|
Lockback posted:Did I ruin my life by trading crypto? Here comes the long dick of the IRS!
|
#
?
Nov 2, 2018 16:16
|
|
|
|
| # ? May 17, 2024 15:31 |
|
|
Liquid Communism posted:Yep. The IRS and USPS are not to be hosed with under any circumstances, because they are the epitome of hideously efficient bureaucracy when it comes to striking down offenders. A good example of this in fiction is Tony Soprano freaking the gently caress out in one of the later seasons when the company he "works" for is getting sold. "I NEED THAT W-2"!!!
|
|
#
?
Nov 2, 2018 16:25
|
|
|
Lockback posted:Did I ruin my life by trading crypto? I'm not even drinking anything and practically did a spit take at the 1099, 1563 transactions holy poo poo
|
|
#
?
Nov 2, 2018 16:27
|
|
|
This is such a great post and that's why I lurk the forum. Wish you'd put up an Ask/Tell thread if you haven't already.
|
|
#
?
Nov 2, 2018 16:35
|
|
|
RocknRollaAyatollah posted:Every company needs a $2,000 show cat because it demonstrates the success of the company and the value of its services. People can totally tell the difference between a $5 shelter cat and one from a storied lineage so don't skimp. Wouldn't they also owe him boarding fees for maintaining this "asset?" Market rate for boarding that cat is probably close to the total value by now.
|
|
#
?
Nov 2, 2018 16:36
|
|
|
Lockback posted:Did I ruin my life by trading crypto? 
|
|
#
?
Nov 2, 2018 16:49
|
|
|
You're not owed for doing something you said you'd do for free. The dumb cat is an asset though, so either they need to come up with a reasonable compensation (which can be way less than $2k) or sell it. Killing pets for meat and hide is illegal in Nevada so that is not an option and he can legally keep it away from that.
|
|
#
?
Nov 2, 2018 16:51
|
|
|
Buttcoins sure were a perfect storm of low barriers to entry + complex financial transactions + mania. I'm sure there are day traders who've made these same mistakes swapping stocks, but holy poo poo Reddit see's a lot of people who poured profit into loss before they paid any taxes. I can't even imagine the complex emotions I'd be feeling if I turned $5k into $875k into -$400k.
|
|
#
?
Nov 2, 2018 16:53
|
|
|
what kind of tax code manages to synthesize an effective 45%+ capital gains tax within a year though? i mean, he's quite screwed either way, but this is not the kind of number i'd expect to be possible
|
|
#
?
Nov 2, 2018 17:07
|
|
|
Cybernetic Vermin posted:what kind of tax code manages to synthesize an effective 45%+ capital gains tax within a year though? i mean, he's quite screwed either way, but this is not the kind of number i'd expect to be possible That is the state and federal tax rate for people who make $880,000 a year day trading currencies in California. The big booboo he made was losing all his money BEFORE filing and paying his taxes for 2017.
|
|
#
?
Nov 2, 2018 17:12
|
|
|
BEHOLD: MY CAPE posted:That is the state and federal tax rate for people who make $880,000 a year day trading currencies in California. The big booboo he made was losing all his money BEFORE filing and paying his taxes for 2017. The crash was so perfectly timed to turbofuck anybody trading coins, but not cashing out, at the height of the bubble. I love it
|
|
#
?
Nov 2, 2018 17:30
|
|
|
Cybernetic Vermin posted:what kind of tax code manages to synthesize an effective 45%+ capital gains tax within a year though? i mean, he's quite screwed either way, but this is not the kind of number i'd expect to be possible Crypto-for-crypto exchanges, like stock-for-stock exchanges, trigger a taxable event (as they should); short-term capital gains are taxed at ordinary income rates; and in CA he's got a decent amount of state tax due on top of his federal. That said, I don't really know how his math adds up - his 1099-K shows gross transactions of less than $600k, and I don't know how he's getting realized gains of more than that unless he's got other trading activity off of Coinbase that he's not talking about. His situation sucks and it's a bitch that he can't carry back more of his 2018 losses to offset, but also I've got five bucks that says he's not telling the complete story. EDIT: Why the hell is dude waiting till November to worry about this, that's dumb but better late than never, maybe he's finally starting to pull his head from... quote:Today my portfolio sits at $125k Jesus christ, liquidate it already, what are you waiting for you idiot Blotto_Otter fucked around with this message at 17:37 on Nov 2, 2018 |
|
#
?
