Best way to cash out btc without raising tax issues?


Member Supporter
Just learned with my last two hours plus researching the tax implications of cashing out btc to usd. Any advice? does it differ from bank acct cash outs to say a cc linked cash out etc? So much to learn you almost must literally be a tax attorney. Anyone actually plan to ever claim their tax liable btc cash outs? I don't even know where to start, have cashed out to my bank a couple times, fairly low amounts... Discuss and advise if you please
If you are looking for the legally-responsible and IRS-compliant answer, check out Libratax:

"Before LibraTax, accurately calculating gains and losses for cryptocurrencies was extremely challenging, if not impossible. We created Libra to eliminate that challenge and deliver reporting and record keeping that lives up to modern financial standards. Whether you want to simply track the performance of your investment or maintain IRS compliant records, we have developed a comprehensive solution that is built from the ground up specifically for cryptocurrency. The app supports all activity types like trading, holding, spending, mining, gifting, tipping, and donating. It works automatically with transactions that are “on-blockchain” or “off-blockchain”. Best of all, once you have your wallets connected, your transactions will sync in real time. Finally, you have a way to visualize your performance across multiple wallets and exchanges in real-time.

"In addition to this, users have the freedom to adopt any cost basis method imaginable – FIFO, LIFO, Average, or “Libra Optimized” (a custom “selective” methodology). With our optimized approach, a method that is used by the most savvy equity traders, your reportable gains can be algorithmically minimized, potentially saving you thousands in tax obligations."

Source: Libra | Libra for Individuals

The IRS has already issued guidance on Bitcoin taxation early this year. Bitcoin will be treated as property and taxed as capital gains (losses). It's an accounting nightmare for heavy bitcoin users. Fortunately, there are some apps that may help for those who want to pay taxes:

The Bitcoin Taxman Cometh: Calculating How Much Crypto-Investors Owe IRS Could Be Easy

Libra | The Enterprise Layer for Blockchain Technologies


Sponsored Links