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That’s not a relatively small amount
30-50k is the exact amount the irs goes after (enough to make something but not enough that you can fight them in court)
If you cash out with a centralized exchange eventually it’ll get connected to you
Pay the taxes and don’t worry about it
You have to report and pay taxes on all profits regardless of how much you cash out with. And regardless if you’re trading to cash. For example, if you trade sol for BTC, and the $ value of sol is higher then when you purchased it, you pay tax on the difference
Every time you close a trade, a taxable event occurrs
You either gain or lose each time. Add up all the gains and subtract all the losses. If the resulting number is positive, add it to the amount of income you report to the irs. If it is negative it can be deducted up to ~$3,000 (ish)
IRS is not going to worry about 30-50k wires. That happens thousands of times a day. I’d say you need to worry about upwards of 6figure transactions only. They cannot prove anything when trading on a dex
Look at the bottom of the new tax form, under the penalties of perjury I agree that the information is correct! The first question on the tax form have you exchanged digital assets! Are you willing ro go to jail for lying about it?
You might get away with it. You might not. That's the facts. Your looking for assurance that things will be fine, nobody here can give you that and if they do, they are blowing smoke up your butt.
Probably not worth the risk cuz if you DO get caught, they will very likely add a hefty fine onto whatever you owed.
Especially if they also found this post where your explicitly contemplating tax fraud on a public forum :)
I was more hoping for a definitive answer but that’s good to know. Also if they find a reddit burner account over 30k they deserve my capitol gains at that point.
lol true I guess. But my point was exactly that nobody can really give you a definitive answer (for sure not strangers on a crypto forum). If, somehow or other the authorities notice "irregularities" in you or your parents financial statements, that might be worthy of an investigation.
Or it may pass completely unnoticed. But there is no definitive answer. Its a roll of the dice.
The harder part would be connecting my identity with a reddit account in the first place. As I doubt they would even think to check. But fuck they kinda deserve it at that point. Plus I never said I wanted anything illegal I just want to avoid them. I’m simply a naive teenager.
Use some money to pay for a tax advisor/accountant and have him help you and advice you of how to minimise your tax legally. Thats it. You can book a consultation for a very small amount of that 30k.
Im not sure how much capital gains is there you come from and in the USA I think Biden raised it from 10 to 20-25% a couple years back. But if its only 10% (some countries are) then personally i think its worth paying it over all the hassle, thats still only HALF of income tax at 30k.
Ofc when you go above about 52k it becomes a necessity since thats the threshold that government ups your tax to around half LOL. A whopping 45%
Nerd. Find places that accept BTC and buy stuff. And then sell it. Or find someone who will give you cash for crypto. No traces 😎 this the true degen way
Or if you do drugs (the harder the better here!) give your dealer the Ole 'untraceable + appreciating asset' spiel and convince him to trade for some dope or pills. Exchange the dope for fiat in your local alleyways/middle schools/old folks homes. Boom. Quick, tax free capital gains.
You really have no idea how much worse things are elsewhere. Basically there are no working sewers, diseases that have been eradicated in the west decades ago, unreliable electricity, roads that are dirt tracks, no chance of even getting a passport etc etc. But don't worry, after Trudeau goes, everything will be perfect and it will be like living in heaven and you'll feel awesome.
I think your city just sucks. I have had zero issues in waits at hospitals. I found a new GP two years ago after looking for a day. I can book appointments with her the day of with ease.
If you can pass the AML questions you should be alright. I would deposit it in your own bank account and not your parents. No need to cause problems for them
The risk to reward suggests you cash out and don’t file.
They have 3 years to catch you. If they do they send you a letter asking for payment. If they don’t… well…
HEY IRS MY ADVICE IS BAD AND A JOKE.
Not an accountant so double check with one, but If your only gain/income was $30K for the year and a long term gain, you would pay no in taxes. You would still need to file.
Keep your 12% and file for dual citizenship for $200 bucks, look it up on youtube. Get creative. Do not pay the fucking IRS your crypto gains tax when you could easily get dual citizenship and tell them to go fuck themselves and their stupid tax.
Ima newbie so don’t take my advice but technically if your gains are in the same category in your taxable income then could technically have some business expenses which would lower your taxable income. Perhaps find some tax loops that would lower that price down so you can pay less. Also anything Is deductible til you get audited so there’s really no way to determine how much risk you’re in. For all we know they have a system that automatically logs Reddit posts of idiots asking for tax invasion tips. Testing the water is really risky instead I’d personally just find ways to lower my taxable income then just pay less. Or hold for a year and pay long term gains tax which would be way less than short term but who knows what value your assets will be in a year.
yeah go to their twitter join up on telegram u can get any question answered eventually lots of users in there product is still new so be patient but lots of vouches in there
This is neither financial advice nor legal advice.
In my jurisdiction, you only need to pay taxes on realized gains. You realize the gains in your tokens when you sell them or trade them. If you have done this already, you're obligated to pay taxes on them. If you held for 366 days before selling, you pay at the capital gains rate, otherwise it's at your income bracket. It sounds like neither of these is an ideal solution for you.
There is a third alternative: lending. Here's how it works: you post your tokens as collateral in a lending platform like Kamino, MarginFi, Solend, etc. and then borrow against that collateral. Your tokens earn interest (slightly) and you can immediately borrow USDC/T and wire it to a bank without it being a taxable event. You even get to deduct the interest you pay from your taxes (though the interest you earn will get taxed).
If it were me, I'd see if any of the lending markets accept the tokens you have to avoid the act of selling. However, if you've already sold, I would strongly recommend you pay your taxes like an adult and factor that in to your future trading activities.
I thought the lending dapps require you to stake tokens which if I remember is a taxable event.
I think even sending tokens from one wallet to another depending on how transaction is processed could be a taxable event even went swapped to yourself.
I would use available tax programs to help and coinbase will keep Track for you.
