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IRS says you trade bitcoin for [XRP for example], that is a taxable event.

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6 hours ago, Muellhart said:

 

There is probably a significant difference in taxes owed, depending on how you calculate: LIFO, FIFO or Cost Avg. Did you look into that?

Yes. Thanks for mentioning it. I calculated it several ways and also thought about cashing out in the future ... I ended up using LIFO and that's why I took a small hit this year but I think I'm set up for later.

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On 12/19/2017 at 3:25 PM, LetitRipple said:

Typical govt. Trying to get into our pockets and take what's not theirs. I took a chance on the "speculation"; thus, profits should be mines. They didn't do jack!!! If I lose, they're still winning. This is why I like XRP for the time being. Buys me enough time to see what happens with crypto before I bail/not bail.

Yeah, but we all know that taxes were coming.....it was inevitable. All those who thought otherwise were naive and peddling false hope!!!

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So we buy computer coins with the money we still have left over after we get taxed only to become taxed again? Pretty sure the IRS has no way of enforcing this since the burden of proof is on them. If they can't be bothered to prove it, I can't either. 

Edited by LucidRain

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4 minutes ago, LucidRain said:

So we buy computer coins with the money we still have left over after we get taxed only to become taxed again? Pretty sure the IRS has no way of enforcing this since the burden of proof is on them. If they can't be bothered to prove it, I can't either. 

Good luck!

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14 minutes ago, LucidRain said:

So we buy computer coins with the money we still have left over after we get taxed only to become taxed again? Pretty sure the IRS has no way of enforcing this since the burden of proof is on them. If they can't be bothered to prove it, I can't either. 

Don't be too concerned with the IRS these days - like most of the US government, it can barely function anymore.  It's mainframes are from the 60s and it is severely understaffed.  Unless you are a big fish it isn't worth their while to bother with trivia like this.

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18 minutes ago, Plennie_Wingo said:

Don't be too concerned with the IRS these days - like most of the US government, it can barely function anymore.  It's mainframes are from the 60s and it is severely understaffed.  Unless you are a big fish it isn't worth their while to bother with trivia like this.

I'll note that thank you

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7 hours ago, Rutski said:

Good luck!

Pretty sure it's hard to enforce a law about something you can't even define 😉

I will pay some taxes when I finally cash out to FIAT but nothing else, make it simple and you'll get more compliance. Make it diffuclt and people will just forget you exist. If the IRS wants to do the leg work and find out all of my micro transactions then go ahead and waste your time and effort to have that money, but im not going to be your monkey and mule. 

 

Edited by LucidRain

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35 minutes ago, LucidRain said:

Pretty sure it's hard to enforce a law about something you can't even define 😉

I will pay some taxes when I finally cash out to FIAT but nothing else, make it simple and you'll get more compliance. Make it diffuclt and people will just forget you exist. If the IRS wants to do the leg work and find out all of my micro transactions then go ahead and waste your time and effort to have that money, but im not going to be your monkey and mule. 

 

I'm betting you have never been audited....   If they trip over your trades and you haven't reported they will give you a financial colonoscopy that is not as much fun as the real sort.   :) 

This is not advice...   This is just me reminding folk of the possible downside of ignoring taxes.

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13 minutes ago, Tinyaccount said:

I'm betting you have never been audited....   If they trip over your trades and you haven't reported they will give you a financial colonoscopy that is not as much fun as the real sort.   :) 

This is not advice...   This is just me reminding folk of the possible downside of ignoring taxes.

Right but why can't they just trust me to claim the right amount and if something smells fishy then they can do a deep dive. Right now they are giving you a financial colonoscopy, they want you to do their job and profit from it too. Pretty retarded. It's free money they would not ever be seeing so they should just be happy they get it at all.

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17 minutes ago, LucidRain said:

Right but why can't they just trust me to claim the right amount and if something smells fishy then they can do a deep dive. Right now they are giving you a financial colonoscopy, they want you to do their job and profit from it too. Pretty retarded. It's free money they would not ever be seeing so they should just be happy they get it at all.

Absolutely true from a common sense and decency point of view.  Unfortunately that doesn't matter in the tax dept.

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