Upto what amount of crypto gain or profit should one consider filing direct tax before income tax dept come knocking on my door?

I had a bunch of NEO legacy tokens which was upgraded to their newer version called as N3.

It's 1:1 mapping just a different representation of the same token NEO.

Question is would the above conversion be considered as taxable event ?(Would IRS think I sold it to buy another token)

I did not track the cost basis for some coins I was doing DeFI and NFT trading with - what I know is what the daily low/high was for the coins. Would it be best to use the high price that day for calculating cost basis for these trades or is it acceptable to do the medium price between the low and the high? I'm assuming the high point is what will be respected most, but figured I'd ask. Never again doing this....stake and forget!

Hello, I'm an international student who is studying in the US as a grad student on an F1 visa with biweekly paychecks on the university payroll. I'm currently considered a resident alien for tax purposes.

Several years back I have invested some of my savings I had from back home into crypto. I put the crypto into a wallet and then now I'm planning on selling some of it. So essentially this would be savings from outside the US being invested into crypto to be sold several years later into a US bank account.

I have all of my transaction history onto a website which compiles all of it to calculate the ins and outs of my total assets to make it easier for tax purposes.

Let's say in theory I have invested a total of 50k a few years back, and currently the assets are valued at 100k. If I were to sell everything, I would get taxed for the gains, which means getting taxed for 100k - 50k = 50k of capital gains right? So essentially I would have to add the gains onto my annual income to tally up the total amount I made that year right?

I was also wondering if there were any issues regarding the legality of this. I've read some conflicting info online about this, with some saying that it's all good as long as I pay taxes for any gains whereas others saying that I can't be actively trading (which I assume would include buying or selling).

I've been googling this but I've been having difficulties finding official info regarding this specific case of an international grad student selling crypto initially invested from savings from outside the US.

OK I am sure this has been asked but hopefully someone will be kind and sum it up for me. I've held a nice bag of a couple different assets for 3-4 years now. This bull run I might finally be able to take sizable profits. All my assets have been held in a hard wallet. I'm thinking about just converting to usdc through the wallet then exchanging usdc for USD. How do I show the irs that my sale was of long term holdings? Or should I just sell the assets for USD outright?

Currently living in Australia working construction, Have made a small fortune in crypto was looking in starting a company in Dubai and having the company own all of my crypto assets while I continue to work in Australia

What are the tax implications of this?

• For a gift to a non-spouse, of digital assets (DA) with a fair market value of 5-10k USD at time of gift - I see form 709 is still needed, despite no gift tax from donor being owed. Correct?
• Also, Form 709 asks for Donee Name and Address, but not a SSN. Did I read that correctly, or I need to provide the Donee's SSN elsewhere? I just thought it strange they don't ask for the Donee SSN.
• Reason I ask all this is because if I directly gift someone some ETFs, their eventual process of selling that gift and paying taxes is straightforward. Their brokerage has a chain of custody, and cost basis info, and the forms are all standard and well trodden for the Donee to pay taxes when they sell the ETFS later.
• But that same scneariou with a DA gift - what happens when the Donee goes to move their DA's into a crypto exchance and sell it all for fiat? The exchange would report their assumed 100% gains on their 1099-DA. But the Donee would need to provide cost basis proof from time they recieved the gift. What exactly does the IRS accept as proof? Do they even require it unless an audit is being done?

My situation:

• My EU company is offering me to transfer to the US (NY) in 2025 (not yet sure I'll move forward).
• A significant part of my NW is in crypto, fully on chain/non-KYC. 
• Bought a bit (~1k$) on coinbase between 2017 and 2020 (account closed since then, but have some receipts) and grew it significantly trading meme coins & airdrop farming (Ethereum then Solana), but also from staking rewards, DeFi lending, trading NFTs, etc. Lots of activity many years, many chains and addresses.
• Could technically justify every gain (nothing sketchy, never used mixers, etc.) but it would take me weeks (if not months) of work.
• I never cashed out nor declared anything tax related in Europe, don’t have any CEX accounts.
• Would like to follow IRS rules to the letter in the US, report all my future activities (DeFi, airdrops, etc), and possibly cash out a bit in the future.
• A bit scared how that would work.

Is there stuff I should know, or do, before becoming a US tax resident (before the next fiscal year)?

This is a hypothetical situation.

Say I own $10,000,000 of a crypto. My cost basis is $20,000. I have not sold a penny this year.

Next year, on Jan 1 I decide to move to Peurto Rico. I hit sell as soon as I land. I spend the rest of the year there.

Am I going to qualify for the 0% crypto tax on PR? Even though this crypto was acquired prior to me moving there.