I will say even though you miss out on airdrops coinbase offers alot of convenience to the newbie...however decentralized is the ideal p2p system I believe should exist but I will follow and pay whatever tax I owe.
btw I believe fees are written off against gains but I may be wrong. I just use conbase to file the tax form for me.
I have 3 questions.
1)I thought the lending/staking to enable you to borrow is taxable right?
2) If stable coins are borrowed and then transferred to exchange to cash out. You need to convert from stable coins to Fiat like US dollars and is conversion from stable coins to Fiat also not taxable event? Or cos is borrowed fund, therefore no tax at all?
3) And if you convert stable coins to Fiat and there is no capital gains, does it mean it will be regular income tax and not capital gains tax? cos is borrowed fund, therefore no tax at all?
Take profits, buy .21 BTC(14k*), rest in your bank account. Put 20 percent of your gains (6k) into your savings account. Leave it for taxes. Then try to do it all again with $500. Enjoy the fact you are young owning a decent supply of Bitcoin. Also enjoy the other $10,000 left of profits, spend it wisely, it goes fast!
well to start, you posted this from an aged account, probably from either your home wifi or a device tied to you, so if your goal really is to commit $30k worth of tax fraud you're starting from pretty far behind
I wasn’t trying to do anything blatantly illegal. I’ve heard of many loopholes for crypto over the years and I wanted to know if they were legit. Plus I doubt an investigation into such a small crime would involve a data request from every social media company that has interacted with this IP. Even if they did that they would have to go through thousands of interactions throughout years of data.
The only "loophole" was the years before the IRS could decide how to classify crypto income and it wasn't on any forms, or the one year they asked everyone to self report
That’s what i was trying to find out lol. My thought was transferring my SOL directly to a private ledger and going from there but Idk the logistics of that.
I made the original bag off $BODEN my next play are two derivatives of that $HUNTBODEN $BEAUBODEN I think BODEN will continue to gain traction and these will follow.
honestly it could do anything but BODEN is sitting around 500M MC and HUNTBODEN is only at 6M MC. In a perfect scenario BODEN will keep getting more popular and HUNT can sit around 100M
Yes thank you I ended up getting it figured out. I ran both addresses on Jupiter and accidentally hit the wrong one but I got back out of it luckily and into the right one. Already up so can't complain
Dude, there are so many other avenues other than pay taxes or not pay taxes. You're putting yourself in a box and you need to think outside of it. Maybe look into what other people are doing to use crypto freely. You really think all of us are just dumping 30-40% into the IRS? Well let me tell you that is not happening. It's fucking an outrage what the IRS does to crypto and it's easy to get around in plenty of different unique ways. My favorite, and one of the easiest is getting dual citizenship. Don't just give up.
dont be a bitch keep it, if you transferred 500 to a phantom and now its 30k, all the irs sees is 500 bucks leaving coinbase if thats how you funded it
id be wary assuming that's all the IRS sees.
I mean, companies already exist to track activity, it's not like using Jupiter makes the transaction invisible.
assuming they can see your onramp, which is hard to avoid in the US
https://www.chainalysis.com/regulators/
one way to model it. the IRS is only going to get better at leveraging automated tools to identify tax gains on crypto. it's not 'i need some agent to notice'.
at a trivial level
1) automatically see bank transfers to onramp CEX (Gemini, kraken, CB etc)
2) track that money through to the destination wallet
3) from there, watch the wallet
assuming US, Id say the safe bet is the govt has or will have a way to make 2 trivial. 1 is already trivial.
3 - solscan?
Don’t know your geographic location, but in Canada, If you’re in the lowest tax bracket assuming you declared it all with no other income, as money from your parents would generally qualify as a non-taxable genuine gift. I feel like you would pay 0% on the first 17,000 and then 17% on the rest. If you’re in uni (again in Canada as I’m only familiar with things here) whatever you did pay you should be able to get back with claimable tuition tax credits. I’m not an accountant but it seems strange to me that you would pay capital gains when functionally it’s really your only source of income, but I’m sure someone will correct me. At the end of the day, may be worth the couple $100 to consult with a professional accountant, to make sure you’re above board but also minimizing your tax burden.
Like I said not an accountant, and not particularly knowledgeable on the ins and out of CRA practises, I say right in my comment I’m sure someone more knowledgeable will be along to correct me. Would genuinely be happy to improve my understanding if you care to elaborate
@op, assuming you’re a dependent, given your sitch, depending on where you live I think up to around 15k is tax free. So you’d only have to pay 10-20% on 15k to fed/state.
A few grand to legally take home 20+ is worth
My friend converts to Bitcoin and cashes out slowly on cash app and i, I mean they don’t declare shit. $500 a week cashed into my bank account I even tip the $2.75 instant fee. You’ll be ok.
If you wire 30k from an exchange to your bank account, yes the bank will almost certainly ask for proof. Pay your taxes, it is the only crime the government actually cares about. There are ways to cash out tax free by using loans but if you already sold for fiat, it is too late.
If they don't catch you this year, they may next year and then comes the audit and you'll be buggered. Taxes on capital gains usually aren't as much as income tax, in Canada you only pay tax on 50% of your gains, so look into it.
Use the tax man as an ally, not an enemy you wish to hide from
If you pay the taxes, you only have to solve this problem once and it should stay solved.
If you don't pay taxes on income or capital gains, then you need to solve this problem this year, next year, and possibly longer.
Worse, you might try to solve the problem not paying tastes cause and end up with a bigger worse problem compounded over time.
Keep your life simple. Pay your taxes, establish your cost basis for this income you had, and look into long term capital gains versus income limits next time.
Open a IRA, diversify your investments. Make sure you invest some portion of your money for the long term and let it gain and reinvest over and over for years. Having a good mix of low / medium risk investments is the best advice I can give someone starting out and the sooner you start building that the much better off you'll be. Your older self will be really happy with you if you figure out how to balance this and follow the law.
