Topic: Number 9! Ninth altcoin thread. Back to the moon Baby! - page 141. (Read 66416 times)

I read it out of boredom, and I think who ever wrote this spent a great deal of time on writing it and trying to connect many events and so forth. Here is what I don't understand?

Most programmers know that hard drives have a very high failure rate, why in the world wouldn't he have a backup? He stated that he didn't want to use any cloud backups because his wallet.dat wouldn't be secure, why not just put it on an old hard drive and put that drive in storage. Or a USB drive or burn it on a CD/DVD or even put it on an old floppy drive?

Also right after he lost his wallet.dat, why didn't he say anything about losing all those bitcoins in the forum?

Some people already analyzed this article and concluded that its false.

From now on I'm only using kyc exchanges to chashout and send to my bank.  Trade/mine to non kyc exchange sell to xmr and tansfer to wallet.  Transfer from xmr wallet and swap to btc and send to kyc exchange to cashout.  Still paying tax on your mining/trading earnings but with simple transactions.

I've been day trading for 20 years and always reported my gains with on the schedule D with two entries long and short term same with crypto and never had a problem.

i used tax software (bitcoin.tax) to keep track of trades so it wasnt bad once i imported all the data from the various exchanges.

but now that i sometimes mine odd shitcoins in exchange for btc/whatever i will only use an autoconvert pool that pays in that coin i want, simply because it will be easier than trading a shitcoin at some sketchy exchange no ones ever heard of.

Yep  no like kind exchanges other then real estate.

So  10 ltc to 1 bch   triggers reporting.

or any coin to any coin triggers reporting.  this is as of jan 1 2018.   the trump tax laws are directly attacking the exchange of crypto coins for crypto coins.  If it was jan 1 2018  and you had 1000 usd and purchased 1000 of any crypto coin  and made 1000 trades in 2018 of coin to coin  to coin ending up with 1000 in coin on Dec  31 2018   even though you never  made any profit for the year and never converted into cash once you purchased the 1000 in coin.  you will need to report it all line by line to be in full compliance.  

At most I owe under 1000 usd for 2013 to 2018  taxe returns.  maybe even due a refunbd of under 1000.  I don't give a shit about the $ amount it is the reporting requirements.

Especially since 2018 I am lucky I don't trade much at all..  I hold and or convert to cash .  I estimate. I will do a few long reports.  And either or get back a little money.  But anyone that did lots of coin to coin trading in 2018 or 2019  will be in for a rude awakening if they are USA based.


Note this pc does not access my philipma1957 account so I did my alt to post.

Don't you worry, that's just another scammer.

Now now. Are you saying that the IRS is taxing unrealised gains?
Here in the UK, anything you do within cryptoland is considered unrealised, and isn't taxable. You only tax whatever profit you make... when exchanging back to GBP. Not before. And certainly not open positions!

 We all need proper perspective for sure.

I have seen no mention of this yet so I thought I would bring it up:

https://www.ivymclemore.com/blog

The Bitcoin inventor Satoshi Nakamoto is actually James Caan (James Bilal Khalid Caan):

I mined 980,000 Bitcoins using a remote computer and my laptop in 2009. As Hal Finney explained this in his 2013 Bitcointalk post quite accurately, “those were the days when difficulty was 1, and you could find blocks with a CPU, not even a GPU.”

The real news is that the 980,000 BTC is lost forever. I am a bit surprised that news of the loss of 4.67% of the total supply of BTC has had no impact on the price.

Now, it could be worse, Phil. I know your IRS dealings are a PITA but at least you did not lose $19 billion like James did.

Voluntary is a word right at the beginning of the tax code itself...


FYI there is no law or statute that requires you to pay the Federal Income Tax... 

There's only provisions in the tax code itself  (that is written by a private entity) that give disciplinary actions for not following that very same set of codes/rules.

Enforcement by the FED is done in a manner fitting a RICO charge.

I paid and filed  I will  most likely be okay.
Annoys me that  the filing is more complex then I thought it would be.  and that the long returns done in 2016 2017 2018  were not good enoguh for their standards.

