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U.S. Treasury calls for stricter cryptocurrency compliance with IRS

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Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#71

Post by standardUser »

BitwiseFool wrote: post #61
kinghajj wrote: post #52

Earlier quoted context omitted.

Especially for us old-timers; gotta love that long-term capital gains tax rate! Set aside some of the gains into a high-yield savings account for making estimated tax payments, pay off some small debts, buy a couple nice things, and put the rest into a brokerage account to buy Vanguard ETFs.

Isn't Joe Biden planning to make the top capital gains rate the same as the short term rate?

Only for households with earnings over $1 million. So no, not for the vast majority of people.

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#72

Post by hcurtiss »

filoleg wrote: post #49
hcurtiss wrote: post #9

Earlier quoted context omitted.

I use koinly.io and it does a nice job of preparing the 8949 for me, and syncs with my various wallets and exchanges. Plugs right into TurboTax.

Bookmarked, thanks for the rec! I used Cointracker for generating tax forms from Coinbase to plug into TurboTax for the past 2 years, but Koinly website looks really nice and clean, and it feels less bloated than Cointracker, so I will give it a try next year. Especially since Cointracker started ramping up their pricing.

Yeah, I subscribed to three other services before I landed on Koinly. I also like that it properly handles fees.

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#74

Post by matheusmoreira »

AlchemistCamp wrote: post #27

It's completely reasonable to tax investment earnings. That said, these regulations are concerning to me as a developer interested in actually building on blockchain technology. At least from what I understand, just doing what's rapidly becoming run of the mill Web3 development is becoming extremely fraught territory for US citizens who want to comply with accounting and tax rules. It's an even bigger deterrent for s…

> It's completely reasonable to tax investment earnings.

Why? Don't americans have access to tax-free investment accounts like Roth?

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#75

Post by metalliqaz »

AlchemistCamp wrote: post #27

It's completely reasonable to tax investment earnings. That said, these regulations are concerning to me as a developer interested in actually building on blockchain technology. At least from what I understand, just doing what's rapidly becoming run of the mill Web3 development is becoming extremely fraught territory for US citizens who want to comply with accounting and tax rules. It's an even bigger deterrent for s…

Why can't you do run of the mill Web3 development without transferring >$10K ???

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#76

Post by archagon »

drummer wrote: post #73

Ah yes, the government mafia wants a bigger cut. A reminder: taxation is theft and slavery. The Crypto movement was created by people who recognize that.

If you really think that, then go live on an island somewhere and stop using our roads and other amenities, please.

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#78

Post by fragileone »

golover721 wrote: post #5

This seems like a positive for the legitimization of cryptocurrency. Of course if you were trying to use it to avoid paying taxes you may feel otherwise. Hopefully it leads better forms and adoption by exchanges to provide useful tax documents.

Except the SEC is trying to classify all blockchain products as securities, which massives harms onboarding for people who want to try these fringe creative new apps.

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#79

Post by Barrin92 »

Daishiman wrote: post #47
AlchemistCamp wrote: post #27

It's completely reasonable to tax investment earnings. That said, these regulations are concerning to me as a developer interested in actually building on blockchain technology. At least from what I understand, just doing what's rapidly becoming run of the mill Web3 development is becoming extremely fraught territory for US citizens who want to comply with accounting and tax rules. It's an even bigger deterrent for s…

I keep hearing about all these amazing crypto products, yet outside of this very specific scene, where curiously only the VCs and devs involved wax poetic about it, you can never seem to find a real customer talking about their experience. You either acknowledge that cryptocurrencies look close enough to currencies or securities and regulate them as such, or you promote them for illegal and ambiguously legal reasons…

>"I keep hearing about all these amazing crypto products, yet outside of this very specific scene, where curiously only the VCs and devs involved wax poetic about it, you can never seem to find a real customer talking about their experience."

because there is none. A paper[1] described this as 'Veblenian Entrepreneurship'. Being 'in crypto' isn't actually about producing any tangible goods or services, but consuming the 'crypto/entrepreneur' lifestyle. It's a way for people to LARP as technologists or entrepreneurs without actually producing anything of use to the general public at large.

[1]https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3479042

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#80

Post by [deleted] »

retrac wrote: post #48
brightball wrote: post #11

Earlier quoted context omitted.

Yea, what I don't understand is how something like using ETH to buy another coin should be taxed? I totally get converting it back to dollars and calling that capital gains but trying to tax conversions from one to another seems nutty to me.

Forex is often subject to such taxes. If the USD and CAD were trading 1:1 then if I buy 1000 USD with 1000 CAD in cash I have right now, and then immediately buy 1000 CAD worth of products with those USD, there are no taxes due. If I buy 1000 of USD with 1000 CAD, with the expectation CAD will fall, then since my taxes are due in CAD in my case, when I sell those USD for 1500 CAD I've realized a gain of 500 CAD that…

[deleted]
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