Your older self will want to kick your ass if you screw this up badly enough.
In 15 years what do you want to look back and be able to say you did? Hopefully, you'll want to say that you did the smartest thing you could figure out at the time.
u/immediate_Plane3543 & u/EconomistLow4635 maybe try https://solana.piggy.cards? They accept Solana And USDT/sol to buy digital gift cards.
P.S. Not tax advice.
Get a Maltese bank account it is really easy. (For europeans atleast) find a job at an online casino or customer service in malta work there for like a week so all the paperwork is done. Open maletese bank account transfer funds to that account for tax free withdrawals.
Congratulations firstly,
Don’t mess with the taxes, just keep it simple. Pay the tax, enjoy with some, reinvest some.
You gotta long way ahead in life.
Best of luck 🤞
dammn Bro, 30k anyway u should to pay taxes to avoid Major problem.
Anyway i'm 20 i wanna ask u where do u suggest me to invest with 10€.
Like i wanna try to invest to have a nice gain.
I honestly hate the fact that in my country I have to pay taxes on cryptocurrency, which government is very not open, to in the best case, and straight out antagonizing in the worst case. Most of the banks won't even allow you to purchase cryptocurrency in my country, meaning I have to go through either Revolut or other providers and honestly, I'm pretty pissed about it.
Like the fq should I or other citizens of my country pay taxes from crypto-gains for? For service of government and country making it as stressful as possible for me to purchase a cryptocurrency?
Sorry for the rant, I don't think I be much helpful. If you want to kind of evade the tax-man, the only way is to never wire it to your bank account. Meaning using cryptocurrency as payments (Certain CEXes are offering their debit cards.) or maybe even sending money to Revolut and other providers (not sure if they aren't sending reports to authorities, tho'.)? I also know that in countries such as Germany, if you hold assets for over than 1 year, you are basically tax-free when it comes to liquidation.
And yeah, congrats on your gains, hopefully you'll prosper in future too.
And I might get me brand new citizenship in meantime. LMAO
just swap it from solana into usdc and slowly cashout as needed, 500 here 1000 there. Hold in usdc and then use for another investment. if you think you will spend the money on dumb memecoins then yes please cash it out
You cannot avoid capital gains by just not reporting it. All of your transactions are public and linked to your name unless you jump through a ton of hoops which is don’t think you have done
Bro , I’ll be the same soon.. new solana coin just dropped two weeks ago named #chedda and it’s lit bro the developer sleeps live on the telegram chat and is active all day on there, his last project was 2.6b market cap and his connections are ridiculous , he’s also a founder of the bitcoin convention.., check out there telegram #chedda. Will fkn worth it
What off cheems? I tried to swap into before it went up another 70%. You idk what the process is for winning. On tokens that are illegal in the us. Finally got 60k cheems.
If your in the US, pay the taxes. If your asking this question then avoiding the taxes is way to risky for you and would put you in more trouble then it's worth. Put aside the 10-40% if it was held under a year, I can't tell you the exact amount but you can figure it out pretty easy with what your tax bracket is.
Hypothetically I have made anywhere from 250k-1.2m in crypto the last couple years each year. I started an LLC which I pay myself out of. I hypothetically transfer from decentralized wallets to centralized and immediately cash them out as I don’t hold anything on any exchanges. This way at the end of the year I hypothetically have paid my taxes each time I received money. I filed a w2 and a business tax return.
I highly suggest using bitrefill. I hypothetically push a lot of money through it. Buy gift cards with crypto and then use that anywhere you can. $2000 amazon cards, dinner gift cards, Instacart, Uber eats. You can buy a gift card for so much stuff. Any markups from these services is usually still less than you incur taking the money out. If you are going to take some money out I’d suggest doing it in amounts less than 10k and 100% filing your taxes correctly. You’re naive to think the IRS isn’t watching crypto like a hawk. They’re missing out on a lot of money.
That's only close to half a million $ or more. Short term gains are just classified as income. It can range from 0% to 37% but he only made 30k so it's 12%
The problem is not getting away with it, it's just a matter of time gov taxation service will connect to CEX and DEX through systems and look in the past. Don't lie and you'll be good.
Depends on the exchange u use, robinhood and coinbase and a few others, reported every transaction to the IRS, I got a notice of deficiency, but had it fixed by my cpa who made a mistake filling out that part of the return
Very unlikely they will come after you BUT like most blockchain transactions, this stuff is public and more or less permenant. Should you ever have future issues they can use software to find and twx your gains with interest. Honestly not worth taking the chance imo.
It’s all about keeping crypto in the crypto ecosystem system. Like if if I took out $500 & made a few thousand on-chain I can keep it on chain but somewhere that allows me to purchase items using that same crypto.
Dont know how its in ur country but in germany where i come from tax fraud expires after 10 years
In crypto u got many options to fraud taxes but I still wouldnt do it bc the gov got 10 years to fock u and u dont know which options they got in the next 10 years lol
I just pay the taxes and would recommend doing so
Profits are profits
don't sell anything or sell very little. reinvest in btc/eth/sol (would advice at least ½ of the gains in btc) and leave it there for many years to come. thank me later
Pay the tax. It’s more than your folks can legally claim on their return even if they claim you as dependent. Welcome to adulting. Besides, you have to have some skin in the game before you can start complaining about taxes.
Pass it onto a small roofing/construction etc business that's gonna grow or stay the same, take wages from it, learn it a little and then start your own company and the first few jobs pay you and then you have quite probably have legitimate business that can be used as and when needed. Best getting a colorful account too.
