.

There has been too much violence, too much pain.
None here are without sin, but I have an honorable compromise: Just pay your taxes.
Cash out your crypto, get an accountant, print out your info from exchanges, report all your gains, and I spare your life.
Just pay your taxes. I will give you safe passage in the threads.
Just pay your taxes and there will be an end to the horror.
I await your answer. You have one more post to decide.

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Just keep track of your trades. It isn't rocket science. You are taxed only on gains. You are only taxed "twice" if the bitcoin you received in exchange for your shitcoin increases in value before you exchange it for fiat

>Taxed for holding

You are fucking stupid

FRY soon on GECKO

Eastern Europeans have it easy. Actually has anyone here tried to send 5000$+ to your bank once a day to see if they'll freeze your account? Supposedly anything more than 4899$ is pushing it and they start inspecting you.