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Official BGOL Crypto Currency Thread ★★★★★

gent30016 said:
Hey guys
I am always here not much of a poster at times...but I wanted to run something by you all....

New tax code to amend IRC section 1031 (a)(1) now making all cryptocurrency trades to be considered a taxable event.

http://bitcoinist.com/cryptocurrency-investors-lose-tax-break/
Click to expand...

So I don't understand...Is this saying if I have 5000 in one crypto and swap it into 5000 of bitcoin so that I can cash out with 5000 fiat that I'm gonna be taxed twice?????

Also while asking tax questions let me also clarify and ask this....If I have 5000 in Crypto that I've had for less than a year and I trade it for Fiat but keep the fiat in the exchange so that I can buy another crypto is that the point where its classified as a short term gain and I have to pay the higher Tax even though I never held the actual Fiat currency in my checking/savings account?
 
sumofyallniggasisbitches2 said:
So I don't understand...Is this saying if I have 5000 in one crypto and swap it into 5000 of bitcoin so that I can cash out with 5000 fiat that I'm gonna be taxed twice?????

Also while asking tax questions let me also clarify and ask this....If I have 5000 in Crypto that I've had for less than a year and I trade it for Fiat but keep the fiat in the exchange so that I can buy another crypto is that the point where its classified as a short term gain and I have to pay the higher Tax even though I never held the actual Fiat currency in my checking/savings account?
Click to expand...
I literally have a scheduled appointment with my accountant and wealth manager next week to discuss topics like this.

Relying on internet "gurus" will not have me owing Uncle Sam 47.5% if I mistakenly do something wrong.
 
p5ych3 said:
Good questions. I should peep around coinbase to see if they send 1099s, the feds already up in their business.
Click to expand...

I dont think they are yet... coinbase is like that is their goal to eventually do..

but they dont like the way the irs is wanting them to just give up information on everyone..

I think coinbase has to give up information on folks who withdrew a profit of twenty thousand or more but dont quote me...
 
Mrfreddygoodbud said:
I dont think they are yet... coinbase is like that is their goal to eventually do..

but they dont like the way the irs is wanting them to just give up information on everyone..

I think coinbase has to give up information on folks who withdrew a profit of twenty thousand or more but dont quote me...
Click to expand...

Please let this be true. Ive done so money transactions and withdrawals that theyll probably tax the shit out of my ass... but I havent withdrawed 20k though.
 
rjohns23 said:
Please let this be true. Ive done so money transactions and withdrawals that theyll probably tax the shit out of my ass... but I havent withdrawed 20k though.
Click to expand...

This is the situation that I am in... I've only taken out a minimal amount to this point but I essentially day trade so the new regulations about the conversions could really fuck with me....Hopeully ReRun can give us some good info from the accountant and point us in the right direction.....
 
Osca Lee said:
Put it all in a foreign trust...and don't worry about it
Click to expand...

yea there gotta be plenty loop holes..

fucked up how they just adding words in these tax laws as they go along..

truth is crypto got these govts shook...

they got software out now that is supposed to help them sniff out crypto currency tax cheats...

I predict algorithims placed in future coins that will make that software useless..
 
So like others have posted to some degree if you hold onto your crypto for at least a year you are subject to long term capital gains and is treated like household income.

Any shorter than a year it is considered short term capital gains and the tax liability is higher. So I got the feeling she was a little upset about my ROI and seemed to lock up a little after that. Now she mentioned they are investigating if you pay taxes every time you change the coin. For example USD->BTC->XRP, she is looking into would you be taxed 2xs for the currency changing. As well as seeing if the time period restarts every time you invest in a new coin. For example: You have been sitting on XRP for a year then you take that money and invest into another ALT, do you go from long term capital gain to a short term since you moved it.

I meet with my wealth manager later this week to dig down even deeper on some other opportunities.

I hope this helps someone to some degree and also hope it makes sense
 
I'm confused. The IRS can collect info from US-based exchanges such as Gemini and Coinbase, but what if I send my shit to Binance or Kucoin? The IRS won't be able to pull info from their databases to verify you are telling them the truth. Are they going to ask for logins (which no one will give) or print outs, which could be manipulated. How is this going to work? how do they track BTC-->BTC-->BTC/DASH-->Spend that shit while in brazil. Farfetched I know but possible. How much time and effort will it take an IRS scumbag twit to audit the 100s of transactions that may only gain them $400 in taxes. If the IRS fuck is getting paid $75/hr or whatever they make it might not be worth it. They think they will beat this. Prohibition never worked. The drug war didn't work. The tax war won't work. The gov't are afraid. Their fake ass infrastructure is finally under threat. If they don't stamp it out now, they won't later. How will this affect privacy coins? What if we have privacy exchanges? Hell you don't even have to verify your identity on Binance. This is very interesting. The gov't are full of shit. Do they tax every transaction at the casino?
 
Cannibal said:
I'm confused. The IRS can collect info from US-based exchanges such as Gemini and Coinbase, but what if I send my shit to Binance or Kucoin? The IRS won't be able to pull info from their databases to verify you are telling them the truth. Are they going to ask for logins (which no one will give) or print outs, which could be manipulated. How is this going to work? how do they track BTC-->BTC-->BTC/DASH-->Spend that shit while in brazil. Farfetched I know but possible. How much time and effort will it take an IRS scumbag twit to audit the 100s of transactions that may only gain them $400 in taxes. If the IRS fuck is getting paid $75/hr or whatever they make it might not be worth it. They think they will beat this. Prohibition never worked. The drug war didn't work. The tax war won't work. The gov't are afraid. Their fake ass infrastructure is finally under threat. If they don't stamp it out now, they won't later. How will this affect privacy coins? What if we have privacy exchanges? Hell you don't even have to verify your identity on Binance. This is very interesting. The gov't are full of shit. Do they tax every transaction at the casino?
Click to expand...

