Taxes on long term holding \ stacker news ~Personal

71 sats \ 9 comments \ @Kaffi 19 Feb Personal_Finance

I honestly don't know how much capital gains tax i gotta pay been buying off and on since 2018, sold and bought I have no idea what my cost basis or anything is, what do I do about that? Do I have no choice but to pay taxes on the whole amount like the gains are from 0 dollars? That would suck,

ps. not selling anytime soon (10 years plus) but its something ive been thinking about.

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10 sats \ 1 reply \ @OriginalSize 19 Feb

Not financial advice, check with a CPA, but try to get your records together of when you bought and sold. If you can identify specific lots, you can claim favorable cost basis. If you do your best even in an audit it'd be pretty unlikely that you'd be taken to zero cost basis.

0 sats \ 0 replies \ @Kaffi OP 19 Feb

will definitely get one at the time considering the projected price. I do have alot of cashapp records though for buying. So I could just sell the net amount I bought on that platform.

10 sats \ 5 replies \ @AJ1992 19 Feb

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.

0 sats \ 0 replies \ @SaToSHiWoMaN 19 Feb outlawed

stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.