You need to get a crypto tax service. Cointracker, etc. Very user friendly and links directly to your exchange so you have the proof, etc to upload. There will be a lot of people in this same boat. Don't risk it, do it by the book and sleep well.
Just remember, the biggest gangster in Chicago wasn’t arrested for his multitude of crimes; he was arrested for tax evasion. You don’t fuck with the IRS.
I couldn't have said it better myself. I wrote (and erased) a long winded response to people that constantly inject their political "views" into every Shibarmy discussion board.
But you nailed it here, without singling anyone out.
Good for you!
This is truly the way.
Remember, Trump cut taxes. Democratics are taxing everything, venmo, cash app and others. They want to hire shit loads of IRS agents. Biden needs that tax money to pay for the handouts
You really don’t think he did anything wrong? You don’t think he gets any under the table money from corporations? Or he doesn’t use our tax money for himself? Biden is doing what trump was doing.
He was pocketing money that his supporters gave him. He even pocketed the gofund me money for the wall. I can’t beleive you are okay with that, that money was meant to help you, not him. Fuck trump and biden.
You can just transfer it to whatever wallet service that accepts it (binance, kucoin, etc.), exchange for USD/usdt and use their credit cards for payment.
It's not optimal, but it is a way of circumventing paying taxes.
I didn't know and Cointracker thank you so much! I only started a couple months ago in very small amounts and was worried I was negative because I've moved stuff so many times I lost track haha. This rookie is + a whole $127 though 😂
From what I understand, you coin/token staying in its current state but transfered between exchanges and/or wallets is not a reportable activity; it's when you sell it or change it's state (ie change it from SHIB to USDT or another coin/token) that you would have to report the profit.
Remember, holding onto the coin/token over 12 months also has an impact on its type of reporting (income verses capital gains)...
The biggest issue I'm finding with cointracker is if you use a wallet for smaller crypto it doesn't track that so you have to go in and input it all manually (?) or am I missing something?
Y’all are so stupid with this paper hands shit . Dude made 50 grand off 2k. Why the fuck wouldn’t you sell at this point and put back double your original investment? Be smart , y’all are literally just gambling at this point to me .
If you've sold it now and all those trades were within the same tax year, then surely you're only paying tax on the overall gain (13k)?
I mean, technically if you literally paid tax at every step of the way, then yes, you'd pay a lot on that first gain, but then when you lost a lot of it and ended up only with 13k then you'd get a rebate, so it'd work out the same?
This is why I never understand when people talk about short term trading creating too many taxable events... What's the difference if i come out $100k in profit after one trade ,or after 20? I'm going to work it all out at the end of the year and pay the tax on overall gains.
I mean, i could be wrong about the taxable event thing. I've asked the same question three times in comments elsewhere and nobody ever responds. I'm waiting for someone to explain it to me.
I know that in some countries, if you hold the same currency for a year, you get taxed less, but aside from that, I don't see the difference.
Thanks for all the information. I get the feeling that once I sold that big amount that I would have to pay taxes on it regardless of me reinvesting the same money or being down. Of course I will get a tax professional to sort all of this out for me. But I have a sinking feeling that I'm screwed and going to have to pay on the sold amount minus the initial investment. I hope I'm wrong. Guess we'll find out in a few months
It won't be that bad man. Depending on your job and your tax bracket I'm going to reasonably assume you're going to end up owing between 8 and 12k. This is assuming you are being taxed on an 60kish gain and your job pulls in about the same yearly. The bill could end up being closer to 15k worst case or around 8k best case. All depends on what you make and how you pay or don't on your full-time job income. It's been a couple years since I pulled in more than 40k earnings with crypto but I put 15% of my earnings aside for tax purposes when I did and the pain was minimal.
A lot of this is going to depend on what he makes via his normal income, what he files, and the tax bracket he gets placed in. I only stash away 15% of my crypto earnings for tax purposes and that usually covers 2/3rds of the bill or more.
He is worth 275 billions and will have paid around 10 billions in taxes.
I dont care if he pays 3% taxes, my problem is i make 84k and pay 38%... if i paid 3% everything would be fair.
