Anyone Invested in crypto?

[Phase2]

Yup. If you are trading, don't measure your position in dollars. Measure it in satoshis (smallest bitcoin unit). That way you'll know if you are doing better than a simple bitcoin purchase.

 

[Kutnupe14]

Yup. If you are trading, don't measure your position in dollars. Measure it in satoshis (smallest bitcoin unit). That way you'll know if you are doing better than a simple bitcoin purchase.

A lot of people don't understand this. I saw a video about this very thing the other day. I'll see if I can find it.

 

[snapping turtle]

Bitcoin=gold
bitcoin will never be a viable internet based person to person or person to business crypto currency it was meant to be. Transaction fees are to high. This is why many business have stopped excepting it for smaller purchases. To expensive. Look at bitcoin as gold that you know there is only 21 million of ever. Minus the ones we have already lost. So it is like holding gold. It has become a crypto investment not a true crypto currency. I feel this is currently overvalued at 16k but all the hype is keeping it solid at 16k. I think after the first of the year some will sell off.

Etherium has the better blockchain lower transaction fees and a much easier way to port the blockchain out to even mobile payment devices. The issue with the others is going to be finding the one which will take over as the person to person payment with out banks that bitcoin was to be. That one is where you need to look

 

[Kutnupe14]

Bitcoin=gold
bitcoin will never be a viable internet based person to person or person to business crypto currency it was meant to be. Transaction fees are to high. This is why many business have stopped excepting it for smaller purchases. To expensive. Look at bitcoin as gold that you know there is only 21 million of ever. Minus the ones we have already lost. So it is like holding gold. It has become a crypto investment not a true crypto currency. I feel this is currently overvalued at 16k but all the hype is keeping it solid at 16k. I think after the first of the year some will sell off.

Etherium has the better blockchain lower transaction fees and a much easier way to port the blockchain out to even mobile payment devices. The issue with the others is going to be finding the one which will take over as the person to person payment with out banks that bitcoin was to be. That one is where you need to look

In theory I agree, but I certainly wouldn't say never. That all depends on the core programmers. They can "friendly fork" the main chain to do this. As far as Ethereum, that group isn't concerned with developing it as a payment; they could, but that a battle they have shown no interest in being involved in, yet. Truth be told, there's a ton of money to be made in other applications. The guys behind ETH, in my opinion, would have no issue developing these application, and actually working with whatever payment coin there is to pay for their pending services.

 

[Kutnupe14]

Bitcoin on a bull run, after a solid bounce at support, blue skies.... may be in the $20K realm by next week. Alts will suffer, so expect pulbacks.... which = buying opportunity.

Kut (would love to see cheaper LTC)

 

[hoosierdoc]

I need a different platform than coinbase

 

[snapping turtle]

If you want to go as anonymous as you can I have two accounts. Coinbase which I treat more like a bank now.
Bitsquare is as anonymous as I have found. Those two I use.

My my friend has Coinbase and bitbay and he said it seems to most secure option. He is in IT security so I take it he has looked into others.

 

[ArcadiaGP]

Bloomberg Adds Ethereum, Litecoin and Ripple to Its Terminal

 

[Baditude]

Question on Capital Gains: You have to pay capital gains when coins are sold to US dollars or when those dollars are distributed from the exchange? My understanding is capital gains are taxed at normal rate if position is held less than a year where 15% and 20% based on income are on investments held over a year:

[FONT=&quot]Capital gains and losses are classified as long term if the asset was held for more than one year, and short term if held for a year or less. Taxpayers in the 10 and 15 percent tax brackets pay no tax on long-term gains on most assets; taxpayers in the 25-, 28-, 33-, or 35- percent income tax brackets face a 15 percent rate on long-term capital gains. For those in the top 39.6 percent bracket for ordinary income, the rate is 20 percent. Short-term capital gains are taxed at the same rate as ordinary income. There also is a 3.8 percent tax on net investment income for single taxpayers with modified adjusted gross income above $200,000 ($250,000 for married couples filing jointly).[/FONT]

 

[hoosierdoc]

Anyone have a trading platform that's easy? These multi-step transfer between wallets gets confusing. Not coinbase please

 

[ArcadiaGP]

