Heimdallr Posted January 8, 2018 Share Posted January 8, 2018 22 minutes ago, steadypimpin said: Yeah but mainly for illegal stuff. I don't know anyone who uses it nor do i see any stores saying they accept it. The only place I've seen it accepted at is a recreational mj farmer's market in DC. purchasing consumer goods is an incredibly small part of what cryptocurrencies are trying to do. the vast majority of coins that people are actually excited about have nothing to do with making purchases. Quote Link to comment Share on other sites More sharing options...
RaidersAreOne Posted January 9, 2018 Share Posted January 9, 2018 A friends ex co-worker is going to be a Millionaire off of being involved in the early phases of another currency. I am so damn jealous. Quote Link to comment Share on other sites More sharing options...
BayRaider Posted January 9, 2018 Author Share Posted January 9, 2018 (edited) Lets say Oyster doubles from here and I make 100k off $650. How do I explain this to the IRS without going to prison? Obviously I will pay taxes 100%. But this will be under next years filing. I dont wanna stress and be under investigation for one year.. You'd think id be happy guys but really stressing heck out. Our government is a very scary thing. Edited January 9, 2018 by BayRaider Quote Link to comment Share on other sites More sharing options...
Heimdallr Posted January 9, 2018 Share Posted January 9, 2018 4 hours ago, BayRaider said: Lets say Oyster doubles from here and I make 100k off $650. How do I explain this to the IRS without going to prison? Obviously I will pay taxes 100%. But this will be under next years filing. I dont wanna stress and be under investigation for one year.. You'd think id be happy guys but really stressing heck out. Our government is a very scary thing. If you have a big income spike like that which isn't covered by your standard salary withholdings you pay estimated taxes. Also that way you don't get hit with a massive bill when you file. "Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. If the amount of income tax withheld from your salary or pension is not enough, or if you receive income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, you may have to make estimated tax payments." https://www.irs.gov/publications/p505 Quote Link to comment Share on other sites More sharing options...
BayRaider Posted January 9, 2018 Author Share Posted January 9, 2018 1 hour ago, Heimdallr said: If you have a big income spike like that which isn't covered by your standard salary withholdings you pay estimated taxes. Also that way you don't get hit with a massive bill when you file. "Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. If the amount of income tax withheld from your salary or pension is not enough, or if you receive income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, you may have to make estimated tax payments." https://www.irs.gov/publications/p505 How do you make estimated tax payments? Quote Link to comment Share on other sites More sharing options...
TheVillain112 Posted January 9, 2018 Share Posted January 9, 2018 29 minutes ago, BayRaider said: How do you make estimated tax payments? Talk to an accountant but i'm guessing it's similar to what I'm doing now for my business. I estimate how much I plan to make throughout the year and do monthly payments breaking out what I estimate I have to pay in taxes into 12 monthly payments. About 8-9 months into the year I do a true up and if I realize I'm going to make more than I projected, I just setup a one off tax payment in December to account for it. It's what I did this year. Get a good accountant... Quote Link to comment Share on other sites More sharing options...
BayRaider Posted January 9, 2018 Author Share Posted January 9, 2018 30 minutes ago, TheVillain112 said: Talk to an accountant but i'm guessing it's similar to what I'm doing now for my business. I estimate how much I plan to make throughout the year and do monthly payments breaking out what I estimate I have to pay in taxes into 12 monthly payments. About 8-9 months into the year I do a true up and if I realize I'm going to make more than I projected, I just setup a one off tax payment in December to account for it. It's what I did this year. Get a good accountant... Can I pay it all off in one payment? Quote Link to comment Share on other sites More sharing options...
TheVillain112 Posted January 9, 2018 Share Posted January 9, 2018 10 minutes ago, BayRaider said: Can I pay it all off in one payment? I think it depends on when you sell. So when you sell, you should make a payment in that quarter. So let's say you cash out everything in one quarter, then in theory you should only need to make a one time payment in that quarter. But I'm no accountant. I would definitely talk to an account. It might cost you $300-$500 for an account to handle your taxes including your capital gains but it's worth it if you think you're going to be making $50k-$100k in gains. They can help with you things like putting more money away for your 401k to reduce your tax burden. One thing I realized making more money. I don't actually see it, either the government or my 401k does. Don't go out buying Lambos... Quote Link to comment Share on other sites More sharing options...
Heimdallr Posted January 9, 2018 Share Posted January 9, 2018 Yeah, if you are making serious capital gains you need to hire a professional. They'll probably be able to save you more money in taxes than what they will charge you. Quote Link to comment Share on other sites More sharing options...