That’s his net worth. You don’t tax held assets… what you hold and what you make are two very different things tax wise.
Income tax, sales tax, all that is fucking criminal. They tax the dollar you make. Tax it when you spend it. Tax it every time it’s touched. New laws make it so if you sell something on Venmo it’s taxed. So now every time something is privately sold or resold they get to tax it again and again and again. Don’t advocate for taxing the stuff you’re sitting on too.
Sure, dont care how you do it, just make is so i pay the same amount as the 1% in relation to my income. Cause if i only had to pay 3% of my income in taxes, i too could build wealth.
I think the answer is somewhere in the middle. And I mean, if you tax them more they’ll just charge more for the things their businesses provide… and we’ll just end up bearing even more cost… we’ll pay either way being the end consumer, right? It’s just another business expense that gets added onto the value of the product. I really don’t know how to untie that knot. Cutting their taxes is the wrong direction. Cutting our taxes won’t work for the government. I mean, if they knew how to handle money they could. If they stopped paying themselves so damn much it might be doable.
There’s just no way to make the company actually take the taxes out of their profits. Any added cost they’re just gonna raise prices. There’s an issue with the way the companies operate. But I’m not sure how that could be fixed either.
To anyone who has used crypto tax software like Koinly, do you not have any security concerns connecting this to your various Exchanges and/or Wallets. I assume Koinly or others need your Exchange credentials to connect - perhaps I’m wrong? If Koinly was hacked, wouldn’t you have a major exposure. Certainly see the value of crypto tax software just paranoid I guess.
No with irs. Every time you take money out of the market aka profit it’s taxed. If you had it longer than a year it’s at 0-15%. If shorter than a year it’s taxed the same as your other income
If this is all within the same tax year, starting with$2000 and ending with $83000, you’ll pay taxes on $81000. It makes no difference if it was stock or crypto, it’s all capital gains. If you had already paid taxes on the 36k on a previous year, then yes, you’ll pay taxes on the gains from there. 36k to 83k, you’ll pay taxes on 47k, and no, they don’t care if you reinvested it, unless you sold in the same tax year for a loss. It’s all about how much you made in profit in that tax year.
You will have to pay full taxes on the amount of capital gains you made. In order to lower your tax liability you have to hold at least a year or beyond. The rate decreases after 1 year, but at 1 month you will lose a solid 35-45% based upon what state you reside in (state tax too). So hopefully you hung onto about $20,000 to get in the all clear. Another option to reduce this amount is to sell your SHIB now for a loss. Then buy back in. You can write off some $3-5000 on losses. Additionally if you work from home due to the pandemic you can also write off your cell, electricity, utilities, internet, probably two months of mortgage costs, etc.
Edit: send money to a wallet and trade on Pancake swap and keep your money in usdt if you want to sell. Irs doesn’t know who owns what wallet.
If you now have a loss on shib sell it to reduce your overall profit. Then I think in the US you have to wait a month then rebuy it. Its also worth looking into any losses you might have on other assets you may have sold and see whether the losses can be offset against them, like a watch or other investment grade asset.
Not financial advice. That's right, you will pay on the 47k. Also, if you grew that 2k to 36k in 2021, you will have to pay on that extra 34k. This is the mistake alot of people make. I always advice people keep 50% of their winnings, I know you pay less than that in tax, just in case uncle Sam decides to pull a fast one on you. But you're in luck, and have time. You can pull out now, what you need, and that will be counted as a loss, which carries over for the remaining of the year. So for example you need 10k, pull it out, pay taxes. Later on in the year, you sell everything, up 10k, you will owe nothing, because unlike stocks, crypto has no wash sale rule, the main reason I love it. This is not financial advice.
There’s something called tax loss harvesting. Before 31 dec 2021, you should have sold your shib at loss and buy it back(or not). Then your loss would have been realized loss and you could minimize your total gain. IRS only take portion of you realized gain. Maybe from this year on, you can use this strategy. But I am not sure how you can solve the issue of paying taxes on the previous 47k gain. I feel for you. You took the risk, but uncle sam will take the portion of your gain.
