tax implications of crypto day trading in the US

I just did my taxes for 2020 and used the chance to ask a tax pro about crypto taxes. Got a lot of basic questions sorted out. They printed some stuff explaining the different taxes depending on how you earn crypto. After that, I did some searching and found this site called cryptotrader.tax.

I’m from the UK, so things might be different, but you won’t pay more tax than you actually earn. It’s all about your profits. Basically, you should look at your withdrawals minus deposits and what you had at your last trade compared to your starting amount for the year.

That’s definitely the implication. You might wanna check back with your tax consultant. Paying tax on every transaction can really cut into your profit margins. There should be better ways to calculate taxes for traders.

I went back to my tax consultant, and she mentioned that they’re just starting to get trained on crypto tax laws. Lots of clients asking tricky questions. She's not too sure, but suggested I find a local CPA. Have an appointment tomorrow hope to figure out if that cryptotrader.tax site is legit.

Where I live, crypto profit taxes haven’t been enforced yet. It seems like only exchanges in the Ministry of Asset Trading have to deal with taxes. So for now, we just have local taxes to worry about.

AFAIK, you can file monthly based on profits. If you start with $1000 and end up at $13000, you only pay tax on the $12000 gain. Any losses don’t count for that month. Some countries treat crypto like a regular job for tax purposes.

Honestly, if you keep quiet about owning bitcoin and don’t cash it out, how would they even know? Just keep your money hidden. A lot of tax cash goes to waste anyway.

You really gotta get how taxes work, because they aren’t going anywhere. Most of your trades have tax implications. Just ask the tax lawyers about the differences between trading and being an employee. And remember, taxes only kick in if you make a gain.

Had a pretty mixed experience with the CPA. Paid like 50 bucks for 30 mins, and she didn’t give a clear answer on cryptotrader.tax. She was more interested in getting my business for next year. But she did confirm that converting crypto triggers taxable events.

To clarify, you don’t pay tax on the total value, just on your gains. Like if you buy ABC coins for $100 and sell for $150, you only get taxed on the $50 gain, not the entire $150.

Yeah, I’ve heard about that too. They’re planning to standardize it worldwide, but not finalized. You have to link exchanges to the tax site, and then they’ll calculate your gains for you. It’s supposed to be minimal taxes on gains, but it’s all starting to fade away.