[EGrecu]

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

[JIBBBY]

Claim your profits and pay your taxes if you are up big. Just that simple. Can sleep better at night. Not the end of the world.

IRS is so busy right now they won't even audit you if you are small time peanuts.

[EGrecu]

Claim your profits and pay your taxes if you are up big. Just that simple. Can sleep better at night. Not the end of the world.

IRS is so busy right now they won't even audit you if you are small time peanuts.

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

[Tanko]

I'm not an expert but I've done a little research on the topic. I use BTC below to be the same as any crypto.

My assumption is you are approaching this to stay within the law. There are a number of things you can do to not pay taxes and possibly not be in trouble (if not audited), but they are not legal.



If you receive BTC as a gift (up to ~$16k limits go up each year so check), the initial receipt is not taxable. If you sit on the BTC in your wallet, it is not taxable until you sell it. Once you sell it, you are required to report any gains or losses on the BTC (capital gains/losses on your taxes). The amount of tax you have to pay on gains varies with your income level and how long you held the BTC (long-term = > 1 yr or short-term < 1 yr). There might be other factors that impact the tax amount you would owe or not owe (e.g. was used to pay for higher education, etc...).


If you are paid BTC for a job or a contest, you have to report the initial amount as income on your taxes. Then you still are dealing with the capital gains/losses (mentioned above) for any value change in the BTC once you sell it.

Also realize, quite a few places (Coinbase for example) are now required to report any BTC transactions (total for the year) to the IRS. Just a heads up.

I'm confident there will be others who are more educated on the topic that will chime in.

[texhooper]

Just keep gambling til you lose it

[gauchojake]

Lol this fukkin guy

You make 250k go pay a fukkin EA or some shit.

[biggie12]

Why do you continue to embarrass yourself guy?

[johnnyvegas13]

U gotta keep saying I’m a millionaire no I’m not

say it over and over

that’s how the experts do it haha

[Seattle Slew]

Turbo Tax and H&R Block tax software are great options and should put most accountants out of business. They are $50 or less and walk you thru every tax option.

[gauchojake]

Do they represent you in the event of an audit?

[OldBill]

Do they represent you in the event of an audit?

only if done in person not if done by you online but i never have trouble doing taxes my own after i write of costs i might only pay taxes on $2000 dunno how to record receipts online so i have to go in person to hr block or other

but might not have to as long as earn no more than $1350 a month which is ok cause i caollect SSD but i be done working by july investments coming in probably by end of 2022 like $10,000 a month

I be so happy to be from working for corparte happy to pay taxes get house redone top to bottom

every room even bathroom possibly cost about $75,000 insurance will not cover it all and i want every wall sealed with hard foam to stop mice coming in when others are doing work that cost about $3000

get new aplliances too oven fridge are way to old and get kitchen done right no it's not cheaper selling house as is n getting new one and pay who knows what monthly i already checked that out house is only worth about $120 K new one will cost over $250K moratge with interest rate say 6.5% about $2500 a month then higher insurance rate right now only about $140 a month

NEW rate will be $295 a month better to put out like $25,000 cash and insurance cover the rest

contractor get it done in two weeks which is my newphew he got whole new kitchen done even new fridge n freezer no out of pocket cost

[jjgold]

Grecu please seek a tax expert not a sbr clown

[lonegambler23]

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

remember this guy has half a million in his gambling accts

[JIBBBY]

remember this guy has half a million in his gambling accts

Oh is that the same clown? Right, a half million sitting in a BOL account and afraid to cash out. LOL. Broke clown show.

[thomorino]

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

Of course its taxable. The athletes receiving their pay in bitcoin obviously still pay taxes.

Now if you hold crypto for 12 months or more and have a gain that gain is taxed at capital gains rates, which are much lower in most cases than ordinary income rates.

[lonegambler23]

Oh is that the same clown? Right, a half million sitting in a BOL account and afraid to cash out. LOL. Broke clown show.

yet needs giftcards LMFAOOOOO

[JIBBBY]

It must be story telling time again, all gather near..

