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Why is it unreasonable? Your brokerage should be tracking your entry and exit for each trade and sending you a comprehensive 1099-B come tax time. If your cryp
by kchoudhu 9y ago
Why is it unreasonable? Your brokerage should be tracking your entry and exit for each trade and sending you a comprehensive 1099-B come tax time.
If your cryptocurrency brokerage isn't doing that for you, move your money elsewhere. If you can't find a brokerage that does that for you, maybe you should start wondering what other important controls are missing from your brokerage. Just saying.
- charlesdm 9y agoHe's talking crypto, not stocks. A brokerage company operating outside of the US has zero reason to supply you with any specific US tax docs.
- wbl 9y agoCustomer service is a selling point.
- charlesdm 9y agoSure. But America is not the world
- kchoudhu 9y agoIf OP is trading abroad, I hope s/he is also keeping up with his FACTA and FBAR obligations.
- sekh60 9y agoUgh, not a cryptocurrency trader, but I recently learned that by having U.S. citizenship from birth, and though I never lived there, I'm responsible for FBARs and tax-filing in the states. $4000 or so later and I'm compliant now. What a stressful pain that was.
- charlesdm 9y agoYou might also have to pay tax then, if your income exceeds a certain threshold. Good times.
- CryptoPunk 9y agoNo surprise that in both Great Britain and the US, the income tax was first instituted during a time of war. Only during a war, with the demands it places on the public conscience to make sacrifices, would the population acquiesce to an institution so contrary to natural rights and so pernicious to liberty.
- cozzyd 9y agoWhich countries don't have income tax?
- charlesdm 9y agoSmall countries, mostly tax havens. Investment income is not classified as income in most jurisdictions.. so doesn't really matter.
- CryptoPunk 9y agoI think every major economy has an income tax. There's quite a bit of syncronization between political systems, because political and cultural trends tend to transcend borders. There are quite a few countries which do not have global income reporting requirements. Singapore is probably the most notable example. Some European countries absolve non-domicile residents of the requirement to report global income in exchange for a flat annual fee, like 100,000 EUR. So it is possible to live a life without being forced to surrender your natural rights like your wealth and your privacy, but it's expensive.
- zorpner 9y agoThere's got to be a better term than "reverse virtue signaling" to describe how the use of specific terminology (outside of a legal setting) like "pernicious", "females", or "virtue signaling" instantly means that someone can be safely dismissed.
- spookthesunset 9y ago> A brokerage company operating outside of the US has zero reason to supply you with any specific US tax docs. So then don't use those brokerages if you are a USD customer?
- uiri 9y agoA US person (for tax purposes) should not be dealing with a brokerage company operating outside of the US. The US government has decided that the only reason someone would do that is to evade taxes (although money laundering is a nice cover story) and punishes such behaviour with accordingly with additional paperwork and bureaucratic headaches. A brokerage company operating outside of the US should still be sending you relevant local tax forms. If they are operating in a tax haven, well, maybe don't do business with companies operating in tax havens if you want your US taxes to be easy.
- zeep 9y agoThe FBI stole my Litecoins from BTC-E ... I didn't even claim that loss because it was very small.
- pmorici 9y agoIt's not possible for them to know in many cases so you really do need to keep track on your own. This is a problem for stock brokerages too when you've funded your account by transferring assets from another brokerage.
- kchoudhu 9y agoYour previous brokerage will still send you a transcript of everything at account closure, which provides a baseline for comparison with your new account. OP's argument that "it's too hard" is not adequate justification for not obeying tax laws.
- pmorici 9y agoNeither me the OP said that but to suggest that a brokerage or crypto exchange is being unprofessional by not being able to provide a 1099 in all cases is to ignore reality.
- steve_taylor 9y agoGood luck getting a comprehensive 1099-B from ShapeShift.
- spookthesunset 9y agoMaybe don't use them then?
- tibbon 9y agoWhat brokerage? I don't need any brokerage to trade one crypto for another. Find someone who wants X, I send them X and they send me Y in return. X and Y may not be fiat currencies, and the value in USD at the time may be spread by 10% on various markets at the moment. Does the IRS want me to value those transactions as per GDAX at that moment, or Upbit? Crypto takes out the need for middlemen like brokers. You can use them, but you don't have to either. Even with them, unless you're trading for USD at the time it's a standing question of what the USD value was at the moment. This isn't like, "use the price in the WSJ that morning".
- whorleater 9y agoYes, so when you choose to not use a brokerage you're responsible for keeping track of your own transactions.
- spookthesunset 9y ago> Even with them, unless you're trading for USD at the time it's a standing question of what the USD value was at the moment. This isn't like, "use the price in the WSJ that morning". If you don't know the USD value of what you are trading then you are a pretty poor trader...
- tibbon 9y agoOr have high speed trading bots constantly selling alt currencies against each other.
- kchoudhu 9y agoThis is most definitely not how 99.99999% of trading volume is executed.
- charlesdm 9y agoYou might not need a brokerage. But you do need to pay tax on those exchanges. Your responsibility to figure out the corresponding exchange rates at the time of your transaction.
- 9y ago