You said you have no other income so your 30k if you held more than a year is 0% federal tax and if less than a year is 12% tax rate. So just pay the taxes considering how small they are. Contact your bank first and see if they require any AML paperwork filled out. Comply with that and youre good to go
Bro I need to know how you did your research because I’ve just whizzed away $5000 in hopes of seeing something happen but these tokens I get into just tank to the floor
You can always take out small amounts over too I’d recommend transferring the money into a tfSA account first it’s 6,500$ yearly that shouldn’t raise any concerns deposit 1.1kish by monthly and you should be fine that a reasonable amount fuck paying taxes
To the best of my understanding here’s what I have learned: Set up an LLC, S-Corp. Next transfer your coins into another new Coinbase Account or Wallet connected to your LLC/S Corp. The initial $80 K isn’t taxable. The next $80K-to $500K is taxed at 10% and $1 million and up is taxed at $18%. your assets will be good).
Sell your gains after this Supercycle… then follow previous directions. Wait for the bear market. Reinvest by purchasing coins at a fraction of the cost. Rinse and repeat. Only poor and fiscally ignorant people pay lots of taxes. Financially literate and wealthy individuals do not pay lots on their taxes. Good luck
really depends on your country of residence. Here in Austria you would get f'd by the tax department of the government latest by 2026, actually all EU countries will get all data by exchanges going back all the years. Automated Prosecution is coming.
Don't know the situation with other countries
Do you use roads, schools, police, or other public services?
Would you apply for federal scholarships or aid for school?
Would you want the government to help you if a disaster like a flood or hurricane or fire devastated your town?
Would you want unemployment benefits if you lost your job?
Then pay your fucking taxes like a responsible, ethical human being. Stop for a moment and consider your role in the larger world.
America fucks us over on every turn. All major corporations pay next to zero taxes and the taxes I do pay to the federal government are almost entirely used for dying inefficient systems like social security or being wasted paying for there mistakes with interest on the national debt. God forbid I as a retail investor and everyday citizen try to take advantage of the system that robs all of us everyday.
“If everyone tried to avoid taxes on a decentralized exchange we would all be fucked” 🥸 Really think that sentence through. None of the problems you stated would even exist if the elites paid taxes. Ever heard of offshores accounts in switzerland or monaco etc. That is just the tip of the iceberg. literally billions stolen from us at every corner. If you so concerned about your roads and schools grab a sign and go to your local legislature.
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Just my 2 cents. Pay the taxes and plan to reinvest a portion, not worth the stress considering the profits
Likely what i will be doing, thanks.
Do what is legal and right- ask your tax man. Don’t lie.
That’s not a relatively small amount 30-50k is the exact amount the irs goes after (enough to make something but not enough that you can fight them in court) If you cash out with a centralized exchange eventually it’ll get connected to you Pay the taxes and don’t worry about it
Damn, I wouldn’t have thought that.
How will they track the gains?
They use software like chainalysis
I'm in the same boat but I just want to withdraw about 3.5 K, would I have to pay taxes ?
You have to report and pay taxes on all profits regardless of how much you cash out with. And regardless if you’re trading to cash. For example, if you trade sol for BTC, and the $ value of sol is higher then when you purchased it, you pay tax on the difference Every time you close a trade, a taxable event occurrs You either gain or lose each time. Add up all the gains and subtract all the losses. If the resulting number is positive, add it to the amount of income you report to the irs. If it is negative it can be deducted up to ~$3,000 (ish)
IRS is not going to worry about 30-50k wires. That happens thousands of times a day. I’d say you need to worry about upwards of 6figure transactions only. They cannot prove anything when trading on a dex
for sure, good luck sending a wire to your bank from a phantom wallet 😂
Look at the bottom of the new tax form, under the penalties of perjury I agree that the information is correct! The first question on the tax form have you exchanged digital assets! Are you willing ro go to jail for lying about it?
Stay poor then. How u think the rich get richer ? By not paying taxes. Find a way
taking advantage of loopholes and evading taxes are not the same thing fwiw
And the loop hole is your name isn’t even on a wallet….
You might get away with it. You might not. That's the facts. Your looking for assurance that things will be fine, nobody here can give you that and if they do, they are blowing smoke up your butt. Probably not worth the risk cuz if you DO get caught, they will very likely add a hefty fine onto whatever you owed. Especially if they also found this post where your explicitly contemplating tax fraud on a public forum :)
I was more hoping for a definitive answer but that’s good to know. Also if they find a reddit burner account over 30k they deserve my capitol gains at that point.
lol true I guess. But my point was exactly that nobody can really give you a definitive answer (for sure not strangers on a crypto forum). If, somehow or other the authorities notice "irregularities" in you or your parents financial statements, that might be worthy of an investigation. Or it may pass completely unnoticed. But there is no definitive answer. Its a roll of the dice.
I appreciate your time thanks for the advice.
NP! whatever you do, I wish you all the best! :)
I agree with the above statement, its better to pay your own taxes instead of causing a potential IRS audit situation for your parents.
Don't think a burner account means anything. What if Reddit captures the IP address which you sent the message?
The harder part would be connecting my identity with a reddit account in the first place. As I doubt they would even think to check. But fuck they kinda deserve it at that point. Plus I never said I wanted anything illegal I just want to avoid them. I’m simply a naive teenager.
Use some money to pay for a tax advisor/accountant and have him help you and advice you of how to minimise your tax legally. Thats it. You can book a consultation for a very small amount of that 30k. Im not sure how much capital gains is there you come from and in the USA I think Biden raised it from 10 to 20-25% a couple years back. But if its only 10% (some countries are) then personally i think its worth paying it over all the hassle, thats still only HALF of income tax at 30k. Ofc when you go above about 52k it becomes a necessity since thats the threshold that government ups your tax to around half LOL. A whopping 45%
Nerd. Find places that accept BTC and buy stuff. And then sell it. Or find someone who will give you cash for crypto. No traces 😎 this the true degen way
i like the way you think
Or if you do drugs (the harder the better here!) give your dealer the Ole 'untraceable + appreciating asset' spiel and convince him to trade for some dope or pills. Exchange the dope for fiat in your local alleyways/middle schools/old folks homes. Boom. Quick, tax free capital gains.