Especially no like kind trades.  Ie bch to btc in 2018  triggers cap gains and reporting.

or btc  to ltc .  I am fortunate I don't trade much

I think the reason why we got this IRS mess is because there were too many people who were involved in crypto who had no idea that crypto was actually taxable.

There are so many people on Bitcointalk or miners who either have no idea they are obligated to pay taxes or they just right out refuse. And there are those who had crazy crypto capital gains in 2017 and owed more than their holdings in 2018 at tax time.

Hence the reason why the IRS is cracking down. I think if you always filed your taxes and you make a small mistake then you shouldn't worry. Correct the mistake, pay the small penality and interest if there is a balance owing and move on. I think the people that should worry are the ones who have been making 5 plus figures and haven't filed anything in the past couple of years. I think IRS is after those people.

We're so free it's amazing..  for a system the IRS admits is voluntary 

Yep  When all is said and done  it will  be 200 to 300 pages each year  for under 5000 profit each year.

When I finish 2018  I will give some totals.

There were other ways  to have done my gpu/gear sales    but I was so small I did a manual system which will now cost me a lot of effort to correct.

It also means I can't sell  much the rest of the year. And that I will do zip in sales for 2020.

By 2021 I will have an idea if it will be over and done  or a bigger mess.

My hope is they see a 200-300 page return  with under 100,000 in coin/cash moving around and a profit under 5,000 for 2018  and just say fuck it.

BTW  coinbase refuses to send me a 1099  basically  they are wrong.  I have more then 200 transactions and 20,000 in coin movement.

But I figure  they can not generate a report via auto software and would need to do what I am doing to make a correct 1099  and for tiny account they are like fuck it.

I have been doing lots of tax research on this and can tell you if you are USA based and move your coins around multiple exchanges and accounts you may end up with an insane amount of paperwork for very little profit.

I don't know how much  any exchange  splits a sale or buy of btc other then gdax/coinbase.pro  which is where I started the new return.
I don't know if other software works better then bitcoin.tax

But  I have this knowledge a 1 btc sale or purchase in 2018 on gdax  could be 1000 x 0.0001 = 1 btc so it is possible  that if you need to report to IRS  5 sales of 1 btc each  you could be pushing  into 1000's of entries  to show only 5 sales in 1 year.

I will be making reports for May to Dec 2018  today. I am curious to see exactly how bad the spliting is.

Yeah that's just bat shit crazy.
Maybe you should just call up the guy at the irs and agree with him the whole exercise is actually futile. Waste of both your and his time.

Then again maybe he doesn't care.

I did what you suggested sent in 100 pages with summaries for BTC LTC ETH BCH filed in April 2019.


And that is what got me the letter.

I could hire a guy but I have an accounting degree. My wife my late mom and myself have worked for the IRS.

I can do the work needed to report this the way they want.  My complaint is not for myself as I can see the requirements are actually not wrong but they are a huge burden to me.

If I had known they would ask for this info I would not have done any btc sales of gear. What happened in my case was I sent coins to cash as a basic pass through.

So my tax owed was paid but my method of handling the funds requires way too much in the form of entries that they like.


The example above was a sale of some gpus.

I got .2 btc  I sent to my forum addy:

1Jxxxxx
then sent to coinbase
then sent to gdax
then sold
then sent cash to coinbase
then sent cash to bank

the sales was about 1866 usd

the gpus cost me 2000 I mined with them earned 750 spent 200 in power spent 50 to ship

so

 2000
  -750 mining income
 1250
 +200 power cost
  1450
    +50  shipping
1500 cost of good sold    this is correct  I put this on return

  1866 in coin recieved    this is correct I put this on return

profit  is 1866-1500 = 366 taxable income this is correct I put this on the return

the issue they have is how I moved that .2 btc around

btc addy 1Jxxx
coinbase account
gdax to cash   this is the 17 lines of info
back to coinbase account
into bank account.


I just have to create reports that show that movement.  If I had used a different service it would have been easier.
If I did

payment to a coinbase account
convert to cash
send to bank

It would have been easier.
If I hire a guy he may not be that good at the reports as they are new.
I don't owe money most likely they will owe me money as I did not list all sales of coins fees.


