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Bilter

VIP Member
Jun 7, 2011
98
77
I've been an investor / trader in stock and options for damned near 30 years now but I have run into a situation that someone here may have some knowledge on that, at the moment, I do not.
I currently own some crypto's that I hold in a Tradestation account. Now I know TS shares account transactions with our gov so there is no way Im cashing out of crypto without paying tax on gains. My question is in regards to crypto wallets. Do the owners of the apps like Coinbase share trasnsaction info with Uncle Sam. Don't misunderstand I am certainly not trying to evade taxes but I do like the idea of holding something of value that our gov knows absolutely nothing about and therefore no way to affect its value or get a piece of.....
 
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Bilter

VIP Member
Jun 7, 2011
98
77
a quick search answered my question (should have started there I suppose)... Im fukked everywhere I turn :-/
 
macgyver

macgyver

TID Board Of Directors
Nov 24, 2011
1,727
1,190
You will get 1099 on any sale from Coinbase. (or any other us reg exchange)


You however can buy on coinbase and transfer to a self hosted wallet. At that point or at some down the road, you can find retailers who directly accept btc for payment of goods. Or you can transfer back to an exchange to sell when you want. But if you sell on an excahnge, you will get 1099. Unless you risk using an offshore exchange, which I dont know if it is worth the risk....

It is what it is at this point. I think the days of btc being like Napster are long gone. Uncle sam wants their cut. I guess the only possible way around is buying direct items with btc (which in that case, I dont know if retailers will have to submit that they have taken as payment, such as when you might pay cash over 10k to a dealer.)
 
Bigtex

Bigtex

VIP Member
Aug 14, 2012
632
948
I've been an investor / trader in stock and options for damned near 30 years now but I have run into a situation that someone here may have some knowledge on that, at the moment, I do not.
I currently own some crypto's that I hold in a Tradestation account. Now I know TS shares account transactions with our gov so there is no way Im cashing out of crypto without paying tax on gains. My question is in regards to crypto wallets. Do the owners of the apps like Coinbase share trasnsaction info with Uncle Sam. Don't misunderstand I am certainly not trying to evade taxes but I do like the idea of holding something of value that our gov knows absolutely nothing about and therefore no way to affect its value or get a piece of.....

I have a coinbase account and NO they did not send me a 1099. So if it is like selling on Ebay of Amazon, if you don't receive a 1099, then nothing was sent in to the IRS I guess. I know a guy in the trade business that told me that the government really has no idea what they are going to do with crypto yet and will most likely not look into it this year. However, you are supposed to do the following:
  • Calculate your crypto gains and losses.
  • Complete IRS Form 8949.
  • Include your totals from 8949 on Form Schedule D.
  • Include any crypto income on Schedule 1 (or Schedule C if you are engaging in crypto taxes as self-employed)
  • Complete the rest of your tax return ‍.
For each taxable transaction (selling, trading, or disposing of your crypto),complete the following on 8949:
  • A description of the property you sold (a)
  • Date you originally acquired the property (b)
  • Date you sold or disposed of the property (c)
  • Proceeds from the sale (fair market value) (d)
  • Cost basis in the property (e)
  • Gain or loss (h)
5e51d695258ffe21c88724ab_IRS%20Form%208949[1].png


Once your 8949 is filled out, take your total net gain or net loss from 8949 and include it on Schedule D.

Schedule D reports your overall capital gains and losses from all sources. In addition to your short term and long term gains that come from 8949 and your crypto activity, other line items reported on Schedule D include Schedule K-1s via businesses, estates, and trusts.

CryptoTrader.Tax will do all of this for you for about $50.

Found this at Coinbase:

1099-MISC for rewards and/or fees

You may receive a 1099-MISC if:
  • You are a Coinbase customer AND
  • You are a US person for tax purposes AND
  • You have earned $600 or more in rewards or fees from Coinbase Earn, USDC Rewards, and/or Staking in 2020.
Does Coinbase provide 1099-Ks?
As of the 2020 tax year, we will not be issuing Form 1099-Ks for trades on Coinbase.

Does Coinbase provide 1099-Bs?
We do not issue Form 1099-Bs.
 

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macgyver

macgyver

TID Board Of Directors
Nov 24, 2011
1,727
1,190
@Bigtex

Thanks for the clarification! Great info. I was misinformed.


