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Forum » Do Americans pay taxes on crypto gains?
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Thread: Do Americans pay taxes on crypto gains?

post 1631508183 02-15-2021, 11:28 PM
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Do Americans pay taxes on crypto gains?

Canadians do, or are supposed to, if you withdraw and made gains that is.

The way to avoid it would be to buy stuff with the actual coins, ive seen houses for sale for bitcoins back in like 2016.

If you guys do pay, what does the IRS do if you dont? I know you guys are a bit behind in tech as you just got debit machines in stores recently so maybe the IRS isnt smart enough yet to tax crypto gains when you pull out.
post 1631539793 02-16-2021, 11:25 AM
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I guess misc never paid income tax before
post 1631539983 02-16-2021, 11:28 AM
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The government always gets his due
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post 1631540093 02-16-2021, 11:29 AM
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They ask you on the front page of the 1040 if you bought or sold crypto in the current year. They are relying on people being honest because there is probably no good monitoring system yet.

However if you lie and say no, and eventually they do get a grip on the exchange and oversight, they will be coming for their share. With interest and penalties.
post 1631540123 02-16-2021, 11:29 AM
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Originally Posted By Fang2⏩
The government always gets his due
This. You are supposed to claim any gains from sales when you file your taxes. If Uncle Sam catches you dodging this then the sandpaper cock comes for your ass hard and fast.
Short cuts to success are often paved with lies.
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post 1631540143 02-16-2021, 11:30 AM
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I've got a buddy that got me into crypto back in 2017 who made lambo money when btc went to $20k. He sold all his stuff and left to Mexico stating he's not coming back to pay cap gains. Lucky bastard is living life in the Yucatan Peninsula.
-SF Gigantes y SF 49ers-
post 1631540233 02-16-2021, 11:31 AM
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Originally Posted By Glutebrahhh⏩
They ask you on the front page of the 1040 if you bought or sold crypto in the current year. They are relying on people being honest because there is probably no good monitoring system yet.

However if you lie and say no, and eventually they do get a grip on the exchange and oversight, they will be coming for their share. With interest and penalties.
yea pretty much the same here, once you get caught once your flagged for life and audits out the ass
post 1631540423 02-16-2021, 11:33 AM
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Only if you sell or swap for other coins
post 1631540513 02-16-2021, 11:34 AM
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Yes you're required to report crypto gains to the irs
Cash Rules Everything Around Me
post 1631540873 02-16-2021, 11:38 AM
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Srs question. How would IRS find out? I don't dabble in made up currencies but it was my understanding that one of the pros of cryptocurrency was it being anonymous.
post 1631541633 02-16-2021, 11:46 AM
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You're supposed to pay as capital gains on the overall amount that you cash out and then each trade between currencies is a taxable event. I agree that it seems unlikely that the IRS would track anyone down at the moment, it is possible due to the immutable nature of the blockchain. It's effectively anonymous for now, but how much longer will that last with all of the growing hype?

Paying taxes as a crypto daytrader would be a nightmare in the US. I bet a lot of folks just don't say anything and hope for the best.

Also the way capital gains tax works is that if you've hodled over a year you get a major tax discount.
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post 1631541713 02-16-2021, 11:46 AM
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https://app.koinly.io/

Good app for generating the tax forms for your annual tax report.
post 1631541773 02-16-2021, 11:47 AM
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No. very easy ways to avoid tax completely especially for EU brahs
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post 1631541843 02-16-2021, 11:48 AM
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Originally Posted By tripod29⏩
Srs question. How would IRS find out? I don't dabble in made up currencies but it was my understanding that one of the pros of cryptocurrency was it being anonymous.
This is a good question. Idk if anyone can really have an answer to it yet, but you can bet some very smart people are trying to figure it out.
post 1631542273 02-16-2021, 11:52 AM
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Originally Posted By Glutebrahhh⏩
This is a good question. Idk if anyone can really have an answer to it yet, but you can bet some very smart people are trying to figure it out.
My guess would be that the gov could get wallet addresses/user account and bank info from exchanges, then you just have to look at the transaction history on the blockchain. I've never looked into the ability of the US gov to get info from exchanges but I think that's what it comes down to
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post 1631542583 02-16-2021, 11:55 AM
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Originally Posted By triception⏩
My guess would be that the gov could get wallet addresses/user account and bank info from exchanges, then you just have to look at the transaction history on the blockchain. I've never looked into the ability of the US gov to get info from exchanges but I think that's what it comes down to
I mean the government sees all, so whether the banks have the info, or the apps that support the exchanges do; one way or another, big brother gonna find out.
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