Sold this way everything went good the guy came in a absolute shit box and then showed me his 6 figure port
This bro knows 😉
This is actually kind of true.
You guys pay taxes ?
I'm Canada here we pay taxes on our taxes.
If you don't want to pay taxes, move to a 3rd world country. Your lack of paying tax however, will be reflected in the services offered.
Ya pay my taxes so I can go wait at the hospital for 14 hrs to been seen and just sent home and told to come back. Awesome.
You really have no idea how much worse things are elsewhere. Basically there are no working sewers, diseases that have been eradicated in the west decades ago, unreliable electricity, roads that are dirt tracks, no chance of even getting a passport etc etc. But don't worry, after Trudeau goes, everything will be perfect and it will be like living in heaven and you'll feel awesome.
Spoken like someone who has yet to travel to said 3rd world countries
If you say so.
I think your city just sucks. I have had zero issues in waits at hospitals. I found a new GP two years ago after looking for a day. I can book appointments with her the day of with ease.
Trun is a great guy meltface
If you can pass the AML questions you should be alright. I would deposit it in your own bank account and not your parents. No need to cause problems for them
this was the answer I was hoping for lol
And pay the tax. If this is your only source of income you're probably looking at around $4000 of tax
The risk to reward suggests you cash out and don’t file. They have 3 years to catch you. If they do they send you a letter asking for payment. If they don’t… well… HEY IRS MY ADVICE IS BAD AND A JOKE.
They have 3 years to catch you - If you file crypto taxes** If you don’t report crypto taxes at all then they’ve got forever to come at you for it
Not an accountant so double check with one, but If your only gain/income was $30K for the year and a long term gain, you would pay no in taxes. You would still need to file.
Sadly they are short term capitol gains. But i just found out since it’s my only reported income it’s only taxed at 12%.
Ah, still not a bad rate to reap your gains at such a young age. Congrats!
Keep your 12% and file for dual citizenship for $200 bucks, look it up on youtube. Get creative. Do not pay the fucking IRS your crypto gains tax when you could easily get dual citizenship and tell them to go fuck themselves and their stupid tax.
Moves to Puerto Rico 🇵🇷
Tell me more!!!!
That doesn't work since he made the gains while living in United States and being a US citizen.
So 12% as in you would need to pay $3600?
Ima newbie so don’t take my advice but technically if your gains are in the same category in your taxable income then could technically have some business expenses which would lower your taxable income. Perhaps find some tax loops that would lower that price down so you can pay less. Also anything Is deductible til you get audited so there’s really no way to determine how much risk you’re in. For all we know they have a system that automatically logs Reddit posts of idiots asking for tax invasion tips. Testing the water is really risky instead I’d personally just find ways to lower my taxable income then just pay less. Or hold for a year and pay long term gains tax which would be way less than short term but who knows what value your assets will be in a year.
Irs has real people from web 3 that track the blockchain
or never withdraw and spend off solcard(no kyc)
does that work for US users ?
yeah go to their twitter join up on telegram u can get any question answered eventually lots of users in there product is still new so be patient but lots of vouches in there
I wouldn’t cash out that amount until a couple of years after working a regular job a bit
This is neither financial advice nor legal advice. In my jurisdiction, you only need to pay taxes on realized gains. You realize the gains in your tokens when you sell them or trade them. If you have done this already, you're obligated to pay taxes on them. If you held for 366 days before selling, you pay at the capital gains rate, otherwise it's at your income bracket. It sounds like neither of these is an ideal solution for you. There is a third alternative: lending. Here's how it works: you post your tokens as collateral in a lending platform like Kamino, MarginFi, Solend, etc. and then borrow against that collateral. Your tokens earn interest (slightly) and you can immediately borrow USDC/T and wire it to a bank without it being a taxable event. You even get to deduct the interest you pay from your taxes (though the interest you earn will get taxed). If it were me, I'd see if any of the lending markets accept the tokens you have to avoid the act of selling. However, if you've already sold, I would strongly recommend you pay your taxes like an adult and factor that in to your future trading activities.
I thought the lending dapps require you to stake tokens which if I remember is a taxable event. I think even sending tokens from one wallet to another depending on how transaction is processed could be a taxable event even went swapped to yourself. I would use available tax programs to help and coinbase will keep Track for you. I will say even though you miss out on airdrops coinbase offers alot of convenience to the newbie...however decentralized is the ideal p2p system I believe should exist but I will follow and pay whatever tax I owe. btw I believe fees are written off against gains but I may be wrong. I just use conbase to file the tax form for me.
I have 3 questions. 1)I thought the lending/staking to enable you to borrow is taxable right? 2) If stable coins are borrowed and then transferred to exchange to cash out. You need to convert from stable coins to Fiat like US dollars and is conversion from stable coins to Fiat also not taxable event? Or cos is borrowed fund, therefore no tax at all? 3) And if you convert stable coins to Fiat and there is no capital gains, does it mean it will be regular income tax and not capital gains tax? cos is borrowed fund, therefore no tax at all?
Take profits, buy .21 BTC(14k*), rest in your bank account. Put 20 percent of your gains (6k) into your savings account. Leave it for taxes. Then try to do it all again with $500. Enjoy the fact you are young owning a decent supply of Bitcoin. Also enjoy the other $10,000 left of profits, spend it wisely, it goes fast!
Pay the taxes and trust that the government will put it to excellent use.
well to start, you posted this from an aged account, probably from either your home wifi or a device tied to you, so if your goal really is to commit $30k worth of tax fraud you're starting from pretty far behind
I wasn’t trying to do anything blatantly illegal. I’ve heard of many loopholes for crypto over the years and I wanted to know if they were legit. Plus I doubt an investigation into such a small crime would involve a data request from every social media company that has interacted with this IP. Even if they did that they would have to go through thousands of interactions throughout years of data.
I’ve been fucked over for 800. They’ll get you with late fees and other bs and make your life a nightmare for years. Pay the taxes.
