Does anyone pay taxes on crypto?
I don't do crypto, if I do I wouldn't. Just like I would not for cash transaction. I know legally I should and there is some risk but the risk is low enough.
Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
41–50 of 59 posts
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#42Does 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 can be high because the people with the most to lose just buy themselves loopholes - eg there's no requirement to file an FBAR for fine art! Enforcement resources can then be focused on keeping the middle class in line.
Pay unto Caesar and all that. But avoiding taxes through financial privacy is not equivalent to stealing. And certainly don't imply that an empire's aggressive wars are in any way akin to local community services!
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#43Earlier 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?
Just use bitcoin.tax to keep track of it like everyone else does. Or presumably OP's new tool.
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#44What are other British people doing? I’ve been selling an amount each year that keeps me under capital gains threshold, which seems sensible?
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#45Earlier 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.
Sort of offtopic but ontopic to your comment: When bored and reading state statutes I've discovered librarians in NJ are the only group of people aside from law enforcement officers that are relieved of most liability when arresting someone. (anyone else that does a wrongful arrest can be hit with all sorts of charges and civil lawsuits)
Since then I've been raising awareness among the librarians of their ability to beat the shit out of people stealing books.
So yes, you are correct. I would expect that it would be more difficult to get away with at scale in the same sense it wouldn't be wise to steal office supplies from the local police station.
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#46Does this tool take multiple tax years into account for cost basis?
The tool does, it will carry over the cost basis from previous years of trading for calculating the next year's short/long term gains.
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#47Does anyone pay taxes on crypto?
Yes. I've used bitcoin.tax the past few years. This one looks nice although it's missing a couple exchanges that I would need to use it next year (maybe they'll have them by then).
What exchanges would you like to see added? Constantly working on new additions.
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#48If anybody is looking for an anonymous free alternative I created a crypto tax calculator that supports 65+ exchanges
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#49Did 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.
>You can short established coins like BTC and ETH.
You can, but it's hard to find reputable vendors that offer this that aren't bucketshop scams.
Re: Show HN: CryptoTrader.Tax – Tax calculator for your crypto trading
#50Is 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)
Thanks you very much! I was looking into this just to have a guess.