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Hmm. Assholes.Comment -
no surprises here, government always going to get it's 15-34% (capital gains or income tax) pay your taxes boys, not worth an auditComment -
Even though the story is dated recent.... it's really an old story. People like to hype things up.
If you didn't receive any notification form the exchange you deal with... you're pretty much safe.
For example... you know how Square takes CC payments if you're a business? Square reports that money... so if you took in 30k in cc sales... the IRS already knows. So, if you put only 22k in cc sales on your tax return... you're fukked.
Same principle with the exchange you use... whatever they turned into the IRS (if anything)... the number must be identical on your return. If they didn't report anything... there's nothing to balance out.Comment -
i must be the only asshole that is down $40k on cyrptoComment -
only bet 1-2% stuff the rest under the mattress. IRS had it out for the bettors since the 70'sComment -
I have about 32k profit in USDT i'm going to cash out here shortly, If I do that in 1 lump sum I have a hard time believing that Coinbase isn't going to report that to the IRS, also wouldn't (6) $5,000 transactions back to back to back also trigger a similar red flag?Comment -
If you are a crypto millionaire, why not move to countries where you don't pay any capital gains tax and live like a king?Comment -
This is strictly my opinion.... not everyone will agree with what I say...
Coinbase are a bunch of rat bastards. Sure they must comply with the IRS... just like any exchange. But they certainly don't go and bat for their clients. They've made a sh#$load on fees. At least go and bat for their clients... but they don't. Heard rumors they sent out forms to the IRS on clients who sold only $1,000 in crypto. What a bunch of fukking a$$holes.
I have never sold at Coinbase... but I've made several purchases years ago. Right when they were basically first known. I use Gemini a lot when selling... I haven't received one tax form from Gemini in 3 years. I check everywhere.... email... website... nothing.
So it's your call in who you want to use... I don't trust Coinbase one bit.Comment -
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Look at this OLDER video from 5/2019:
As of 5/2019, IRS had not yet released Crypto tax guidelines. You're starting to see some tax accountants give some guidance.
Q: what constitutes a taxable event? You don't want to pay taxes on an amount that might track back to zero. I think you should be paying some $$ on net gains.
As for enforceability, very difficult.Where's the fuckin power box, Carol?Comment -
Agree w/ what you're saying. For tax issues, I subscribe to two basic theories:
1) Give them a taste.
2) Document YOUR basis of calculation.
When I say document, IRS DOESN'T want your calculation sent in w/ annual filing. They ALREADY have too much paper-work. But you should have documentation ready in case of audit.
IRS normally gives a few instructions. 1) Submit an annual filing. 2) If filing has to amended at future date, that's ok.Where's the fuckin power box, Carol?Comment -
Only have to pay taxes if you winComment -
correct, as we are typing they are working on regulations which who knows how long that will take...I'll pay tax on net gains withdrawn, hard to enforce but an audit would be a b*tch, at that point they believe you are screwing them so it's up to YOU to prove you're not, not them to prove you areLook at this OLDER video from 5/2019:
As of 5/2019, IRS had not yet released Crypto tax guidelines. You're starting to see some tax accountants give some guidance.
Q: what constitutes a taxable event? You don't want to pay taxes on an amount that might track back to zero. I think you should be paying some $$ on net gains.
As for enforceability, very difficult.Comment -
Again... I've been through business audits before. I would imagine it's the same way as a personal audit.
The only way the IRS is going to contact you is if an exchange shows concrete proof by turning in their forms about your account.
The IRS is not going to guess or "ASSUME" and make you prove it. It doesn't work that way.Comment -
You can actually sell on Gemini and keep the money in a Gemini account. You don't need to send it to your bank. You can if you need to. Once you sell your coins... it's turned naturally into USD. The funds in the account are supposed to be FDIC insured. Naturally... if you take the funds and turn it back to crypto... it's not insured. I believe you can trade... Bitcoin, Ether, Bitcoin Cash... I think that's it. Not 100% sure though.
What's also cool about Gemini account holders... if you need to send crypto somewhere... they allow you 10 Free Networking Transactions per calendar month. So for example... if you need to move Bitcoin quickly... to another address for whatever reason... and the Bitcoin network is jammed... and the highest tier is around $20.00 to send the Bitcoin on the network... Gemini will cover all networking fees 100%... instantly. But, if you're caught moving it to a sportsbook... in the TOS they can shut your account down. Yes, I've used Gemini to send to books several times... never got a warning email or letter... but I only do it on avg... once every 2 months maybe?
So gemini does have some advantages... also... they don't gouge you on the sell price.... they don't gouge you on the fees when buying or selling. Coinbase rips you off.Comment -
I'll look into it as another avenue, I do have the SPEND **** card which allows for purchases up-to $5,000 a day and ATM withdrawals up-to $1,000 a day for a flat 1% which isn't terrible, but that's just for 'pocket money' need an out for large withdrawals, I've heard Coinbase Pro much better than regular CoinbaseComment -
Tax Info Passed on by a Helpful Poster
Coinbase only reports for Pro, Prime, or merchant accounts
So that guy in new thread asking about his 30k lump sum. He's fine.
