Trading one coin for another is a taxable event and must be reported on your taxes

>trading one coin for another is a taxable event and must be reported on your taxes
Literally what the fuck? Why? Suppose someone didn't, then what?

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fines and/or prison
the tax department will analyse blockchain records to find crypto tax evaders
because they definitely have the resources and expertise to do that
pay your taxes goy

stable coins only

Kek I traded one coin to another and "made" 40 bucks and I'm supposed to report 40 bucks? Kek

it's only your asshole at stake

The IRS doesn't give a shit about Joe Blow and his shit coins

It makes no sense to me....

>trade $100,000 USD for $100,000 BTC
>trade $100,000 BTC for $100,000 ETH

Wheres the profit? your taxable event is $100,000 - $100,000 = $0 profit therefore what taxes are owed? , infact you'd be down on the trading fee....so what exactly is taxed here?

>and "made" 40 bucks and I'm supposed to report 40 bucks? Kek

Yes

Every trade needs to be documented

Literally why though? I highly doubt everyone here is reporting each and every single trade they ever made in a year let alone keeping track of them all

I didn’t know it was a taxable event and I traded BTC for LRC, let it pump and then traded the LRC Back to BTC before the pump ended. Increased my BTC by like 40%.

After I realized it was taxable, I cashed out the extra in case the market tanked so that I could actually afford the taxes. And then the market did tank. Just paid my taxes so I put some of the leftover into GOHO and rest in BTC.

Fuck these politicians for treating crypto like they are securities. What happens if every little company just gives you a crypto token with your membership. Amazon, Exxon, Kroger, you pay for goods, you earn crypto back, makes sense right? Sure, until you have like a thousand taxable events in a month. Fucking stupid.

I literally see it as them trying to deter crypto and make it so annoying that people stop doing it. Literally just keep adding red tape until everyone just gives up

So if you redistribute your portfolio into other holds they’re taking a massive percent in tax

That doesn’t make sense, I just did my tax and I only cashed out under 100k but the accountants saying I owe 70k worth of tax because there’s a few hundred thousand I redistributed into other crypto’s

So if you buy a small cap out of profits you take an instant 30% loss to the tax man?

Is this right? Everyone’s fucked if that’s true

Yup, you owe short term capital gains tax on it. That’s what’s so sketch about it is that you can trade it for another coin when it’s in the green, market tanks and now you owe a boatload of cash you don’t have.

It shouldn’t be a taxable event until it leaves you possession or it becomes cash. That’s the bottom line. And even then, they should fuck off with any amounts under 1 mil.

Are you sure
No one can function like that

That means you need to buy hold and that’s it, as soon as you move your funds especially if your in 6 figures you take almost a 50% loss

This kills anyone portfolio and your not able to move or buy anything with your money unless your willing to take almost a 50% loss

When did this become law? Is this a recent thing? This is the most retarded shit ever. I'm just going to sell everything and get out of crypto if this is what it's like

Land of the free. That's what you get for trying to get around the Fed and central banking

they will pay an agent's yearly salary if he collects 10% of his salary per year

Kek what you made that up

I’m talking to my accountant now and he’s saying I owe 70k because of redistributing, I havn’t made profits on what I’ve redistributed and owe a huge amount of tax

I only got under a hundred thousand into fiat which I thought was what was going to get taxed.

This messes my whole portfolio up and now dependant on the redistribution to to make profits which when cashed out to pay taxed will get taxed again so the tax amount goes up even further?

No one can function like that, your portfolio as soon as it goes to 6 figures gets around 45% taken away if you even move it to anything

So whatever you have don’t touch it or your just giving half your stuff to the tax man.

This can’t be right?

You're just now discovering why people hate taxes

People stocking up huge amounts on low caps are messed up
What they buy they gotto pretty much pay the same amount to tax when the buy the small caps. Those people are all over this forum

Is it weird that I'd rather get taxed on unrealized gains vs realized gains?
>realized gains is a mess of reporting that is always wrong
>unrealized could be you were worth X, you are now worth Y, you made Y-X. Pay taxes on that.

Done. Idk sounds better than what we have.

This is literally how people become republican. Once they pay taxes for the first time