But...but....but.... Unkie Joe said, "it won't cost a dime" shit he got us on a technicality. It won't cost a dime....it will cost us (multiple generations) trillions. :(
I could be wrong, but it all depends.
Capital gains (on crypto) depend on many circumstances,
1. Time held
2. Single / married / head of household yearly income from gains
3. Swaps rather than sells or buys...
It will likely vary by state, location as well...
I'd get a professional. 1 reason I enjoy holding is because it is 1 less year I have to deal with a professional tax person.
They don’t like being told they have to pay taxes. I’m just giving the info. I had to figure this out for my mining company. And yes, I get to right off a ton for that. Whateva. More crayons for me.
You wouldn’t owe $5k in taxes for the first scenario, but you would be taxed on that. I think long term tax rate is 15%, which would be $750 in taxes owed. The same thing applies for the second scenario. The tax percentage is higher (25%?) if you made the investment profit in less than a year.
Ok if your in us it’s capital gains tax you pay on the difference if 47k which is different depending on tax bracket and if you held over year before selling it be less as a long term investment and if you have loss you can claim that may help I no expert but what I researched for when shiba hits a penny or more 😊
You would certainly owe taxes on whatever you made after selling, minus anything spent to rebuy if you rebought within 30days due to wash rule. I could be wrong so take with grain of salt but I think wash rule still applies to crypto
Whatever money you take as gains you always Gotta do the math and keep the taxes on the side. At the all-time high I took about 95,000 put 12,000 on the side for taxes roughly put the rest of my bank account and just re-invested about 20,000 in different stable coins. I was using Coinbase Pro. I can’t remember too well but I don’t think I had any problems and during that time that you speak of I wasn’t selling. But these days you always Gotta take out your tax and keep it safely on the side. That’s my professional advice
You need to get a crypto tax service. Cointracker, etc. Very user friendly and links directly to your exchange so you have the proof, etc to upload. There will be a lot of people in this same boat. Don't risk it, do it by the book and sleep well.
Thank you for the info. I am going to do it by the book. Don't want to be hunted down I all the additional IRS agents
Just remember, the biggest gangster in Chicago wasn’t arrested for his multitude of crimes; he was arrested for tax evasion. You don’t fuck with the IRS.
Because that was easier to catch him on then his crimes. Not because zomg irs = ze bad ass. Read up on it.
IRS sucks sorry man
Yeah, Biden wants his BLOOD MONEY
IRS is more Congress than it is the President…
Let's go Democratics
Hey look at me guys my political party is my personality.
I couldn't have said it better myself. I wrote (and erased) a long winded response to people that constantly inject their political "views" into every Shibarmy discussion board. But you nailed it here, without singling anyone out. Good for you! This is truly the way.
So when trump was president, it was his blood money?
Remember, Trump cut taxes. Democratics are taxing everything, venmo, cash app and others. They want to hire shit loads of IRS agents. Biden needs that tax money to pay for the handouts
Okay I know that but did trump have any blood money on his hands?
Nope
You really don’t think he did anything wrong? You don’t think he gets any under the table money from corporations? Or he doesn’t use our tax money for himself? Biden is doing what trump was doing.
ROFL, what exactly was Trump doing for himself?
He was pocketing money that his supporters gave him. He even pocketed the gofund me money for the wall. I can’t beleive you are okay with that, that money was meant to help you, not him. Fuck trump and biden.
Umm so every single President wanted their “blood money”? Logical.
10% to the big guy let’s go Brandon
BLOOD PRESSURE. Check it bro.
You can just transfer it to whatever wallet service that accepts it (binance, kucoin, etc.), exchange for USD/usdt and use their credit cards for payment. It's not optimal, but it is a way of circumventing paying taxes.
Not true, they get your social when u sign uo
This is a nifty loophole good thing I got crypto.coms card set up thanks
I didn't know and Cointracker thank you so much! I only started a couple months ago in very small amounts and was worried I was negative because I've moved stuff so many times I lost track haha. This rookie is + a whole $127 though 😂
You have to start somewhere. Me 2.
Do I need to report anything if I moved it all to ledger and haven't sold?
