Yeah it can be very tough unless you were tax minded through day one and kept records of every transactions you have done and it gets even easier if all you have done was buy and hold.
@PunchClock The interviewer started off perfect; but then the interviewee decided to first give everyone a history lesson, then complicate the crap out of it and making it more complicated than it has to be, so everyone thinks he's a guru. I've met many like this, and its off putting. Simplify it first! > Break it down - in order - but then that's too easy; then show off your complicated mind with all the BS CPA details
No taxes period. I don't file, I don't pay, and if you charge sales tax, I don't buy from you. USD is just a payment network that I use as little as humanly possible while I keep all my savings in BTC.
Exactly he made this more confusing then it needed to be if he had just let the gentleman talk. I know he did it to get people to watch longer for his views but sheesh.
Because he wanted answers to his personal story instead of letting his guest actually finish and eventually getting to HIS situation. Not professional.
They want you to consolidate wallets not for the ease of your tax situation, but for the ease of the government to determine which wallet addresses are yours, it’s a trap
Exactly. Getting the sheep in line before the culling. This also completely defeats the purpose of having Bitcoin in the first place and is contrary to any privacy best practices.
The other thing here is that.... obviously... there's going to be a change of administrations; so the Biden people may get what they want for the 2024 tax year... but maybe not so much after that.
Legally, you have to tell them which wallets are yours if they ask anyways. This new law sucks, but it's the law. If you want to track every wallet in separate tax account then go for it, but that sounds so extremely complicated that it's not worth the effort. It's almost impossible to do correctly. Aside from doing that, the only legal option is to consolidate to a single address. If you don't do that, you are committing tax fraud.
This doesn't make sense. If I bought crypto on one exchange, kept it on that exchange and did not transfer it to my wallet and then sold it on that same exchange. That exchange has all the information pertaining to my buy and sell of that crypto. They're saying to transfer that crypto to my wallet and "cleanse" it. This does not make any sense at all.
This was painful. Collect your thoughts, then structure your presentation. A discovery conversation on such a difficult topic is really difficult to get through.
A video where he doesn't interrupt every 20 seconds would be great I know he did it to drag out the view time but he made this more confusing by interrupting every 2 sentences the guy spoke. Now I have to search for another video where they just explain things without a million interruptions.
Supposedly the transaction fee is considered a disposal of crypto, even though it can be a very small amount. You'd calculate the "disposal value" in dollars based on the current market value of the crypto at the time of transfer. You need to keep details of every single transaction you ever make no matter how small, for life, and stretching back to when you first used crypto. Though hopefully CGT on crypto will be abolished one day, it needs to be.
Agreed. It was such a choppy conversation, there weren't concise summaries, the video is extremely long, and to top it all off it's in 360p in 2024 (and I don't think that's just UA-cam HD quality delay because it has been a day). I appreciate the content, but the production quality and structure leaves much to be desired.
The other issue is that, even if you calculate your tax obligation correctly, you might not be able to obtain all the documents needed to PROVE that you calculated it correctly.
@@dlukton Yeah I messed around on exchanges that don't even exist anymore. Since it was the beginning of crypto for me I had no clue what I was doing, records don't exist because the exchange doesn't exist. I'll just move El Salvador or a different crypto friendly jurisdiction. The US is out of control and not what it's supposed to be anymore.
I love you jumping in and talking but can we let the tax guy get to the point so we can understand the issue. I have anxiety for 45 minutes because I can't figure out what we're actually talking about.
Tax rules and FAQs are designed to be incredibly vague and with no interpretation written in law. It ensures advisors and accounting software stay in business. It's part of the circle of life.
I would add that the communication was a bit rough. It might have been better to let each other speak before stepping on each other's sentences. Clearer examples would also have been helpful.
@@andrewy3711 I’m on my second run with this video. Still unclear as to what I’m supposed to do before the end of the year. He says there’s no software that does what they want now but then at the end says CoinTracker does do it.
@@satoshislim863 depends on what they already know about. (Were these KYC'd?) You can play that game if you want, but the US/IRS aren't all about people playing games with them. Ante up at your own discretion.
This burden is REAL. I’m financially fluent and have been wrestling with crypto reporting/tax prep for years (I refuse to pay someone to do this). If you’ve always been a 1 account/exchange person, this whole process is SIMPLE. But damn, if you’ve been around a while in crypto, you’re absolutely going to have atleast 3/5/7+ accounts/wallets… which turns this exercise into an absolute nightmare. Step 1 of simply tracking down & consolidating your lifetime transaction history per coin from all the OG exchanges is damn near impossible from the start. Considering many of those exchanges straight up DONT EXIST anymore or locked out their US-based account holders. No one’s going to do this. And I don’t trust the IRS with this whole Safe Harbor bullshit.