I did read that Coinbase was reporting users with over 20k in assets to govt going back 2013-15. Not sure what they are doing after that point.

What I found was that they issue 1099k if are using coinbase pro and have 200 trades or value$20,000 or meet your states requirements for 1099k requirements. Maybe it is only a coinbase"Pro" thing? Not sure if my info is old.
 
Bigtex

Bigtex

VIP Member
Aug 14, 2012
632
948
@Bigtex

Thanks for the clarification! Great info. I was misinformed.


I did read that Coinbase was reporting users with over 20k in assets to govt going back 2013-15. Not sure what they are doing after that point.

What I found was that they issue 1099k if are using coinbase pro and have 200 trades or value$20,000 or meet your states requirements for 1099k requirements. Maybe it is only a coinbase"Pro" thing? Not sure if my info is old.

Yeah, I am still very confused about it. I have had 1 Bitcoin for quite a few years now. I don't trade at all, justs holding on to it. I have looked several times for a 1099 but nothing. That crypto tax service ran a report but i was not going to pay $50 to find out if I owe anything or not. I have certainly not made any capital gains. I hope I am doing the right thing by just moving on and forgetting about it. All of my other investments send me a 1099 and show any gains or losses. Every, so called "expert" I have talked to about this seems to also be confused as to what is going on.
 
macgyver

macgyver

TID Board Of Directors
Nov 24, 2011
1,727
1,190
Yeah, I am still very confused about it. I have had 1 Bitcoin for quite a few years now. I don't trade at all, justs holding on to it. I have looked several times for a 1099 but nothing. That crypto tax service ran a report but i was not going to pay $50 to find out if I owe anything or not. I have certainly not made any capital gains. I hope I am doing the right thing by just moving on and forgetting about it. All of my other investments send me a 1099 and show any gains or losses. Every, so called "expert" I have talked to about this seems to also be confused as to what is going on.

I think the days of thinking you can make big gains and not have to pay up are gone. The feds are laying a trap this year with tax forms making people acknowledge receiving crypto...etc. Laying the ground work for people to get caught in a trap if later caught the downside is much greater.

I too am long on btc. Been in since 2013. I have just resolved that when I sell, I will have to pay the long-term gains on it. For me personally it is not worth the risk trying to get by with it. It is just way too easy to track. Just my feeling.
 
Bigtex

Bigtex

VIP Member
Aug 14, 2012
632
948
I think the days of thinking you can make big gains and not have to pay up are gone. The feds are laying a trap this year with tax forms making people acknowledge receiving crypto...etc. Laying the ground work for people to get caught in a trap if later caught the downside is much greater.

I too am long on btc. Been in since 2013. I have just resolved that when I sell, I will have to pay the long-term gains on it. For me personally it is not worth the risk trying to get by with it. It is just way too easy to track. Just my feeling.
I agree. Rather pay now that pay more later.
 
B

Bilter

VIP Member
Jun 7, 2011
98
77
I recently did my taxes on Turbotax, this is the first year that there was ever a question on whether or not I owned or sold any crytos.. I do currently own some Eth but I don't plan on selling any time soon so I'll leave that blank. In the end I will have to claim any gains as I currently hold in a Trade Station account. Or I may look at transferring it to my CoinBase account. As stated its all a bit confusing (and I thought tracking 1000 options trades per yr was confusing!)
 
C

C T J

Crossfit VIP
Jan 24, 2013
2,334
626
2021 is going to suck for me on taxes. In 2 months of swing trading I'm up 100k and I started with 2k.
That's absolutely unreal! +5000%...congrats I've been trading futures for 12 years, 4 professionally and it took me 8 years to make 100k in one year and had more than $2000 to start.
I blew 4 accounts in the first 5 years totaling 75k.
 
danrojigga

danrojigga

Rottens Pimp
May 24, 2011
895
175
That's absolutely unreal! +5000%...congrats I've been trading futures for 12 years, 4 professionally and it took me 8 years to make 100k in one year and had more than $2000 to start.
I blew 4 accounts in the first 5 years totaling 75k.
Crypto is crazy especially defi. There are guys out there that have turned 800 into over a million in several months. So much money to be made.
 
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