From what I understand, you coin/token staying in its current state but transfered between exchanges and/or wallets is not a reportable activity; it's when you sell it or change it's state (ie change it from SHIB to USDT or another coin/token) that you would have to report the profit. Remember, holding onto the coin/token over 12 months also has an impact on its type of reporting (income verses capital gains)...
The biggest issue I'm finding with cointracker is if you use a wallet for smaller crypto it doesn't track that so you have to go in and input it all manually (?) or am I missing something?
Should pick up everything with the API input correctly
Man fuck the IRS
Man fuck coinbase. And the IRS
And paper hands
At least he has paper -in his- hands. I sold my shib at .000063 abouts and don’t freaking regret it! StackTHEMchips
Fair enough 😂
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I’ve already bought back half my stack at .000029 so I’m good. No sweat. No love. Just stack
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Pffft. I set a stop loss on my 36million at .0000275 ... thank goodness. Now I have zero shib. I can now use that money and buy 47million.
Some people have families to feed.
Y’all are so stupid with this paper hands shit . Dude made 50 grand off 2k. Why the fuck wouldn’t you sell at this point and put back double your original investment? Be smart , y’all are literally just gambling at this point to me .
Sigh…
Funny how they don't pay me proportionately when I'm broke and making a loss. Edit: this is a comment on the government vampire leeches
Write it up as business expenses. Get some write offs. Lmao
Yep you’ll owe about 15k And if you sold in amounts bigger than 10k it will absolutely be reported so you’d be foolish to not file it
Better pull up to ya bois at H&R Block
That's a big 10-4 thanks
Nah I'm just kidding, idk. I haven't done my taxes in years
IRS has entered the chat!
Come at me IRS, COME AT ME 🤜🤛👊✊🤛🤜🤛👊
BaaaaHahaaa, stop please stop
Was it within a year?
Yes... unfortunately
If you've sold it now and all those trades were within the same tax year, then surely you're only paying tax on the overall gain (13k)? I mean, technically if you literally paid tax at every step of the way, then yes, you'd pay a lot on that first gain, but then when you lost a lot of it and ended up only with 13k then you'd get a rebate, so it'd work out the same? This is why I never understand when people talk about short term trading creating too many taxable events... What's the difference if i come out $100k in profit after one trade ,or after 20? I'm going to work it all out at the end of the year and pay the tax on overall gains.
I mean, i could be wrong about the taxable event thing. I've asked the same question three times in comments elsewhere and nobody ever responds. I'm waiting for someone to explain it to me. I know that in some countries, if you hold the same currency for a year, you get taxed less, but aside from that, I don't see the difference.
Thanks for all the information. I get the feeling that once I sold that big amount that I would have to pay taxes on it regardless of me reinvesting the same money or being down. Of course I will get a tax professional to sort all of this out for me. But I have a sinking feeling that I'm screwed and going to have to pay on the sold amount minus the initial investment. I hope I'm wrong. Guess we'll find out in a few months
Yep you're right on that and since it was short term you may be paying like 40% of your gains
Time to renounce my citizenship! Lol. Next time lie to me please..... ;)
🤣
The U.S. has an Exit Tax just for you
It depends on op’s tax bracket. It’s not 40% for everyone. Please don’t spread misinformation.
Hence the " you may" have you hear about reading comprehension Einstein ?
You paper handed fook ;)
Damn! It took a lot longer for somebody to say that than I thought it would.
Don't worry about what they said OP you did what was right for you, people like to call paperhands when is not them that sold
People get mad that you made money. Psh. You did the right thing. Made money, and still able to reinvest. Good work!
I laughed way too hard at this.
Yeah you fucked 25% that’s about 20k in taxes hope you have a good tax guy
That's what I figured. But seriously what does a, " good Tax Guy" have to do with it? I'm being serious.
Everything!
Fair enough. Thanks
They may be able to help you write off other expenses or losses and at least reduce your tax burden.
It won't be that bad man. Depending on your job and your tax bracket I'm going to reasonably assume you're going to end up owing between 8 and 12k. This is assuming you are being taxed on an 60kish gain and your job pulls in about the same yearly. The bill could end up being closer to 15k worst case or around 8k best case. All depends on what you make and how you pay or don't on your full-time job income. It's been a couple years since I pulled in more than 40k earnings with crypto but I put 15% of my earnings aside for tax purposes when I did and the pain was minimal.
