Are there any tax experts here as it relates to crypto?

[Mac4Lyfe]

If I receive crypto and buy giftcards with it, is it a taxable event?At that point, I'm not cashing it - I'm basically sending it to an outside wallet

How/where are you getting crypto? Is it being reported when given to you? If it's not reported as income then you could hold the crypto in cold storage without paying any capital gains. Once you make a transaction like selling or buying then you must start reporting. So best to first clean your coins (research) then cold store until you are ready to sell. Most exchanges are going to report transactions anyway, so if they report, then you must report. No way around it. Once you are ready to sell, you need to pay your taxes or figure out how to sell without it being reported which is much, much harder to do.

[pilebuck13]

God people haven’t figured this out yet….. book- intermediate wallet- buy precious metals online- keep transactions small no information is needed besides name and address. Sell locally little by little cash. ✌️

[Wilfred]

Luckily all my trades were done on Robinhood and turbo tax can just automatically take all of them and your stock transactions and do it, but it looked pretty complicated just from auto transferring it into the software

[mjsuax13]

i'm not small time peanuts. I make about 250K at my job and I'm up huge gambling

Up huge?

[gauchojake]

Good news is you can probably offset your taxes by claiming a loss

[mpaschal34]

How many times is he going to tell us he makes $250K?

[Mackballs]

i'm not small time peanuts. I make about 250K at my job and I'm up huge gambling

Damn, up huge gambling less than four months ago, yet down 350k lifetime as of yesterday. Please note your high income once more, some of us may have forgotten.

[jjgold]

Lol everyone loves to tell tales

[johnnyvegas13]

Lol everyone loves to tell tales

Everyone has a story how they coulda been crypto millionaire only if ...

I don’t know one person real life up from crpyto

[clockwise1965]

I would consult a tax professional

[gauchojake]

I sold a Bitcoin once for 600 bucks

[BuckyOne]

I don't think anybody understood your question. Bitcoin Ownership and gambling income are two different things. How did you get the crypto? What is your cost basis? If an offshore sportsbook paid you $1000 USD in bitcoin in February (that is when you bought the bitcoin) and it devalued to $500 and you bought gift cards you lost $500. Maybe, your tax guy can deduct the bitcoin losses for you if you have good documentation.

Gambling income and losses are complicated but if you got this $1000 by sending $500 offshore (by the way, how did you send it) won and collected the $1000 that is $500 income and is taxable. Take these numbers and put a zero behind it if you want. $500 is not a big event but if you get audited they mght find it or that might be what caused the audit in the first place when people like Coinbase report everybody who made 10 cents.

My answer is that in your case if you get the crypto and buy gift cards right away you did not have crypto income. The money that bought the crypto and what that cost basis was is a different story.

[wombat]

You guys don't have to worry about answering this thread anymore. Supposedly he lost all the money, read his other threads.

[BeatTheJerk]

i'm not small time peanuts. I make about 250K at my job and I'm up huge gambling

Biggest fuckin’ jinx in the history of sportsbetting.

[wombat]

Biggest fuckin’ jinx in the history of sportsbetting.

[BuckyOne]

Well, almost everybody here said to see a tax professional.

The irony of a person making 250k screwing with Bitcoin or offshore sports gambling does not make any sense.

But, we should all know what the tax laws are before we touch either one of these things.

[mjsuax13]

Biggest fuckin’ jinx in the history of sportsbetting.

No shit. “I’m not small time peanuts”.

Please son.

[raiders72001]

Well, almost everybody here said to see a tax professional.

The irony of a person making 250k screwing with Bitcoin or offshore sports gambling does not make any sense.

But, we should all know what the tax laws are before we touch either one of these things.

Agree with the see a professional. Disagree with the rest. If you are making more than $250k, you should be investing in crypto.

[BuckyOne]

I would go along with a crypto etf. They do all the record keeping. Nobody would bat an eye at that.

Make 50k at pure Bitcoin holdings or 50k at sports bets and forget to report the earnings could create a lot of hassle to somebody who has it made.

But, to gamble away 6 figures would be a sin. They might be so far on tilt they get fired from their 250 k job.

[lonegambler23]

Egrecu worry about getting help for gambling.

[lonegambler23]

i'm not small time peanuts. I make about 250K at my job and I'm up huge gambling

didnt u just lose it all plus some and seeking help?

[daneault23]

Maybe this has been asked before - but say you use $$$$app to buy BTC and send BTC to wallet and then book. All $$$app shows is that you sold BTC. In reality, you didn't really make any money, you're just sending that BTC to wallet and then the book. $$$app then sends you a yearly statement (1099-B) with "proceeds". Does this need to be accounted for as income?

[pablo222]

Maybe this has been asked before - but say you use $$$$app to buy BTC and send BTC to wallet and then book. All $$$app shows is that you sold BTC. In reality, you didn't really make any money, you're just sending that BTC to wallet and then the book. $$$app then sends you a yearly statement (1099-B) with "proceeds". Does this need to be accounted for as income?

Not unless the BTC was sold for more than it was bought for.

[daneault23]

Eh - I looked again and found a list of transactions. I'll just include them and send to our accountant. Basically after looking, I had sold BTC in 2023 (purchased/transferred in 2022 and then sold in 2023), at a slight loss. Then had a few other transactions where BTC was purchased and transferred. Each about 1K. Doesn't hurt to include I guess.