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A college student turned his $ 5K investment into $ 880k but now says trading has "ruined" his life while facing $ 400k in cryptocurrency taxes.
From big profits to a fiscal nightmare
An anonymous university student recently published on Reddit to solicit advice on what to do while facing a huge tax bill in the wake of cryptocurrency trading.
According to the post, the student, who lives in California, put $ 5,000 in Coinbase last year after a friend said they were investing in Ethereum 00.
After "hit 10x" altcoinsiple alt coins, "the college crypto-trader eventually turned the investment of $ 5k" to a portfolio of $ 880,000 in December 2017. "
The large downturns with the prices of digital currencies and the gamble "in more than a bad ICO to begin 2018" have led to the current portfolio value of $ 125,000.
However, the "clueless college kid" now worries if their lives are over because they are facing an estimated tax liability of 2017 of around 400k.
I did not know the cryptocurrency fees
In the post, the student admits he has neglected to allocate money for taxes because "they never really teach these things".
The post came with an accompanying link to the Coinbase 1099-K reported in the spring.
According to the student, all activities were crypto-cryptic, and they "never collected fiat and transferred any USD into my bank accounts from these exchanges".
Writing under a disposable account, the college student asked the Reddit community for advice because he did not pay any tax or presented statements for 2017 and is working for a part time job of $ 12 / h at Barnes & Noble.
The comments on the post were a mixture of pragmatic and gloomy. A person has recommended getting a "tax professional" and stop wasting time trying to get free tips ".
Another user, who claimed to have "made a series of cryptocurrency returns," said that the situation will not "be an important point in your life, but you will overcome it".
They advised to stay away from "questionable accounting methods" and to work with an accountant to file a tax return as soon as possible, with a suggestion to come up with an agreement in installments or a compromise offer with the competent authorities. .
Cryptographic taxation is a difficult subject
Surfing through taxes when it comes to buying and selling cryptocurrencies has been a topic of argumentative discussion.
In April, Tom Lee of Fundstrat Global Advisors estimated that a massive cryptocurrency by the middle of the month would likely lead to a $ 25 billion tax gain for the United States.
Around the same time, Bitcoinist reported in a survey on Twitter that asks respondents in the United States to tax cryptocurrencies. 19% of the 9,339 respondents said they had "already deposited and paid", but 53% said that "they will never take me".
Ok US people, cryptographic taxes:
– Ryan Selkis (@twobitidiot) April 1, 2018
Last week, former US Congressman Ron Paul said in a blog post that exemption of precious metal transactions and tax cryptocurrency would be one of the first steps to "put end to our monetary folly ".
What would you do if you were a university student facing a looming tax burden? Let us know in the comments below!
Image courtesy of Bitcoinist archives, Shutterstock, Twitter
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