Crypto Currency

[Nickman123]

Hoping someone on here who really knows crypto can answer a question. I know the IRS says a person is supposed to pay tax on gains made from crypto sales. But how does the IRS know that a person made such a gain? Are crypto transactions somehow reported to the government? I thought the whole idea behind the stuff was that it was untraceable.

 

[cek]

Hoping someone on here who really knows crypto can answer a question. I know the IRS says a person is supposed to pay tax on gains made from crypto sales. But how does the IRS know that a person made such a gain? Are crypto transactions somehow reported to the government? I thought the whole idea behind the stuff was that it was untraceable.

If you are using a platform like Robinhood, crypto.com etc you will receive a tax document the end of the year. 
 

also remember that in crypto, unlike stocks, you pay gains on every transaction. Even if you sold to buy another crypto. If there is a profit there is a tax. 37% short term and 20% long term I believe. 

 

[AlpineFunco]

I think the only way it would be completely untraceable is if you met someone in a parking lot and they gave you cash. I assume that when you sell it you are paid funds that are wired into your account. Even if they mail you a check it will be traceable if they try to look.

 

[tjZ06]

As stated above, it's all in *how* you buy and sell it.  It also differs from crypto to crypto and how they maintain their ledgers.  With *most* cryptos, if you're trading wallet to wallet the Gov has no idea.  It's when you want to turn that into cash or goods that you might have an issue.  Say you want to buy a Tesla with crypto (though, Elon shut that down, supposedly because of the power implications of Bitcoin mining), I'm sure Tesla would report that somehow.  Or, if you want to actually sell (as opposed to just move crypto around) for USD then @cek's advice comes in.  

-TJ

 

[acefuture]

If you’re using an exchange to trade and keeping your crypto in a wallet or ledger on the block chain you won’t necessarily be targeted. But as soon as a gain is realized by transferring that crypto to cash, that’s where Uncle Sam gets his cut. 

 

[ANGRYBUTTCRACK]

All true what has been said here about the IRS. As some might know I'm anti Crypto as it is a Ponzi scheme. .. it's just a wealth transfer from early adopters to late adopters/buyers. The 'late' buyers are simply going to be transferring their money to the early adopters (if they sell before it crashes).

Also, this notion that the government can't 'regulate' or 'stop' crypto is Ludacris.  All they have to do is make exchanges ILLEGAL. You can't use it to buy/sell things (nobody does) and if there is no legal means to get in or get out (to USD or other fiat currency),...  it's DONE.

I have many friends who are 7-8 figure crypto millionaires (on digital paper  :rofl: ) and I always try to convince them to diverse into real-estate or some other tangible asset cause most of these dudes net worth is over 95% crypto (again on digital paper). I have no issue with anyone doing whatever they please with their money and I don't think they should 'outlaw' it, but I think if you're looking to 'invest' in crypto, don't put in anymore than you'd be willing to lose at the blackjack table...

Good luck to you all.

Sincerely,

abc

 

[tjZ06]

If you’re using an exchange to trade and keeping your crypto in a wallet or ledger on the block chain you won’t necessarily be targeted. But as soon as a gain is realized by transferring that crypto to cash, that’s where Uncle Sam gets his cut. 

Yup, that is the problem.  When you want to realize your gains, the IRS will find a way to Eff you.  

18 minutes ago, ANGRYBUTTCRACK said:

All true what has been said here about the IRS. As some might know I'm anti Crypto as it is a Ponzi scheme. .. it's just a wealth transfer from early adopters to late adopters/buyers. The 'late' buyers are simply going to be transferring their money to the early adopters (if they sell before it crashes).

Also, this notion that the government can't 'regulate' or 'stop' crypto is Ludacris.  All they have to do is make exchanges ILLEGAL. You can't use it to buy/sell things (nobody does) and if there is no legal means to get in or get out (to USD or other fiat currency),...  it's DONE.

