Oddbean new post about login | logout Spending on a gift card is selling
Okay but simple bitcoin holders do not get 1099s sent. Only people who interact with fiat get that. No need to scare people.
Are you aware of the de minimis tax rule? If you KYC your coins then you are subjected to this. Not being aware of this or hiding this information from newbies is unetchical. This is why we need things like #cashu https://www.coindesk.com/policy/2023/09/19/crypto-wants-a-de-minimis-tax-exemption-in-the-us/
Yeah I’ve heard of this stupid law. It’s very hard to enforce effectively but yeah. I understand the concern.
I've been down the end of the barrel of this weapon. Just try and find tax software that supports lightning. I haven't found any. The more complicated your breadcrumb of information you leave behind is used against you as the burden of proof is on you. Have you seen what an IRS audit looks like? https://image.nostr.build/0a16be47577f98893cf1a056470f3b23e7280d27bf72aa5d0273ecd1753f0fe8.jpg
Bro you must have been on some crazy selling and buying to get audited.
I reported my gain/loss to the IRS. I was punished for following the rules. I just didn't report well enough. I did't know what i was doing.
Hm I don’t understand. If you have proper exchanges, how could it have been messed up? They log all the transactions? Or was yours really complex
Are you implying that exchanges are the only way to dispose of crypto. At any time during 202x, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? as asked on your tax return. This is no secret. I don't know what you don't understand.
Stop being a trader and answer no. When can you answer ‘No’ to the 1040 virtual currency question? You do not need to check ‘Yes’ to the virtual currency question if in 202X you only: 1. purchased cryptocurrency 2. held cryptocurrency in wallets or accounts 3. transferred crypto between self-owned or self-controlled wallets or accounts
Everybody needs to be answering yes to this. It makes the question meaningless.
I hope you are still not “disposing” of crypto. Just buy and hold bitcoin . https://image.nostr.build/2960d2fcb49a207989be1dc8d53054f02b0f61a5033590a6eca9635f656b8d28.jpg
just buy bitcoin , withdraw , and hold. Easy.
