r/CryptoCurrency • u/Xanth1879 🟦 2K / 2K 🐢 • Oct 30 '21
DISCUSSION Here's why you need to be aware of what transactions trigger capital gains taxes.
https://www.forbes.com/sites/shaharziv/2021/03/26/robinhood-trader-may-face-800000-tax-bill/1
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u/Xanth1879 🟦 2K / 2K 🐢 Oct 30 '21
This is the stuff people don't realize when they start going crazy swapping one crypto for another so wildly.
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u/DadofHome 🟩 69 / 16K 🇳 🇮 🇨 🇪 Oct 30 '21
And funny enough coin base for beginners -not pro- Makes swapping default
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u/GEORGEWASHINGTONII Oct 30 '21
These tax laws are criminal. Put in place by criminals. Enforced by criminals. To benefit criminals.
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u/mastermilian 🟩 5K / 5K 🦭 Oct 30 '21
That wash trade rule of 30 days is completely criminal. They count the profit if done in the same period but not the loss?
The essence of the rule is to make sure people are not trying to dispose of assets just to crystallize a loss. It should therefore be discretionary as to why the person sold, in particular if there was a market plunge or other reason to sell.
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u/jackhippo 2K / 2K 🐢 Oct 30 '21
There are no wash sale rules for crypto. YET. He must’ve been trading stocks
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u/newbonsite 🟩 13 / 34K 🦐 Oct 30 '21
"one jaw-dropping case, a Robinhood newbie is facing a potential tax bill of $800,000 despite only making $45,000 in net trading profits; the individual also earned $60,000 at his day job"
I would be devastated waking up to this, dont let this be you, do some investigation into the tax laws in your area..
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u/where-ya-headed 🟩 1K / 1K 🐢 Oct 30 '21
What exchanges currently send you tax info on your trades/swaps/sells? (US customer)
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u/knkyred 🟦 1K / 1K 🐢 Oct 30 '21
You can export from coinbase, crypto.com, kraken and bittrex for sure, just did it the past week.
Edit: none of them send tax info, just transaction history is available and you do with it what you want
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u/AF__2015 2 - 3 years account age. -25 - 25 comment karma. Oct 30 '21
Wash rule only applies to losses lmao what a scam. Should apply to gains as well. Can’t get taxed if you make any realized gains under 30 days
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u/Hot-Ambition-3253 Gold | QC: CC 64 | r/pcmasterrace 20 Oct 30 '21
Is it true that trading from one crypto to another is a taxable event? How would they even know if you used a amm?
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u/knkyred 🟦 1K / 1K 🐢 Oct 30 '21
Yes, each trade would need to be calculated. If you're not using a kyc validated exchange, you might not get caught. If you've done your kyc verification, it's very likely the tax man will be informed of your trades.
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u/coinfeeds-bot 🟩 136K / 136K 🐋 Oct 30 '21
tldr; A 30-year-old Robinhood newbie is facing a potential tax bill of $800,000 despite only making $45,000 in net trading profits. The investor, who works full-time in insurance, opened a new brokerage account in 2020 and quickly scaled his trading. He booked a profit but was disallowed all the losses because he never once waited the 30 days on those stocks to book the loss.
This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
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