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Author Topic: USA tax filers  (Read 72 times)
MysticMelody
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October 12, 2018, 11:42:23 PM
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Hi guys , So....... question for you . Hypothetical question . If you buy 1 eth then immediately exchange it to another crypto ( let’s say within 30 min) therefore basically no gains or loss => hence no capital gain. Do you still need to report on your tax return ? I know exchange crypto to crypto considered to be taxable even , but if this event did not produce any gains or loses are we still obligated to report it? If yes it will be schedule D of 1040 form. Any other forms? Do we need to provide files from exchange or it is not necessary ?
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figmentofmyass
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October 13, 2018, 12:15:02 AM
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Hi guys , So....... question for you . Hypothetical question . If you buy 1 eth then immediately exchange it to another crypto ( let’s say within 30 min) therefore basically no gains or loss => hence no capital gain. Do you still need to report on your tax return ?

technically you're supposed to, since cryptocurrency exchanges don't send 1099-Bs to the IRS. lines 1a and 8a are for transactions where the basis was already reported to the IRS. otherwise, you're supposed to comprehensively list your capital assets traded on form 8949.

I know exchange crypto to crypto considered to be taxable even , but if this event did not produce any gains or loses are we still obligated to report it? If yes it will be schedule D of 1040 form. Any other forms? Do we need to provide files from exchange or it is not necessary ?

the exchanges won't provide you with anything official for the IRS---it's all on the honor system for now.

i'm 99% sure you need to file form 8949 if you're reporting gains from crypto trading: https://www.irs.gov/pub/irs-pdf/f8949.pdf

that's what my tax advisor had me do. you might consider a one-time consultation with a tax advisor just to make sure you're doing everything correctly. good luck!

philipma1957
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October 13, 2018, 12:19:42 AM
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Hi guys , So....... question for you . Hypothetical question . If you buy 1 eth then immediately exchange it to another crypto ( let’s say within 30 min) therefore basically no gains or loss => hence no capital gain. Do you still need to report on your tax return ?

technically you're supposed to, since cryptocurrency exchanges don't send 1099-Bs to the IRS. lines 1a and 8a are for transactions where the basis was already reported to the IRS. otherwise, you're supposed to comprehensively list your capital assets traded on form 8949.

I know exchange crypto to crypto considered to be taxable even , but if this event did not produce any gains or loses are we still obligated to report it? If yes it will be schedule D of 1040 form. Any other forms? Do we need to provide files from exchange or it is not necessary ?

the exchanges won't provide you with anything official for the IRS---it's all on the honor system for now.

i'm 99% sure you need to file form 8949 if you're reporting gains from crypto trading: https://www.irs.gov/pub/irs-pdf/f8949.pdf

that's what my tax advisor had me do. you might consider a one-time consultation with a tax advisor just to make sure you're doing everything correctly. good luck!

Yeah this is close to accurate.  The reality is many exchanges do not hold the info.

Now Coinbase holds the info and I did report more then 8000 in cap gains from coin base. I generated a 17 page report from Coinbase data base. I attached it to form 8949

I see BTC as the super highway and alt coins as taxis and trucks needed to move transactions.
MysticMelody
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October 13, 2018, 02:10:54 PM
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Thank you , so schedule d of 1040 form and 8949 form, correct? Additional question . Binance, it shows price of the crypto in percentage of exchanged crypto( in trading history page)  . Example: eos is 0.0003 of eth ( I just gave a random number) . Is the any way to display actual value in usd?
dreamhouse
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October 13, 2018, 07:27:44 PM
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I'd do it only at the time to sell cryptocurrency for US dollar, at that time I will report the cost, gain/lost etc. All the intermediate transfer between coins will be added to your cost base (eg fee etc). This is a lot simpler and manageable.

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moseich
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October 17, 2018, 11:20:54 AM
 #6

Guys!
You are well versed in accounting!
Help me create an algorithm for the operation of a neural network.
We are now implementing: You take a photo of the check from the restaurant, hotel etc, and it is automatically entered into Appendix C, point 24 or other, declaration 1040.

What is the next step to implement?
It is possible to recognize a photo from a laptop or smartphone, with an account  and  automatic  to add gain/lost to the section.

The idea is simple - you make photos from the app and you get a completed declaration.



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