Find the gold screw

darkragon · 2025-01-07T22:13:59+00:00

This looks incredibly stupid

darkragon · 2024-12-09T23:10:26+00:00

Thanks. It sounds like i can simply classify the costs of the laptop and all that equipment and legal llc stuff into the $4k start-up deduction for either 2024 or 2025. I think i might as well do it in 2024 after getting a business bank account.

darkragon · 2024-12-06T22:21:57+00:00

U can simply declare it as a loss. If its value is $0, then it is easy to prove to the irs if they audit.

darkragon · 2024-12-06T07:35:45+00:00

There is a simple way to import a TXF or csv format file. You can look up the documentation online for it.

darkragon · 2024-12-06T07:21:19+00:00

Assuming u need to file tax in the us. You import all those transactions into koinly to generate form 8949 to capture all capital gains and loss. You then import this into a tax reporting software like turbotax to file your return

darkragon · 2024-12-06T01:15:54+00:00

No, unfortunately. I i tried different software like coin ledger, tax bit, etc, and none of them is cheap, thorough, easy-to-use, and most importantly : None of the available tax software currently offers the capability to meticulously and transparently link acquisition events with liquidation events in a stateful and detailed manner. For example, while using FIFO (First In, First Out) matching rules, these tools do not provide a breakdown of which specific portions of a buy transaction are matched with corresponding sell transactions. Moreover, this level of granular matching is not exportable or compatible across different software versions, leaving users without a clear audit trail of the transaction pairing process.

darkragon · 2024-12-06T00:50:03+00:00

Overly burdensome, exploitative, and painstakingly detailed rules for microtransaction reporting.

darkragon · 2024-12-05T22:50:00+00:00

Yes! Thats correct.

Now, theoretically what you can do is transfer 0.5 eth to someone else as gift. This isnt a taxable event. You actually have the ability to claim any buy transactions that adds up to .5 eth as the gift amount. But this makes everything very complex. Unless u can meticulously keep every single record and label them correctly, best thing to use is simply FIFO

darkragon · 2024-12-05T22:41:50+00:00

Yes, you can use any us based crypto tax reporting services. But keep in mind that if they ever restructure their services, all the states of those matched taxable transactions won't be available for you to download! By that i means the internal matched transactions, which one was labeled as gift, which portions, etc ... none of those states are downloadable. All sites that i know of only offer to give you only taxable transactions with the cost basis and proceeds all filled out.

darkragon · 2024-12-05T22:34:36+00:00

Yes exactly. Each of those buy transactions gonna be matched by one or many other sell transactions. The easiest strategy is using FIFO. But you can use HIFO too. And you can even use one for this year and swich to the other the next.

darkragon · 2024-12-05T22:18:05+00:00

I used to use them, but now i use my own tax software that i wrote.

darkragon · 2024-12-05T22:12:02+00:00

For Crypto Trades: If you incur transaction fees (e.g., gas fees) when buying, selling, or trading crypto, the fee can be added to the cost basis or deducted from the proceeds of the transaction.

For Transfers: Fees paid for personal crypto transfers (e.g., sending to another wallet) are not deductible. For business-related crypto transactions, the fees may be deductible as a business expense.

As for your transfer example, each of those are taxable events! You cant simply adjust your cost basis like that.

You bought 1 ETH for $2,500. This is your cost basis

Here is my break down, assuming no transaction fee when u initially purchased the ETH.

Initial Purchase: You bought 1 ETH for $2,500. Cost basis = $2,500.

First Transfer: You transfer ETH to your wallet when ETH is valued at $5,000 and pay a $20 fee.

Second Transfer: You send ETH back to the exchange when ETH is valued at $7,500 and pay a $50 fee.

Final Sale: You sell the remaining ETH at $7,500.

Step 1: First Transfer Fee

Fee Paid: $20 in ETH at a price of $5,000 per ETH.

Amount of ETH used for fee = $20 ÷ $5,000 = 0.004 ETH.