Thank you

Fake numbers and fake scenario but let’s say I bought $40 in bitcoin on cashapp and transferred it to a poker website, and i won a little north of $2000 via winning a poker tournament. I transferred the bitcoin from the website to an exodus cold wallet then to cashapp and sold all of it, then transferred it to my bank account. Am i fucked with taxes? I mean all cashapp sees is a random wallet sent me $2000 in bitcoin and i sold it. There are no “gains” made on cashapp. I just need someone who knows more to explain this to me lol. Thanks (i’m in the us btw)

I think I know the answer but would love to have someone double check me. Going to use some fake numbers but let’s say:

2023: $250,000 in capital losses. I can carry these over. The $3k cap is a bit confusing.

2024: lets say $100,000 in GAINS. If I understand, I can only bring over $3k I losses

Therefore I would still: Owe on the $97k gain Be able to bring over $247k in losses

Is this correct? I wish the losses would still outweigh the gains and I wouldnt have to pay taxes but tbh that doesn’t feel right

Thank you!

If I was to gift my buddy ~$16k in BTC, then proceed to immediately convert it to USD, would he owe taxes on it?

Also, would I owe taxes on it?

Do either of us need to report it?

I'm reading there is an exemption of $18k per year, I just want to make sure. I want to be prepared for taxes next year.

I have a hypothetical question for anyone that may know about this. let’s say someone keeps their crypto in a decentralized wallet but they noticed when they send the crypto to a coinbase wallet it resets the cost basis to the price the crypto is at during the time of the transfer. Essentially it’s showing 0% profit(on paper) because of that cost basis reset. So now my question is if I were to sell this will coinbase generate a 1099 ?

Crypto tax Portugal Hey guy's, I have a question regarding crypto tax in Portugal and I would apreciate any sort of clarification on it:

If I buy a cryptocurrency and I exchange it for another does the 1 year mandatory holding to get tax exemption reset from the moment I do the swap?

Can you deduct losses on your annual tax declaration to avoid paying as much taxes on your profits?

Is there any way around it to avoid let's say paying 28% tax on your capital gains?

If anyone knows alot about this matter or knows someone that onows alot about this matter and doesn't mind me getting in touch in private it would be greatly apreciated.

Best regards

Hello everyone,

I'm wondering if someone can tell me how taxes are calculated for below events:

During past 8 years, I (US Citizen and US resident) was buying Ethereum and sending it to my dad (non-US citizen and non-US resident) to fulfill my large debt to him which is over since almost 4 months ago.

Recently I heard that he's going to gift %90 of it to my sister (non-US citizen and non-US resident) whom I'm sure is going to sell it asap to help with her own financial hardships. She doesn't talk with me at all tho.

Also supposedly my dad has an intention to gift me back the leftover 10%.

Question 1:

I know that every transaction is recorded in Blockchain, so is there any possibility that IRS thinks it's me that selling those Ethereums and require me to pay tax on it? I'm not aware of which exchange she would ever use (maybe US or non-US, with KYC or non-KYS)

Question 2:

What would be my tax obligation if my dad gift me the leftover 10%? I assume it's actually my dad's asset gifting to me so no tax for it, but how IRS would see it?

PS. I heard that my dad may have to pay taxes to IRS (despite of being non-US citize/resident, because they're bought from US exchange) as the Ethereum value went up a lot since he received them from me until now that he's planning to gift them away. But I'm sure he would laugh at me if I ever tell him that he needs to pay tax to IRS!

Thanx all

Can anyone recommend a good online crypto tax preparer?

I'm located in the US and have been buying crypto since last bullrun. I've never cashed out so have always said no on the crypto question on taxes. I plan on cashing out next year so will say yes I bought crypto this year. Since I havent cashed out will I still need to pay for a tax service such as Koinly to get a tax report? Or is it as simple as saying yes I've bought crypto, no i haven't cashed out? Any advice is appreciated.

So I've had some crypto I've bought from an exchange when I used back in my home country a few years back. I moved it to a wallet and then kept it for a while.

I'm now a student residing in the states, and I plan on eventually selling my crypto in a US exchange.

I have been looking up tax questions and from what I've read, it seems like they tax on how much profit I've made. If for example I initially put in 10k and came out with 20k, then it should be only taxed for 10k right? But I'm assuming that I would need to provide an extensive transaction history report to prove this?

I can pull up my transaction history on my old exchange, but it does seem like a monumental task to keep track of every single crypto I've bought and sold or sent in between exchanges or wallets.

Are there degrees of precision to this? For example, I know the total amount of cash I started with. Is it possible to just report what I initially put in, and then report the output? Or do I have to somehow procure an excel sheet of every single transaction I've ever made and make a timeline of prices for everything?

I was wondering what the best course of action would be in this case.

