You are viewing a single comment's thread from:

RE: Oct 15 final 2017 tax deadline: Share your tax horror story with BlockTrades

in #blocktrades6 years ago (edited)

Sounds like we've shared many of the same fears.

I've actually never held crypto directly for myself, only via the company. When we first got into crypto, the regulations just weren't clear enough that I was certain how the US was going to handle it, so whenever someone paid me in crypto for work, I immediately converted it to cash. When we decided to start trading it, we opted to start up a company overseas and confine our crypto trading to that company as it didn't have all the ambiguous rules that the US was suffering from at that point in time.

It was a lot of work to setup an overseas company and at the time it was a big expense too, but I've never regretted it for a minute (despite the increased tax complexity that I didn't realize at the time I was setting myself up for).

But even with a foreign company, you can't escape the FBAR filings, and having to file those things gives me the same fears that it might trigger an audit. Oh, and the fear that I'll forget some minor foreign exchange I opened an account on and only did one or two small trades on and be hit with a huge penalty for some small amount of money. The FBAR filing rules are crazy, IMO.

Hang in there, the worst is almost over (well, as long as you don't have any audits afterwards)!