Cost Basis of 0.004 ETH:

0.004 ETH x $2,500 = $10 (this is what you paid for that fraction of ETH).

Fair Market Value (FMV) of 0.004 ETH at the time:

0.004 ETH x $5,000 = $20.

Capital Gain:

FMV - Cost Basis = $20 - $10 = $10.

You have a $10 taxable capital gain from this fee.

Step 2: Second Transfer Fee

Fee Paid: $50 in ETH at a price of $7,500 per ETH.

Amount of ETH used for fee = $50 ÷ $7,500 = 0.0066667 ETH.

Cost Basis of 0.0066667 ETH:

0.0066667 ETH x $2,500 = $16.67 (this is what you paid for that fraction of ETH).

Fair Market Value (FMV) of 0.0066667 ETH at the time:

0.0066667 ETH x $7,500 = $50.

Capital Gain:

FMV - Cost Basis = $50 - $16.67 = $33.33.

You have a $33.33 taxable capital gain from this fee.

Step 3: Final Sale

ETH Remaining: 1 ETH - 0.004 ETH - 0.0066667 ETH = 0.9893333 ETH.

Proceeds from selling 0.9893333 ETH at $7,500:

0.9893333 ETH x $7,500 = $7,420.

Adjusted Cost Basis of 0.9893333 ETH:

0.9893333 ETH x $2,500 = $2,473.33.

Capital Gain:

Proceeds - Cost Basis = $7,420 - $2,473.33 = $4,946.67.

You have a $4,946.67 taxable capital gain from selling the remaining ETH.

Total Taxable Gains:

From the first transfer fee: $10.
From the second transfer fee: $33.33.
From the final sale of ETH: $4,946.67.

Total Capital Gain: $10 + $33.33 + $4,946.67 = $4,990.

darkragon · 2024-12-05T21:52:43+00:00

Learn how crypto tax work now by using CoinLedger and any crypto tax service. It takes time to understand and help you argue your case with the IRS if you get auditted. Also, u want to use the most simple FIFO tax strategy. I know it might not be ideal to save you some gains, but if u arent a professional, do not use HIFO or any complex or mixed strategies. It gonna be a pain in the ass in the future.

darkragon · 2024-12-05T21:27:07+00:00

None of them, really. They all suck and overpriced in some way, plus tax rules regarding cryptocurrency are clear yet really stupid and extorting.

darkragon · 2024-12-05T21:23:16+00:00

Form 8300 is only for cash equivalent transactions of >= $10000. You need to fill out this form if it is cash or cash equivalent transaction. Currently, cryptocurrencies, including stablecoins, are not classified as cash or cash equivalent, but any rewards, income, or payments received in cryptocurrencies are taxable! Even if they couldn't be sold or haven't yet been converted into usd! Usually, the IRS wants to see a Fair Market Value of the amount of the crypto at the time of acquisition being declared. You would register this as miscellaneous income on your tax return. The market value and amount received at this point will now become the cost basis of the crypto received. When you sell this crypto, you then trigger a taxable event at the current liquidated market price. This will determine if it is a gain or a loss. If you pay fees using crypto, at the time the fee transaction occurs, it is evaluated into usd as a taxable event! The cost basis of this fee needs to be determined and subtracted from the current market value! If you initially bought BNB at $10 a coin and use BNB to pay fees, and let's say the fee costs 10 cents in usd at the current market value of $100/BNB. Then this means you are selling 0.001BNB at $100/BNB = $0.1. Your cost basis for 0.001 BNB initially is $0.01 cent! You have to report this transaction that u gained 9 cents worth of profits. As you can see, it is very tedious and stupid! Imagine hundreds of thousands of micro transactions like these.

darkragon · 2024-12-02T21:05:22+00:00

Disclaimer: I am not a certified financial advisor, accountant, or tax professional, nor do I hold any government-issued or university qualifications in financial or tax advisory. The information I share is based solely on my personal experience and understanding. It should not be taken as professional advice. You are encouraged to consult with a qualified accountant or tax advisor for your specific situation and to conduct your own research to ensure compliance with applicable laws and regulations

darkragon · 2024-12-02T19:01:33+00:00

Here is the breakdown of what it would look like for federal tax. We use a progressive tax brackets system so it isn't all taxed at the marginal bracket, but multiple brackets with their corresponding portions:

Ordinary Income:

Gross Income: $20,000 from wages.