In 2018  I moved about 90000usd in coin at a cap gains loss of 3000  my gpus and gear sales did about 4000 profit.  The 2018 return will end up being hundreds of pages long and show well under 5000 profit.

The return I sent them was over 100 pages and showed well under 5000 profit.

Once I get this mess done I need to do the 2019 return.  This shit is pretty fucked up because I did not realize what they were going to require to make reports.

I am using bitcoin.tax soft ware.

I will need to work on this every day for a few hours until late sept to file an amended return.  which will offer a lot of extra info that  will show less then a 500usd difference in tax liability.

I will then work on the 2019 return  and I will take as long as I can to file it as I want to feel that the 2018 return is done.

Phil, is there no way you could show the trade averages in your reporting to the irs whilst just copy/pasting the splits in an attachment? Let them do the rec work. You should report the trades you did, not the split executions.

Worth getting tax advice imo. What you wrote above sounds absolutely ludicrous to me.

I am a 25% share holder in the coins mined in clifton nj
BuySolar has 25% of the coins
Warehouse owner get 50% of the coins

the mining gear owned by me and buysolar 50-50

bitmain gear
1---s17 pro
1---t17
1---s15
1---t15
22--s9

25--- l3+

whatsminer gear
2 m20s
1 m21s
8 m10 units

avalon
2 a1041
1 a721

innosilicon
1 t2-t24
1 t3-t39

a pair of s9 on order due next month
a inno t3-t50 on order due this month


12 1080ti's some in clifton some at a friend's office

1 threadripper rig with 4 vega's

newest rig is the ryzen 9 3900x  

a r606
some newpacs
2 Apollo's


thats about all I can think of

I will be selling my share of clifton mine to buysolar in dec
I will be moving other gear out

By jan  I want to have:
3 gpu rigs at friends office
1 gpu rig at buysolar's office

1 gpu rig at home the ryzen  9 3900x

 I will taking a 1 year leave of absence from mining or selling gear all of 2020.

the 3 rigs at my friends office will be a 0-100 coin split  as I will sell my friend those rigs.
the 1 rig at buysolar's will be a 0-100 coin split as I will give that to him for his kids.

the ryzen 9 3900x will be a test rig for all of 2020 and I will be making my own design of a modified m10 a 1 board design that is not loud.



Slugging through my 2018 taxes

"BTC-USD SELL 2018-04-27 00:09:40 0.00017048 9238.55 0.004724964012 USD + 1.570263039988 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00700000 9238.55 0.19400955 USD + 64.47584045 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00196000 9238.55 0.054322674 USD + 18.053235326 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00967289 9237.50 0.268059964125 USD + 89.085261410875 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.03000000 9237.00 0.83133 USD + 276.27867 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00800000 9236.99 0.22168776 USD + 73.67423224 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00100000 9236.25 0.02770875 USD + 9.20854125 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.01000000 9236.25 0.2770875 USD + 92.0854125 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00541126 9235.37 0.1499249647986 USD + 49.8250633014014 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.05000000 9235.18 1.385277 USD + 460.373723 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00984903 9234.59 0.2728552618431 USD + 90.6788986858569 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00253176 9234.59 0.0701392967352 USD + 23.3096262816648 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00100000 9234.53 0.02770359 USD + 9.20682641 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.03000000 9234.00 0.83106 USD + 276.18894 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00992139 9233.90 0.274839369363 USD + 91.338283751637 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.01500000 9233.48 0.4155066 USD + 138.0866934 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00264873 9233.35 0.0733699534365 USD + 24.3832811920635 USD
 BTC-USD SELL 2018-04-27 00:09:40 0.00583446 9233.16 0.1616115080808 USD + 53.7088911855192 USD"


above is my april 27  2018  btc coins sales from coinbase


Above  is just part of why  it will be too hard for me to continue my current business.

Notice 18 lines all with same time stamp  but multiple  prices.  This was a sale of gpus for btc.


