Need some clarity on taxes from crypto profits. Just got into crypto and made a few trades that were profitable. I assumed the platform would report to the IRS, but I guess I’m responsible for reporting it when I file taxes next year? Is that right?
Not from the U.S., but yeah it can depend on your exchange. Check out some articles from Coinbase, they have good info on taxable events and what forms you need.
In the U.S., there are accountants who can handle your tax returns for you. Starting with a pro is smart. Once you get the hang of it, you can do it yourself if it's too pricey.
Honestly, don’t ask tax q's in a forum. Better to consult an expert or a lawyer. Not reporting correctly can get you in hot water. Each sale that profits is taxable, and until you sell, no taxes.
I recently read something on this and it explained how to pay taxes on different types of crypto. Tracking transactions can be tricky for tax purposes too.
Thanks for all the replies. My real question is, can exchanges collect taxes, or is that only the government’s job? I tried to withdraw some profits, and the exchange said I had to pay capital gains. Seems shady to me.
SCAM alert! If a platform asks for funds before you can withdraw, it’s a scam. Exchanges don’t collect taxes; only scammers do. Usually, the only fee you pay is a withdrawal fee, not taxes.
In Russia, brokers act as tax agents and handle paying taxes on profitable trades. In the U.S., it’s capital gains tax, so you do your own reporting or hire an accountant. Some exchanges can help with tax forms.
Definitely a scam. Exchanges just report your info to the IRS; they don’t collect taxes. If you can, report that exchange here. Don’t trust random articles, always check with official sources.
Honestly, I think all exchanges do is take their fees. They don’t cut taxes; that’s not their role. And yeah, they can’t collect taxes for the government.
As a taxpayer, paying taxes is on you. If someone else is asking for taxes, it’s a scam. Exchanges won’t deduct taxes, but they have to report to the government if requested.
Does the U.S. allow other organizations to act as tax agents? In Russia, employers withhold income tax for employees to make things easier on citizens.