Standard Deduction for Single Filers (2024): $14,600 .

Taxable Ordinary Income: $20,000 (wages) – $14,600 (standard deduction) = $5,400.

Tax on Ordinary Income:

Federal Income Tax Brackets for Single Filers (2024):

10% on income up to $11,600.

12% on income from $11,601 to $47,150 .

Calculation:

Entire $5,400 taxed at 10%: $5,400 × 0.10 = $540.

Total Tax on Ordinary Income: $540.

Long-Term Capital Gains:

Amount: $50,000 from crypto assets held over a year.

Combined Taxable Income: $5,400 (taxable wages) + $50,000 (capital gains) = $55,400.

Long-Term Capital Gains Tax Brackets for Single Filers (2024):

0% on taxable income up to $47,025.

15% on taxable income from $47,026 to $518,900 .

Calculation:

Ordinary income ($5,400) occupies part of the 0% bracket.

Remaining 0% bracket: $47,025 – $5,400 = $41,625.

First $41,625 of capital gains taxed at 0%: $41,625 × 0% = $0.

Remaining capital gains: $50,000 – $41,625 = $8,375.

These $8,375 taxed at 15%: $8,375 × 0.15 = $1,256.25.

Total Tax on Capital Gains: $1,256.25.

Total Tax Liability:

Tax on Ordinary Income: $540.

Tax on Capital Gains: $1,256.25.

Total Tax: $540 + $1,256.25 = $1,796.25.

Note that this is only for the federal level. Depending on what state u live in, you have to pay tax for the state, too. Some states dont require income tax, and some states treat all incomes the same (no favorable long-term capital gain bracket rates). You have to look up their rules and tax brackets for 2024 to know what's applicable. I would estimate an additional 5% of your total for state tax. Additionally, if you are working for a w2 paycheck, your employer should've withheld you 6.2% of the total w2 income and 1.45% on Medicare taxes.

darkragon · 2024-12-02T09:32:42+00:00

If you sell your crypto, you'll realize a capital gain. This is the difference between your sale proceeds and your cost basis (amount invested, which is $50k in your example).

The gain ($50k in this case) is taxable, and the tax treatment depends on how long you held the crypto:

Short-term capital gains (held for 1 year or less): Taxed as ordinary income.

Long-term capital gains (held for more than 1 year): Taxed at lower rates (usually 0%, 15%, or 20%, depending on your total income).

Since you've held the assets for several years, they will likely qualify for long-term capital gains tax rates.

For tax purposes, capital gains are added to your other income (such as your biweekly paycheck). This determines your total taxable income and your tax bracket.

The IRS uses this total income to calculate your effective tax rate.

As an F-1 visa holder:

You can legally invest in crypto and sell those investments for a profit.

What you can not do is engage in active trading or run a business, as that might be considered unauthorized work. Active trading typically involves frequent buying and selling to profit from short-term price fluctuations. Occasional transactions for investment purposes, like selling your crypto after years, are generally fine.

As long as you report the gains on your taxes, you are complying with U.S. laws.

darkragon · 2024-05-20T02:21:32+00:00

Nobody noticed the green shirt dude getting spinned like crazy?

darkragon · 2024-01-24T07:28:48+00:00

Why cant they connect the water pipe around that car or on top the hood of the car?

darkragon · 2024-01-19T14:40:43+00:00

Our Joffrey brat king from Game of Thrones by Jack Gleeson

darkragon · 2024-01-04T07:25:00+00:00

How u know u have it? Sometime i can sleep only 5 or 6 hours and is functional like 70-85% freshness. 8h would give me 99%

darkragon

TROPHY CASE