Taxes on Crypto Currency Short-Term Profit

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creditdefaultswaps
Posts: 84
Joined: Mon Jan 02, 2017 6:56 pm

Taxes on Crypto Currency Short-Term Profit

Post by creditdefaultswaps »

I invested $1K in Ethereum a week ago and sold it last night at $1400 using Coinbase. Two questions:

1. Am I obligated to report the gain? (I'm presuming so)
2. If so, what should I set aside for taxes on this gain?
rkhusky
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Joined: Thu Aug 18, 2011 8:09 pm

Re: Taxes on Crypto Currency Short-Term Profit

Post by rkhusky »

creditdefaultswaps wrote: Wed Dec 13, 2017 11:50 am I invested $1K in Ethereum a week ago and sold it last night at $1400 using Coinbase. Two questions:

1. Am I obligated to report the gain? (I'm presuming so)
2. If so, what should I set aside for taxes on this gain?
Yes, you need to report the gain. You don't need to set aside money for taxes, but you can if you want to.
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Nate79
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Location: Delaware

Re: Taxes on Crypto Currency Short-Term Profit

Post by Nate79 »

Yes you need to report. Here is Coinbase page on this:
https://support.coinbase.com/customer/e ... -taxes-faq

I recall that Coinbase has been forced to report info to the IRS in the past.
Edit:
https://www.theverge.com/2017/11/29/167 ... rs-records
LAguy818
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Joined: Sat Feb 21, 2015 1:57 am

Re: Taxes on Crypto Currency Short-Term Profit

Post by LAguy818 »

There's a free website that can import your information from multiple sites to generate a gain / loss report for your taxes:

https://bitcoin.tax
malbecman
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Location: CA

Re: Taxes on Crypto Currency Short-Term Profit

Post by malbecman »

Now if you had only invested $1M! :moneybag :)
Topic Author
creditdefaultswaps
Posts: 84
Joined: Mon Jan 02, 2017 6:56 pm

Re: Taxes on Crypto Currency Short-Term Profit

Post by creditdefaultswaps »

malbecman wrote: Wed Dec 13, 2017 6:16 pm Now if you had only invested $1M! :moneybag :)
I've been tempting to go at it again with more a lot more; but that'd be gambling and I value my sleep.
Topic Author
creditdefaultswaps
Posts: 84
Joined: Mon Jan 02, 2017 6:56 pm

Re: Taxes on Crypto Currency Short-Term Profit

Post by creditdefaultswaps »

LAguy818 wrote: Wed Dec 13, 2017 5:52 pm There's a free website that can import your information from multiple sites to generate a gain / loss report for your taxes:

https://bitcoin.tax
Nice! Thanks for this.
jlcnuke
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Joined: Thu Mar 16, 2017 10:26 am

Re: Taxes on Crypto Currency Short-Term Profit

Post by jlcnuke »

creditdefaultswaps wrote: Wed Dec 13, 2017 11:50 am I invested $1K in Ethereum a week ago and sold it last night at $1400 using Coinbase. Two questions:

1. Am I obligated to report the gain? (I'm presuming so)
2. If so, what should I set aside for taxes on this gain?
1. Yes.
3. You don't have to set any aside, but it will be taxed at your short-term capital gains rate.
jlcnuke
Posts: 434
Joined: Thu Mar 16, 2017 10:26 am

Re: Taxes on Crypto Currency Short-Term Profit

Post by jlcnuke »

jlcnuke wrote: Thu Dec 14, 2017 5:50 am
creditdefaultswaps wrote: Wed Dec 13, 2017 11:50 am I invested $1K in Ethereum a week ago and sold it last night at $1400 using Coinbase. Two questions:

1. Am I obligated to report the gain? (I'm presuming so)
2. If so, what should I set aside for taxes on this gain?
1. Yes.
3. You don't have to set any aside, but it will be taxed as short-term capital gains.
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