Question on Capital Gains: You have to pay capital gains when coins are sold to US dollars or when those dollars are distributed from the exchange? My understanding is capital gains are taxed at normal rate if position is held less than a year where 15% and 20% based on income are on investments held over a year:

[FONT="]Capital gains and losses are classified as long term if the asset was held for more than one year, and short term if held for a year or less. Taxpayers in the 10 and 15 percent tax brackets pay no tax on long-term gains on most assets; taxpayers in the 25-, 28-, 33-, or 35- percent income tax brackets face a 15 percent rate on long-term capital gains. For those in the top 39.6 percent bracket for ordinary income, the rate is 20 percent. Short-term capital gains are taxed at the same rate as ordinary income. There also is a 3.8 percent tax on net investment income for single taxpayers with modified adjusted gross income above $200,000 ($250,000 for married couples filing jointly).[/FONT]

This was posted on r/litecoin recently:

Here’s how it works in the US:

According to the IRS, gains and losses on crypto currencies are treated as capital gains/losses (see IRS Notice 2014-21 below).

Short-term capital gains are considered to be short-term when the asset is held for less than ONE year. In this case, if you bought $100 of LTC in January 2017 and sold for $1,000 in December 2017, you would be taxed on the gain of $900 (sold $1,000 - $100 basis). Short-term capital gains are taxed at the SAME rate as your marginal tax bracket (10%, 15%, 25%, 28%, 33%, 35%, or 39.6% - see below).

Long-term capital gains are considered to be long-term when the asset is held for more than ONE year. In this case, if you bought $100 of LTC in November 2016 and sold for $1,000 in December 2017, you would be taxed on the gain of $900 (sold $1,000 - $100 basis). Long-term capital gains are taxed according to 0%, 15%, or 20% according to WHICH marginal tax bracket you fall in (see below).

Hopefully this clears this up a bit more for people who don’t know about taxes and crypto currency in the US. As a tax professional, I highly advise you report any gains you incur, whether its $2 or $100,000. The IRS doesn’t have the records of crypto currency holders unlike real brokerages that must report to the IRS. If you do NOT report, you run the risk of the IRS receiving information from court cases with exchanges like Coinbase and you’ll pay both taxes, penalties, and interest as well.

Rules could change based on tax reform due to the Senate and House bills for tax year 2018.

TLDR: Short-term, < 1 year taxed at marginal tax rate. Long-term, >1 year taxed at 0%, 15%, or 20% based on tax bracket. Pay your taxes or it WILL eat your profits.

EDITS for FAQ:

FAQ #1: What if I trade my crypto for USD but leave the USD in my Coinbase wallet?

Trading your crypto for USD is taxable ALWAYS. It does not matter if you leave the USD in an exchange or take out to your bank account.

FAQ #2: What if I trade my crypto for another crypto? Is this taxable?

Trading crypto to crypto COULD BE considered a like-kind exchange and therefore non-taxable, BUT the IRS has not released an official statement on it yet. The IRS discusses like-kind exchanges in FS-2008-18, February 2008 (see source). FIVE types of property are specifically excluded from Section 1031 treatment (like-kind) which does NOT include "virtual currency." The list of exclusions are inventory or stock in trade; stocks, bonds, or notes; other securities or debt; partnership interests; and certificates of trust. If you chose to not report crypto to crypto trades, you could run the risk that the IRS makes a statement on this matter and chooses to back-tax your trades. Please use caution when considering this! Consult a local and well-rounded CPA for assistance!

FAQ #3: What if I trade crypto and incur a loss?

In this case, you are allowed to deduct up to $3,000 in losses (single or married filing jointly) per year. If your total net loss is greater than $3,000, you can carry it over to next year's return. Though you must first calculate the total net gain/loss before taking the $3,000 deduction from your AGI.

FAQ #4: What if I buy LTC for $100, then sell it later for $500, have a gain of $400 but reinvest the gain into crypto? Will I be taxed on my $400 gain?

Yes. When you have a taxable gain, it does not matter if you immediately invest it back into crypto. A sale is a sale and will be taxable in the majority of the situations.

FAQ #5: When do I pay my capital gains for crypto? Do I need to make a payment before I file my return? When do I need to file a tax return?