Could we not just treat all our Bitcoin as fungible irrespective of exchange/wallet ? That way its like owning multiple shares of a single company - how does IRS treat shares ? In UK we just use the same Share Identification Rules for crypto as we do for shares. This video is very bad.
Cointracker can tell you every transaction on the blockchain as long as you have your addresses you sent your crypto. Digital currency are completely transparent. Except Monero.
Unless you bought and sold crypto in a ROTH IRA you are liable for capital gains tax if you held it for a year or ordinary income tax if less than a year.
It’s really annoying to me that this expert is acting like he understands all of this, except he really doesn’t. But he comes off as someone who fully understands this. He keeps saying yes that’s correct but he starts contradicting whats being said and gets confused
The bottom line is this ... the IRS wants to ban the universal method of assigning cost basis because it's not as accurate as they want. If I bought1 SOL at $100 last year and 1 SOL at $200 this year, according to the universal method I can sell any one of the coins with the cost basis of $200 (with HIFO method), leaving $100 of unused cost basis to be used when I sell the other. The IRS wants to make sure that if I sell the SOL I bought last year then I use the $100 cost basis. I don't understand why so much discussion about what different wallets I keep them at. It doesn't matter where I keep them. Just because I move a coin to another wallet, that doesn't change its initial cost basis. It's "when" I bought it that creates a specific "tax lot" and that cost basis follows a specific "tax lot." I have to do more research but it seems as though "safe harbor" means, I can create a new "book" that is a new starting point of cost basis for all my assets.
I’m 52 hoping to end the rat race by 60 with above $1M. I know money is a liability to be exchanged for assets with real value like real estate (properties for rent) stocks (dividends) bonds (interest) But, what is it with bitcoin? I hear a lot about it and I'd love to diversify my portfolio.
AA, please don't give the IRS too much credit regarding them being do gooders. The IRS has been given a HUGE amount of extra funding. Given that, the IRS will have to justify that extra funding by going into super-aggressive auditing mode and taking aggressive positions against the taxpayer. The IRS is not your friend, and don't expect that this agency will be compassionate. If the IRS is auditing you, 99 times out of 100, the IRS expects to collect extra money from you.
@@j2csharp beyond confusing. And I actually already knew about and filed safeharbor. This was a jargon filled convo between two guys rather than education
This has got to be the Winner of the “Top Interruptions” race on UA-cam. Appreciate the attempt 🙏 but the “format” made it virtually impossible to understand 😢
There is eventually something to report. Even if you sell nothing during your life, when you die there are estate taxes to be calculated. And if you are a U.S. citizen and decide you don't want to pay taxes anymore so you change your citizenship, there are exit taxes that are calculated as if you sold all your holdings at the time you renounce your U.S. citizenship. So you might as well do the work up front, obtain the Safe Harbor protections against potential penalties, and do things properly going forward as well. Such a P.I.T.A. but that's taxes and government for you.
The 2017 tax act is expiring at the end of 2025. At the same time, the Republicans will have control of the White House & Congress for the next two years; as such, it's virtually certain that they'll pass a tax bill in 2025 (and maybe 2026 also). While crypto isn't high on the list of tax concerns of the GOP politicians, I think they'll at least mention it in their bill. But in any case, the tax rules for crypto will likely change over the course of the next two years.
“Not high on the list of tax concerns” in GOP? Um… where have you been? It’s VERY important to the right people. Ever hear the names Vance, Vivek , or Musk?
Maybe just hold for a few years. Bitcoin will be considered money very soon by most governments and you won’t have to go through this. IRS has made it impossible to comply. Which is entirely the point.
I already knew about this safe harbor (not safe haven as AA refers to it) and went through this pain in the you know what process. 99% of people won't do it and shouldn't be punished for it. This video is kind of late in the year, unfortunately.
I have some free time the last week of this year: do you have any tips on how to do this? I can get my crypto off the exchanges, most of it already is . The rest seems a bit confusing so I’d rather ask someone who already did it. I might be asking a lot so please, any tips would be much appreciated.
HIFO is typically the best way to minimize your annual tax burden. However, the problem is when HIFO causes transactions to result in short term capital gains instead of long term capital gains. In my opinion, specific identification is the best. Just have to make sure that the lot specified is done at the time of or before the closing out of each given transaction.
Andreas made this so complicated because he is stopping the poor guy every minute to ask questions and show that he understands. Just let the guy talk....
