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RE: My First Crypto for Bullion Trade
Very cool. I may go this summer and sit down with a CPA and find one that actually understands what's going on? I'm not too worried about it, but seems like something you could easily be thrown in jail for or hit with stupid fines for making an honest mistake on.
Yes the tax aspect of cryptos is going to be a big issue this year. Most CPA's and attorneys don't know anything about crypto much less how to deal with it when filing taxes.
I think it's crazy how much time and resources governments spend trying to squeeze the taxpayer for more money. In many cases it's actually a loss to them because they spend so many man hours digging for mistakes in tax reporting and that costs more than the actual unpaid taxes and penalties that they get out of it. I can imagine the salary of an IRS worker who would investigate this kind of thing pans out to be well over $50 per hour when health care and all the other benefits are included. Is using that person to chase down less than $100 in unpaid taxes worth it? Of course not! But that doesn't mean they won't do it.
So I hear you loud and clear on the tax situation. It's a nightmare for sure.
I'm assuming they'll start leaning on exchanges and places like steemit to track this to make it more manageable for them. Until then I don't possibly see how they can go after anyone, but it's the government and needs no reason to throw me in jail so i'll do my best as a citizen and pay what i think they want.
Yeah I'm gonna do it to the best of my ability--reporting the gains and what not. But even a lot CPA's and attorneys don't even understand this stuff yet much less the average taxpayer. So you can't even go down to your local H&R block or whoever and ask them to do your taxes if you have crypto trades and purchases. Scary.
Yeah worst comes to worst I have how much my crypto is worth at the beginning of the year so whatever it's worth at the end of the year I'll report as gains and pay whatever is required.
The IRS doesn't even know how they're going to tax it. They want you to keep records of all your transactions. I do the majority of my trading on exchanges that did NOT ask for a picture of my driver's license, passport, phone number, social security card, etc. It's still the wild west out here ;-)