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Crypto: Players Can't Pay Tax Bill


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#1 Rogerdodger

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Posted 28 May 2022 - 11:14 AM

Crypto: Players Can't Pay Tax Bill

Many cryptocurrency investors filed tax returns on mind-boggling gains this spring—some in the range of 20 to 30 times their original outlay. But now it’s time to settle up with the IRS, and there’s a problem: The money isn’t there anymore.
“This is the biggest issue in crypto right now,” said Clinton Donnelly, the founder of CryptoTax Audit. “We have several clients who have just gotten wiped out, and they’re just terrified.”

Some lost their entire life savings, and others who worried they could lose their homes.
One client who made $700,000 last year trading between cryptocurrencies, but didn’t think to convert any of that money to cash to save for tax season. Much of that $700,000 had evaporated in the crash.
“They have never thought about estimated taxes and saving as you go,” he said. “They thought there would always be enough at the end of the year to pay for whatever taxes they had.”

One client asked about the legality of simply not reporting. Gordon advised him against it, but admitted: “It’s a pretty sh*tty situation. Because to actually pay the tax, you could be wiped out.”

 

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Edited by Rogerdodger, 28 May 2022 - 12:26 PM.


#2 Chilidawgz

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    A fool and his money... (the second mousie gets the cheese)

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Posted 28 May 2022 - 04:59 PM

The current market environment reminds me of the dot.com crash. The hype and speculation seem familiar. (Spacs, NFT, crypto and overpriced stocks) I was there in 2000. Learned a lesson.

As far as crypto? Tulips anyone?


Edited by Chilidawgz, 28 May 2022 - 05:08 PM.

Anything can happen...what's happening now?
No one can forecast the future. No one.
 
All stocks (ETF's) are BAD...unless they go up - William O'Neil
When The Time Comes To Buy or Sell, You Won't Want To - Walter Deemer
 
 

#3 pdx5

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    I want return OF my money more than return ON my money

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Posted 28 May 2022 - 06:26 PM

Tulips at least looked pretty.
Crypto coins look like coins from some 3rd world country

But if something is going up in price the crowd of greedy will chase it hoping to find a bigger fool

Edited by pdx5, 28 May 2022 - 06:27 PM.

"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule

#4 Rogerdodger

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Posted 28 May 2022 - 09:06 PM

As they say,

"There old pilots and there bold pilots, but there no old, bold pilots"....

 

Well maybe one....

‘Top Gun: Maverick’ Still Taking Breath Away With Record $150M Memorial Day Opening, Best Ever For Tom Cruise

 

“Rumors that Top Gun: Maverick features a sneaky peek at what might be the SR-72, designed to fly at six times the speed of sound.

.

 


Edited by Rogerdodger, 28 May 2022 - 09:19 PM.


#5 brucekeller

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Posted 29 May 2022 - 06:49 AM

Are they just talking about people that cashed out everything before 1/1/22 and then put everything back in on 1/2/22 and then subsequently lost everything?

#6 Rogerdodger

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Posted 30 May 2022 - 09:28 AM

Are they just talking about people that cashed out everything before 1/1/22 and then put everything back in on 1/2/22 and then subsequently lost everything?

 

Anyone who sold (took profits or a loss) in the 2021 frenzy will have tax consequences this year.

For many novice traders, those 2021 profits could be a huge surprise.

 

Social Media frenzies can make you or break you.

Imagine your delight at selling Gamestock in January 2021, and imagine your huge surprise on April 15th, 2022

Gamestop.jpg.



#7 CLK

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Posted 30 May 2022 - 12:50 PM

This has nothing to do with Crypto,
the people probably do this with stock gains as well, if you trade with tax owed money it's on you.

#8 Rogerdodger

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Posted 30 May 2022 - 05:29 PM

Now she’s coming for crypto.

 

The debate over who crypto serves and who will ultimately win is far from over. White’s voice is rising, but the money and power plowing into crypto is, too.

Web3 was filled with a litany of scams, failures and frauds meant to separate regular people from their money.

Documented scams and hacks she’s documented. By mid-May, it was nearing $10,000,000,000.

 

An ex-cop fell for Alice. Then he fell for her $66 million crypto scam.

 

 

Bored Ape Yacht Club statistics - NFT Stats
  NFT Date Price
1 Bored Ape Yacht Club 24 days ago $1.13M
2 Bored Ape Yacht Club 29 days ago $726k
3 Bored Ape Yacht Club 28 days ago $679k
 
 

Edited by Rogerdodger, 30 May 2022 - 05:34 PM.