Nov 2, 2018 17:32
|
|
|
So if I'm understanding correctly, he bought cryptocurrency at around 5k in 2017, which by the end of 2017 was valued at 880k. Because he was an active trader (ie: he didn't just by and hold), those 875k are considered realized gains thus subject to income tax?
|
|
#
?
Nov 2, 2018 17:35
|
|
|
Wasn't the whole deal with Bitcoin is that it's untraceable and anonymous? If you can't even evade taxes with it then what was even the point.
|
|
#
?
Nov 2, 2018 17:38
|
|
|
Ur Getting Fatter posted:So if I'm understanding correctly, he bought cryptocurrency at around 5k in 2017, which by the end of 2017 was valued at 880k. He'd only realize a gain each time he sold or traded on the way to 880k, but he wouldn't have realized a gain on the entire 880k yet unless he sold at 880k. I don't know how he could recognize a gain of 880k without actually selling or exchanging 880k worth of tokens at some point, and (if the Coinbase 1099k says what I think it says), he only sold/exchanged 592k worth of tokens on Coinbase. Example: If he bought BTC at $5k, then traded that for ETH when it was worth $500k, then held onto the ETH through year end at which point it was valued at $880k, he'd only have realized gains of $495k at that point and would only owe tax on that amount. If I understand Coinbase's approach right, then Coinbase would issue a 1099-K showing activity worth $500k. (I'm a bit surprised by that 1099-K, I didn't know 1099-Ks required you to show noncash transactions with an equivalent cash value, but either that's what Coinbase is doing or OP is lying about all of his gains being realized through direct exchanges rather than sales.)
|
|
#
?
Nov 2, 2018 17:45
|
|
|
OctaviusBeaver posted:Wasn't the whole deal with Bitcoin is that it's untraceable and anonymous? If you can't even evade taxes with it then what was even the point. a convenient misconception for LEO. It also has CP in the blockchain.
|
|
#
?
Nov 2, 2018 17:46
|
|
|
OctaviusBeaver posted:Wasn't the whole deal with Bitcoin is that it's untraceable and anonymous? If you can't even evade taxes with it then what was even the point. Cash is untraceable and anonymous and you are still required to report cash transactions. Bitcoin pseudoanonymous at best. All bitcoin transactions are part of a public, permanent ledger. Its the opposite of untraceable.
|
|
#
?
Nov 2, 2018 17:52
|
|
|
OctaviusBeaver posted:Wasn't the whole deal with Bitcoin is that it's untraceable and anonymous? If you can't even evade taxes with it then what was even the point. One of the dozens of lies piled on to get people to invest and build the hype bubble. It's pseudononymous at best if you do everything perfectly, which, since you are human, you will not
|
|
#
?
Nov 2, 2018 17:56
|
|
|
OctaviusBeaver posted:Wasn't the whole deal with Bitcoin is that it's untraceable and anonymous?
|
|
#
?
Nov 2, 2018 18:18
|
|
|
the idea for a lot of people was that it let you buy drugs and other illegal stuff "anonymously."
|
|
#
?
Nov 2, 2018 18:31
|
|
|
Bitcoin is whatever you want it to be. Except money.
|
|
#
?
Nov 2, 2018 18:35
|
|
|
Ur Getting Fatter posted:Bitcoin is whatever you want it to be. Which is the problem. It's a risky investment masquerading as currency. Someone else pointed out a while back that currency loses value over time, which compels you to spend or invest it before it's worthless. Buttcoins can't be currency because their whole point in life is to appreciate. Using Buttcoins to buy stuff is the equivalent of using savings bonds to buy stuff and just as awkward.
|
|
#
?