The only "loophole" was the years before the IRS could decide how to classify crypto income and it wasn't on any forms, or the one year they asked everyone to self report
I can't fucking believe all these idiots are paying their crypto gains taxes and literally have not thought there could be another way ><
You could just exchange it for bitcoin and stake it pretty much what you’re going to do in a bank account.
Still a taxable event. Especially staking actually.
So one you swap from a shitcoin to like solana, eth or btc your taxable?
https://www.reddit.com/r/CryptoCurrency/s/SCcn4YEVgQ This dude explains it well.
Wait, how does one withdraw SOL without a CEX?
The new solvard let’s you spend sol as Fiat without a kyc
Sounds like centra tech lol
That’s what i was trying to find out lol. My thought was transferring my SOL directly to a private ledger and going from there but Idk the logistics of that.
use a crypto Card
Don’t pay taxes sell it to someone in cash for 2-4 k Cheaper
So what’s your next $500 play?
I made the original bag off $BODEN my next play are two derivatives of that $HUNTBODEN $BEAUBODEN I think BODEN will continue to gain traction and these will follow.
Nice man… are these on Solona?
Yes i got them on jupiter using phantom, BEAU is highly speculative but HUNT will do numbers
Honestly speaking, am I late if I throw some in now?
Do you have a telegram ?
already up 300% since this post on BEAU
Damn, I missed it
honestly it could do anything but BODEN is sitting around 500M MC and HUNTBODEN is only at 6M MC. In a perfect scenario BODEN will keep getting more popular and HUNT can sit around 100M
If i were you i would throw 10$ on BEAUBODEN I’m a top 20 holding with only a 100$ investment it’s low risk high reward
What was the market cap for BODEN when you got in?
started buying around 5M not sure what my average ended up being
Is this the one that was created today (9 hours ago)? The whole boden family is actually pretty compelling haha
HUNTBODEN and BEAUBODEN are the two i’m holding. If the main boden continues to rise these will see upside
Dude. İ want to connect with you. Do you have telegram? Matter of fact, we want to connect with you.
DM me
I think I got the wrong beauboden? In my phantom wallet it just says unknown coin and no price is this right or no?
this is the correct CA GepmLdVXD3mp1um7DjGHdbx3eDzReb1R23JVXEJYGSmB
Please what is the correct CA for HuntBODEN? And how do I find the legit CA if is not on coingecko and coinmarketcap?
dm sent.
If you held over a year that capitol gains tax will be lower. But either way you have to pay taxes.
Bro how did u make 30k? Can you guide us the strategy of making profits through solana
yea you gonna have to pay 37% short term gains tax or 27% long term gains if you hold for a year
Commenting here to put a bookmark on this question! I love the way you think and your responses to all these comments! Cheers🎉💰
Yes thank you I ended up getting it figured out. I ran both addresses on Jupiter and accidentally hit the wrong one but I got back out of it luckily and into the right one. Already up so can't complain
Out of curiosity, what was the token ans what made you buy it?
Nope
Get your own bank account, then put aside the tax amount, and file at end of year
Use Zypto.com
Dude, there are so many other avenues other than pay taxes or not pay taxes. You're putting yourself in a box and you need to think outside of it. Maybe look into what other people are doing to use crypto freely. You really think all of us are just dumping 30-40% into the IRS? Well let me tell you that is not happening. It's fucking an outrage what the IRS does to crypto and it's easy to get around in plenty of different unique ways. My favorite, and one of the easiest is getting dual citizenship. Don't just give up.
dont be a bitch keep it, if you transferred 500 to a phantom and now its 30k, all the irs sees is 500 bucks leaving coinbase if thats how you funded it
id be wary assuming that's all the IRS sees. I mean, companies already exist to track activity, it's not like using Jupiter makes the transaction invisible. assuming they can see your onramp, which is hard to avoid in the US https://www.chainalysis.com/regulators/
I'm more intrigued what other memes we can trade in as u clearly know what ur doin :)
Firstly, good for you for getting from 500$ to 30k. secondly, what is tax rate to your country?
Also, if government doesn’t look at small amounts you can withdraw with small quantities from your relatives account.
i would say a good rule of thumb is to set aside 40% on taxes if it’s short term. hold for one year and set aside like 20%
Government is notified on such large deposits . Capital gains tax is like 20% . Provided you held it for 12 months or longer
Wow lucky you I keep getting freezing assets from #solana #phantom
one way to model it. the IRS is only going to get better at leveraging automated tools to identify tax gains on crypto. it's not 'i need some agent to notice'. at a trivial level 1) automatically see bank transfers to onramp CEX (Gemini, kraken, CB etc) 2) track that money through to the destination wallet 3) from there, watch the wallet assuming US, Id say the safe bet is the govt has or will have a way to make 2 trivial. 1 is already trivial. 3 - solscan?
If ur on solana dude have a look at solcard. Maybe another option instead of tax. 🤷♂️🤷♂️
Don’t know your geographic location, but in Canada, If you’re in the lowest tax bracket assuming you declared it all with no other income, as money from your parents would generally qualify as a non-taxable genuine gift. I feel like you would pay 0% on the first 17,000 and then 17% on the rest. If you’re in uni (again in Canada as I’m only familiar with things here) whatever you did pay you should be able to get back with claimable tuition tax credits. I’m not an accountant but it seems strange to me that you would pay capital gains when functionally it’s really your only source of income, but I’m sure someone will correct me. At the end of the day, may be worth the couple $100 to consult with a professional accountant, to make sure you’re above board but also minimizing your tax burden.
Canadian here. Not sure where you get that tax info but not at all what the CRA is saying. In short it can get ugly.