I have many friends who are 7-8 figure crypto millionaires (on digital paper  :rofl: ) and I always try to convince them to diverse into real-estate or some other tangible asset cause most of these dudes net worth is over 95% crypto (again on digital paper). I have no issue with anyone doing whatever they please with their money and I don't think they should 'outlaw' it, but I think if you're looking to 'invest' in crypto, don't put in anymore than you'd be willing to lose at the blackjack table...

Good luck to you all.

Sincerely,

abc

You can say Crypto isn't real, and is just a Ponzi scheme... but I have friends who have bought houses cash from crypto-gains.  That's real enough for me.  And if this clown-show administration has taught us anything it's that the USD is fake and will be devalued increasingly.  Now, your point about the exchanges or other legal actions is fair.  Look at XRP's value after the SEC brought the lawsuits against Ripple founders/C-suite.  I'm pretty optimistic that Ripple will win, which will cause a XRP spike, so I'm HODL on my XRP (which is already net-positive).  

Overall I look at crypto like an extremely volatile, high-risk investment - more like a gamble.  I'm willing to roll the dice on a little chunk 'o change for possible big upside, but know it could all go to $0.00 at any moment.  Like I said, I have friends that have bought homes or other real estate w/ crypto earnings (yes, they had to turn it into USD and pay the taxes).  I have a buddy making about 20k USD/mo staking AVAX because he bought into the ICO early and cheap.  He has good tax people, and is making it all legit, at least as much as is actually possible right now.  

-TJ

 

[ANGRYBUTTCRACK]

TJ,

The fact that you've had friends that bought real tangible assets off of their early crypto investments doesn't kill my point that it's a 'wealth exchange' .. and/or a Ponzi Scheme. I just can't get out all these scenes from Boiler Room when thinking about crypto... pump n' dump... etc.

That being said, I wish you ALL great financial success in your endeavors and your point about our fiat currency, the USD, is spot on. True inflation is actually 10-14% annually. Some day we'll have to pay the piper.. this crazy inflation is just the beginning.

I personally had too much USD in the bank (still do).. so in Sept. I threw about $300k more in the stock market as I don't have the time to hunt for what I'd rather own.. real estate.

abc

 

[zilla68]

2 hours ago, ANGRYBUTTCRACK said:

All true what has been said here about the IRS. As some might know I'm anti Crypto as it is a Ponzi scheme. .. it's just a wealth transfer from early adopters to late adopters/buyers. The 'late' buyers are simply going to be transferring their money to the early adopters (if they sell before it crashes).

Also, this notion that the government can't 'regulate' or 'stop' crypto is Ludacris.  All they have to do is make exchanges ILLEGAL. You can't use it to buy/sell things (nobody does) and if there is no legal means to get in or get out (to USD or other fiat currency),...  it's DONE.

I have many friends who are 7-8 figure crypto millionaires (on digital paper  :rofl: ) and I always try to convince them to diverse into real-estate or some other tangible asset cause most of these dudes net worth is over 95% crypto (again on digital paper). I have no issue with anyone doing whatever they please with their money and I don't think they should 'outlaw' it, but I think if you're looking to 'invest' in crypto, don't put in anymore than you'd be willing to lose at the blackjack table...

Good luck to you all.

Sincerely,

abc

i invested a whopping 100.00 in october and its worth 81.00 today lol. i just wanted to see how it worked. I'll leave it forever and see if it ever gets back even i guess

 

[Spize909]

Hoping someone on here who really knows crypto can answer a question. I know the IRS says a person is supposed to pay tax on gains made from crypto sales. But how does the IRS know that a person made such a gain? Are crypto transactions somehow reported to the government? I thought the whole idea behind the stuff was that it was untraceable.

When we were talking about crypto a couple days ago.....I had no idea you had already gone to the experts on gd.com! 