CPA_000NEAKYOQ

I am going to be reporting my gains for this year with a 0 cost basis due to bad record keeping (this is what I have been advised to do) and the fact that I bought these coins for ~$1,000 (not worth the hassle to track everything down, as long as this is the proper way to do this...).

The bitcoin was held for well over a year and I have access to the Electrum wallet that ultimately transferred to the exchange (Robinhood).

2 questions...

1. Can you have a long-term capital gain with a 0 cost basis?

2. What do I attach/how do I prove my long-term capital gain status? (ideally, how do I do it within the Electrum wallet).

Used coinledger for previous years taxes, so planned on using this year as well. Family had a lower income year and a majority of my holdings have reached long term capital gains status this year, so unstaked my Eth and started selling some. When updating the coinbase API on Coinledger, things didn't look right.

I noticed the unstaking transaction didn't appear on coinledger. I also noticed that the portfolio showed everything listed as Eth2 (coinbase uses Eth2 as the ticker for staked Eth). I messaged Coinledger support and got this as a respons:

"Yes, there currently is a limitation affecting ETH2 unstaking specifically. So the unstaking of ETH2 to ETH is missing from your Coinbase import. You can easily fix this by adding those transactions manually using the "+Add transaction" button on the top of the transactions page. Just make sure to use the "Trade" classification and have the correct timestamp for the unstaking. I'll attach a guide below regarding adding or deleting transactions manually within Coinledger.

Keep in mind that ETH2 to ETH is a taxable event because for tax reporting purposes you are disposing of an asset and acquiring another. If there are no missing cost basis issues or big differences in their cost basis, the trade of ETH2 to ETH would have ~$0 capital gains because they have the same value at the time of conversion."

From all of my research, the part about it being taxable is false? As far as I knew, Eth and Eth2 are the same ethereum, Eth2 was just something coinbase added to label staked Eth? I am asking for clarification from Coinledger, they just take a day or 2 to get back some times. I'm really just hoping all of the gains I've had since unstaking can be considered LTCG as this is a prime year to cash out. Help me out, please!

I donated various cryptocurrencies to charity (small amounts). I understand that these transactions should be non-taxable events but should they be reported on Form 8949? My tax software (Koinly) is showing these on Form 8949 but with a $0 gain. It's actually setting the proceeds equal to the cost basis. This seems incorrect? Any advice would be super helpful!

I've included a sample from my Form 8949 below.

https://imgur.com/a/wzxMv31

Has anyone used Koinly reliably and can speak to its overall accuracy and performance? When accounting for transactions from both CEX and DEX, is it better to use CSV uploads or another method? I'm hesitant about granting wallet access (if that's even required). Would love to hear about your experiences!

My activities involve a few hundred transactions, along with staking and some actively managed liquidity funds.

I want to rebalance my portfolio a bit and convert some of my BTC into Ethereum, however, do it in a way that minimizes my tax burden (United States).

Does the following have any tax advantages over just swapping BTC to Ethereum (assume cost basis on the BTC is near 0 and it’s all long term holdings):

• Take a USDC loan out against 1 BTC (I send 1 BTC to loan provider and they send me USDC in return)
• I use the USDC to purchase Ethereum
• I purposely default on the 1 BTC loan and the loan provider takes ownership over my 1 BTC

TY!

I see this question often on many forums. Wanted to share that the the IRS issued an answer for this a couple of weeks ago (which went somewhat unnoticed).

1/ Example scenario
You earned $100 staking rewards from Jan 2024 to June 2024, on an exchange. The exchange credited rewards to your account as you earned them. This means you had the ability to sell/move rewards whenever you wanted.

Unfortunately, the exchange went bankrupt in Oct 2024. Now your account is frozen and you have no way to withdraw/access the funds.

2/ Question
Is this income taxable? If so, when?

3/ Answer
According to the IRS guidance, you must report $100 as staking income in 2024 even though your account remains frozen.

This is because you could have sold, exchanged, or transferred the rewards when credited (according to the Terms & conditions of the exchange), thereby establishing dominion and control over the assets.

Note that the above conclusion applies to a specific fact pattern. Your particular fact pattern may vary leading to a slightly different conclusion. Overall, this is a good indication of how the IRS views these types of issues.

Source: https://www.irs.gov/pub/irs-wd/202444009.pdf

I don't need to be precise but I need to know a range from all the profits i made this year.

Long story short I started crypto in Jan of 2024.Me being a rookie I would always panic and sell when it would go down 2-5 percent those days and also trying to guess to sell high and buy back low and that wouldn’t work in my favor.And now I Could make 6 figures potentially next year if everything goes well .With that being said on coin tracker I’m at a negative capital gains of 4k for the year and I most likely won’t be selling this year.Could I potentially not have to pay anything in taxes since my capital gains would be in the negatives for the year ?