Excellent! Thank you. It will take me viewing this a few times to understand it. I'm also sending this to my crypto software, my accountant, my crypto mentor and my crypto friends, Hopefully between us, we'll know what to do.
Excellent and timely video. I have some more research to do but appreciate this clear explanation of what I need to do. Just glad I found this before the end of the year!
This is the first video I've seen on this topic and I subscribe to alot of crypto channels. This tells me that majority of people are not aware of this.
They are not asking you to report to the IRS all of your crypto holdings now. They are simply asking you to declare in a report, all of your cost basis in all of your crypto for the future in case you get audited. You realize that if you get audited you will have to prove your cost basis anyways, so it is not like you are getting out of anything by not coming up with a final report now.
@@JordanStambaugh1 Because they are offering a safe harbor if you do. And they are offering a chance to change the way you calculate your cost basis which could actually save you in taxes, example, you can change from FIFO to LIFO, etc. Do you always laugh at things you don't understand?
"We only have a couple weeks to do this and if we do, xyz will happen." "Well we think so, we're not sure." This is a typical response when dealing with the IRS and it perfectly illustrates what is wrong with our bloated bureaucracy.
Koinly for example uses wallet-based cost tracking by default. Does this mean Koinly users (unless they have changed default settings) are already in compliance with new IRS standards for 2025 or is there more to it that that devs would need to work on. None of this is clear.
I've only ever accumulated to self custody. at the moment when i look at taxes section of kraken is says "You haven't been eligible to receive tax forms yet.". Looks like their problem, not mine.
The fact that compliance is this cumbersome should be a tipping point for a complete tax reform. Flat tax and/or tarrifs.. thats it. The fact we're taxed at every step in the process, given next to zero guidelines, and fined/jailed when attempts to comply arent met is unreal.. and for what? Utter incompetence or down right corruption from "elected officials"?
Should be? The intention is to create something that people are bound to screw up. When you screw up, you become a law breaker, and you are owned. The law has no power over good, or innocent people, at least in theory, in a free country.
WTF did you guys just talk about and recommend? This needs to be laid out as: Step 1: Do this Step 2: Do this Step 3: Produce a spreadsheet with these columns: A, B, C, D Step 4: Produce a memo with this content Step 5: Go to this website and do this timestamp Can you please provide something that's clearer?
Andreas is such an intellect in the crypto space, that his questions are bringing clarity to some and extreme fear to others (unintentionally). This video served to pique my interest to do further research (D.Y.O.R. ALWAYS!!!). Finally, this video quality should be far better than it is for these 2 millionaires. They should be ashamed.
I literally just got locked out of an exchange no longer offered in the US. Can no longer even access histories and I know I’m missing some transactions before exporting all trades
I'm pretty sure the IRS is not requiring the taxpayer to list specific wallet addresses. That WAS actually part of the initial proposal, but the IRS backed off from that after it got a lot of pushback (plus, I really don't think the IRS had the power to impose that requirement... absent specific authorization from Congress)
I have always been told to keep every transaction in it's own address, spend the whole amount and don't re-use addresses. Purchases are time stamped so you have cost basis. Are they saying to put all of your transactions in one address? is that not co-mingling. I just don't get what they are saying. Is it all in a Wallet and still keep buys in separate addresses. Coin Ledger is what I have been using the last several years and I don't see why that is a problem.
This was very helpful. Thank you for the information and the explanations. As much as I resent having to comply with onerous and perhaps unjust requirements, I’d rather complain in relative comfort and freedom.
Just keep records of every single crypto purchase and sale you make, including screenshots. Note selling BTC for ETH say counts as a sale of Bitcoin at the market price on that day, with disposal value the market price of the ETH purchased. Giving BTC away is also counted as a disposal at the market price. At end of tax year if you're still at sea, just declare an estimated crypto capital gain and pay the tax on it. Later on if you found out you over-paid you could get a refund.
This underscores the importance of buying all the btc you'll every need NOW. As it appreciates, make all your purchases peer to peer. You capture your capital gains, not govt. You spend it, not a bunch of bloated politicians.
I haven't watched the whole video, but what happens if someone does a bunch of trades on a no-KYC exchange, and then cashes out on an exchange that's linked to a US bank... how does the IRS decide what the "basis cost" is... and might they just "assign" a basis cost of zero...?
Wow. I’m sure there’s great information here, but the host makes it completely unintelligible. I hope I can find this information elsewhere that is presented in a way that we can understand. 😢
This is way too confusing
Yeah it can be very tough unless you were tax minded through day one and kept records of every transactions you have done and it gets even easier if all you have done was buy and hold.
