Do I need to pay Tax on my Crypto Gambling Winnings? A guide

[Mauser]

@OP, I didn't get a hold of a few things that I'd like to openly ask here:

What if a gambler cheats the tax system by saying that he lost more and his tax amount doesn't come in the slab provided so he won't pay anything?

What to do when the price of the crypto we play with (let's say dogecoin) rises over 500-1000% during that one year itself and you've also made more than 100x your bankroll by gambling? How will you deal with it?

What if a gambler decides to keep his crypto or just sell it and keep USDT with him or sell some stake and keep both, but doesn't disclose anything to their tax man? Because online casinos which are crypto based, hardly ask for SSN numbers even at the time of verification I guess. So how will these organisations be able to catch the gambler here?

This might depend on the country but I don't think we get a tax credit for losing in a casino. Gambling is different from investing. If we sell assets with a loss than we can make this loss counted against future winnings and don't have to pay taxes. But we need to show statements that we actually bought and sold at lower prices for us.

I think profits are only taxable once we convert them back into fiat. So as long as we just hold doge coin or another coin we don't need to pay taxes. This is because we don't gain any fiat money until we sell the coins again to pay the tax balance.

[1714160036]

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[Stedsm]

This might depend on the country but I don't think we get a tax credit for losing in a casino. Gambling is different from investing. If we sell assets with a loss than we can make this loss counted against future winnings and don't have to pay taxes. But we need to show statements that we actually bought and sold at lower prices for us.

I think profits are only taxable once we convert them back into fiat. So as long as we just hold doge coin or another coin we don't need to pay taxes. This is because we don't gain any fiat money until we sell the coins again to pay the tax balance.

It's true that we may keep our gambling money in crypto if we don't want to be taxed, but one day whenever we go for fiat withdrawal, we'll definitely be taxed. And keeping crypto is also risky because as it's very high currently and has the chances to drop big, the possibility of losing your wins on the losses that the coin (you hold) sees is higher. Keeping track of every win or loss is almost impossible for a gambler, but yeah, they can make a spreadsheet and keep track of each session they play so to know what profits or losses were made during that session.

[mindrust]

w. Maybe they do not want to pay high taxes or think that all of the money is their money, which does not come from their income. But I agree with you that no matter what it is, we should follow the government rule, and if we need to pay taxes, we should pay it. Maybe we can ask the government to reduce the tax amount because that does not come from our sources of income.

Actually what I am really saying is, unless you have a very very smart plan, follow the gov rule. If you are sure that you can fool them go for it but don't cry when they catch you. If you aren't sure, just pay it. I am not saying that you should pay your taxes no matter what. I say that you must be very smart about it if you are not going to.

McAfee wasn't paying his taxes too and he made it public for everyone to hear. Now he is in jail. That was dumb. Don't be dumb.

[tabas]

But I do not think that they can win from the government if they appeal and show the losses as the government can still get the money. But that will be different if we won the prizes and have big money from gambling. But it seems not fair for the losing gamblers to pay the taxes because they already lose in gambling and pay the taxes.

That's quite a confusing situation for me. You won't be taxed if you've lost it already but if you win, you're going to be taxed. Just like example that usually goes, if you lose, then the casino is the one that will take the gain and they'll have their own income tax.
And if you lose as a gambler, you have nothing to worry about because it's out of your worry but if you win such large amounts, you're going to think of it based from the rule of law in your country.

[Woodie]

So the tax man wants to sow from my emotional and long losing streak and I make a comeback and in the end want me to make tax returns to them....I will take my chances.

Btw In the event you pay tax on your initial tax and you choose to hodl your coins for several years and your holding goes up 10000X will this be subject to another tax in form of capital gains tax??

[BChydro]

So the tax man wants to sow from my emotional and long losing streak and I make a comeback and in the end want me to make tax returns to them....I will take my chances.

As far as i know you are not bound to pay your tax on the losses you make, calculate the capital gains you earn when you gamble and that is how much you need to pay according to the tax percentage of your country.

Btw In the event you pay tax on your initial tax and you choose to hodl your coins for several years and your holding goes up 10000X will this be subject to another tax in form of capital gains tax??

You do need to pay taxes for holding the coins in cryptocurrency, in the event you withdraw the coins and convert to fiat currency you need to pay the tax as capital gains and how is how i am going on with my business.

[Wexnident]

So the tax man wants to sow from my emotional and long losing streak and I make a comeback and in the end want me to make tax returns to them....I will take my chances.

Btw In the event you pay tax on your initial tax and you choose to hodl your coins for several years and your holding goes up 10000X will this be subject to another tax in form of capital gains tax??

That depends on the crypto laws indicated I think? Crypto casinos should have already taxed you for each round you play with them so I don't think there's an issue there. As for it increasing or decreasing in value in the long run, that should be outside of your responsibility since technically it isn't yours, but the governments now. As for coins hodl, as I said, it depends from what laws are about it, though there isn't much laws about crypto tax in the first place anyway.