How do I determine if I will be receiving a Form 1099-K?
Only transactions that took place on Coinbase Pro, Prime, and Merchant are subject to reporting requirements.
To receive one: You must have had at least 200 orders with matches during 2018, whose total value is equal to or greater than $20,000
Your gross proceeds from those transactions exceed the state’s threshold (see below for variations by state)
State thresholds:
Arkansas (AR) - $2,500
District of Columbia (DC) - $600
Massachusetts (MA) - $600
Mississippi (MS) - $600
Missouri (MO) - $1,200
New Jersey (NJ) - $1,000
Vermont (VT) - $600
All other states - $20k
Coinbase
Gemini
Coinbase further
Right at the top
Will Coinbase be issuing me a 1099-K from Coinbase?
For transactions that took place on Coinbase.com: NO
Coinbase is not required to issue a 1099-K to Coinbase.com customers and will not be issuing a 1099-K to our Coinbase.com customers.Comment -
Thanks Opti!Coinbase only reports for Pro, Prime, or merchant accounts
So that guy in new thread asking about his 30k lump sum. He's fine.
How do I determine if I will be receiving a Form 1099-K?
Only transactions that took place on Coinbase Pro, Prime, and Merchant are subject to reporting requirements.
To receive one: You must have had at least 200 orders with matches during 2018, whose total value is equal to or greater than $20,000
Your gross proceeds from those transactions exceed the state’s threshold (see below for variations by state)
State thresholds:
Arkansas (AR) - $2,500
District of Columbia (DC) - $600
Massachusetts (MA) - $600
Mississippi (MS) - $600
Missouri (MO) - $1,200
New Jersey (NJ) - $1,000
Vermont (VT) - $600
All other states - $20k
Coinbase
Gemini
Coinbase further
Right at the top
Will Coinbase be issuing me a 1099-K from Coinbase?
For transactions that took place on Coinbase.com: NO
Coinbase is not required to issue a 1099-K to Coinbase.com customers and will not be issuing a 1099-K to our Coinbase.com customersComment -
I wouldn't trust Coinbase Opti... but that's just me. I would also be careful with 30k... subtle as possible.Coinbase only reports for Pro, Prime, or merchant accounts
Coinbase
Gemini
Coinbase further
Right at the top
Will Coinbase be issuing me a 1099-K from Coinbase?
For transactions that took place on Coinbase.com: NO
Coinbase is not required to issue a 1099-K to Coinbase.com customers and will not be issuing a 1099-K to our Coinbase.com customers
And the funny thing is... Coinbase and Gemini apparently use the same tax guidelines as "CC processing" which is odd. It's also the same type when selling on Ebay.... and Paypal is your processor. That's just odd to me.
So everyone should be careful in regards to 200 transactions... I bet you it's buying and selling.Comment -
This news has nothing to do with 1099 forms and thresholds. The IRS was granted special access to records for anyone who had more than $20k of buys, sells, sends or receives in a calendar year from 2013-2015:
As
modified, the IRS now seeks information regarding accounts “with at least the equivalent of
$20,000 in any one transaction type (buy, sell, send, or receive) in any one year during the 2013-
2015 period.”
(
Id
. ¶ 2.) The Narrowed Summons
“
do[es] not include users: (a) who only bought and held bitcoin during the 2013-15 period; or (b) for which Coinbase filed Forms 1099-K during the 2013-15 period.
”
(
Id
. ¶ 2.) According to Coinbase, the Narrowed Summons requests information regarding 8.9 million transactions and 14,355 account holders.Comment -
do everything aboveboard
will sleep betterComment -
A few years ago I started a thread about IRS reporting. https://www.sportsbookreview.com/for....php?t=3445927. There was a lot of discussion. I also tuned into some seminars and bought some software to process data downloaded from different crypto sites. Basically I concluded that every movement of bitcoins triggered a reportable event. I finally gave up and decided to just track cash transactions involving bitcoins. Simply deposits and withdraws. I documented what I was doing (in case of an audit). I paid taxes on my gains in 2017 and deducted my losses in 2018. It seems to me the IRS lacks common sense.Comment -
Puerto Rico has 0% tax on selling crypto. Have to be a resident for over 6 months out of the year. Many crypto people have already moved.
If I was going to cash out $30k worth of stablecoin, I'd definitely break it down - spread the love....Comment -
Same here...except I use one of the third party API vendors to run the report on all my buy/sells from fiat to crypto in Gemini because whether you send it to your bank or not.....it is considered a taxable event on the conversion even if it sits on the exchange. Once i convert fiat to crypto (BTC , ETH, LTC), I send it out and trade on an exchange like Binance and keep most on a Ledger. I refuse to report all that non-sense. Then I just send back to Gemini to cash out. So this keeps my taxable events down and still account for my gains/losses. Sent all pre-filled forms in to IRS last two years and no problems.Comment
