Wondering about Taxes and legal stuff in USA

[Lancusters]

I do wonder how exactly can they implement taxes, I mean which %? How?

Let's take an example:

1/ I own a bank card issued in a country which is not USA, I used this bank card to buy 1 BTC for the price of $5500
2/ Tomorrow, the price of Bitcoin falls to $3500, I panick and sell my whole BTC
3/ the government has no idea that I lost money, and could imagine that I bought this bitcoin two years ago and made a nice profit
4/ so why should I pay a tax when I lost money? Will the government ask me for a proof of my BTC purchase?
This raises questions. In such as scenario, I can't see how this is different to investing in stocks.

In that case you would not pay. Capitol gains applies only to GAINS you made. Since you actually lost money you can file a LOSS. You have an offset to LOWER your taxes in that case.

Hi. Yes, in a perfect world, it all makes sense, but in the example I took, what proof do I provide to show that I lost money... I used a bank card issued outside of the US and the US banking system has no idea about the existence of this card (I take this example because I traveled a lot in my life, lived in 4 countries, and right now have bank cards issued in 3 different countries).
I do not know how exactly how the US government will be able to track my Bitcoin purchase that I made with this bank card issued outside of the US.
These things sound complicated.

Americans can track any transaction made in dollars. But it will be income received in another country and so the Americans have nothing to do with the money. Only your card may not work in America. When the card validity ends you, too, can cause problems with opening accounts for non-residents. Each case is individual but if it is possible not to pay tax, I support it.

[J_W_L]

Just as a heads up I've launched a cryptocurrency tax engine that uses a tax algorithm to save upwards of 60% in taxes. Thought I'd post here in case anyone else is looking for tax assistance in the USA.

https://computis.io

Basically it uses something called Specific Identification to individually choose which BTC/Altcoin is used in an trade or sale. This method is better than FIFO or LIFO because you're stuck with using whatever you bought first or last, respectively, if you use those methods.

[Tiews223]

So lets suppose I invest and trade $250 in crypto and by this time next year I have $250,000. I sell it for fiat to my bank account. What sort of taxes would I have to pay and what other legal issues might I face to achieve this? This is based on the laws rights now. I'd like to hear from someone who has done this before.

yeah i agree with that.if we are buying any products on that product we have to pay tax.if we are buying clothing, furniture, and any stuff we want to buy we have to pay tax. so not only in USA most of the country's had this rule to paying tax. but in USA tax rules are very high. but they country implanting economically very well.

I think paying taxes in general on Bitcoins is okay and will be good for the revenue of the country or state. Then again, this will always depend on the type of tax to be imposed, percentage of tax, rules and regulations, limitations and other legalities.