How are Polymarket winnings taxed?? Are the winnings treated as gambling income, so pay gambling taxes.. or if it's treated like trading (because it's decentralized and all the transactions happen on a blockchain), and so pay capital gains tax? How does it work??

Based in the United States, New Jersey to be more specific.

Early this year, I’ve was the victim of a pig butchering crypto scam. I invested a total of $150k into the scam. I realize how stupid and greedy my decisions were. I purchased bitcoin on the app Strike and transferred then to fake trading app. The scammers allowed me to make two withdraws of $2000 and $3000 worth of USDT. Then sold the USDT for USD on Coinbase, then transferred the funds to my bank.

I’ve read that I most likely will not be able to report the $150k scammed as a capital loss. But how do I report the 2 USDT transactions if my original crypto purchase was in bitcoin?

Any help is appreciated. Thank you.

If you receive Rewards/airdrops or free wallet transfers and lost everything due to Celsius bankruptcy, how would one treat that?

Considering I never paid for these and it’s 100% gone.

Cheers

I swapped 16 SOL for 143.12k of HEGE. In terms of dollar amounts, I “paid” $2163.68 worth of SOL for $2017.94 of HEGE. Is the cost basis of HEGE $2163.68 or $2017.94?

If it is $2017.94, is the amount I lost in the transaction ($2163.68 - $2017.94 = $145.74) claimable in some way? I assume that the SOL transaction fee is built into this difference as I do not see a discrete fee charge in the transaction (unlike ETH transactions where a discrete fee is shown).

Please answer in this thread and do not direct message me - I won’t respond as it’s usually scamming attempts. Thanks.

Several years ago I purchased multiple coins. Come tax time, I tried to report it, but frankly, after two nights of trying to do the right thing, I got frustrated by how confusing the process was and I gave up.

Now I want to do the right thing and correct my tax record. What steps should I take?

I'm also going to try to find a "crypto tax guy" that can help me through this process.

Any advice is appreciated.

P.S. I'm in the U.S.

I'm staking some Solana and earning staking rewards. Do I have to pay income taxes on these rewards even if they stay in my staking account and I don't have direct access to them?

Hi, guys.

Over 2019-2021 I stupidly invested quite a lot of money in crypto (bought on Binance and other exchanges using my bank account) and kept it till now. Needless to say, it lost most of its value and right now total portfolio is worth about £3000. The way crypto is going right now, I’m thinking of just cutting losses and cashing out whatever is left. What would be the best approach to do this? Should I be doing a tax return to report losses? I assume if I cash out £3k, it might be flagged and the taxman might have questions?

Any advice is appreciated.

Is there crypto accounting software that can do wallet based accounting/specific id locally and not on the cloud?

Title says it all...does anyone know what if any legal requirements there are in place in 2024 for a US citizen to start a crypto consulting / advising firm?

I know there are several requirements (including a degree in finance) when it comes to normal USD / Stock advising but wasn't sure on crypto and can't find anything really on Google.

Also, curious what sort of taxes I'd be liable for if paid in crypto for advice...guessing standard income level tax but who knows.

Thanks

Have some btc I may have to sell to pay for some things coming up potentially. I’ve had it in cold storage for a couple years now on a ledger. What’s the easiest way to sell it and how does the irs know that it’s long term capital gains instead of short term? I’ve heard that I should xfer it to coinbase/RH potentially before selling instead of waiting for ledgers third party people to give me money.

Robin Hood would be easy enough, but I want to make sure come tax time I’m taxed for long term vs short term. For context I bought all of it on coinbase originally.(not sure how their tax stuff works anymore) How does that work? Should I just send it back to CB if I choose to sell?

Help.

I have a token that was a scam and I’m unable to sell. Is there a way to report it as a loss?

Hey all,

I live in the UK and I have sort of ignored Crypto for the past 4 years or so and I got into it back in 2017. I was a noob and I bought and sold bought and sold and didn't really think about it. I made money in crypto coins and then it all crashed and I ended up with less than I put in. So I just kept the money in there in hopes that it would rise again.

In 2020 I kept an eye on things and as it started going back up I took some of my money back (still below what I put in) and I kept the rest in there.

I started to look at the potential Tax issues and I don't really understand it so I took a download of all my trades from sites and then I sold everything and transferred the money back to my bank account. A few days later I bought back some of the coins I wanted to start over fresh and I've just left it in there since.