[jjgold]

You got to get an expert that specializes in bitcoin and taxes

[JIBBBY]

You got to get an expert that specializes in bitcoin and taxes

JJ you're broke to ya bald jack ass! Neither of you clowns even file for taxes.

[clockwise1965]

It must be story telling time again, all gather near..

No shit.. Bullshit thread.

[OldBill]

hey get donalds tax guys look he only paid $750 for millions income

[raiders72001]

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

Ask your CPA. If something's done wrong, then it's the accountant's fault.

[BeatTheJerk]

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

Jesus Christ you should put your life on YouTube to supplement your millions.

[raiders72001]

Do they represent you in the event of an audit?

this. If you are making a substantial amount of money, pay for an accountant. Everyone making $250k is paying.

[texhooper]

OldBill my lord…

Just kept typing away

[stake1]

this. If you are making a substantial amount of money, pay for an accountant. Everyone making $250k is paying.

nothing to mess around with. crypto gains are income, so having a Cpa is critical

[dustyy]

Ask your CPA. If something's done wrong, then it's the accountant's fault.

CPA compiles information given to them. They will advise you but unless they do a complete audit, you are on your own.

[Arky]

As others have said, go find a CPA who knows crypto and pay him whatever he wants.

Keep notes of all your transactions in which you made capital gains.

I found a guy and he's with a reputable company. We spent two 2-hour sessions trying to make my crypto holdings work with a crypto tax software - Koinly.io We kept running into obvious bugs. After the 2nd session, he concluded that we should just go with my notes and he will calculate from that. I think he's going to get me in kinda cheap....

It's peace of mind that should an audit occur, I have someone in my corner who understands my situation. Like Jibby says, the IRS is swamped and way behind. They are not getting all the reinforcements they wanted. Audits are unlikely. If you have gotten crypto tax forms, the CPA will know how to deal with those.

If you are making bank, get a crypto CPA to cover you - it will be worth it.

[jjgold]

Gamblers cheap and cut corners this will not turn out well

[chico2663]

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

If you received anything from coin base you must report. Didn’t 7 yrs ago and got a letter from I.r.s. I have 23,000 in gains from this yr that I have to pay on. I funded my s.e.p 7000 to take it down. I have been audited 3 times through the yrs and won every case but it is a pain in the ass.

[chico2663]

You got to get an expert that specializes in bitcoin and taxes

Wrong been doing my own and others since 1982.

[chico2663]

only if done in person not if done by you online but i never have trouble doing taxes my own after i write of costs i might only pay taxes on $2000 dunno how to record receipts online so i have to go in person to hr block or other

but might not have to as long as earn no more than $1350 a month which is ok cause i caollect SSD but i be done working by july investments coming in probably by end of 2022 like $10,000 a month

I be so happy to be from working for corparte happy to pay taxes get house redone top to bottom

every room even bathroom possibly cost about $75,000 insurance will not cover it all and i want every wall sealed with hard foam to stop mice coming in when others are doing work that cost about $3000

get new aplliances too oven fridge are way to old and get kitchen done right no it's not cheaper selling house as is n getting new one and pay who knows what monthly i already checked that out house is only worth about $120 K new one will cost over $250K moratge with interest rate say 6.5% about $2500 a month then higher insurance rate right now only about $140 a month

NEW rate will be $295 a month better to put out like $25,000 cash and insurance cover the rest

contractor get it done in two weeks which is my newphew he got whole new kitchen done even new fridge n freezer no out of pocket cost

Before this yr the most you could make was just under 900 .Biden raised it to I think 1250. Now if on S s di if you make more than 900 a month than you could do it on 7 times in a rolling 72 month period. If you went over and not report that you are working they can kick you off s.s. For the rest of your life. I know a lady it happened to.

[raiders72001]

CPA compiles information given to them. They will advise you but unless they do a complete audit, you are on your own.

A CPA can always represent you if wanted.

[Fishhead]

Grecu please seek a tax expert not a sbr clown

[mjsuax13]

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

Then you should have zero problem hiring an accountant. Jesus, go clean the snow off those used cars.