 

[Dune-Track-N]

https://www.irs.gov/publications/p17

Virtual currency. If, in 2021, you engaged in a transaction involving virtual currency, you will need to answer “Yes” to the question on page 1 of Form 1040 or 1040-SR. See Virtual Currency in the Instructions for Form 1040 for information on transactions involving virtual currency. Do not leave this field blank. The question must be answered by all taxpayers, not just taxpayers who engaged in a transaction involving virtual currency.

Also don't forget to report all that stolen property you've got!

Stolen property.

If you steal property, you must report its FMV in your income in the year you steal it unless in the same year, you return it to its rightful owner.

 

[ANGRYBUTTCRACK]

Man I LOVE to hate on Crypto.. so again.. US decides to 'outlaw it' ... Crypto guys, 'they can't, it's not government controlled' .. OK.. point taken.. they outlaw the exchanges that convert to USD.. what are you gonna do...?... Hop on a plane to Ghana and convert it into their currency?.... by the time you land your private jet, your $ Millions (measured in USD) will be worthless.. 

.. just saying.. if you've crushed it.. pair some off now.. pay your taxes and buy.. I dunno .. like 10 $250k Funcos..

You're welcome.

abc

 

[tjZ06]

Man I LOVE to hate on Crypto.. so again.. US decides to 'outlaw it' ... Crypto guys, 'they can't, it's not government controlled' .. OK.. point taken.. they outlaw the exchanges that convert to USD.. what are you gonna do...?... Hop on a plane to Ghana and convert it into their currency?.... by the time you land your private jet, your $ Millions (measured in USD) will be worthless.. 

.. just saying.. if you've crushed it.. pair some off now.. pay your taxes and buy.. I dunno .. like 10 $250k Funcos..



You're welcome.

abc

Why would you have to fly somewhere to convert it to a non-USD fiat currency?  It'd be pretty straightforward to do it all while you're still sitting on the crapper takin' the morning deuce.  

That said, if the US "outlawed" crypto it would tank the market for it.  It wouldn't go to 0, but it would massively impact the current pricing. 

-TJ

 

[ANGRYBUTTCRACK]

I guess

Why would you have to fly somewhere to convert it to a non-USD fiat currency?  It'd be pretty straightforward to do it all while you're still sitting on the crapper takin' the morning deuce.  

That said, if the US "outlawed" crypto it would tank the market for it.  It wouldn't go to 0, but it would massively impact the current pricing. 

-TJ

I guess it would depend.. you'd have to have a bank account already set-up in some foreign country in your name right? I guess you could do that online. Yeah, it wouldn't go to zero, but it would get hammered.

abc

 

[Bansh88]

.. OK.. point taken.. they outlaw the exchanges that convert to USD.. what are you gonna do...?... Hop on a plane to Ghana and convert it into their currency?.... by the time you land your private jet, your $ Millions (measured in USD) will be worthless.. 

Weak

 

[Cookie]

I want to apologize, every time I go buy a stock it loses.  I have now bought into some crypto, down 30% since I bought it...............my apologies to you all.

 

[ANGRYBUTTCRACK]

HA... I bought a bunch of Venezuelan currency from eBay (cost me $14 USD) about a year ago just to eff with people (like me buying the metal 'fake' bitcoins) .. the bills have all the safety stuff like ours and I'm sure it costs the country (of Venezuela) more to make them then they're worth. The set went from 2 Bolivars all the way up to 50,000. I think it would be neat to make a coffee table photo album with a bunch of world currencies ... I kinda did that for our honeymoon in Aruba back in 2003. 

I just like to play with money.. like the fella that tattooed a $100 bill on his winky..

1. He liked to watch his money grow.

2. He liked to play with his money

3. When his wife blew $100 dollars he wanted to feel good about it.

:rofl:

OK back to bashing.. uh.. debating Crypto.. 

abc

 

[ANGRYBUTTCRACK]

 

[ANGRYBUTTCRACK]

This is my current screen saver 

abc