So my question is what do I do about paying Tax and declaring things? I still have less than I invested and I haven't invested any more as I'm mainly concerned that if I do make any money I'll have to pay a load of money anyway and probably won't end up with that much. So I've just kind of left my money in there for now.

If I bought crypto more than 1 year ago and I never sell throughout this year in either Portugal or Germany if I understand correctly there is 0% tax on this.

So my question is if during this year I kept buying crypto (for example 2 months ago), does this year reset? Or do tax authorities calculate it based on when you first acquired the crypto?

Example:

Situation A (this is clear)

Buy 1k BTC in january 2023 - did not buy any BTC until june 2024 - sell 1k BTC june 2024 - 0% tax

Situation B

Buy 1k BTC in january 2023 - buy 1k BTC in February 2024 - sell 1k BTC (the first 1k from january 2023) - is this 0% tax or not?

Let's say I have 40k in crypto that I've held onto for 4 years, I make 100k a year, and my wife makes 10k a year. Of that 40k I currently have, 25k was my original investment. Therefore, I've made 15k on my investment. I am buying a house and would like to sell my crypto. I do not want to get taxed on my capital gains. Can I sell 25k (my original investment) without having to report capital gains tax? Can I then gift 15k to my wife that she can then sell without having to pay capital gains tax due to her income?

Curious if anyone knows about or has set up a crt for their crypto. I’m very longterm and am already dreading the 20% cap gains. I’m trying to piece together how feasible it would be to sell, place the funds in a crt with distributions set for 10-15 years from now and when the time comes, take out a whole life policy with cash value that my distributions cover and then some hopefully. Then take a little for me from the distributions, heirs are set by the whole life policy when the time comes and my favorite charity gets a donation as well. I’m far from knowledgeable and just learned about this 2 days ago so someone with more knowledge and experience please poke holes in my idea and I’m open to any other suggestions/advice.

Cheers!

Andei/SSL's Explosive Growth – Act Now! BREAKING: Andei/SSL Explodes! The price skyrocketed from $0.00002320 to $0.00005500 in just 5 hours! Whispers of a major partnership are now confirmed, providing a golden chance to get in early on a potentially game-changing token. This could be your best investment yet. Don’t sleep on this opportunity or you might regret it later! Secure your stake in one of the most promising DeFi tokens around. This is a rare chance to be part of something groundbreaking. Don’t let this slip away! 

Hello, A friend of mine lives in the EU and earns between 5K-10K a month in crypto, which he sends to his non-custodial wallet. He does not declare his earnings in his country. He found some local crypto exchanges that allow him to cash out crypto without providing an ID.

The problem is that he needs to pay for tolls, book flights, and purchase items online in general, so he's looking into some crypto cards. Yes, there are some no-KYC crypto cards, but he fears that if they are shut down, he's not sure what will happen to his funds or whether he will be able to continue using the card until no money is left.

What happens if he applies for multiple crypto cards that require KYC (from SumSub) from different companies and adds $2-3K on each?

For example, even if he gets caught with one of the cards, he pays the fine based on the amount. Does it work this way?

I used their FTX.US integration long ago before FTX went bellyup. However CTC has been updating some of their systems and its broken some of the integrations and even a year later its not working.

Most of my transactions are safely secure but the FTX transactions are not, is there a way to export them?

I am located in the US.

I have been doing my crypto tracking by hand and I think I have a good understanding of how the taxes should work, but this year I know that Coinbase will be reporting some sales (nope, not true this year) and their cost basis information is all screwed up. I am looking for advice from someone who has more context on how the IRS will view things in this situation.

I bought two batches of the same coin at different times, then made one transaction to transfer it all into Coinbase. Coinbase conveniently allows me to tell it the cost basis for crypto that is transferred in from another source so that it can report my gains accurately, but I do not see any way to tell it that the crypto I transferred in was combined from two different batches with two different acquisition dates and cost bases. It seems to only allow a single cost basis for each inbound transfer.

What is the most convenient thing for me to do here? Should I tell coinbase a weighted average of the cost bases for both batches? Should I tell it the cost basis of one of the batches? Since this means that Coinbase's cost basis information will inevitably be wrong going forward and I plan to keep reporting the accurate numbers, am I very likely to be audited if the numbers I report for capital gains are repeatedly different from what Coinbase is reporting? Is there anything else I can do to fix this situation?

