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SgtPeppers

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SgtPeppers last won the day on April 7

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About SgtPeppers

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    Manager at retired
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  1. Thanks, yea i forgot to confirm with the last email. Got mine.
  2. Quick question - my alv has been reserved and I have a previous trustline from alvor for my first alv. Will that trustline suffice or do I need to create a new trustline for this transaction.
  3. @Truckdriver By the way, my younger brother is a long haul trucker. Works for company named Daily Express. He's been doing it for the past 20 years. He loves it.
  4. Hodling is good, no need to report. In fact, I believe most of us can prove easily that we lost money in this past year long bear market. It would probably hurt the ones who bought into crypto before around Oct 2017. They were the ones that got xrp for less than .20 then if they converted say xrp at .30 for other da's that would cause some profits to have to be reported but then that can be subtracted from other loses in da's, so in the end they might just zero out. Now, I understand what you are saying about the accounting nightmare when converting cryptos. No one cares what you paid for it, but IRS definitely wants to know what you sold it for. So if all u can do is kick it down the road then that's all you can do. I would suggest trying to report some if you can. If you can't then you just can't. You might think about submitting your taxes then go back and submit a 1040x - Amended report during the summer with a form 8949 or two attached along with Sch D. I try to get any amended taxes completed and submitted to irs before Sep of that year. Again if you can't you can't. Shoot, if I am legitimately owed money from IRS I am going to try to report and claim it. Sadly, that is the only way to get any refunds back is to report, that they owe you. I have found that as long as you can reasonably justify your actions you should be fine. But as I have said before that is where our problems come in having to report excessive losses. I realized myself when I first tried to sell xrp then buy back later. I think I made $50 but lost 20 xrp in the trades. So right off I realized that was not for me. Fortunately, I knew I had to keep track so I did keep track of my sales price, not 100% of the time but about 90% which is close enough. At the time I sold some da's I made sure I wrote the sales price down at that time because that is the real critical piece. And yes you are right about the new tokenization act. I sincerely hope they pass it this year too, but we will just have to wait and see. Congress moves slowly. IRS wants to get as much money as they can get from each one of us. That is why they make it so complicated and difficult to report income and expenses. Anyway, hope this helps some.
  5. Yep, either FIFO or LIFO. Just stick with it. I think you are up to date now. It may just be me, but when I am able to begin cashing out, I plan on being careful as to who knows my finances. I will need help with landscaping and yard work around my house, electrician for some projects and house painting, gutter cleaning. Bank employees and so It will be easy to pay people to do things for me and I plan on not allowing that to happen. I will still do most things myself when I can, but mostly I will get estimates for projects and stay somewhat frugal with my new found wealth. In this world, we still need to be very careful. If you get my drift. Thanks
  6. Ha, you are a truck driver and we all know that.
  7. Also there is another term to be familiar with is FIFO. This has been hard for me to comply with but I have tried the best I can. Means first in first out. IRS wants you to report sells of your first da's bought, to go in that order. The theory being that the ones you purchased in 2017 were cheap and now you sell in 2019 at a large higher cost, giving you a large profit. Whereas, if you show just purchase/sells of xrp in 2019 when the purchase and sale are relatively even, that would show no profit. They don't want you to do that. FIFO has been backwards to help me. My first purchases in early 2018 were at $1 and my later trade of those for other da's, were when xrp was at say $.50. So that shows a loss for however many I sold. Now as next year rolls around I will be showing higher profit because maybe xrp will be over $2. As you go down your spreadsheet selling your da's your profit should increase.
  8. Just another thought here, if these zerps ever do anything and Kitao finally blinks and flips the switch and I am able to cash out some zerpies, I plan on sending a third of my cash out to the IRS at that time I cash some out say at xrp = $10. Ha Ha If I take out $20,000 I am going to send the IRS maybe $6,000 of that money with a 1040v (estimated payment voucher). That way at the end of the year, I have already paid most if not all of the money I would owe, instead of having to try to come up with that large amount of fiat that I might or might not have the next year when I do my tax forms.
