Tax Bill More than I Made?

So I made like $900k in 2021 but now I lost a lot of it and I only have $300k. I went to do my taxes yesterday and somehow I owe $400k? Wtf? Can any burger explain to me how this is legal or wtf happened? I don't have an extra $100k and I don't wanna get butt raped in prison.

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Always sell on Dec 31st of the year you fucking retard and pull out the required amount of capital for paying taxes if you have traded that year for short-term capital gains. Otherwise hold for a year and take out the requisite long term cap gains tax before reinvesting for another year.

Ask for an extension as long as humanly possible into like May/June/July if covid exemptions are still going and pray the bullrun comes back so you get your gains back to pay your taxes.

you still owe taxes on the money if you went and spent it trading or just on items and this and that. Consider this, You made 900k, you lose 600k trading or buying shit or whatever the fuck, you still owe taxes on that 600k, just because you spent it doesn't mean you didnt at some point have that money. Imagine saying, well, i spent it all at the casino so since I lost it I don't have to pay taxes on these capital gains. Get it?

everytime you buy and sell crypto its a taxable event, you should have just brought a crypto card and deal with the fees of using it since its less then the tax

Hey bros if I’m just holding say only 10k of crypto and haven’t taken a dime out only put it in, do I owe taxes on that or just income on earnings I’ve cashed out?

You only owe once you cash out. Right now you only have unrealized gains. If you hold for longer than a year, then it is a long term capital gain and the tax rate is much lower (still a bitch tho)

You seriously fucked up. I'll never get in this situation. I was going to post a thread at the end of the year to want tards like you but never got around to it.

Ohhhh nice I plan to hold until I’m at a million anyways

lol, you're a fucking retard. I don't believe its 900k either, you added a couple zeros to those numbers to look cool. no one that stupid could accidentally get that much money.

I file 0 on my w2 so I’m not reporting shit

Not filing is actually a criminal offense
Not paying them results in fees and penalties

incorrect, you only owe on what you cashed out

the IRS doesn't give a shit as long as you don't go around purchasing high value assets without any reported income, if you lay low nothing happens

I said all this based on op saying "he made 900k in 2021" so yes Im assuming he cashed out.

You need to deduct your cost basis and losses. However if you were up $900K at the end of the year and somehow lost $600K of that in two months you are basically fucked.

You can't avoid taxes user, but you can put some of that in glimmerswap genesis pool

He didn’t cash out. He reported all his trades like a good goy now he’s getting fucked. This all reminds me of 2018. It’s about to get ugly.

Do you think alot of people that didnt cash out EOY 21 are gonna cash out here in february/march to pay the tax man?

No, I sold but kept it in crypto but traded different coins that are down a lot.
Yeah I think I'm fucked

In 2017 people reported their gains but did not cash out. In 2018 when it all crashed. Majority of who reported got left holding bags and a 6 figure bill to the irs. It’s all repeating.

shoulda put into stables aside or fiat, atleast the taxable amount. And afaik you can only claim 3k of capital losses against your gains annually, though what you can't fit on one return you can claim the following return the next year.

If you lost the money last year on investments and then realized the losses before Jan 1st, then you're good. Just subtract the losses.
However, if you ended the year with $900K in realized gains, had no losses until 2022... you should have set some of it aside. You're fucked if you gambled that money. No way around it besides taking out a loan or gambling against the clock to cover/reduce what you owe.
Having to come up with $100K in two months sounds like a gambler's nightmare wet dream combo tho, ngl.

This is also why you should never cash out. Borrow against, and short your positions to lower your cost basis.

Can I get a quick rundown on this?

did you have ANY losses in 2021 that you might have forgotten to record which could offset those gains?
A bag of shitcoins that you sold and then rebought immediately?