Hey All, I've been trading like a maniac the past few years using lots of different exchanges and not keeping records of trades. It would be nice to send a few btc back to coinbase for USD but I'm afraid some blockchain explorer they have will follow the transactions back through everything and I could get into trouble fortrading altcoins. Am I being ridiculous? Sounds ridiculous as I type. I suppose at some point I need to take profits but I'm just nervous about going back to coinbase.
The first rule of tax is to have conclusive proof of your transaction. You will not get charged any taxes until the time the money doesn't show up in your real bank account. When you hold your assets over virtual blockchain then by law it has no meaning as you are not really having it unless you exchange it for the fiat currency. Once you convert it to fiat and withdraw the money into your bank account then that becomes legally taxed one. I think you dont have to worry about how much you trade and how much you earn as long as you are going to pay your taxes.
And thats in your country. In my we have to protest against gouverment to awoid paying 1% of transaction value (for example when you buy eth fro bitcoin you pay 1% on eth $ value, than you sell eth to btc, you pay 1% of btc $ value). Can you imagine that? You make 1 trade with 1 % loss and 2% tax (what gives you 3% loss) (+ ~20% from every profit)
https://www.ccn.com/cryptocurrency-traders-protest-polands-move-to-tax-all-transactions/Some of gouvrments are stupid and dont know what crypto is and how to tax it. If in your country there is no clear crypto tax law its better to protect yourself by hidding every trade and withdraw money to fiat wisely.
Imagine if you daytrade grabing 0,5% from each trade and than you realise that in your country there is 2% tax from each trade. And you earn 10k from 30k investment and now you have to pay 60k tax