I sold gpus got coins put them in coinbase.
 moved them to gdax to sell them for cash
 moved cash back to  coinbase.
 and sent  cash to  bank account.

old method was set correct cost of the gpus.  say 1500   report sales  say 1866 = 366 gross profit  report profit to irs.

irs wants every coin movement to show.

ie 1) coins sent from buy to me in coinbase  report  say .2 btc worth say 1866
    2)coins shifted to gdax
    3) actual sale of the coin  note gdax can sell as little as 0.001 so  my .2000  was split into 17 sales see above  it could have been 200 sales
    3-20) lines of info for that deal.
    4)next show cash went to coinbase
    5)show cash went to bank

then  show cost of gpus  say 1500  sold for  1866 profit of  366 report to irs.


I have many sales  of .1 btc that are 15 or 20 lines of info all must be reported.

I did 3 sales in April  instead of 3 lines to show income  I will need 37 lines.

So I am being forced on 1  sale  of .2 btc to show  17 trades made by gdax some as low as 1.57 usd

while on my end I listed .2 btc to sell at market value.    in both cases i made 366 profit

 my method  was fast easy and accurate   irs method is fuck you phil . you are an honest moron and you are now going out of business due to our i reporting requirements.

I could have avoided this if I never cash coins but  i  coin cashed to buy new gear and pay expenses.

I am particularly annoyed that the single sale of .2 btc done in 1 shot in 1 second made 17 entries

Phil what gear are you running these days?

yeah but

 the amd ryzen 9 3900x is 500 bucks  doing 12000 for randomx
 the amd eypc 7742 is 7200 bucks doing 36000 for randomx

I could ge 4 3900x for 2000 and  have 48000   vs 1 eypc for 7200 bucks doing 36000




I just did my large page setting for the amd ryzen 9 3900x and I went from  1090 to 1175  stock clocks  this is a good pc for 500 bucks

you can get a good mobo for well under 175


https://www.newegg.com/p/N82E16813157884?Description=asrock%20x570&cm_re=asrock_x570-_-13-157-884-_-Product

and use an nvme2 like this

https://www.newegg.com/hp-ex920-512gb/p/N82E16820326779?

and2 sticks of ram


https://www.newegg.com/g-skill-32gb-288-pin-ddr4-sdram/p/N82E16820232091?Item=N82E16820232091&Description=ddr4%203200&cm_re=ddr4_3200-_-20-232-091-_-Product


so

500 cpu                       ryzen 9 3900x
145 mobo                    asrock x570
  69 nvme ssd              500gb ssd
 135 ram                     2x 16gb sticks at 3200 speed

849 net  add a psu and any old card   you are about 1000- 1050


 you could build 6 of these   say 6000-6300


  the one eypc cpu alone is over  7200  https://www.newegg.com/p/N82E16819113581

---

Playing with newest nicehash  I can get 1450 for xmr  with the 3900x.  Runs hot. I purchased 1 last part a water cooler Corsair h115i


Should keep gear cool.


https://www.bestbuy.com/site/corsair-hydro-series-h115i-rgb-platinum-140mm-processor-liquid-cooling-system-with-rgb-lighting-black-silver/6306565.p?skuId=6306565

Just 3900X will be getting +12000 H/s on RandomX (https://randomx.monerobenchmarks.info/shareExportCPU.php?s=VFRkWlJVRkJQVDA9)

EPYC 7742 is three time that, above +38000 H/s (https://www.reddit.com/r/MoneroMining/comments/cqqt12/amd_epyc_7742_randomx_hashrate/)

Edit: It is possible for GPU to mine RandomX too, but performance not even close to CPUs:
(NVIDIA) https://github.com/SChernykh/RandomX_CUDA#randomx-cuda-implementation
(AMD) https://github.com/SChernykh/RandomX_OpenCL#randomx-opencl-implementation

Everyone and their mother is buying 3900x CPUs now. They're hard to get by. So imo XMR profitability will be hammered from day 1. Add ETH finally seeming to want to go PoS early 2020 (as I read somewhere - confirmation needed), we're going to face a hard time, as GPU miners.