  9. Correct, only when you sell. Any trade from one da to another da is a sell of the first da though. And no FBAR according to the email I and a few others received from the IRS. They said paraphrasing, a digital wallet on a foreign digital exchange is not a foreign financial account. And I would interpret this, that if you had a foreign bank account that you transferred fiat to from a crypto exchange, ie: Bitstamp, then that would require FBAR. But not just holding in a digital exchange wallet. In the US we file our 8949's reporting our crypto's and the profits or loss. Your profit shows on your Sch D then onto your 1040 where you report it and pay tax on it. Now just keep good records of your purchase, date, quantity, cost which will go on your 8949 in the year you sell or trade any da's. I try to immediately keep my spreadsheet up to date with all purchases so I have the info later when i sell which may be a year or two later. Most exchanges keep good transaction history but some do not. You can find good info about crypto tax software on here, but for me I just keep my spreadsheet in the format of the form 8949. At tax time all I have to do is transpose from one to the other.
  10. Yea thanks. I am sure it helps some. I just am very old school, I just use the fillable forms. My daughter used to work as customer service for turbo tax. She got the best training. But only parttime and now she has a better full time job.
  11. Yes, transparency is the #1 thing as far as I am concerned and the US Govt. All that is needed is to be able to track your fiat from bank to crypto exchange and crypto exchange to bank. Once we get a couple of deposits made from the exchanges to our banks, then there should be no problems. As far as the 8949's, you could submit amended 1040x, for both years to add your 8949's. I don't know how many buys/sells you had so hard for me to say, but try to get an 8949 for 2018 at least. You reported both years on Sch D so that could be good enough since you did not know about 8949's. I will say this about my experience with the IRS. If you owe them money you will have no problem with them, they like that. It is only when it appears you may be over reaching that they may have some question. In other words, if your sch d showed a large loss that will get there attention. If you showed a large profit and added that to the 1040, then there will be no problem with only submitting your sch D. As far as FBAR, shoot you tried your best to comply by going above what you needed to do by attempting to fill out the complicated form. I think you are ok there. I think they will accept it for what it is. An attempt to comply. As far as Binance, I think they are now located in Malta but may also have an office in Japan. Now having said all this, I am not a authorized tax person, just someone who has done his own taxes for the past 40 years and got into crypto in Dec 2017. I have read all of the IRS and Treasury dept materials re: crypto which is not much in order to get mine done this year and I feel comfortable with what I am submitting. I am claiming no real profit and not much loss either. I have zeroed out most of my trades back and forth (just to make it easier for me) which were done with no real profit or loss. Most of my loss was on btc when we were going down in the beginnings of the 2018 bear market. So see that is a reasonable explanation for my loss. It would be hard to show a loss during a bull market. There is of course the exception when you sold at a big profit and bought back in lower and having to pay tax on that profit with fiat that you did not have, like I have read about concerning a few people. That would be rough. Hope this helps some.
  12. Clarification, If you have not sold any digital asset during the year, then no need to do a form 8949. Only when you sell are you required to complete the 8949 showing purchase and sell dates with profit/loss due to fees and/or adjustments. A short term is one year and long term is more than one year.
  13. Make sure you submit your IRS form 8949's. I have attached a copy of my spreadsheet showing all my btc purchases/sells to one 8949. These were all to buy xrp back in early 2018. Then I have another 8949 showing my trades of trx, vet and bnb. Again these were to buy and sell for xrp and vice versa. Once these are on file with the IRS, then when I withdraw fiat, I don't expect any problems, even if at first my bank submits an SAR. Maybe they will maybe not as the fiat is easily tracked from my bank account to Gemini and back.
  14. @Kemper88 Now having said the above, I use Binance and never withdrew any fiat as it is not a fiat exchange. Purchase and hold would not need a Fbar. Withdrawing fiat from Bitstamp or any exchange into a financial institution would require the Fbar. And a word of caution, on trying to stay under the $10,000 limit because of the SAR. Any amount close to the $10,000 limit will trigger the banks, Suspicious activity report, whether legitimate or not. It is my laymans opinion that when we all start withdrawing our profits, the banks at first will start filing SAR's on us, until they realize that we are investors and will compare our SAR's with our IRS form 8949's and our schedule D. If this is done, it will all be done in the background by our banks. I will be able to show my deposits to my bank to the digital exchange and then the fiat withdrawal back to the same bank. I hope this explains it a little.
  15. @Kemper88 The answer is no Fbar. I did what Liagala did and wrote the irs using his email as a guide. I got the same response as he did. The IRS told me that a digital wallet on a foreign exchange (Binance) is not a foreign bank account.
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