Nov 2, 2018 18:59
|
|
|
BEHOLD: MY CAPE posted:That is the state and federal tax rate for people who make $880,000 a year day trading currencies in California. The big booboo he made was losing all his money BEFORE filing and paying his taxes for 2017. Ah, that is actually pretty progressive taxation right there, good on the US (well, and california) getting that one right. I sort of assumed some 15% rate hadn't been properly calculated across all trades.
|
|
#
?
Nov 2, 2018 19:03
|
|
|
Krispy Wafer posted:Which is the problem. It's a risky investment masquerading as currency. That is not a requirement of currency. Deflationary currencies can exist. See Germany during the 80s.
|
|
#
?
Nov 2, 2018 19:08
|
|
|
On the subject of thinking it a good idea to mess with the IRS:quote:The owner of a Kirkland interior design business was recently convicted of 25 counts for a nearly 20-year scheme to avoid paying more than $560,000 in income taxes. quote:“Nix enjoyed a lavish lifestyle with the proceeds of his crime,” Hayes wrote in a press release. “He owns a Kirkland home assessed for more than $1 million. He bought and owned at least 16 luxury vehicles over the years, including a Porsche, a Jaguar, a BMW, a Ford F-150, multiple Mercedes-Benz, Harley Davidsons, and other imported motorcycles.” quote:Nix operated Dannix Design, a medical office interior design firm. According to the release, Nix refused to pay taxes on $3.9 million in gross income and $1.9 million in net profit as early as 1998 and from 2000-13. Nix hid his income and assets by setting up shell companies, filing bankruptcy claims and filing false claims against the government. Did he think the IRS wouldn't try to cash the money orders? Why would he keep sending them? I like the use of sham religious entities, always a classic. quote:Hayes added in a press release that Nix, on several occasions, harassed IRS and Department of Revenue agents, filing fraudulent liens against them. He also called other unrelated individuals who were subject to IRS liens and falsely claimed the liens filed by the government were invalid. He harassed IRS employees? I doubt this will ever end for him, even after he gets out. His sentencing is scheduled for Nov. 9th, gonna have to check how hard they land on him. http://www.kirklandreporter.com/news/kirkland-man-convicted-for-20-year-tax-evasion-scheme/
|
|
#
?
Nov 2, 2018 20:04
|
|
|
Hyrax Attack! posted:On the subject of thinking it a good idea to mess with the IRS: Sending fake money orders alone would be more prison time than whatever tax fraud he committed.
|
|
#
?
Nov 2, 2018 20:23
|
|
|
Phanatic posted:That is not a requirement of currency. Deflationary currencies can exist. See Germany during the 80s. Deflation is almost always bad though. It's not a feature of currencies necessarily, but it's a happy bug that usually has positive affects on the economy. If we lived in a Buttcoin world where money appreciated or had wild swings we'd just keep all our coins in our butts and barter - making our crypto-currency ineffective as a standard unit of wealth.
|
|
#
?
Nov 2, 2018 20:55
|
|
|
OctaviusBeaver posted:Wasn't the whole deal with Bitcoin is that it's untraceable and anonymous? If you can't even evade taxes with it then what was even the point.
|
|
#
?
Nov 2, 2018 20:55
|
|
|
Over a long enough timescale, all currency is deflationary. 
|
|
#
?
Nov 2, 2018 21:04
|
|
|
I still find it hosed up an F150 is a luxury vehicle. I don't really follow bitcoin etc. The problem with all these crypto currencies and their universal flaw from my perspective, is it really isn't a currency. They all seem a hell of a lot more like a commodity and investing heavily into it is the millennial version of baby boomers and older just buying lots of gold and silver because cash is ~fiat~ money. Jack2142 fucked around with this message at 21:55 on Nov 2, 2018 |
|
#
?
Nov 2, 2018 21:52
|
|
|
Jack2142 posted:I still find it hosed up an F150 is a luxury vehicle. It can be. What surprised me a lot about cars is how wide the price range can be depending on trims for some models. The F-150 starts at $28k and can be optioned up to the Limited trim which is $67k before options. https://www.ford.com/trucks/f150/models/ Something Offal fucked around with this message at 22:17 on Nov 2, 2018 |
|
#
?
