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RE: Inflation – the biggest tax of all
We in the United States are required to pay capital gains on crypto profits. So if you are not paying that tax you will likely get audited. Better report it. Same as it ever was.
https://www.irs.gov/uac/newsroom/irs-virtual-currency-guidance
"required to pay", yep and required to pay even if you live permanently outside the US and haven't been back in years and have no intention to ever move back. Fortunately not everyone is a US citizen.
Yes the US one of the only places to tax you even if you leave.
Yeah that sucks pretty bad. I believe we are one of the few nations in the world that requires this. Awful, terrible, immoral.
Lol. Like people will willingly report they got money off of cryptos.
I certainly will. I am a believer in paying as little tax as possible. I know there are enough legal loopholes out there to avoid a decent portion of taxes. Why risk getting involved with an unfriendly branch of the government who can seize all of your assets without due process and put you in jail to too. No thanks, I prefer to stay off the government's radar.
I think you're one of the few. Last tax season less than 1000 people reported gains from Bitcoin. Though nothing wrong with playing it safe. However I would like to point out that many people did obey the law and fell onto the IRS radar anyway. All it takes to have the IRS seize your money is just plain bad luck. Still, I hope the tax loopholes work out for you. Maybe I'll look into that myself.
Wow only a thousand, jeez. You can bet they will be looking this year. 1st and foremost, keep track of your losses, those can be deducted from your gains. If you are on an exchange and you have a crappy trade that sucks you can use that loss to pay less capital gains. There are other things you can do from other categories too of course. I know luck does play a part in things, but why tempt them.
I'll be honest I'm not to worried currently. While I'm sure the IRS wants to enforce taxes on cryptos it's beyond impractical at this point. There's no real way to track or tax it. Maybe one day in the future. But I still might look into what you've mentioned anyway. Like you said might not hurt.
As it stands though I doubt most people will be filling Bitcoin taxes or any crypto for that matter.