[michellee]

Actually what I am really saying is, unless you have a very very smart plan, follow the gov rule. If you are sure that you can fool them go for it but don't cry when they catch you. If you aren't sure, just pay it. I am not saying that you should pay your taxes no matter what. I say that you must be very smart about it if you are not going to.

McAfee wasn't paying his taxes too and he made it public for everyone to hear. Now he is in jail. That was dumb. Don't be dumb.

No, I do not want to fool the government because I know the risk and always follow my gov rule. I am trying to pay the taxes applied to me and I do not mind with that.

But I guess some people are trying not to pay the taxes although they have many sources of income and are wealthy. Sooner or later, they will get caught by the government because they do not pay the taxes.

[germsite]

Actually what I am really saying is, unless you have a very very smart plan, follow the gov rule. If you are sure that you can fool them go for it but don't cry when they catch you. If you aren't sure, just pay it. I am not saying that you should pay your taxes no matter what. I say that you must be very smart about it if you are not going to.

McAfee wasn't paying his taxes too and he made it public for everyone to hear. Now he is in jail. That was dumb. Don't be dumb.

No, I do not want to fool the government because I know the risk and always follow my gov rule. I am trying to pay the taxes applied to me and I do not mind with that.

But I guess some people are trying not to pay the taxes although they have many sources of income and are wealthy. Sooner or later, they will get caught by the government because they do not pay the taxes.

McAfee was quite the jerk anyway. He was shilling all those coins on Twitter and everybody knew he is getting paid for it. I am sure he didn't declare that income even once.
Where is he in jail now? Spain?

[Questat]

Actually what I am really saying is, unless you have a very very smart plan, follow the gov rule. If you are sure that you can fool them go for it but don't cry when they catch you. If you aren't sure, just pay it. I am not saying that you should pay your taxes no matter what. I say that you must be very smart about it if you are not going to.

McAfee wasn't paying his taxes too and he made it public for everyone to hear. Now he is in jail. That was dumb. Don't be dumb.

No, I do not want to fool the government because I know the risk and always follow my gov rule. I am trying to pay the taxes applied to me and I do not mind with that.

But I guess some people are trying not to pay the taxes although they have many sources of income and are wealthy. Sooner or later, they will get caught by the government because they do not pay the taxes.

McAfee was quite the jerk anyway. He was shilling all those coins on Twitter and everybody knew he is getting paid for it. I am sure he didn't declare that income even once.
Where is he in jail now? Spain?

Yeah, he was jailed in Spain... https://www.reuters.com/article/us-spain-usa-mcafee-idUSKBN26R10N

We never hear from him this bull run, maybe because he is still in jail serving his sentence, but even if he will shill, no one will believe in him as he already ruined his reputation.

[germsite]

Actually what I am really saying is, unless you have a very very smart plan, follow the gov rule. If you are sure that you can fool them go for it but don't cry when they catch you. If you aren't sure, just pay it. I am not saying that you should pay your taxes no matter what. I say that you must be very smart about it if you are not going to.

McAfee wasn't paying his taxes too and he made it public for everyone to hear. Now he is in jail. That was dumb. Don't be dumb.

No, I do not want to fool the government because I know the risk and always follow my gov rule. I am trying to pay the taxes applied to me and I do not mind with that.

But I guess some people are trying not to pay the taxes although they have many sources of income and are wealthy. Sooner or later, they will get caught by the government because they do not pay the taxes.

McAfee was quite the jerk anyway. He was shilling all those coins on Twitter and everybody knew he is getting paid for it. I am sure he didn't declare that income even once.
Where is he in jail now? Spain?

Yeah, he was jailed in Spain... https://www.reuters.com/article/us-spain-usa-mcafee-idUSKBN26R10N

We never hear from him this bull run, maybe because he is still in jail serving his sentence, but even if he will shill, no one will believe in him as he already ruined his reputation.

Yes I remember that article or some article talking about it. I think he is afraid of his extradition to the United States. For good reason I would argue as the sentence he can expect is no joke.

[tabas]

McAfee was quite the jerk anyway. He was shilling all those coins on Twitter and everybody knew he is getting paid for it. I am sure he didn't declare that income even once.
Where is he in jail now? Spain?

He was extradited after being arrested in Barcelona and as per this article says, he's now close to bankruptcy.
John McAfee close to bankruptcy as he fights crypto fraud charges

[Zilon]

Crypto-gambling and gambling in general in some countries are been treated the same way other businesses are treated in those countries gambling in general is considered a business so as such are been taxed. Paying taxes for crypto-gambling winnings shouldn't be strange since gamblers in most countries in the US and other countries still pay tax for their fiat gambling winnings so this shouldn't be an exception nor should it sound strange

[germsite]

McAfee was quite the jerk anyway. He was shilling all those coins on Twitter and everybody knew he is getting paid for it. I am sure he didn't declare that income even once.
Where is he in jail now? Spain?

He was extradited after being arrested in Barcelona and as per this article says, he's now close to bankruptcy.
John McAfee close to bankruptcy as he fights crypto fraud charges

I never thought he was still rich anyway. Once that guy started to promote the last BS on Twitter it was obvious he must be damn broke. I have to admit he was entertaining!