@PunchClock The interviewer started off perfect; but then the interviewee decided to first give everyone a history lesson, then complicate the crap out of it and making it more complicated than it has to be, so everyone thinks he's a guru. I've met many like this, and its off putting. Simplify it first! > Break it down - in order - but then that's too easy; then show off your complicated mind with all the BS CPA details
@@Goldpenny1 that requires the gift of teaching
This video is proof the IRS system is broken
yes, as in they have little concept of crypto.
It is a criminal organization and a masterpiece of deception. It is also 99% bluff.
no taxes on crypto. stand up
@@andrewcrawford7392 I wish 😭
@@andrewcrawford7392 no income or property tax at all. Stand up.
No income or property taxes at all. Stand up.
@@Jefleopard Hyperinflation will be there though 🙄🤕
No taxes period. I don't file, I don't pay, and if you charge sales tax, I don't buy from you. USD is just a payment network that I use as little as humanly possible while I keep all my savings in BTC.
This would have been a much more productive interview if the host had done far less talking/interrupting and let the guest present the information.
Exactly he made this more confusing then it needed to be if he had just let the gentleman talk. I know he did it to get people to watch longer for his views but sheesh.
Because he wanted answers to his personal story instead of letting his guest actually finish and eventually getting to HIS situation. Not professional.
Agreed. Very hard to listen to.
Only interested in his own situation.
Exasperating! It's like watching a movie with constant time jumps or context switches.
They want you to consolidate wallets not for the ease of your tax situation, but for the ease of the government to determine which wallet addresses are yours, it’s a trap
Exactly. Getting the sheep in line before the culling. This also completely defeats the purpose of having Bitcoin in the first place and is contrary to any privacy best practices.
The other thing here is that.... obviously... there's going to be a change of administrations; so the Biden people may get what they want for the 2024 tax year... but maybe not so much after that.
Most likely
Indeed
Legally, you have to tell them which wallets are yours if they ask anyways. This new law sucks, but it's the law.
If you want to track every wallet in separate tax account then go for it, but that sounds so extremely complicated that it's not worth the effort. It's almost impossible to do correctly.
Aside from doing that, the only legal option is to consolidate to a single address. If you don't do that, you are committing tax fraud.
NO FUCKING IDEA WHAT TO DO THIS JUST CAUSED anxiety
Same. This is totally insane.
They would like to scare you into handing over your money. Your choice; freedom or slavery.
I hope Trump gets rid of this
This doesn't make sense. If I bought crypto on one exchange, kept it on that exchange and did not transfer it to my wallet and then sold it on that same exchange. That exchange has all the information pertaining to my buy and sell of that crypto. They're saying to transfer that crypto to my wallet and "cleanse" it. This does not make any sense at all.
@@jondoe7194 that's my strategy, lol
I’m so confused. Please redo this video in a simplified version ?
Yes simple video for the simple people 🙏 🙏.
This was painful. Collect your thoughts, then structure your presentation. A discovery conversation on such a difficult topic is really difficult to get through.
Yes redo it without Andreas what a train wreck...
A video where he doesn't interrupt every 20 seconds would be great I know he did it to drag out the view time but he made this more confusing by interrupting every 2 sentences the guy spoke. Now I have to search for another video where they just explain things without a million interruptions.
@@genet4929 LOL!
You only pay capital gains taxes on what you sell. When you move it from an exchange to a hardware wallet is not a sale.
Supposedly the transaction fee is considered a disposal of crypto, even though it can be a very small amount. You'd calculate the "disposal value" in dollars based on the current market value of the crypto at the time of transfer. You need to keep details of every single transaction you ever make no matter how small, for life, and stretching back to when you first used crypto. Though hopefully CGT on crypto will be abolished one day, it needs to be.
In that case it's a fee so it's a write off I'd think
I've been in the space since 2014, this is the most confusing thing I've ever heard.
Thank you so much !! I’m 30 in and I keep asking myself- did I miss something ?? lol
Agreed... Easier to just go to jail.
Agreed, also consolidating wallets / utxos can be a huge privacy issue, not sure we should be advocating for this?
Been trying multiple softwares with too many holes since 2019...not even close to fixing these reports
OMG! What was it like? ..being in space. Were you onboard the ISS? Did you lose muscle mass? Was it hard readjusting to walking with gravity?