Thank you!

I would like to use the losses I accrued in stocks from my personal Fidelity account to offset the gains I accrued from my business crypto account. I registered my Bitcoin Mining Farm as an LLC for flexible taxation. Hope I explained that correctly.

TL;DR - I lost $21,000 in the stock market but made $43,000 in Crypto. Can I use the losses to offset the taxes owed on Bitcoin.

Also, the Bitcoin has been held over 1 year now.

Thank you if you decide to help. God Bless!

I've received 4 calls today and 15 in the last week from people asking if they've caught themselves in a scam. It's clear this scam is on the rise, so I wanted to make a quick post describing it in hopes of preventing others from falling victim.

The scam is called "Pig Butchering" and works as follows:

1. An Internet Stranger Befriends You: Often, this person is of the opposite sex. They are friendly and not very pushy.
2. Gaining Trust: They build personal trust through regular communication and even engage in multiple video calls.
3. Investment Pitch: They claim to have secret trading knowledge, usually involving nodes, and encourage you to invest. They'll send you a link to a platform for depositing your funds. This initial deposit is your first loss, but not their true target.
4. Illusion of Authentic Trading: They let you "trade" and make small, seemingly real profits. Some skeptics might try to withdraw these small profits, and the scammers may actually allow it to gain further trust.
5. Hitting the Jackpot: Your trading hits the jackpot, and you "profit" 10x-100x your investment. At this point, most people try to claim their profits.
6. Capital Gains Tax Scam: When you try to withdraw your money, they'll say, "Sure, no problem. You just need to pay a portion of your capital gains tax first. Talk to ____ at the tax department." Usually, this amount is about 8% of your claimed gains. They request this payment before depositing your funds. This is their true target.

In this scam, the victim is fattened like a pig before the butchering. The scammer hopes the victim focuses on the massive "profits" to blind them to the ongoing scam. It's a long-ish con, built on trust through consistent and personal communication. Both women and men are targets, although I've noticed more men falling victim based on the calls I've received.

If you think you are a victim of this scam:

• Do not send any more money to the platform.
• Transfer any remaining crypto off of the wallet you used to send funds to the platform (could be compromised)
• Contact trusted family and friends (sorry, my firm won't be able to help you).
• Report the scam to your local authorities (though they may not be able to recover your funds).

PSA, you never need to pay capital gains tax before withdrawing funds.

Stay vigilant.

I get a 1099-MISC tax form every year from my crypto exchange. I don't consider myself self employed but this form kind of says I am anyways.

Since this form indicates I am self-employed, I am just wondering if I could / should start treating my life as a business and start writing everything off as business expenses for tax deductions?

I am currently preforming mostly development work which is being paid in crypto. I like in the worst state for crypto (NY). As this work grows I might be on boarding others to help in the projects. I was thinking of operating under a business rather than a individual at that point.

Does it make sense to open a LLC in Wyoming lets say. Have the crypto paid to the LLC rather than myself and then when I offboard the crypto to FIAT to pay salaries I would be able to take advantage of the tax incentives in Wyoming rather than in NY?

Looking for a bit of insight on this as things ramp up.

Thanks!

Last year my Tax advisor who prepared and filed my taxes, deducted the full cost of the miner for the 2022 FY ( $10,700). I wonder if it was legit action to deduct the whole cost in one year? I read somewhere that you can deduct the depreciation. The reason why I'm asking is because I would like to check if I need to amend last year tax return.

I have some questions about crypto tax in the UK if anyone can help.

I am a UK citizen and currently live and work in Australia. I moved here in May 2022.

In 2023-2024 I invested into crypto (whilst I am in Australia) - the majority of this was through a UK bank to a UK crypto exchange with pounds (so all through uk banks and exchanges). A smaller amount of investments I have made on an Australian exchange but I plan to sell it on a UK exchange and withdraw to a UK bank account.

The reason I have done this is I want sell all of my crypto in the UK as the tax rate is significantly lower. In Australia I will be taxed up to 45% on some investments as it’s treated as income not CGT.

My question is can I sell all of my crypto in the UK and pay all of the tax in the UK (sell all my crypto on a UK exchange with some transferred from an Australian exchange to my uk exchange).

Thanks 😃