Cheesehawk Posted January 9, 2018 Share Posted January 9, 2018 So I have been invested in ETH on Coinbase since March and I am looking to break some of that off into different altcoins. Coinbase only handles LTC, BTC, and ETH.. Where would be the best place to purchase newer low cost coins? It seems like a lot of the common trusted sites have shut down registration for new users Quote Link to comment Share on other sites More sharing options...
TheVillain112 Posted January 9, 2018 Share Posted January 9, 2018 20 minutes ago, packerrfan74 said: So I have been invested in ETH on Coinbase since March and I am looking to break some of that off into different altcoins. Coinbase only handles LTC, BTC, and ETH.. Where would be the best place to purchase newer low cost coins? It seems like a lot of the common trusted sites have shut down registration for new users I've been using Binance and haven't had any issues. But first take a look at what Altcoins you want to purchase. Then you can figure out what exchanges to move your coins to. BTW, there seems to be some different 'tiers' for exchanges: Coinbase/Bittrex/Gemini/Bitfinix (if you're outside the US): Coinbase kind in a league of it's own but these are the bigger ones. Binance/Kucoin/Bitstamp (And probably a lot more that I'm missing). Then there's exchanges like EtherDelta. Wild wild west using that one and similar exchanges. Be careful and make sure you do your homework first before using these types. Research gas prices, and be ready to do your own math sometimes on prices/amounts you want to buy/sell at one some exchanges (or how to use the order books). More effort involved when you start using exchanges other than Coinbase. A good strategy is to get a coin when it's only on an exchange like EtherDelta. Once it gets listed on Kucoin/Binance, there is a nice spike in price. If you get lucky and catch a coin before it gets listed on Coinbase, then moon... Quote Link to comment Share on other sites More sharing options...
Cheesehawk Posted January 9, 2018 Share Posted January 9, 2018 17 minutes ago, TheVillain112 said: I've been using Binance and haven't had any issues. But first take a look at what Altcoins you want to purchase. Then you can figure out what exchanges to move your coins to. BTW, there seems to be some different 'tiers' for exchanges: Coinbase/Bittrex/Gemini/Bitfinix (if you're outside the US): Coinbase kind in a league of it's own but these are the bigger ones. Binance/Kucoin/Bitstamp (And probably a lot more that I'm missing). Then there's exchanges like EtherDelta. Wild wild west using that one and similar exchanges. Be careful and make sure you do your homework first before using these types. A good strategy is to get a coin when it's only on an exchange like EtherDelta. Once it gets listed on Kucoin/Binance, there is a nice spike in price. If you get lucky and catch a coin before it gets listed on Coinbase, then moon... I guess Ill just have to wait it out as Bittrex and Binance are both shut down to new users atm. Don't feel too comfortable going into one of those sketch exchanges either. I just want to expand past BTC, ETH, and LTC. And this is probably an ignorant question.. should I not have all my coins sitting in Coinbase? If not, what is the best way to securely transfer them to somewhere where they are safe? Quote Link to comment Share on other sites More sharing options...
TheVillain112 Posted January 9, 2018 Share Posted January 9, 2018 2 minutes ago, packerrfan74 said: I guess Ill just have to wait it out as Bittrex and Binance are both shut down to new users atm. Don't feel too comfortable going into one of those sketch exchanges either. I just want to expand past BTC, ETH, and LTC. And this is probably an ignorant question.. should I not have all my coins sitting in Coinbase? If not, what is the best way to securely transfer them to somewhere where they are safe? There are other good/decent exchanges (maybe someone else wants to chime in). I just listed the ones I have personal experience with and can validate. As for keeping it all in Coinbase, I guess it depends on how much you're holding. There is no silver bullet though. I trust coinbase but it is a nice big target. There would be a massive backlash to the cryptomarkets if Coinbase were to get hacked. But people do have offline wallets to reduce the risk of hacking (but then you have to ensure backups and security yourself for your drive that you're storing it on). Also for every 'move/transfer' you'll have to spend some gas money. But if you only have ETH today and it's on Coinbase, I personally think that's fine. Also, like I stated earlier do some research first on what coin/token you're interested in. Once you know what you want to buy, we can give you some better advice on where to buy/store it... Quote Link to comment Share on other sites More sharing options...
BayRaider Posted January 9, 2018 Author Share Posted January 9, 2018 Anyone know how I prove my transaction? All I have is the address history. Quote Link to comment Share on other sites More sharing options...
BobbyPhil1781 Posted January 9, 2018 Share Posted January 9, 2018 Kinda hope Ripple tanks more, hard. Would love to get more on the cheap!! Quote Link to comment Share on other sites More sharing options...
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