So I went to a tax attorney and got all the info about taxes.
I asked every question in the book.
Really the only loophole to not pay capital gains on every crypto transaction is becoming an ex pat.
This is not legal advice. Just Do your own research.
But here's some hypothetical situations.
No you can't 1031 exchange anything.
Any trade from one coin to another is taxed.
Any gain from a foreign exchange is taxed when sold.
You must keep track in an excel spreadsheet of every time you exchange coins and keep track of cost basis in USD.
Air drops are up to you. One way to do it is give the air drop a zero tax basis. When you sell it, claim the full value at the sale as capital gain.
Intentionally moving coins into privacy coins and trying to hide your holdings is illegal.
If you're paid in crypto then it's looked at as income tax.
The difference between fraud and a mistake is your record keeping.
If you report no crypto gains and have no records of it, but you made a million dollars. That is fraud.
The IRS will not contact you. Men in black masks will kick down your door, beat your ass, and take you to prison. You can slowly sort out all that you owe the government from there.
So bottom line is just put in the work to go back and give a quality effort at documenting all your crypto transactions.
I know it sucks. I know you don't want to, but it is just how it is this year.
If you are a moral protester or you don't like paying thousands of dollars to the US so they can murder people with your money, then maybe you need to take steps to become an ex pat.
If you're like most people then you probably will just pay your taxes and shrug about the whole murdering thing.
Ahh who cares. We do a ton of good out there too. That's the way it is. Murder shmurder.
Anyway, have fun paying your taxes. See you on the other side.
...later in the day edit.
now poor people can learn how to pay 40% day trading tax because they finally found an angle to make money.
...and a little shill from me. Not really.
I just found a program I'm using to calculate my taxes this year.
It link API to all your exchanges and wallets and is supposed to pull all your transactions and calculate the cost basis for you.
We'll see how it works.
Here's a link:
https://cointracking.info?ref=T127683
I just signed up. I'm your referal if you use this link. Not sure what that means, but hopefully I get pay less taxes. haha
https://cointracking.info?ref=T127683