That was rough… Andreas interrupted the tax guys thought process so often, it was hard to follow. 🙄
Agreed. It was such a choppy conversation, there weren't concise summaries, the video is extremely long, and to top it all off it's in 360p in 2024 (and I don't think that's just UA-cam HD quality delay because it has been a day). I appreciate the content, but the production quality and structure leaves much to be desired.
I have no problem paying taxes, but this is clear as mud. are tax payers really expected to be experts at tax law?
Exactly! If crypto tax software hasn't implemented these changes yet, none of use are tax experts to be able to manage this.
The other issue is that, even if you calculate your tax obligation correctly, you might not be able to obtain all the documents needed to PROVE that you calculated it correctly.
Income tax is slavery.
@@dlukton exactly . due to the gov extorting or regulating some of these exchanges out of existence . i feel there's a big scam here
@@dlukton Yeah I messed around on exchanges that don't even exist anymore. Since it was the beginning of crypto for me I had no clue what I was doing, records don't exist because the exchange doesn't exist. I'll just move El Salvador or a different crypto friendly jurisdiction. The US is out of control and not what it's supposed to be anymore.
I love you jumping in and talking but can we let the tax guy get to the point so we can understand the issue. I have anxiety for 45 minutes because I can't figure out what we're actually talking about.
Tax rules and FAQs are designed to be incredibly vague and with no interpretation written in law. It ensures advisors and accounting software stay in business. It's part of the circle of life.
I would add that the communication was a bit rough. It might have been better to let each other speak before stepping on each other's sentences. Clearer examples would also have been helpful.
@@andrewy3711 I’m on my second run with this video. Still unclear as to what I’m supposed to do before the end of the year. He says there’s no software that does what they want now but then at the end says CoinTracker does do it.
This comment is underrated. I thought it was OK at start but then it got more and more annoying.
Dude, how much bank are you holding that you getting anxiety? 😂
Im 40 minutes in and don't understand anything besides i should move to Uae
Look forward to your exit taxes.
@@bujin5455 hardware cold wallet and a dex when he gets there. Exit taxes what? lol
@@satoshislim863 depends on what they already know about. (Were these KYC'd?) You can play that game if you want, but the US/IRS aren't all about people playing games with them. Ante up at your own discretion.
This burden is REAL. I’m financially fluent and have been wrestling with crypto reporting/tax prep for years (I refuse to pay someone to do this). If you’ve always been a 1 account/exchange person, this whole process is SIMPLE. But damn, if you’ve been around a while in crypto, you’re absolutely going to have atleast 3/5/7+ accounts/wallets… which turns this exercise into an absolute nightmare.
Step 1 of simply tracking down & consolidating your lifetime transaction history per coin from all the OG exchanges is damn near impossible from the start. Considering many of those exchanges straight up DONT EXIST anymore or locked out their US-based account holders.
No one’s going to do this. And I don’t trust the IRS with this whole Safe Harbor bullshit.
Could we not just treat all our Bitcoin as fungible irrespective of exchange/wallet ? That way its like owning multiple shares of a single company - how does IRS treat shares ? In UK we just use the same Share Identification Rules for crypto as we do for shares. This video is very bad.
Cointracker can tell you every transaction on the blockchain as long as you have your addresses you sent your crypto.
Digital currency are completely transparent. Except Monero.
I bought my cryptos with my already TAXED money..
THIS PART!!
Unless you bought and sold crypto in a ROTH IRA you are liable for capital gains tax if you held it for a year or ordinary income tax if less than a year.
@@DangerClose13E Just don't pay it...
Americans are sometimes funny to me. You are obsessing over irrelevant things.
Your money?😂 who told you is yours??
correct
It’s really annoying to me that this expert is acting like he understands all of this, except he really doesn’t. But he comes off as someone who fully understands this.
He keeps saying yes that’s correct but he starts contradicting whats being said and gets confused
That's because tax in itself is theft.
What a poor job explaining 👎🏼
The bottom line is this ... the IRS wants to ban the universal method of assigning cost basis because it's not as accurate as they want. If I bought1 SOL at $100 last year and 1 SOL at $200 this year, according to the universal method I can sell any one of the coins with the cost basis of $200 (with HIFO method), leaving $100 of unused cost basis to be used when I sell the other. The IRS wants to make sure that if I sell the SOL I bought last year then I use the $100 cost basis. I don't understand why so much discussion about what different wallets I keep them at. It doesn't matter where I keep them. Just because I move a coin to another wallet, that doesn't change its initial cost basis. It's "when" I bought it that creates a specific "tax lot" and that cost basis follows a specific "tax lot." I have to do more research but it seems as though "safe harbor" means, I can create a new "book" that is a new starting point of cost basis for all my assets.