Nov 2, 2018 22:09
|
|
|
Or the perpetual favorite of oil and construction BWM, the Ford Raptor.
|
|
#
?
Nov 2, 2018 22:13
|
|
|
Why aren't things in the base truck like a more powerful engine than you need, the bigger size, the bed, etc luxury options?
|
|
#
?
Nov 2, 2018 22:20
|
|
|
totalnewbie posted:Why aren't things in the base truck like a more powerful engine than you need, the bigger size, the bed, etc luxury options? Not sure I understand your question. You can add some options to the base truck, but the way it usually works in the car biz is there are some things you can only get by going up to the next trim level. You can see those in the 'build&price' configurator thing if you're curious.
|
|
#
?
Nov 2, 2018 22:22
|
|
|
Ur Getting Fatter posted:So if I'm understanding correctly, he bought cryptocurrency at around 5k in 2017, which by the end of 2017 was valued at 880k. yes and since his loses came in 2018, and you can't carry them back to 2017, they will mostly expire useless. It is the most spectacular destruction of lives the IRS has ever accomplished.
|
|
#
?
Nov 2, 2018 22:28
|
|
|
Live by the buttcoin, die by the buttcoin
|
|
#
?
Nov 2, 2018 22:36
|
|
|
Krispy Wafer posted:Deflation is almost always bad though. It's probably a feature of industrializing economies and historically most currencies and interest rates have been extremely stable over long periods of time. For example if you review the writings of French and English authors from approximately 1600-1850, exchange rates, purchasing power, and land rents are almost completely unchanged across that time period and geography. In fact it was completely understood that the yield of government bonds or rent of land or property was approximately 5% per year and describing a person's passive income was completely interchangeable with describing their wealth.
|
|
#
?
Nov 2, 2018 23:11
|
|
|
Buying a mega-yacht is BWM because of poor resale value and low steel content for scrap.quote:Customers bought nearly 300 superyachts so far this year through mid-October, up from a total of 249 vessels for all of 2017... The combined retail value of superyachts sold last year was 2.6 billion euros ($2.9 billion), a 21 percent increase from 2016, according to the Superyacht Intelligence Agency. Bloomberg isn't afraid to use the term "dark days in the superyacht world" to describe the impact of the 2008 recession. quote:At the end of their life cycles, commercial ships can be sold for scrap and recycled. Superyachts don’t have much steel in their hulls, so the scrap value is negligible. Hi, I'm Sam Tucker, head of superyachts. quote:Finishings and special features on these vessels include personal submarines, bomb-proof windows, seaplanes and concert halls. British finance billionaire Joe Lewis uses his 98-meter yacht, Aviva, as a place to display his $70 million Francis Bacon painting. Wikipedia says Paul Allen's yacht has two submarines. https://www.bloomberg.com/graphics/2018-superyachts/?srnd=premium
|
|
#
?
Nov 2, 2018 23:12
|
|
|
Paul Allen’s boat is more of a luxury research vessel than a yacht though.
|
|
#
?
Nov 2, 2018 23:20
|
|
|
|
| # ? May 17, 2024 15:31 |
|
|
BEHOLD: MY CAPE posted:It's probably a feature of industrializing economies and historically most currencies and interest rates have been extremely stable over long periods of time. For example if you review the writings of French and English authors from approximately 1600-1850, exchange rates, purchasing power, and land rents are almost completely unchanged across that time period and geography. In fact it was completely understood that the yield of government bonds or rent of land or property was approximately 5% per year and describing a person's passive income was completely interchangeable with describing their wealth. Wasn't bartering a factor in that? If something costs 2 chickens in 1200 AD it probably cost 2 chickens in 1300 AD. Productivity gains were not great back then so generations of people would be producing and consuming at approximately the same volume regardless of the year. Fast forward to 2018 and I'm shitposting at a rate 2008 me could only dream of and that productivity allows me to consume more stretching supply and causing inflation.
|
|
#
?
Nov 2, 2018 23:38
|
|