Originally Posted by
TheMoneyShot
I'm just curious with these new tax laws in regards to moving BTC funding books.... and then winning.... receiving a PO with BTC and then you selling the BTC for USD?
1. How does the crypto exchange know exactly how you received it? Like for example... what happens if you have purchased BTC in February 2022.... funded a book. Lost your bankroll from February. But then you somehow went on a winning streak from a FREE PLAY... then cashed out winnings BTC. Went to the same exchange you purchased from in February.... but sold BTC in August 2022... from book winnings. How does that know which form to give you???
By law... they are supposed to tax you as high as 38% for short term gains. And also... you must report that income as "winnings" too.
Do you guys get what I'm saying??? With these new stricter Crypto laws... how is everyone filing taxes?? Like every exchange will shoot you a 1099-MISC and claim that was a short term capital gain. But really... you're just using crypto to move funds so you get PAID. How is everyone getting around this??? I don't know of anyone who would care to wager offshore..... and get taxed nearly 38% on their winnings. Then end up possibly losing those gains gambling again...
So point being... you AREN'T TRADING BTC OR CRYPTO.... you are just using an exchange to SELL what a book gave you in BTC... so you get CASH... then forward it to your bank. How do you explain to the crypto exchange like Gemini or Coinbase... that you weren't trading... you were just exchanging it for cash?? Seems like you are at the mercy of the exchange company.... and computer system.