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Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading

cryptotrader.tax

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Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading

#31

Post by hopler »

jmharvey wrote: post #16
eruci wrote: post #6

Does 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.

Tax compliance is high when counterparty (employer or broker) reports income. Tax compliance on cash transactions is lower.

I don't think stealing books from library at any kind of scale approaching the value of tax evasion is so easy to get away with.

Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading

#32

Post by caprese »

eruci wrote: post #6

Does anyone pay taxes on crypto?

yes, the IRS concluded that "less than 800 people pay taxes on crypto" using a flawed and simplistic search string. I looked at how I reported various gains filed in 2014 and 2015 and it would not have included me in those 800 people.

the best thing about bubbles getting larger is that more people with more personalities and expertise are aware of what these things are. A judge wouldn't rubber stamp a subpoena on such basic and flawed logic, a treasury secretary wouldn't trust their employee with as shoddy an analysis, influential senators wouldn't believe it as their own altcoin trades wouldn't be counted. speculation drives innovation.

Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading

#33

Post by bpicolo »

sanbor wrote: post #12

Is 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.

In the US, profit on crypto is straight up capital gains. Held for less than a year = short term capital gains, taxed as regular income. Long term depends state-to-state, but overall taxed less than income (federal has 3 brackets - 0, 15, 20% depending on your income. 500k+ puts you in the 20% bracket)

Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading

#35

Post by Buge »

seibelj wrote: post #21
jniedrauer wrote: post #18

Earlier quoted context omitted.

> 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…

I'm sorry you decided to conduct algorithmic trading of digital assets on multiple exchanges without ever considering taxes. But services such as those linked by the OP (and others like bitcoin.tax) automatically import trades from all major exchanges and calculate the most advantageous method to minimize taxes.

I was doing various cryptocurrency mining in 2011 and trading in 2012, long before bitcoin.tax existed. Many of the exchanges I used have since shut down.

Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading

#36

Post by tom_ »

eruci wrote: post #6

Does anyone pay taxes on crypto?

Yes.

Since we've just had our Happy New Tax Year, other UK readers might be interested in this Reddit thread, if only because of the tax-related links: https://www.reddit.com/r/BitcoinUK/comments/ba8d89/tax_threa...

Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading

#37

Post by Thorrez »

davidmurdoch wrote: post #5
Hydraulix989 wrote: post #4

Did anyone actually make money with crypto in 2018?

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.

Whether they bought back in doesn't make a difference. If you sell BTC, that's a taxable event.

Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading

#38

Post by mehrdadn »

hopler wrote: post #31
jmharvey wrote: post #16

Earlier quoted context omitted.

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.

Tax compliance is high when counterparty (employer or broker) reports income. Tax compliance on cash transactions is lower. I don't think stealing books from library at any kind of scale approaching the value of tax evasion is so easy to get away with.

> I don't think stealing books from library at any kind of scale approaching the value of tax evasion is so easy to get away with.

I think you missed what the comment was trying to say.

Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading

#39

Post by bonestamp2 »

bonestamp2 wrote: post #25
sanbor wrote: post #12

Is 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.

> 10% of your profits Calculating your profits (and loses) is what these sites generally do -- that is usually the hard part, especially if you have a lot of transactions. Not to mention, the way that you calculate that differs by jurisdiction. Loses are just as important since they can have a significant benefit to the taxes you owe. I use bitcoin.tax and then export the data for my accountant to fit into the rest o…

*losses

Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading

#40

Post by thoughtfunction »

sanbor wrote: post #12

Is 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.

If you didn't keep proper records, then use the cost basis of your crypto as 0 and report the sale price as pure profit. You will never under pay your taxes that way, and if your numbers are low enough, it's probably worth it to overpay on taxes than to spend the time recovering detailed records of what happened in between.

If it's too big of a number for you, then better remake / recover those records. Luckily you have a permanent record called the blockchain.

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