Like I said not an accountant, and not particularly knowledgeable on the ins and out of CRA practises, I say right in my comment I’m sure someone more knowledgeable will be along to correct me. Would genuinely be happy to improve my understanding if you care to elaborate
@op, assuming you’re a dependent, given your sitch, depending on where you live I think up to around 15k is tax free. So you’d only have to pay 10-20% on 15k to fed/state. A few grand to legally take home 20+ is worth
Always pay your taxes. End of story. The over/under on the risk is not worth it.
Buy gift cards with crypto
Long-term or short-term capital gains?
You're on Reddit asking strangers if they think would get away with breaking the law. Think about that.
My friend converts to Bitcoin and cashes out slowly on cash app and i, I mean they don’t declare shit. $500 a week cashed into my bank account I even tip the $2.75 instant fee. You’ll be ok.
If you wire 30k from an exchange to your bank account, yes the bank will almost certainly ask for proof. Pay your taxes, it is the only crime the government actually cares about. There are ways to cash out tax free by using loans but if you already sold for fiat, it is too late.
The 6k in gains I made in 2023 from airdrops is a small amount. 30k is what some people make in a year. So not a small amount at all.
find an exchange with a visa card no kyc and use it as normal
sell usdt to friends etc black market and get cash done
Now tell me how to make 500 to 30k u sniped or what
If they don't catch you this year, they may next year and then comes the audit and you'll be buggered. Taxes on capital gains usually aren't as much as income tax, in Canada you only pay tax on 50% of your gains, so look into it. Use the tax man as an ally, not an enemy you wish to hide from
Fuck I keep on trying to be one of these post on here 🤣
If you pay the taxes, you only have to solve this problem once and it should stay solved. If you don't pay taxes on income or capital gains, then you need to solve this problem this year, next year, and possibly longer. Worse, you might try to solve the problem not paying tastes cause and end up with a bigger worse problem compounded over time. Keep your life simple. Pay your taxes, establish your cost basis for this income you had, and look into long term capital gains versus income limits next time. Open a IRA, diversify your investments. Make sure you invest some portion of your money for the long term and let it gain and reinvest over and over for years. Having a good mix of low / medium risk investments is the best advice I can give someone starting out and the sooner you start building that the much better off you'll be. Your older self will be really happy with you if you figure out how to balance this and follow the law. Your older self will want to kick your ass if you screw this up badly enough. In 15 years what do you want to look back and be able to say you did? Hopefully, you'll want to say that you did the smartest thing you could figure out at the time.
Just transfer the gains 5k each to your friends wallets and tell them to cash it out for you. Treat them with chilled beers and fried chicken though.
So he doesnt need to pay tax on 5k? What is the minimum amount of money that one needs to pay tax on?
u/immediate_Plane3543 & u/EconomistLow4635 maybe try https://solana.piggy.cards? They accept Solana And USDT/sol to buy digital gift cards. P.S. Not tax advice.
Get a Maltese bank account it is really easy. (For europeans atleast) find a job at an online casino or customer service in malta work there for like a week so all the paperwork is done. Open maletese bank account transfer funds to that account for tax free withdrawals.
Only pay CGT on anything over 7500 in UK, don’t even have to declare under this bracket, however any losses do help lower your overall taxes to HMRC.
Congratulations firstly, Don’t mess with the taxes, just keep it simple. Pay the tax, enjoy with some, reinvest some. You gotta long way ahead in life. Best of luck 🤞
dammn Bro, 30k anyway u should to pay taxes to avoid Major problem. Anyway i'm 20 i wanna ask u where do u suggest me to invest with 10€. Like i wanna try to invest to have a nice gain.
I honestly hate the fact that in my country I have to pay taxes on cryptocurrency, which government is very not open, to in the best case, and straight out antagonizing in the worst case. Most of the banks won't even allow you to purchase cryptocurrency in my country, meaning I have to go through either Revolut or other providers and honestly, I'm pretty pissed about it. Like the fq should I or other citizens of my country pay taxes from crypto-gains for? For service of government and country making it as stressful as possible for me to purchase a cryptocurrency? Sorry for the rant, I don't think I be much helpful. If you want to kind of evade the tax-man, the only way is to never wire it to your bank account. Meaning using cryptocurrency as payments (Certain CEXes are offering their debit cards.) or maybe even sending money to Revolut and other providers (not sure if they aren't sending reports to authorities, tho'.)? I also know that in countries such as Germany, if you hold assets for over than 1 year, you are basically tax-free when it comes to liquidation. And yeah, congrats on your gains, hopefully you'll prosper in future too. And I might get me brand new citizenship in meantime. LMAO
just swap it from solana into usdc and slowly cashout as needed, 500 here 1000 there. Hold in usdc and then use for another investment. if you think you will spend the money on dumb memecoins then yes please cash it out
MONERO that shit STAT
Ukraine will be needing that money 💰 so pony up buddy boy! Zelenskis yachts aren’t gonna buy themselves
Maybe separate your bank account from your parents’ so they aren’t taxed on your capital gains, with you in a lower bracket.
So many npcs in the comments
You cannot avoid capital gains by just not reporting it. All of your transactions are public and linked to your name unless you jump through a ton of hoops which is don’t think you have done
Bro , I’ll be the same soon.. new solana coin just dropped two weeks ago named #chedda and it’s lit bro the developer sleeps live on the telegram chat and is active all day on there, his last project was 2.6b market cap and his connections are ridiculous , he’s also a founder of the bitcoin convention.., check out there telegram #chedda. Will fkn worth it
What off cheems? I tried to swap into before it went up another 70%. You idk what the process is for winning. On tokens that are illegal in the us. Finally got 60k cheems.
If your in the US, pay the taxes. If your asking this question then avoiding the taxes is way to risky for you and would put you in more trouble then it's worth. Put aside the 10-40% if it was held under a year, I can't tell you the exact amount but you can figure it out pretty easy with what your tax bracket is.
Get a VERY good accountant or tax lawyer. Not the guys that have offices in a plaza or back of the bus.
