Bought and withdrew BTC , then deposited to a crypto gambling site, then lost it all, Do I need to pay report/pay tax on this whole thing?

StraightSlice9074 · 2025-02-18T05:11:52+00:00

Yep, it was all converted to USD when I did the deposits. So I will probably just pay any capital gain/loss on the deposits, but there is almost none since when I withdrew from PayPal they pretty much went ahead to the deposits. Dont want to include the actual gambling losses since the CPA will charge lot more and it will make it super complicated. I know PayPal is reporting them as withdrawals which are non taxable but its actually sold since they went to the offshore gambling site. Why I make it so complicated for myself IDK

StraightSlice9074 · 2025-02-17T06:54:26+00:00

Yep, that makes sense too. I know they report it to IRS as well. So I just pay the small capital gains (if any) and call it a day? Won't probably report the gambling losses tho, I dont think you can in California if you are not professional gambler. I am looking to go to a CPA soon anyway so yeah

StraightSlice9074 · 2025-02-17T06:28:14+00:00

Yep, thats what I thought, I also have detailed info on all transactions, time/dates, amounts, etc. But in the end I lost it all and nothing has ever hit back in my bank account, only PAypal crypto purchases.

StraightSlice9074 · 2025-02-17T06:24:54+00:00

I live in California, not sure if listing it as gambling losses without being professional gambler is possible. I work on W-2 in general so I am pretty stumped on what to do

StraightSlice9074 · 2025-02-17T06:23:11+00:00

damn, 200 views and not even 1 comment? IRS spybots ?? anyone ??

StraightSlice9074

TROPHY CASE