** I know this is long - if you are able to answer any, or a few, of the questions contained in this post, I would be extremely thankful. Really any comments would be appreciated so I know I'm not alone**
I've read all the threads on this and other subs regarding taxes, and recently bought a 1 yr. subscription to cointracking.info. Unfortunately, I purchased ETH, LTC, and BTC via coinbase for the first few months of my trading, until I found out that GDAX is so much cheaper and easier to use.
So I have records in CSV format from both exchanges, similarly, cointracking.info couldn't seem to reconcile (whether using CSV imports or API data) my various transfers from coinbase to GDAX for my day trade attempts and from GDAX to coinbase after purchasing, and before transfer to a hard wallet. So it interpreted these transfers as "sales."
I've also sent a handful of ETH to binance to put into various alts (which are all currently down). I recently day traded a bit with BTC while it was falling predictably down and increased my holdings by .05 or so. I wasn't thinking, and now realize that this effectively "realized" my gains on part of my BTC that I had been buying since early August. I repeated this process quite a few times, buying and selling the same sum of BTC.
I luckily have a family friend who helps do my parents taxes in exchange for dinners and out of generosity. I approached him with questions about how to "track" my gains off of ETH into binance alt coins, as the price of ETH shifts constantly, and we ended up talking taxes. He asked me to chart every transaction - volume, price, date, fee, coin, etc. in excel - I had been doing this fairly well for months, and think that combining the coinbase and GDAX CSV files for each 3 coins might work, but it's so much data I'm very stressed - and equally pissed if my day trading stupidity (which earned me 500 dollars) ends up costing me 3 K in taxes.
- However, what I don't understand is how one is supposed to "pair" or decide which portion of BTC they realize when they sell. Because I bought BTC all the way up from around 3 K and if I technically realized the gains from some BTC I bought at 9 or 9.5 K during my trading / realizing, then the tax I owe would be a lot less than the sale of BTC bought below 5, etc. Is this discretionary - I know there's means to I.D. specific coins, but when I sold it was certainly a varied mixture of *hundreds of different small purchases.
- I'm also having problem even using the GDAX CSV of sale records, because of some recent day trading, my technical cost includes duplicated "re-buys" of day traded coins, so it thinks I spent like 7 times what I really did, when in reality I was buying / selling the same bundle of coin / coin fractions.
- With my limited understanding of taxes (recent college grad with no job yet) I'm hoping that for some of the day trading, it will at least only be the first (of a handful of buys and sells with the same coins) that are realized to cause any substantial tax costs, as once I sell and re-buy once, my basis is now much higher, and given that I was selling and buying in the same general price range of BTC (and other coins) the spread / difference would be comparably minimal, so it's not like it takes the same 25% or whatever percent each time I make a trade, right?
- Lastly, does anyone know how capital gains from conventional stock portfolios affect your tax bracket? I may have read that some people qualify for 0% tax on long term gains if they have no job, and meet a few other variables. I currently have no earned income, but do have a relatively large stock portfolio which I oversee with a family member, the markets done well this year, but to my knowledge none of this large and varied volume of stocks are ever sold / realized, they are just being "hodled" for lack of a better word, as many do in traditional investing.
- Having acted out of greed / opportunity and naivete (thinking I was helping myself + making money by buying before a dip and buying back, I will never day trade again. I only hope that these taxable events do not eat up a huge fraction of my gains, which I have worked hard to accumulate while working diligently to learn the ropes of crypto buying and research. I'm not asking for sympathy, as I have it better than many, but I do seek information and want to have some general questions answered before I go back with a giant excel file to bring to my family friend, so I can ensure the information is accurate, etc.
