reply on: Taxes on long term holding \ stacker news ~Personal

10 sats \ 5 replies \ @AJ1992 19 Feb \ on: Taxes on long term holding Personal_Finance

You should be 1099'd by the platform you bought from, it's treated as income. Any gains are treated as simple income as far as I'm aware. -Former tax pro from 2016-2018

10 sats \ 4 replies \ @AJ1992 19 Feb

Gains are only considered in what you've profited. So if you bought at 50k and now it's 52K and you have one Bitcoin you'd have 2k in income to pay tax on.

0 sats \ 3 replies \ @Kaffi OP 19 Feb

yeah but if I didn't know what price I bought at would i be paying income tax on 50k?

0 sats \ 2 replies \ @AJ1992 19 Feb

My best advice to you would be to guess.

0 sats \ 1 reply \ @Kaffi OP 19 Feb

I can't tell if you're being sarcastic. If you're being serious do you mean just guess and hope if I get audited I was right?

0 sats \ 0 replies \ @AJ1992 19 Feb

You're not going to get audited unless we're talking about very large amounts of money/Bitcoin. Go back in time think about when you bought look at where price of BTC was when you bought and do your best. Even in the rare case you are audited you more than likely won't incur any penalties or fees unless they sense deception or like you were hiding something. If you get audited tell them the truth and you tried your best and you made the mistake of not keeping records and you'll be fine. You'll just have to pay any remaining tax you may have missed. dead serious bro.