[Eagerkid]

PURE INVESTMENTS ULTIMATE DISCUSSION

Feel free to check out https://bitcoin.tax/ also

Basically, if you hold on to the investment for a year or less, your tax rate would be your marginal rate for ordinary income. This is based on what other income you have in the year of sale. Which is why it is important to do your accounting, so you can figure out accurately what you are making. Even if you are not paying taxes on crypto currency, it is still good to see your own personal finances.

Brackets :

Up to $9,325 10%

$9,326 - $37,950 15%

$37,951 - $91,900 25%

$91,901 - $191,650 28%

Etc. up to 39.6%

If you own the Coin for more than a year, then you will pay 0% on the gain until total income is above $37,950. If your total income is above $37,950, then you pay 15% on any gain.

EXAMPLE

If you make $9500 then you would be paying 10% on $9325 and 15% on the remainder $175 ( assuming you do not hold for a whole year etc )

*The decision to sell should be based primarily on your investment analysis and not by the tax consequences. However you can manipulate amount of taxes you will pay by holding or selling short.

TRADER VS INVESTOR

These above taxes are for INVESTORS not TRADERS. If you make a certain number of transactions per year it makes the taxes a lot more complicated. I can make a thread on this later




*Should be for most states if not every

[minimalist]

I think it'd be worth mentioning that you can export your trading history from most exchanges and import it into bitcoin.tax to review your gains or losses.

[NightForce]

So no taxes have to be made if your crypto portfolio is under 9k?

[POLY MATH]

I am also a little confused after reading the example. Could you provide another example?

[Charger]

I think it'd be worth mentioning that you can export your trading history from most exchanges and import it into bitcoin.tax to review your gains or losses.

Woah, I've never heard of that website or companies directed towards crypto tax filing. Any others like it?

[minimalist]

Woah, I've never heard of that website or companies directed towards crypto tax filing. Any others like it?

There were some other sites, and an informational one, but I can only recall the URL of one other:
https://cointracking.info/tax/

[Kill Joy]

Something extremely important to note.

Tax brackets are exactly that, brackets, right? So I have $50,000. Only 37,950 is taxed at 15% and the rest taxed at 25%?

I may be confused about something else I read on reddit.com/r/personalfinance.

[Rake]

I'm not worrying about taxes becuase when I do exchange any ammount of BTC to USD,
It's going to be on Hansa market for cash by mail :)

[Admirably]

isn't possible to just exchange your coins for WU and avoiding these fees? I'm not from US, I'm just wondering.

[Kill Joy]

isn't possible to just exchange your coins for WU and avoiding these fees? I'm not from US, I'm just wondering.

If you deposit it to your bank, they're gonna be wondering where it came from. Pretty sure after a certain amount you need to provide your SSN or something with WU.

[Eagerkid]

Something extremely important to note.

Tax brackets are exactly that, brackets, right? So I have $50,000. Only 37,950 is taxed at 15% and the rest taxed at 25%?

I may be confused about something else I read on reddit.com/r/personalfinance.

Okay so $50k

$9,325 is taxed at 10%
$28,624 would be taxed at 15%
$12,051 would be taxed at 25%

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I think it'd be worth mentioning that you can export your trading history from most exchanges and import it into bitcoin.tax to review your gains or losses.

very interesting, I will add this. I have never used or heard about this. Thanks

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I am also a little confused after reading the example. Could you provide another example?

I have added another in this post, if you want another feel free to PM me

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So no taxes have to be made if your crypto portfolio is under 9k?

It also depends on how much income you are making as well in total for the year

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isn't possible to just exchange your coins for WU and avoiding these fees? I'm not from US, I'm just wondering.

Depends on the amount of money, the more you make and dont claim the harder it is to hide it. I pay taxes so I dont have to worry :p

[otto1]

What if you're only transferring by like $1000s? What then?

[Eagerkid]

What if you're only transferring by like $1000s? What then?

If you have a income of $1k you wont have to pay

[Orgy]

I think it'd be worth mentioning that you can export your trading history from most exchanges and import it into bitcoin.tax to review your gains or losses.

the real lpt is always in the comments

[Autist]

I dont get why people want to pay tax on these, its very easy to avoid paying it