I know this was a lot of varied questions, and I'm happy to re-format in more palatable bullet points, but if anyone is willing to answer any of the above confusions I would be very thankful and would find a way to give thanks
Thanks for your time - a concerned / born again hodler
Earning cryptocurrency as income ... You made $85,025 during the tax year, and you purchased Bitcoin six months ago for $5,000 including fees and commissions. Yesterday, you sold Bitcoin for ... Paying crypto taxes is becoming increasingly difficult in 2020, as government tax authorities around the world continue to change their minds on how digital assets should be handled. To make things easier, we’ve put together a comprehensive guide to bring you up to speed on the latest changes. Crypto-assets have... For a complete overview of how the IRS treats cryptocurrencies like bitcoin, ... But for those who have been earning crypto, this income needs to be included with your tax return. Crypto income should be reported in one of two ways: either as personal income or as self-employment income. For a complete walk through, please read our article on crypto mining taxes. Cryptocurrency that you’ve ... The British government repealed their VAT tax against Bitcoin in 2014. Now, most cryptocurrency transactions are exempt from VAT fees in the nation. Moreover, the HM Treasury considers BTC and other cryptocurrencies to be “assets,” not legal currencies. This mandates such crypto be taxed either by an income tax or a capital gains depending on the circumstances (if you’re a trader, for ... Earning bitcoin as income (mining, staking, etc) All of these events are considered to be dispositions of your bitcoin, and you realize a capital gain or loss whenever you carry out one of these actions. Example 1: John purchases 0.1 BTC for $500. One month later, he trades that 0.1 BTC for 2 ETH. As noted above, trading one cryptocurrency for another is considered a taxable event ... Falling for scams. You’ll actually lose money by falling for scams, and you will typically lose money overall when gambling, so these are by far the least profitable options.Scams are worth a mention because some “free bitcoin” offers are simply scams. If the offer asks you to make a payment of any kind and you don’t know exactly what you’re getting in return, there’s a good chance ... Capital gains tax rates on most assets held for less than a year correspond to ordinary income tax brackets (10%, 12%, 22%, 24%, 32%, 35% or 37%). ↓ Jump down to use our capital gains tax. Due to the coronavirus pandemic, the IRS extended the April 15 deadline for filing 2019 tax returns and paying 2019 taxes to. 9 Ways To Reduce Investment Taxes – The Tax Cuts and Jobs Act (TCJA) of 2017 ... Binance Coin (BNB) - $5.11B - $36.23; Bitcoin SV (BSV) - $3.85B - $215.72; Tether (USDT) - $3.53B - $1.00 ; Stellar (XLM) - $2.35B - $0.12; Be nice to each other! r/CryptoCurrency is a welcoming place for all cryptocurrencies. Live Discussion on Discord Crypto Devs CryptoCurrencyMemes. Monthly Top 10 Market Cap Subreddits. r/Bitcoin r/Ethereum r/Ripple r/BitcoinCash r/Litecoin r/EOS r/Binance ... If you have a long-term gain, you’ll pay a capital gains tax rate on your crypto profit. You’ll likely also see a smaller tax bite. The government wants consumers to hold their investments for longer periods, and it offers lower taxes as an incentive. There are three tax brackets for long-term capital gains: 0%, 15% and 20%. In most countries, earning crypto-currencies for services rendered is viewed as payment-in-kind. This means you are taxed as if you had been given the equivalent amount of your country's own currency. So, for example, say your salary was paid in part cash and part Bitcoin, and each month you received $1000 worth of Bitcoins, you are taxed like you had just received $1000. If you are paid ...
[index]          
This video is unavailable. Watch Queue Queue. Watch Queue Queue Bitcoin / altcoin tax 101 - Capital gains and first-in first-out - Duration: 8:24. ... Binance (BNB) Exchange Tutorial - How to Buy Cryptocurrency on Binance - Duration: 6:30. Crypto Love 231,992 ... When investing in cryptocurrency, it's important to understand the difference between fiat gains/profits and Bitcoin gains/profits. Sometimes, you can make s... How will you pay taxes on your cryptocurrency? Check out my Cryptocurrency Tax Spreadsheet. Use Promo BROOTS2018 for 40% Off Of the B-Roots Cryptocurrency Tax Spreadsheet. This is ONLY for the 1st ... In this video I cover a case for a $500K bitcoin, the launch of Binance debit cards and also Ethereum dethroning Bitcoin as the largest market-cap crypto. Jo... DISCLAIMER: I AM NOT A TAX PROFESSIONAL, PLEASE DO YOUR OWN RESEARCH ON THIS IMPORTANT TOPIC! Many people have been wondering how their crypto transactions/d... Get an additional $10 in Bitcoins from Coinbase when purchasing through my referral link http://fredyen.com/get/Bitcoins Here is a quick beginner's guide on ... Bitcoin TAX Myths! How to Avoid the Headache with Cointracking - Duration: 6:52. EverythingCrypto 136,077 views. 6:52. Coins vs Bars - Expert Tips on Gold and Silver Coins and Bars - Duration ... Signup Binance Option & Futures Trading : https://www.binance.com/en/futures/ref/cmm (Get 10% Discount On Trading Fee) Referral Code : CMM (Get 10% Discount ... Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered ...