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IRS reminds taxpayers to report virtual currency transactions

irs.gov

191–200 of 278 posts

Re: IRS reminds taxpayers to report virtual currency transactions

#191

Earlier quoted context omitted.

It's a very anti-intellectual approach to dialog. It explicitly ignores the logic of the argument being made. It disqualifies any language containing words that are allegedly associated with some ideological perspective from even being considered. It creates an ideological echo chamber, as it is completely intolerant to any view that even hints at falling outside of it. If you do utilize such heuristics, at least don…

Ignoring people is part of life; I’m not interested in every random I come across on the net taking up a little corner of my head. My goal isn’t intellectual purity, it’s living my life. Fortunately though, as your argument(s) seems to be largely logic-free, it turns out to be very helpful. I can understand why being dismissed without the hearing you want is frustrating, but I don’t know you and don’t care.

You can ignore people all you like. But to post a comment telling people you're ignoring the comment because it contained blacklisted words like "female" or "pernicious" is absolutely toxic to a constructive environment for dialog.

You're not simply ignoring a party at that point. You're promoting a pretty extreme form of ideological intolerance, where merely using a particular word is enough to make a snap judgement about a person's entire argument.

>>Fortunately though, as your argument(s) seems to be largely logic-free, it turns out to be very helpful.

Trying to insult me like this is not mature at all.

Re: IRS reminds taxpayers to report virtual currency transactions

#192

Another point everyone should remember because I’ve seen the attitude a lot recently. If the reporting requirements seem to be literally impossible to comply with, this doesn’t mean you conclude “so I don’t have to pay taxes”. It means you should conclude “I have to pay the maximum taxes possible under the worst case scenario because I don’t have the records to prove my version of events”. It has nothing to do with c…

Why do people put up with that extortion?

Re: IRS reminds taxpayers to report virtual currency transactions

#193

Earlier quoted context omitted.

Keep in mind: - Trading cryptocurrencies produces capital gains or losses, with the latter being able to offset gains and reduce tax. - Exchanging one token for another — for example, using Ethereum to purchase an altcoin — creates a taxable event. The token is treated as being sold, thus generating capital gains or losses. - Receiving payments in crypto in exchange for products or services or as salary is treated as…

If I keep reinvesting am i fine as long as I am not taking out profits?

Every trade produces a taxable event, so no.

Re: IRS reminds taxpayers to report virtual currency transactions

#194

Earlier quoted context omitted.

The government needs to fix the problem that it's so difficult to know what you're required to pay without just paying the maximum guess (and then pay more ahead of time to avoid penalties). I've reported an instance of 2 conflicting statements in 2 separate IRS forms to the IRS, and rather than clarifying what was required they referred me to a tax advisor, who also didn't know the answer to the question. So we took…

It's not the government's fault you lost track of your records.

I'm not even talking about that - parent comment talks about requirements that are literally impossible to comply with, and I talk about laws that are put into place after a tax year ends and apply retroactively, and official documents that contradict one another and the inability to get an official explanation from the government prior to the filing deadline. How is any of that even remotely "losing track of my records"?

edit: Let me be even more detailed. I had to have my accountant rework my taxes 3 times. Once because of a retroactive law change after the end of the tax year. Once because of the inconsistency I discovered in official documents. And once because ETrade's documents and my employer's conflicted. Both of the latter were prepared by professionals. That's pretty typical of my filings. If it's so complex that all of that is fairly routine, that IS the government's problem. I have no problem keeping track of my own records; in fact my own record keeping and fastidiousness led to the discovery of all 3 of those problems.

Re: IRS reminds taxpayers to report virtual currency transactions

#196
post #6

They still haven't issued guidance on how to treat forks like BTC/BCH, have they?

It’s still ambiguous but the most straightforward way is to treat it as miscellaneous income, which is how I reported it.

Do you owe taxes on unclaimed coin forks? I'd wager no but considering how complex taxation in general has turned out to be with cryptocurrencies...

Re: IRS reminds taxpayers to report virtual currency transactions

#198

Earlier quoted context omitted.

They are. If you liquidate your position in one stock to buy shares of another stock, that's also a taxable event.

Maybe I just wasn't trading enough with stocks to notice. I remembered always closing short potions to initiate long positions and not paying taxes until closing the long. Clearly, I've been confused this whole time.

Re: IRS reminds taxpayers to report virtual currency transactions

#199
post #190

Earlier quoted context omitted.

+1 There are also tools like www.cointracker.io out there to simplify the complexity of these crypto taxation rules

Also https://bitcoin.tax , does everything for you pretty much.

Worked well for me. I imagine when most people import their trades they will be very surprised by what they owe. I had no idea (but it makes sense) that when I gave some bitcoin gifts it followed the FIFO rules despite the fact that I had just purchased some to gift.

Re: IRS reminds taxpayers to report virtual currency transactions

#200

Earlier quoted context omitted.

It's not possible for them to know in many cases so you really do need to keep track on your own. This is a problem for stock brokerages too when you've funded your account by transferring assets from another brokerage.

Your previous brokerage will still send you a transcript of everything at account closure, which provides a baseline for comparison with your new account. OP's argument that "it's too hard" is not adequate justification for not obeying tax laws.

Neither me the OP said that but to suggest that a brokerage or crypto exchange is being unprofessional by not being able to provide a 1099 in all cases is to ignore reality.
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