What if I sell all my sol that I bought at different times all more than one year ago? Can I just use an average cost basis?
1. Get BTC off exchange
2. Consolidate to as few wallets as make sense
3. Keep good records
@RobOK_BTC yeah, but if you have like 30 different tokens do we keep each one on a different wallet? Ex. 30 wallets?
Records for who ????
@@littlered7820 exactly, what is this person even talking s about lol. BTC and "keep good records" does not make sense at all 😂
I’m 52 hoping to end the rat race by 60 with above $1M. I know money is a liability to be exchanged for assets with real value like real estate (properties for rent) stocks (dividends) bonds (interest) But, what is it with bitcoin? I hear a lot about it and I'd love to diversify my portfolio.
bitcoin does not pay any yield but will reward you with growth that you can't find in any other asset class
WHAT
SUP
+1980
203
AA, please don't give the IRS too much credit regarding them being do gooders. The IRS has been given a HUGE amount of extra funding. Given that, the IRS will have to justify that extra funding by going into super-aggressive auditing mode and taking aggressive positions against the taxpayer. The IRS is not your friend, and don't expect that this agency will be compassionate. If the IRS is auditing you, 99 times out of 100, the IRS expects to collect extra money from you.
I Trump gets rid of this
This video itself is too complex. Ironic, given how it purports to deal with more complexity. I’ll await a more straightforward explanation.
I'm grateful for those who have commented here about how confusing this episode was. It's great to see Andreas though! WB!
@@j2csharp beyond confusing. And I actually already knew about and filed safeharbor. This was a jargon filled convo between two guys rather than education
This has got to be the Winner of the “Top Interruptions” race on UA-cam.
Appreciate the attempt 🙏 but the “format” made it virtually impossible to understand 😢
Completely agree here.
If only he would let his guest talk and explain first. Otherwise this turned into a private conversation.
Soooo…..just don’t sell. Then nothing to report, right?
There is eventually something to report. Even if you sell nothing during your life, when you die there are estate taxes to be calculated. And if you are a U.S. citizen and decide you don't want to pay taxes anymore so you change your citizenship, there are exit taxes that are calculated as if you sold all your holdings at the time you renounce your U.S. citizenship. So you might as well do the work up front, obtain the Safe Harbor protections against potential penalties, and do things properly going forward as well. Such a P.I.T.A. but that's taxes and government for you.
The 2017 tax act is expiring at the end of 2025. At the same time, the Republicans will have control of the White House & Congress for the next two years; as such, it's virtually certain that they'll pass a tax bill in 2025 (and maybe 2026 also). While crypto isn't high on the list of tax concerns of the GOP politicians, I think they'll at least mention it in their bill. But in any case, the tax rules for crypto will likely change over the course of the next two years.
agree
I hope so; this is ridiculous
“Not high on the list of tax concerns” in GOP? Um… where have you been? It’s VERY important to the right people. Ever hear the names Vance, Vivek , or Musk?
@AdamChadwick I haven't heard them talk about crypto taxes. Besides which, Mitch McConnell doesn't give Trump everything he asks for.
Holy shit the goat is back
A "rule" is not a law. When confronted with lawfare of laws on the books, IRS will always acknowledge, eventually.,
Maybe just hold for a few years. Bitcoin will be considered money very soon by most governments and you won’t have to go through this. IRS has made it impossible to comply. Which is entirely the point.
This makes repealing the Federal Reserve Act much desired.
How the hell is the typical person supposed to manage this? This is totally F'd up!!!
I already knew about this safe harbor (not safe haven as AA refers to it) and went through this pain in the you know what process. 99% of people won't do it and shouldn't be punished for it. This video is kind of late in the year, unfortunately.
I have some free time the last week of this year: do you have any tips on how to do this?
I can get my crypto off the exchanges, most of it already is . The rest seems a bit confusing so I’d rather ask someone who already did it.
I might be asking a lot so please, any tips would be much appreciated.
Sounds like a good way to do this is just average your cost basis across all of a specific coin and call it that.
HIFO is typically the best way to minimize your annual tax burden. However, the problem is when HIFO causes transactions to result in short term capital gains instead of long term capital gains. In my opinion, specific identification is the best. Just have to make sure that the lot specified is done at the time of or before the closing out of each given transaction.
Koinly lets you 'lock' your cost tracking method so if you were using universal, you can switch to 'wallet based' without affecting previous years.
This is way too complex.. I think this is done on purpose,
just to confuse people. That's what the IRS does.
