[deleted]
Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
11–20 of 59 posts
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#12Is there any rule of thumb to calculate taxes over crypto? Like "10% of your profits". I'm sure if you make more than 500k a year you might have to pay more taxes but I'm sure there is an average that covers 90% of traders.
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#13Earlier quoted context omitted.
Many people sold BTC at $14k+ and then bought back in at 10k, 5k, etc. If they didn't sell again for all of 2018 they'd only have "realized gains" and no realized loses. So on paper they'd have only have gains, as the IRS doesn't recognize the market value of your current holdings.
Can't they do a wash sale to create losses? That's how tax loss harvesting works.
Not an expert, but afaik you'd have to separate the buyback by 1 month from the wash sale for it to be valid/legal. You'd be kicking yourself if the price skyrocketed during that window.
Edit: https://help.cointracker.io/taxes/us-taxes/do-wash-sales-app...
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#14Did anyone actually make money with crypto in 2018?
From a tax perspective, sure. If you bought any time before the fall of 2017, and sold any time in 2018, it's pretty easy to have realized a gain in 2018.
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#15Did anyone actually make money with crypto in 2018?
Of course.
You can short established coins like BTC and ETH.
There are also so called "flip seasons" where you throw money at random small cap altcoins and flip them 30-200% higher over the course of a month. These happen whenever BTC settles down and consolidates before plunging to news lows.
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#16Does anyone pay taxes on crypto?
Yes. I pay my taxes, and I suspect many other people do, too. Tax compliance in the US is generally pretty high.
I also don't steal books from the library, even though I'm pretty sure I could get away with it.
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#17Earlier quoted context omitted.
Can't they do a wash sale to create losses? That's how tax loss harvesting works.
Not an expert, but afaik you'd have to separate the buyback by 1 month from the wash sale for it to be valid/legal. You'd be kicking yourself if the price skyrocketed during that window. Edit: https://help.cointracker.io/taxes/us-taxes/do-wash-sales-app...
> There is some debate as to whether wash sales apply to cryptocurrency sales, however the IRS specifically states that wash sales only apply to stocks and securities. Since the IRS has also issued guidance that cryptocurrencies are property, CoinTracker does not calculate/apply wash sales.
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#18Does anyone pay taxes on crypto?
Yes, it is quite easy to pay taxes on crypto and quite difficult to explain during audit how cash ended up in your bank account without associated tax payments. Pay your taxes!
> Yes, it is quite easy to pay taxes on crypto
I only ever played with small amounts for fun, and in the long term, I took losses. But it's very difficult for me to compile all my trades for tax reasons. I set up automated trading on half a dozen different exchanges (some of which no longer exist) using half-baked python scripts with no logs. How on earth do I compile a Form 8453 showing all of those thousands of trades? I could spend months tracking down all the public keys I used and use blockchain explorers to compile a list of transactions... but I would not describe this as easy
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#19Earlier quoted context omitted.
Yes, it is quite easy to pay taxes on crypto and quite difficult to explain during audit how cash ended up in your bank account without associated tax payments. Pay your taxes!
> Yes, it is quite easy to pay taxes on crypto I only ever played with small amounts for fun, and in the long term, I took losses. But it's very difficult for me to compile all my trades for tax reasons. I set up automated trading on half a dozen different exchanges (some of which no longer exist) using half-baked python scripts with no logs. How on earth do I compile a Form 8453 showing all of those thousands of tra…
> How on earth do I compile a Form 8453 showing all of those thousands of trades?
By planning to do so from the beginning. "I forgot to keep records" isn't going to be something the IRS really cares to hear.
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#20I used this this year. Saved my ass