yea thats the thing, crypto currency was never meant to be govt/banker friendly..

in the long run the greedy ass irs cant win...

we are already over taxed....

the average citizen should pay no more that fifty dollars a year..

ten for policing, another ten for roads, another ten for public education.. etc..

at some point that gluttony has to stop, and crypto currency may be the start..

it aint called crypto for nothing..lol
 
So if you hit it big and get like $1 million, the bloodsucking demon ghouls from the deepest depths of hell expect you to dig under your mattress and come up with like $400k for taxes on shit you haven't even converted to fiat. :hmm::hmm::hmm::hmm::hmm:

What's that you say? You want to go to decentralized exchanges so there won't be any KYC/AML fuckery? Well, government will have you covered. When you try to pull out to fiat through a centralized piece of shit that has your info, DNA, and part of your eternal soul, they will DEMAND trade history. Decentralized exchanges will be blacklisted.

And just to be clear, some will already ask for trade history and source of funds. They will just expand this to a blacklist. Shit, some exchanges already blacklist certain bitcoin addresses.

If some genius ever comes out with a decentralized fiat gateway, governments will have to backtrack on their fuckery.
 
I'm not worried about the prospect of being taxed on every transaction. The IRS doesn't have the resources nor the manpower to go through millions of people's accounts on dozens of exchanges tracking every single time you bought and sold and bought and sold, etc. It's literally too much for them plus the exchanges don't necessarily keep good enough records to support that. That rule/law obviously didn't have crypto in mind.

Also, how would they handle the LOSSES that you have?

I would imagine that in the immediate future, they'll focus on how much goes into your bank account since that'll be reported to them anyway.
 
praetor said:
I'm not worried about the prospect of being taxed on every transaction. The IRS doesn't have the resources nor the manpower to go through millions of people's accounts on dozens of exchanges tracking every single time you bought and sold and bought and sold, etc. It's literally too much for them plus the exchanges don't necessarily keep good enough records to support that. That rule/law obviously didn't have crypto in mind.

Also, how would they handle the LOSSES that you have?

I would imagine that in the immediate future, they'll focus on how much goes into your bank account since that'll be reported to them anyway.
Click to expand...

I think I finally have a handle on this and what’s scary about what they are doing (if I’m interpreting it correctly) is that according to the law we may be expected to pay taxes on trades this year made this upcoming tax season since every transaction is considered a potential taxable event...although I read some say this year may not count and transactions made this year will be “grandfathered in” since the law doesn’t go into effect until 1/1/18
 
LSN said:
I think I finally have a handle on this and what’s scary about what they are doing (if I’m interpreting it correctly) is that according to the law we may be expected to pay taxes on trades this year made this upcoming tax season since every transaction is considered a potential taxable event...although I read some say this year may not count and transactions made this year will be “grandfathered in” since the law doesn’t go into effect until 1/1/18
Click to expand...
That was the impression I got. Everything starts Jan.1.
 
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xxxbishopxxx said:
That was the impression I got. Everything starts Jan.1.
Click to expand...

ya I pushed the panic button early...but unless you hodl all of next year w/o making any transactions then cats can expect to pay (those who plan to report) as early as 2019...capital gains are out the window once you use BTC to buy any other altcoin(s) or you sell altcoins for BTC...again if I’m interpreting this correctly...I need to sit down and read the actual law...I’m just going off hearsay
 
LSN said:
I think I finally have a handle on this and what’s scary about what they are doing (if I’m interpreting it correctly) is that according to the law we may be expected to pay taxes on trades this year made this upcoming tax season since every transaction is considered a potential taxable event...although I read some say this year may not count and transactions made this year will be “grandfathered in” since the law doesn’t go into effect until 1/1/18
Click to expand...

I'm guessing they are going to rely on people to tell them that those transactions were made this year instead of next year? Otherwise how would they know?

I'm going to schedule an appointment with an accountant, I'll let everyone know if they tell me something that hasn't already been said in the thread.
 
It sounds like the IRS is going to treat crypto like buying and selling stock. The problem, as many of you pointed out, is that places like binance are outside of their reach (I hope). Which leaves the good old honor system in place (like reporting goods bought online in which you didn't pay sales tax).

Someone above also mentioned something interesting: how will the irs treat crypto losses. I'm wondering is there a way to manipulate the system, claim a huge loss and lower your tax burden(a la Trump). Hmm...
 
Imma say it again...

CREATE

A

FOREIGN

TRUST

I spent a lot of time on dark web back when bitcoin first hit. Them dudes laid it down step for step about how this would happen and how to set up things for your protection.

Im mining to make passive BTCs with 2 apps...cant beat it
 
Osca Lee said:
Imma say it again...

CREATE

A

FOREIGN

TRUST

I spent a lot of time on dark web back when bitcoin first hit. Them dudes laid it down step for step about how this would happen and how to set up things for your protection.

Im mining to make passive BTCs with 2 apps...cant beat it
Click to expand...

Are you using old phones or laptops to mine on those apps?
 
Osca Lee said:
Imma say it again...

CREATE

A

FOREIGN

TRUST

I spent a lot of time on dark web back when bitcoin first hit. Them dudes laid it down step for step about how this would happen and how to set up things for your protection.

Im mining to make passive BTCs with 2 apps...cant beat it
Click to expand...
OK , lay everything out for us on how to do a forein trust
 
Screenshot_20171227_152722_01.jpg
 
Putting the finishing touches on my LongTerm 2018 positions. Would put some on Bitcoin but I don't know what Segwit2x will do to price.
XRP
NEO
ICX
Monero
LTC
ETH
XLM
IOT
WAVES
TRX
NEM
OMG
 
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