Trading crypto and dealing with taxes.

Mahanton

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Quote from: jrrsparkles on November 22, 2019, 07:14:04 AM

Quote from: nydiacaskey01 on November 22, 2019, 03:37:33 AM

Quote from: jrrsparkles on November 22, 2019, 02:44:54 AM

You have to file your taxes for sure because you traded on exchanges and they will track you and report your activities to governments so now you have to make your own report whether you are in profit or in loss as above post stated.

Lets discuss this. Lets say I am using Binance. I don't recall submitting anything to Binance that would give my identity to them and report my trading activities so how are they going to do that? Furthermore, lets say Binance is based in China and I am based in Philippines, they will contact our local taxman and tell them "hey, user nydiacaskey traded a total of 0.1BTC for 2019, go get him". I don't think that will work.

If you are trading crypto to crypto then you may not be in any problem if you trade under no KYC limits but when someone uses exchange to buy cryptos with their fiat then their transaction will get recorded on banks so even if they try to hide there is fair chance of getting identified if your trading huge limits often.Trading 0.1BTC may not need any tax I guess but when you convert them into fiat back then again your transaction will be recorded so you need to audit as per the laws of your government.

This is the only time where you would really be traced up when it do already connects fiat-crypto / crypto- fiat transaction which anything would really be traced up if they wanted to. So far i dont have any problems with taxation with my crypto earnings as nydiacaskey01 said above ive been using an unverified account too and dont tend to cash or convert with fiat.Talks about declaring tax basing on your earnings is a must depends on which country you do live on.specially on US which is really strict when it comes to this matter.
Afaik you can ask out exchangers to have some log of your trading from the beginning to the recent.

jrrsparkles

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Quote from: nydiacaskey01 on November 22, 2019, 03:37:33 AM

Quote from: jrrsparkles on November 22, 2019, 02:44:54 AM

You have to file your taxes for sure because you traded on exchanges and they will track you and report your activities to governments so now you have to make your own report whether you are in profit or in loss as above post stated.

Lets discuss this. Lets say I am using Binance. I don't recall submitting anything to Binance that would give my identity to them and report my trading activities so how are they going to do that? Furthermore, lets say Binance is based in China and I am based in Philippines, they will contact our local taxman and tell them "hey, user nydiacaskey traded a total of 0.1BTC for 2019, go get him". I don't think that will work.

If you are trading crypto to crypto then you may not be in any problem if you trade under no KYC limits but when someone uses exchange to buy cryptos with their fiat then their transaction will get recorded on banks so even if they try to hide there is fair chance of getting identified if your trading huge limits often.Trading 0.1BTC may not need any tax I guess but when you convert them into fiat back then again your transaction will be recorded so you need to audit as per the laws of your government.

nydiacaskey01

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Quote from: jrrsparkles on November 22, 2019, 02:44:54 AM

You have to file your taxes for sure because you traded on exchanges and they will track you and report your activities to governments so now you have to make your own report whether you are in profit or in loss as above post stated.

Lets discuss this. Lets say I am using Binance. I don't recall submitting anything to Binance that would give my identity to them and report my trading activities so how are they going to do that? Furthermore, lets say Binance is based in China and I am based in Philippines, they will contact our local taxman and tell them "hey, user nydiacaskey traded a total of 0.1BTC for 2019, go get him". I don't think that will work.

audaciousbeing

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Quote from: emd023 on November 21, 2019, 04:20:57 PM

I got into the crypto game this year and have been trading random coins over the last few months like a madman. I'll be honest, I have completely lost track of my trades. I tried to go back and manually log my trades but it was too difficult. I've traded on multiple exchanges with multiple coins and transferred them all over the place. At the moment, I have no idea if I am in a profit or in a loss. Come tax season, how am I supposed to report everything that I've done?

Your intention is good and you should be commended for wanting to perform your patriotic duty whether voluntarily or due to fear of what will happen should you not do it. Its actually not too late to start now to keep records of your trading activities till the time when the tax man will come asking and also you might have to really peruse the sites that you frequent for your trading activities because some of them will keep records of your trades and since its the beginning of the year, its not too distant in the back that you can easily get.

jrrsparkles

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Quote from: emd023 on November 21, 2019, 08:49:50 PM

Any other opinions on this? Will they even bother me if I forget to file my crypto taxes?

Depends on where you are living! But most countries have penalty included to the actual tax to be paid so you may not be jailed for tax evading but if you got a lambo then you are in problem. Cheesy

You have to file your taxes for sure because you traded on exchanges and they will track you and report your activities to governments so now you have to make your own report whether you are in profit or in loss as above post stated.

emd023

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Quote from: nydiacaskey01 on November 21, 2019, 06:53:13 PM

Wow that is too honest of you to completely track your trades and file taxes. This is the reason why here in my country there's a lot of people jumping into online trading because of the tax. But of course there are other ways to pin a person down for not paying the right taxes compared to the way of his living. Imagine you have a Lambo and you are an ordinary computer shop owner, definitely you will be in the radar of the tax man. I am using Poloniex and you can import your trades in csv file. I haven't checked with Bittrex if they have the same function.

Any other opinions on this? Will they even bother me if I forget to file my crypto taxes?

nydiacaskey01

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Wow that is too honest of you to completely track your trades and file taxes. This is the reason why here in my country there's a lot of people jumping into online trading because of the tax. But of course there are other ways to pin a person down for not paying the right taxes compared to the way of his living. Imagine you have a Lambo and you are an ordinary computer shop owner, definitely you will be in the radar of the tax man. I am using Poloniex and you can import your trades in csv file. I haven't checked with Bittrex if they have the same function.

BitMaxz

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If you don't have a record and you don't have a trading porfolio it will be difficult to know or track all your trading history.

I know some exchanges have a feature to export all trading history like binance. If the exchanges you use before have this feature you can track your trading history and calculate how much you gain profit or loss.

Sample guide to export trading history on binance below.
- How to get trade history from binance?

After you downloaded the trading history from binance use some tools like cointracking.info then import your trading history to calculate all profit and loss including the fees.

You can import it from here https://cointracking.info/import/binance/index.php

Official thread of cointracking can be found here https://bitcointalksearch.org/topic/cointracking-profitloss-portfolio-and-tax-reporting-for-digital-currencies-220238

emd023

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I got into the crypto game this year and have been trading random coins over the last few months like a madman. I'll be honest, I have completely lost track of my trades. I tried to go back and manually log my trades but it was too difficult. I've traded on multiple exchanges with multiple coins and transferred them all over the place. At the moment, I have no idea if I am in a profit or in a loss. Come tax season, how am I supposed to report everything that I've done?

Topic: Trading crypto and dealing with taxes. (Read 195 times)