I think you are right. It could be a tactic to loosen up Bitcoin for the legacy pirates and rats to acquire before 7 figure Bitcoin.
DOGE needs to make tax reporting simpler and more efficient. This is so confusing…
Yeah I’m not gonna do that.
😂
He doesn let the guy talk. keeps asking questions interrupting
Andreas made this so complicated because he is stopping the poor guy every minute to ask questions and show that he understands. Just let the guy talk....
Excellent! Thank you. It will take me viewing this a few times to understand it. I'm also sending this to my crypto software, my accountant, my crypto mentor and my crypto friends, Hopefully between us, we'll know what to do.
This is absurd. It will be challenged.
camus insisted life is absurd
@ferndawg1111 you got me there.
Yeah, like many other federal agencies, the IRS is claiming authority that the Congress never gave it.
It WAS challenged and finally went through. This was literally law by like last Dec or Jan but clearly many here didn’t hear about it
I really hope so. This is as evil as current tax law is in the US. Anti-freedom, anti-capitalism, anti-progress…
The lesson I took from this is just don't sell your bitcoin.
no regulations no taxes.simple
Excellent and timely video. I have some more research to do but appreciate this clear explanation of what I need to do. Just glad I found this before the end of the year!
Anybody earning less than 500 Gold Oz annually should be exempt from filing at all.
I need a bullet point breakdown of what this means.
This is the first video I've seen on this topic and I subscribe to alot of crypto channels. This tells me that majority of people are not aware of this.
this was terrible make a 15 minute version and teach us something
As a noob I appreciated every minute of this dialogue! Thank you!
I think I’ll just hodl… this is debilitating!!!
I will not report my cold storage btc thank you.
They are not asking you to report to the IRS all of your crypto holdings now. They are simply asking you to declare in a report, all of your cost basis in all of your crypto for the future in case you get audited. You realize that if you get audited you will have to prove your cost basis anyways, so it is not like you are getting out of anything by not coming up with a final report now.
@@RyanMasog then why care at all and do it now lol
@@JordanStambaugh1 Because they are offering a safe harbor if you do. And they are offering a chance to change the way you calculate your cost basis which could actually save you in taxes, example, you can change from FIFO to LIFO, etc. Do you always laugh at things you don't understand?
you only report whatever you sell.
Andreas, love you man. Thank you for reaching me about Bitcoin and monetary policy.
"We only have a couple weeks to do this and if we do, xyz will happen."
"Well we think so, we're not sure."
This is a typical response when dealing with the IRS and it perfectly illustrates what is wrong with our bloated bureaucracy.
we only have to fill out the 1 form before dec 31 and keep it in our records . we have til next tax season to file taxes tho
@NWforager you miss my point.
Qarden Token is easily going to hit $1 this month
@@SedatCeyhan-e1l I’ve heard that before.. promises that never happen
Well hope Trump keeps his word and not tax crypto so ALL this nonesense is not needed...they are still trying to cut out poor people
Haven’t seen this legend in awhile. Good to see you’re still at it.
What a treat to find you again, Andreas.
A treat with a tax threat.
Koinly for example uses wallet-based cost tracking by default. Does this mean Koinly users (unless they have changed default settings) are already in compliance with new IRS standards for 2025 or is there more to it that that devs would need to work on. None of this is clear.
I've only ever accumulated to self custody. at the moment when i look at taxes section of kraken is says "You haven't been eligible to receive tax forms yet.". Looks like their problem, not mine.
They always try to make their problem your problem.
This is painful to watch. Why cant you let the gentleman explain what is going on without you constantly interupting.
The fact that compliance is this cumbersome should be a tipping point for a complete tax reform. Flat tax and/or tarrifs.. thats it. The fact we're taxed at every step in the process, given next to zero guidelines, and fined/jailed when attempts to comply arent met is unreal.. and for what? Utter incompetence or down right corruption from "elected officials"?
we need a giant petition ASAP
Should be? The intention is to create something that people are bound to screw up. When you screw up, you become a law breaker, and you are owned. The law has no power over good, or innocent people, at least in theory, in a free country.
Why before year end? Can we not submit before April First?
So basically have your cost basis. Then have each address tied to that coins cost basis so they know where it came from.
Way too much fluff.. You could’ve said the same thing in about 10% of the length.
Walmart and Qarden Token just signed a collaboration??
Your cost basis is based on the exchange you bought it from not the wallet you sent it to. That part confuses me.
WTF did you guys just talk about and recommend? This needs to be laid out as:
Step 1: Do this
Step 2: Do this
Step 3: Produce a spreadsheet with these columns: A, B, C, D
Step 4: Produce a memo with this content
Step 5: Go to this website and do this timestamp
Can you please provide something that's clearer?
