Crypto tax help

[Anonymous No.28522166]

Biz i need help with my room temp iq.

Let's say you invest $100 into shill coin X, you then trade shill coin X at $40,000 for shill coin Y, creating a tax event. (Owing the IRS 6k?), shill coin Y becomes a rugpull and you lose all your money. Without deductibles in mind, do you still owe the IRS 6k?

[Anonymous No.28522388]

Yes you still owe tax

[Anonymous No.28522616]

I used turbotax free and they said, "did you purchase any virtual currencies?" and i clicked no. you would only get audited if you actually made it

[Anonymous No.28522663]

Fuck it don't pay them never cash out
/thread

[Anonymous No.28522734]

>>28522388
Geez, crypto is riskier than I thought

[Anonymous No.28522918]

>>28522166
Rugpulls, ponzi, theft ect can be declared you just have to provide proof.

[Anonymous No.28523007]

>>28522166
Use a USDT debit card.
Never swap to fiat.

[Anonymous No.28523215]

>>28522166

>invest $100 into shill coin X, you then trade shill coin X at $40,000 for shill coin Y creating a tax event.

Capital gains of $39,900

>shill coin Y becomes a rugpull and you lose all your money.

Sell it, capital loss of $40,000.

$39,900 gain - $40,000 loss = $100 capital loss that you can write off on your taxes

[Anonymous No.28524249]

>>28522734
For mutts maybe. Places like the UK have a lot of bullshit around tax and law but you pay CGT here on profit, not the event.

[Anonymous No.28524527]

>transfer shit to hardware wallet
>"lose the wallet"
>get a loan from a bank
>pay off loan using regular deposits of btc

[Anonymous No.28524613]

If it happens in the same year = no tax (actually $100 write off).

If the $39,900 gain happened in 2020 and the $40,000 loss happened in 2021, then yes, you have to pay the 6k in taxes now and next year you can write off the $40,000 loss (only 3k can be applied against income per year, the rest rolls over until used up, or applied against any gains in 2021 and beyond).

[Anonymous No.28524693]

>>28522166
Taxation is theft, don't give the IRS shit especially if they don't want to recognize Crypto itself.

[Anonymous No.28524773]

>>28522166

Fuck Crypto

https://stocktwits.com/symbol/CLF
.........................
$CLF
02/2021
>Biden says China will 'eat our lunch' if U.S. doesn't move on infrastructure

https://www.cnbc.com/2021/02/11/biden-says-china-will-eat-our-lunch-on-infrastructure.html

---------
$CLF
02/2021
>"New orders for manufactured goods in December, up eight consecutive months, increased $5.2 billion or 1.1 percent to $493.5 billion, the U.S. Census Bureau reported today."

https://www.census.gov/manufacturing/m3/prel/pdf/s-i-o.pdf

---------
$CLF
02/2021
>"US trade court dismisses challenge to Section 232 steel tariff"

https://agmetalminer.com/2021/02/04/this-morning-in-metals-us-trade-court-dismisses-challenge-to-section-232-steel-tariff/

[Anonymous No.28524903]

>>28523215
The trick 2017 was. People had raiblocks and couldnt cash out.
Imagine being in debt because your funds are stolen or wallet in maintenance

[Anonymous No.28525521]

>>28522166
>>28522388
No don't listen to this fucking dunce. If your loss is within the same tax year as your gain the losses are written off.

[Anonymous No.28525579]

>>28524613
So even though every trade is a taxable event, it doesn't matter really until you figure out your grand profit off of crypto for the year ?

[Anonymous No.28525713]

>>28525579
>So even though every trade is a taxable event, it doesn't matter really until you figure out your grand profit off of crypto for the year ?
Correct.

[Anonymous No.28526010]

>>28522734
Get an accountant. No one itt knows what they’re talking about

[Anonymous No.28526325]

But the money isnt real until you cash out, right? until you withdraw and goes into your bank acc. OP case makes no sense.