[video:https://www.youtube.com/watch?v=Esr4MEu20bs]
I hear “Ripple”, I see this
Moronic moves MUST be punished.
+1
The facts are very clear. He is a calendar year taxpayer. He made $120k in capital gains, which goes on his 2017 tax return. And he owes tax on it.
In 2018, he had capital losses, which do not offset ordinary income. He can use a capital loss to offset capital gains. If he has no capital gains, he can carry forward $3,000 per year for ever and ever.
The bitcoin may have been 1031-able in 2017, but he did not use a qualified intermediary, so he is stuck paying the capital gains.
These are the facts, and they are indisputable.
Hmm. Apparently I differ from you guys, as I have room for forgiving people for a reasonable amount of ignorance or other personal shortcomings. Luckily for you, this means I will be a benevolent ruler when the time comes. I will be sure to distribute a selection of quality females for your consumption.
lol Greenman72, ESQ, CFA
The IRS does not share your optimistic appraisal of the situation.
I hope so, Ohai, for your sake. The IRS is not as forgiving as I am.
I’m sure Ohai shall double his efforts!!!
ohai for el presidente
Bean counters amirite
no way mannnnnnnn - the fact is the IRS ruling was extremely vague and ambiguous and left mainly to interpretation for x - 2018. There were no guiding principals around using a QI to avoid taxable gains and one could always make the case the exchange, or MEW, was the QI. So if you were a tax abiding citizen you have plenty of wiggle room not to report any of these lost gains.
An easy solution for this kid would be to hire a lawyer with knowledge in this realm and have that person just find one, of the many, loopholes.
Again, the provisional tax laws that were enacted in 2017 were not, by any means, adapted to the crypto environment.
I saw this time and time again, and it applies to everything, there is no such as a fact or law. Everything is subjective and subject to change.
He did hire a lawyer, and unfortunately, there was not much room to escape this situation. Since he does not have the money to pay the capital gains tax, he will pay it in future installments based on an IRS schedule.
you americans really need to be able to carry back your losses. the canadian way solves this problem. he would need to wait 1 year and then use the losses to offset the previous year’s gains. simple. it is moronic to be taxed on gains in 2017 and then not be able to recoup taxes on losses in 2018. getting wiped out due to sequence of returns is just straight up mean.
That tax attorney is garbage then - a few minutes browsing the btc forum and he’d be connected to the right folks and not pay a dime.
Yup yup, browse some crypto currency forums. The information and people there are clearly experienced in the field and have full expertise on what they are talking about.
Woah are you trying to tell me the guys that didn’t know that they had to pay taxes on this stuff aren’t experienced in tax law?
uh yea. cuz its hitting their bottom line. so i would trust niggas with money on the line.
professionals arent typically up to date to bitcoin. ask the wrong one and ur prettty much going to get a standard answer.
bottom line going in a forum about bitcoin is a lot smarter than going wit the consensus in reddit.
Skin in the game amirite
I’m sure this guy spends hours on those forums though… Most likely, he did exactly what you said to find that theoretical answer, and still came up zero. What is the way out, anyway, if a legal way exists? Someone please mansplain this.
LOL how would this be me when I bought it at .23 cents and sold at 1.06? Sucks for that dude though. Clearly he didn’t see the lower highs and lower lows continuing and held his most recent purchases too long. Plus how is he owing 50k in taxes with only 30k in assets? The crypto market didn’t crash until mid January of 2018, so I think he has the rest of the year to let things play out with his 30k worth of crypto positions…
I can see the poor kid walking into some lush legal office with four names listed in the lobby only to find the lawyer googling what a bounty is in the background.