MESO-Rx

Anabolic Steroids

Handling taxes on crypto purchases

boophomet

boophomet

Member
I'm going through taxes right now and it seems like the IRS is taxing crypto more seriously so I'm going through my coinbase records to prepare the 1099. They ask for the purpose of my transactions to wallets off exchange to determine the tax event. Obviously I don't want to tell the IRS "I bought controlled substances with crypto" but I also don't want to dig myself a hole by reporting completely incorrectly.

My process for using crypto follows:
Buy LTC (mostly) -> send to personal wallet -> exchange for xmr (for vendors that accept, for vendors that don't ignore this step) -> send payment to vendor

Since I'm sending to my own wallet from the exchange technically the event would be sending a transfer to myself, but the IRS could simply look at the receiving wallet that coinbase logged and see that it no longer holds the coins. Is this not as big of a deal as I'm making it out to be or should I report these as payments to be safe?
 
boophomet said:
I'm going through taxes right now and it seems like the IRS is taxing crypto more seriously so I'm going through my coinbase records to prepare the 1099. They ask for the purpose of my transactions to wallets off exchange to determine the tax event. Obviously I don't want to tell the IRS "I bought controlled substances with crypto" but I also don't want to dig myself a hole by reporting completely incorrectly.

My process for using crypto follows:
Buy LTC (mostly) -> send to personal wallet -> exchange for xmr (for vendors that accept, for vendors that don't ignore this step) -> send payment to vendor

Since I'm sending to my own wallet from the exchange technically the event would be sending a transfer to myself, but the IRS could simply look at the receiving wallet that coinbase logged and see that it no longer holds the coins. Is this not as big of a deal as I'm making it out to be or should I report these as payments to be safe?
Click to expand...
Unless you made a profit during the transactions, I don’t see what the big deal is.

I tried to keep all of my transactions under the new threshold.
 
boophomet said:
I'm going through taxes right now and it seems like the IRS is taxing crypto more seriously so I'm going through my coinbase records to prepare the 1099. They ask for the purpose of my transactions to wallets off exchange to determine the tax event. Obviously I don't want to tell the IRS "I bought controlled substances with crypto" but I also don't want to dig myself a hole by reporting completely incorrectly.

My process for using crypto follows:
Buy LTC (mostly) -> send to personal wallet -> exchange for xmr (for vendors that accept, for vendors that don't ignore this step) -> send payment to vendor

Since I'm sending to my own wallet from the exchange technically the event would be sending a transfer to myself, but the IRS could simply look at the receiving wallet that coinbase logged and see that it no longer holds the coins. Is this not as big of a deal as I'm making it out to be or should I report these as payments to be safe?
Click to expand...
Tell them you were gambling on sports events and lost it?
 
SBD1 said:
Buy local. Tighter spreads, lower fees, better anonymity, new friends.
Click to expand...
Hi fellow gym goer.
Do you happen to know where I can buy aromatizing anabolic steroids? You look like you might be able to help me out.

Like that? Or is there a better T-up?
 
HeatherSwanson said:
When I need crypto, I get a non custodial wallet like exodus and get my Buddy that has about 200 btc and give him cash 5% under market value. Both happy.
Click to expand...
Your totally 100% real unique situation does not help the guy who posted this thread come to a reasonable solution.
 
Not taxable

  • Buying crypto with cash and holding it: Just buying and owning crypto isn’t taxable on its own. The tax is often incurred later on when you sell, and its gains are “realized.”
  • Donating crypto to a qualified tax-exempt charity or non-profit: If you give crypto directly to a 501(c)(3) charitable organization, like GiveCrypto.org, you may be able to claim a charitable deduction.
  • Receiving a gift: If you’re lucky enough to get crypto as a gift, you’re not likely to incur a tax until you sell or participate in another taxable activity like staking.
  • Giving a gift: How thoughtful! You can gift up to $18,000 per recipient per year without paying taxes (and higher amounts to spouses) for 2024 and $19,000 per recipient for 2025. If your gift exceeds these limits, you’ll need to file a gift tax return (which generally does not result in any current tax liability). If you transfer crypto to someone else outside of a purchase for goods or services, it may count as a gift, even if you didn’t mean it that way.
  • Transferring crypto to yourself:Transferring crypto between wallets or accounts you own isn’t taxable. You can transfer over your original cost basis and date acquired to continue tracking your potential tax impact for when you eventually sell.
 
My advice is to buy enough above the dollar amount to make sure fees are covered and don’t make a profit on it. It’s profits that are taxed, not sending money. Your cashapp is taxable if a 3rd party business sends money to you, not when Joe blow send it to you
 
LGOP528 said:
Not taxable

  • Buying crypto with cash and holding it: Just buying and owning crypto isn’t taxable on its own. The tax is often incurred later on when you sell, and its gains are “realized.”
  • Donating crypto to a qualified tax-exempt charity or non-profit: If you give crypto directly to a 501(c)(3) charitable organization, like GiveCrypto.org, you may be able to claim a charitable deduction.
  • Receiving a gift: If you’re lucky enough to get crypto as a gift, you’re not likely to incur a tax until you sell or participate in another taxable activity like staking.
  • Giving a gift: How thoughtful! You can gift up to $18,000 per recipient per year without paying taxes (and higher amounts to spouses) for 2024 and $19,000 per recipient for 2025. If your gift exceeds these limits, you’ll need to file a gift tax return (which generally does not result in any current tax liability). If you transfer crypto to someone else outside of a purchase for goods or services, it may count as a gift, even if you didn’t mean it that way.
  • Transferring crypto to yourself:Transferring crypto between wallets or accounts you own isn’t taxable. You can transfer over your original cost basis and date acquired to continue tracking your potential tax impact for when you eventually sell.
Click to expand...
First off, thank you @LGOP528 and @Demondosage if what im gathering from yall is that i dont have to file my coinbase stuff? I def didnt spend 18k worth. No one wants the IRS knocking on their door.
 
So, doing taxes and Coinbase just called all of my crypto purchases short term investments and counted them as taxable events… I was using Coinbase to buy ETH to send off for speculative trading, no gains realized, and to buy Sol to send to Exodus for purchases of peps and such.
It really affected my filing. Unless I’m missing something, I don’t think I’m using Coinbase or PayPal as an on-ramp ever again.
 
You must log in or register to reply here.

Similar threads

D
Exodus/Coinbase
Replies
5
Views
106
dylannn
D
L
I've read the other threads here but I just would like confirmation that I understand correctly how buying/transfering crypto works.
Replies
4
Views
120
dionetib
dionetib
L
Is this ok enough to make a purchase with crypto?
Replies
4
Views
208
HUGE McBIGLARGE
HUGE McBIGLARGE
L
What is your preferred way to buy and send bitcoin for purchasing your gear? What kind of accountability can we hold bad vendors to??
Replies
11
Views
632
Lilstuff
L
M
Problem with QSC
Replies
6
Views
3K
Qingdao Sigma Chemicals
Qingdao Sigma Chemicals

Sponsors

Latest posts

Back
Top