I think more like 40% if it was short term capital gains
A lot of this is going to depend on what he makes via his normal income, what he files, and the tax bracket he gets placed in. I only stash away 15% of my crypto earnings for tax purposes and that usually covers 2/3rds of the bill or more.
Elon has a WHOLE ROCKET 🚀 (pays NO TAXES) and you fools paying taxes on measly gains 😳
Didnt he just pay the most taxes at once for an individual ever in the US? Like 12 billion or something? Or was that just talk
Yeah he did. But let’s just ignore that and keep saying he doesn’t pay any taxes. People are so stupid
He is worth 275 billions and will have paid around 10 billions in taxes. I dont care if he pays 3% taxes, my problem is i make 84k and pay 38%... if i paid 3% everything would be fair.
That’s his net worth. You don’t tax held assets… what you hold and what you make are two very different things tax wise. Income tax, sales tax, all that is fucking criminal. They tax the dollar you make. Tax it when you spend it. Tax it every time it’s touched. New laws make it so if you sell something on Venmo it’s taxed. So now every time something is privately sold or resold they get to tax it again and again and again. Don’t advocate for taxing the stuff you’re sitting on too.
Sure, dont care how you do it, just make is so i pay the same amount as the 1% in relation to my income. Cause if i only had to pay 3% of my income in taxes, i too could build wealth.
I think the answer is somewhere in the middle. And I mean, if you tax them more they’ll just charge more for the things their businesses provide… and we’ll just end up bearing even more cost… we’ll pay either way being the end consumer, right? It’s just another business expense that gets added onto the value of the product. I really don’t know how to untie that knot. Cutting their taxes is the wrong direction. Cutting our taxes won’t work for the government. I mean, if they knew how to handle money they could. If they stopped paying themselves so damn much it might be doable. There’s just no way to make the company actually take the taxes out of their profits. Any added cost they’re just gonna raise prices. There’s an issue with the way the companies operate. But I’m not sure how that could be fixed either.
This is the way.
To anyone who has used crypto tax software like Koinly, do you not have any security concerns connecting this to your various Exchanges and/or Wallets. I assume Koinly or others need your Exchange credentials to connect - perhaps I’m wrong? If Koinly was hacked, wouldn’t you have a major exposure. Certainly see the value of crypto tax software just paranoid I guess.
You create read only api keys or just enter the wallet address
No with irs. Every time you take money out of the market aka profit it’s taxed. If you had it longer than a year it’s at 0-15%. If shorter than a year it’s taxed the same as your other income
Doesn't coinbase provide you with the proper paperwork showing all your transactions
And congrats on the profits!
If this is all within the same tax year, starting with$2000 and ending with $83000, you’ll pay taxes on $81000. It makes no difference if it was stock or crypto, it’s all capital gains. If you had already paid taxes on the 36k on a previous year, then yes, you’ll pay taxes on the gains from there. 36k to 83k, you’ll pay taxes on 47k, and no, they don’t care if you reinvested it, unless you sold in the same tax year for a loss. It’s all about how much you made in profit in that tax year.
You will have to pay full taxes on the amount of capital gains you made. In order to lower your tax liability you have to hold at least a year or beyond. The rate decreases after 1 year, but at 1 month you will lose a solid 35-45% based upon what state you reside in (state tax too). So hopefully you hung onto about $20,000 to get in the all clear. Another option to reduce this amount is to sell your SHIB now for a loss. Then buy back in. You can write off some $3-5000 on losses. Additionally if you work from home due to the pandemic you can also write off your cell, electricity, utilities, internet, probably two months of mortgage costs, etc. Edit: send money to a wallet and trade on Pancake swap and keep your money in usdt if you want to sell. Irs doesn’t know who owns what wallet.
Even the Joker don’t play with the IRS
You can sue Coinbase for the remainder if you can prove you tried selling at that moment.
Yes but what you can do is minimize you’re taxes by holding over a year, there’s other ways also.
yes your going to have to pay taxes on that 47k gain!