I believe Qarden Token will go 100x after launch on Binance
Maybe the info would be faster if the interviewer would just let the man talk for more than 3 minutes.
and when the world needed him most, he returned
Man, always good to hear from the OG!
Happy to see you again Andreas!
Love you Andreas! Glad to see you!
Pray to God this all gets thrown out in the coming months. Completely insane
Thanks!
Andreas is such an intellect in the crypto space, that his questions are bringing clarity to some and extreme fear to others (unintentionally). This video served to pique my interest to do further research (D.Y.O.R. ALWAYS!!!). Finally, this video quality should be far better than it is for these 2 millionaires. They should be ashamed.
This is so interesting for the American market. Do you have any similar information for the Australian environment?
what if the exchange you bought your coin on is now defunct?
Exactly.
I literally just got locked out of an exchange no longer offered in the US. Can no longer even access histories and I know I’m missing some transactions before exporting all trades
@@kdub3288 Yep, happened to a lot of people.
Software platforms will need to update their standards. Who the hell is going to be able to figure this out?
You never want the same address for security purposes. How does that work.
I'm pretty sure the IRS is not requiring the taxpayer to list specific wallet addresses. That WAS actually part of the initial proposal, but the IRS backed off from that after it got a lot of pushback (plus, I really don't think the IRS had the power to impose that requirement... absent specific authorization from Congress)
I have always been told to keep every transaction in it's own address, spend the whole amount and don't re-use addresses. Purchases are time stamped so you have cost basis. Are they saying to put all of your transactions in one address? is that not co-mingling.
I just don't get what they are saying. Is it all in a Wallet and still keep buys in separate addresses.
Coin Ledger is what I have been using the last several years and I don't see why that is a problem.
Agree… this is stupid confusing…
Andreas,, let your guest speak. He is trying to teach us and you just keep sending him off topic. Yiu are not helping.
This was very helpful. Thank you for the information and the explanations. As much as I resent having to comply with onerous and perhaps unjust requirements, I’d rather complain in relative comfort and freedom.
Andreas i love you. But you gotta let your guest talk. You made it more confusing. Let him talk then ask questions. Refering to first exchange
Great to see you making videos. Thanks for educating me a decade ago. ❤
This shit is so confusing …. Makes me want to sell everything and walk away.
For real.
That's exactly what they want.
@@brentromine1505 yep, I think I'm out too. MSTR seems much easier to hold.
Just keep records of every single crypto purchase and sale you make, including screenshots. Note selling BTC for ETH say counts as a sale of Bitcoin at the market price on that day, with disposal value the market price of the ETH purchased. Giving BTC away is also counted as a disposal at the market price. At end of tax year if you're still at sea, just declare an estimated crypto capital gain and pay the tax on it. Later on if you found out you over-paid you could get a refund.
This underscores the importance of buying all the btc you'll every need NOW. As it appreciates, make all your purchases peer to peer. You capture your capital gains, not govt. You spend it, not a bunch of bloated politicians.
I’ve been watching alotnof ur videos lately love ur content
So what exactly do we need to do in the next two weeks?
Exactly! I'm so lost lol
@@rkeyology81 That's on purpose. They make it so confusing so that everyone is fucked and paying the highest taxes possible. It's criminal.
@@BitcoinBrooks ….. don’t sell.
This is incredibly useful information. I appreciate your work bringing this information to us. Thanks
Question please:
54:30 do you need to put in the report ALL the bitcoin transactions you’ve ever done, or the ones from 2024 only?
Thanks so much for this video. Lots of good info and a great jumping off point for me to get started !
I haven't watched the whole video, but what happens if someone does a bunch of trades on a no-KYC exchange, and then cashes out on an exchange that's linked to a US bank... how does the IRS decide what the "basis cost" is... and might they just "assign" a basis cost of zero...?
I have no idea what is being said, it really is too complex.
Dude youre the host, just shut up and the let the guest talk, he started it well and you made it more confusing, its about your audienece not you
How do you do step one?
The more i stay in this video, the more messy gets, thats what we get for having baby boomers at congress 😂😂
Wow. I’m sure there’s great information here, but the host makes it completely unintelligible. I hope I can find this information elsewhere that is presented in a way that we can understand. 😢
I had to take a second glance to realize this was Andreas. Hope Trump makes good on his promise to eliminate crypto taxes.
Qarden Token is awaiting major CEX listings. It's possible to hit 100x this year.