Hey @Mikey V. It depends on what activity caused the loss. If it was due to mining, you should be able to write it off and offset other earned income you have. If it was a loss strictly related to trading, you may be capped at $3,000 and have to carryforward additional losses to future years.
Thanks for the breakdown! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
If I buy some other crypto, with USDC then I think I should be able to do that as a swap, because USDC = 1 USD. I had some transactions that got hosed up and it thought the USDC's cost basis was 0.50 or less, so to me it makes sense to classify using USDC for the purchase of the other crypto currency, classifying that transaction as a swap makes sense? I am not an expert, and this is a question, not an answer.
hi Navi thanks for the video super helpful! I purchased a STRONG node token which initially costs 10 Strong as a sunk cost (I can't get this back), and then I receive Strong token rewards over time. Would I be able to deduct the initial cost basis of the 10 Strong from my earnings over time (to do this I would need to file as a sole proprietorship correct?)? I would assume my earnings over time are considered ordinary income with the cost basis of the time I received it, just not sure how to best deduct
what happens if u mainly held for a long period of time but small portion of the profit was received from staking. After I cash out, is the whole thing taxed as normal income or only the staking rewards?
If a vehicle is required for the use of the business, is the vehicle payment a tax deduction? And, can you depreciate the vehicle while making payments?
He explains in the video. If you made profits, the profits is taxable. He said, if you purchase $250 of Ethereum and your Ethereum grew to $400 and bought lite coin with those $400, then $150 that you made is taxable. In other words, if you don't make profits, it's not taxable, I think
You did not cover the how to calculate the sales price of the crypto you "sold" in a swap and the "cost basis" of the crypto you bought in the swap and how the fees are allocated. What you did do is oversimplify a swap and that means people will be paying more taxes than they need to, since the fees are not accounted for in your model.
Thank you for the explanations. Very helpful! Are realized losses tax write off?
Hey @Mikey V. It depends on what activity caused the loss. If it was due to mining, you should be able to write it off and offset other earned income you have. If it was a loss strictly related to trading, you may be capped at $3,000 and have to carryforward additional losses to future years.
Yes trading. Got it. Thank you!!
Hello! Are the coins I received as a test coins for spending on a testnet for airdrop is a taxable event?
Thanks for the breakdown! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?
alright so if i bought solana at 150$ and swap it for btc when solana went down to 100 , i can fill a loss taxable event ?
If I buy some other crypto, with USDC then I think I should be able to do that as a swap, because USDC = 1 USD. I had some transactions that got hosed up and it thought the USDC's cost basis was 0.50 or less, so to me it makes sense to classify using USDC for the purchase of the other crypto currency, classifying that transaction as a swap makes sense? I am not an expert, and this is a question, not an answer.
hi Navi thanks for the video super helpful! I purchased a STRONG node token which initially costs 10 Strong as a sunk cost (I can't get this back), and then I receive Strong token rewards over time. Would I be able to deduct the initial cost basis of the 10 Strong from my earnings over time (to do this I would need to file as a sole proprietorship correct?)? I would assume my earnings over time are considered ordinary income with the cost basis of the time I received it, just not sure how to best deduct
Great video… thx
What happens at tax time if you have lost access to your wallet or got scammed for you BTC?
Didn't see the Celsius promo code, can you share?
Can someone open a business account like an LLC to trade crypto?
what happens if u mainly held for a long period of time but small portion of the profit was received from staking. After I cash out, is the whole thing taxed as normal income or only the staking rewards?
If a vehicle is required for the use of the business, is the vehicle payment a tax deduction? And, can you depreciate the vehicle while making payments?
what are the taxes on staking?
What are the taxes on swapping a coin do I have to pay any ?
He explains in the video.
If you made profits, the profits is taxable.
He said, if you purchase $250 of Ethereum and your Ethereum grew to $400 and bought lite coin with those $400, then $150 that you made is taxable.
In other words, if you don't make profits, it's not taxable, I think
@@mercantilism954anything taxable work both side usually , so if ur losing money when u swap u should make a loss event tax
So you essentially paying tax on the gain after swapping and after cashing out. Daylight robbery!
@@nogvdub88 u buy solana at 100 swap at 150 for avax u pay tax , then ur avax worth 25 u sell it at 50 u pay tax again yes its logic
You did not cover the how to calculate the sales price of the crypto you "sold" in a swap and the "cost basis" of the crypto you bought in the swap and how the fees are allocated. What you did do is oversimplify a swap and that means people will be paying more taxes than they need to, since the fees are not accounted for in your model.
Would livececokanation and examples of fifo lilo and Hilo not sure of last one.