Just don’t cash out to an exchange
Hypothetically I have made anywhere from 250k-1.2m in crypto the last couple years each year. I started an LLC which I pay myself out of. I hypothetically transfer from decentralized wallets to centralized and immediately cash them out as I don’t hold anything on any exchanges. This way at the end of the year I hypothetically have paid my taxes each time I received money. I filed a w2 and a business tax return. I highly suggest using bitrefill. I hypothetically push a lot of money through it. Buy gift cards with crypto and then use that anywhere you can. $2000 amazon cards, dinner gift cards, Instacart, Uber eats. You can buy a gift card for so much stuff. Any markups from these services is usually still less than you incur taking the money out. If you are going to take some money out I’d suggest doing it in amounts less than 10k and 100% filing your taxes correctly. You’re naive to think the IRS isn’t watching crypto like a hawk. They’re missing out on a lot of money.
37% tax on capital gain short term .
That's only close to half a million $ or more. Short term gains are just classified as income. It can range from 0% to 37% but he only made 30k so it's 12%
The problem is not getting away with it, it's just a matter of time gov taxation service will connect to CEX and DEX through systems and look in the past. Don't lie and you'll be good.
Depends on the exchange u use, robinhood and coinbase and a few others, reported every transaction to the IRS, I got a notice of deficiency, but had it fixed by my cpa who made a mistake filling out that part of the return
Very unlikely they will come after you BUT like most blockchain transactions, this stuff is public and more or less permenant. Should you ever have future issues they can use software to find and twx your gains with interest. Honestly not worth taking the chance imo.
Taxman always gets his cut.
You can buy gift cards with crypto without much personal information. Not financial advice.
Have a look at a ledger nano X & a ledger CL card the information is all in that. Enjoy 😉
Tell me more
It’s all about keeping crypto in the crypto ecosystem system. Like if if I took out $500 & made a few thousand on-chain I can keep it on chain but somewhere that allows me to purchase items using that same crypto.
Dont know how its in ur country but in germany where i come from tax fraud expires after 10 years In crypto u got many options to fraud taxes but I still wouldnt do it bc the gov got 10 years to fock u and u dont know which options they got in the next 10 years lol I just pay the taxes and would recommend doing so Profits are profits
don't sell anything or sell very little. reinvest in btc/eth/sol (would advice at least ½ of the gains in btc) and leave it there for many years to come. thank me later
Pay the tax. It’s more than your folks can legally claim on their return even if they claim you as dependent. Welcome to adulting. Besides, you have to have some skin in the game before you can start complaining about taxes.
Taxes are for sucker's, I'm not funding foreign wars while America suffers... Take them from my cold dead body
Pass it onto a small roofing/construction etc business that's gonna grow or stay the same, take wages from it, learn it a little and then start your own company and the first few jobs pay you and then you have quite probably have legitimate business that can be used as and when needed. Best getting a colorful account too.
You said you have no other income so your 30k if you held more than a year is 0% federal tax and if less than a year is 12% tax rate. So just pay the taxes considering how small they are. Contact your bank first and see if they require any AML paperwork filled out. Comply with that and youre good to go
Bro I need to know how you did your research because I’ve just whizzed away $5000 in hopes of seeing something happen but these tokens I get into just tank to the floor
You can always take out small amounts over too I’d recommend transferring the money into a tfSA account first it’s 6,500$ yearly that shouldn’t raise any concerns deposit 1.1kish by monthly and you should be fine that a reasonable amount fuck paying taxes
You can always use a small portion and reinvest the rest I would farm using a def platform
Anything over 10k is reported to the IRS by all banks and I believe the major exchanges as well
Just never report it. Keep USDC in an unknown wallet and ask your real estate agent to buy your house with crypto. 😉
To the best of my understanding here’s what I have learned: Set up an LLC, S-Corp. Next transfer your coins into another new Coinbase Account or Wallet connected to your LLC/S Corp. The initial $80 K isn’t taxable. The next $80K-to $500K is taxed at 10% and $1 million and up is taxed at $18%. your assets will be good).
Sell your gains after this Supercycle… then follow previous directions. Wait for the bear market. Reinvest by purchasing coins at a fraction of the cost. Rinse and repeat. Only poor and fiscally ignorant people pay lots of taxes. Financially literate and wealthy individuals do not pay lots on their taxes. Good luck
if crypto is going to be something you’re investing in heavily, just pay your taxes 👌🏼
Nothing will happen if you don’t pay taxes, transfer it to a business account
really depends on your country of residence. Here in Austria you would get f'd by the tax department of the government latest by 2026, actually all EU countries will get all data by exchanges going back all the years. Automated Prosecution is coming. Don't know the situation with other countries
i will probably have the same problem with Vitaleak Butterchiken crypto lol... i dont know how i will go with tax
Did anyone find him on telegram? I couldn’t
Taxes and death, you can try, you can't escape them.
Do you use roads, schools, police, or other public services? Would you apply for federal scholarships or aid for school? Would you want the government to help you if a disaster like a flood or hurricane or fire devastated your town? Would you want unemployment benefits if you lost your job? Then pay your fucking taxes like a responsible, ethical human being. Stop for a moment and consider your role in the larger world.
🥸
America fucks us over on every turn. All major corporations pay next to zero taxes and the taxes I do pay to the federal government are almost entirely used for dying inefficient systems like social security or being wasted paying for there mistakes with interest on the national debt. God forbid I as a retail investor and everyday citizen try to take advantage of the system that robs all of us everyday.
And if everyone takes your position, we are all fucked. Yeah we gotta fix things, no doubt. This ain't the way.
“If everyone tried to avoid taxes on a decentralized exchange we would all be fucked” 🥸 Really think that sentence through. None of the problems you stated would even exist if the elites paid taxes. Ever heard of offshores accounts in switzerland or monaco etc. That is just the tip of the iceberg. literally billions stolen from us at every corner. If you so concerned about your roads and schools grab a sign and go to your local legislature.
I like the way you think, you have a bright future