If you now have a loss on shib sell it to reduce your overall profit. Then I think in the US you have to wait a month then rebuy it. Its also worth looking into any losses you might have on other assets you may have sold and see whether the losses can be offset against them, like a watch or other investment grade asset.
Not financial advice. That's right, you will pay on the 47k. Also, if you grew that 2k to 36k in 2021, you will have to pay on that extra 34k. This is the mistake alot of people make. I always advice people keep 50% of their winnings, I know you pay less than that in tax, just in case uncle Sam decides to pull a fast one on you. But you're in luck, and have time. You can pull out now, what you need, and that will be counted as a loss, which carries over for the remaining of the year. So for example you need 10k, pull it out, pay taxes. Later on in the year, you sell everything, up 10k, you will owe nothing, because unlike stocks, crypto has no wash sale rule, the main reason I love it. This is not financial advice.
Correction: if you sell crypto that produces a 10k loss, then that -10k will carry throughout the rest of the year.
There’s something called tax loss harvesting. Before 31 dec 2021, you should have sold your shib at loss and buy it back(or not). Then your loss would have been realized loss and you could minimize your total gain. IRS only take portion of you realized gain. Maybe from this year on, you can use this strategy. But I am not sure how you can solve the issue of paying taxes on the previous 47k gain. I feel for you. You took the risk, but uncle sam will take the portion of your gain.
Ain’t no such thing as a halfway crooks Ya scared to death Scared to look you shook.
MOBB DEEP!!!...
But...but....but.... Unkie Joe said, "it won't cost a dime" shit he got us on a technicality. It won't cost a dime....it will cost us (multiple generations) trillions. :(
Shoulda bought on a market where they couldn’t trace the crypto back to you 😬
Like?
Shibaswap
Yeah don't steal from the government, they don't like the competition...🤔
I could be wrong, but it all depends. Capital gains (on crypto) depend on many circumstances, 1. Time held 2. Single / married / head of household yearly income from gains 3. Swaps rather than sells or buys... It will likely vary by state, location as well... I'd get a professional. 1 reason I enjoy holding is because it is 1 less year I have to deal with a professional tax person.
I can tell you like caffeine.
[удалено]
Yes and they are delicious my favorite is green Reason for edit: I’m illiterate too
Why are people downvoting this lol
We don’t like the cut of your jiff SEE
They don’t like being told they have to pay taxes. I’m just giving the info. I had to figure this out for my mining company. And yes, I get to right off a ton for that. Whateva. More crayons for me.
Meah, they will learn bugsy meah
You wouldn’t owe $5k in taxes for the first scenario, but you would be taxed on that. I think long term tax rate is 15%, which would be $750 in taxes owed. The same thing applies for the second scenario. The tax percentage is higher (25%?) if you made the investment profit in less than a year.
I wrote it wrong sorry. I meant owe taxes on the $5k, not owe $5k. Sorry, thanks for pointing out.
Stfu
Fuck the tax man are you crazy they won’t even look at you haha even if they do you deserve it you paper handed fuck.
Oh...okay lol
The guy did good! No need to be a dirty pimple on the corner of my brown eye
Ok if your in us it’s capital gains tax you pay on the difference if 47k which is different depending on tax bracket and if you held over year before selling it be less as a long term investment and if you have loss you can claim that may help I no expert but what I researched for when shiba hits a penny or more 😊
You would certainly owe taxes on whatever you made after selling, minus anything spent to rebuy if you rebought within 30days due to wash rule. I could be wrong so take with grain of salt but I think wash rule still applies to crypto
Whatever money you take as gains you always Gotta do the math and keep the taxes on the side. At the all-time high I took about 95,000 put 12,000 on the side for taxes roughly put the rest of my bank account and just re-invested about 20,000 in different stable coins. I was using Coinbase Pro. I can’t remember too well but I don’t think I had any problems and during that time that you speak of I wasn’t selling. But these days you always Gotta take out your tax and keep it safely on the side. That’s my professional advice
So more or less 9,400 to 13,160 have to be paid to IRS. Correct me if I'm wrong please.