If you anticipate a sizable capital gain during the year, you must make an estimated tax payment in the quarter of the applicable gain if: 1) You expect to owe at least $1,000 in tax for the current year after subtracting withholdings, 2) You expect your withholding and refundable credits to be less than the smaller of: 90% of the tax on the current year return OR 100% of the tax shown on the prior year return.

You must file your return by April 15, 2018 for the 2017 tax year.

FAQ #6: What forms do I use to report my gains on crypto?

All taxpayers are required to file Form 1040. If you have long-term or short-term gains, you will need to file Form 8949. The amounts from Form 8949 will then be totaled on Schedule D and Form 1040. There may be other filing requirements if you hold investments in foreign accounts.

FAQ #7: What if trade my crypto into another fiat currency that is not USD, will I be taxed in the US?

Yes, you will be taxed. You must use a conversion rate to determine the amount of your gain in USD to report on your tax return. You also may be subject to filing additional forms, but this is not the case for the majority of people.

FAQ #8: Can I contact you for help with tax preparation?

Yes. Please see my LinkedIn above. Feel free to reach out to me there or email me. Any actual tax preparation cannot be done for free, as it does come to a cost of my time and tools I use. I am limited to written advice I can give and potential availability since I work for a public accounting firm.

USE THIS ADVICE AT YOUR OWN DISCRETION

The above given advice does not constitute any binding agreement or actual written advice. Please, please, please! Reach out to a local CPA or financial advisor who can EFFECTIVELY calculate your tax liabilities from trading crypto.

Sources:

https://www.irs.gov/pub/irs-drop/n-14-21.pdf

https://www.fool.com/retirement/2016/12/11/long-term-capital-gains-tax-rates-in-2017.aspx

https://taxfoundation.org/2017-tax-brackets/

https://www.irs.gov/newsroom/like-kind-exchanges-under-irc-code-section-1031

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know

https://www.irs.gov/faqs/estimated-...ns-etc/large-gains-lump-sum-distributions-etc

 

[hoosierdoc]

Anyone using bitstamp?

They seem to have a good number of currencies and bid/ask is cheaper than coinbase by about $15 on litecoin, assuming everything is equal. I finally got my bank account to authetnicate on coinbase, going to take a week to have the funds there.

 

[Phase2]

Anyone have a trading platform that's easy? These multi-step transfer between wallets gets confusing. Not coinbase please

Sorry about your problems with Coinbase. They are one of only a handful of exchanges that accept dollars because of the regulatory compliance involved. I don't normally recommend Localbitcoins.com, but you might want to check it out. I used it earlier when the money involved was smaller and the risk was less.

Tech is not user friendly? Welcome to being an early adopter. It will mature and become easy enough for grandma to use in a few years, but we aren't there yet.

 

[Phase2]

Doing the Dash happy dance.

 

[nra4ever]

Verge is going vertical!!!!

And it's over...

 

[hoosierdoc]

I wanted more litecoin st $250 two days ago but couldn't get funds into account. Now back at $350. $30 below where I bought initially

 

[nra4ever]

Litecoin 10k this time next year. Seems like a great deal at today's price.

Dash went up nicely since the happy dance. Lots of great deals people. Get in while you can affordability.

 

[hoosierdoc]

I'll be selling excess ammo and dumping that $ in crypto

how did you buy dash? I need to figure out wallets so I can buy fractional btc and transfer them into other currencies

 

[Kutnupe14]

Litecoin 10k this time next year. Seems like a great deal at today's price.

Dash went up nicely since the happy dance. Lots of great deals people. Get in while you can affordability.

I don't know about $10K, but I do think it will go significantly higher next year.

 

[Kutnupe14]

I'll be selling excess ammo and dumping that $ in crypto

how did you buy dash? I need to figure out wallets so I can buy fractional btc and transfer them into other currencies

You're a smart guy, so I going to assume that you doing your research on these projects right? My girlfriend's brother just bought a bunch of Stellar and Cardano, after I told him how to do it. When I asked why he was buying those specific coins, he said because he couldn't afford most of the others, and these were really cheap. He had no clue about the purpose of the coins. LOTS of people are going to lose money because they are following what they believe is easy money. 90% of these projects are going to crash and burn.