yeah for sure, i did work this year and plan on filing taxes just for some money so they may just take it out of that.

Gotcha well if you hold for more than a year then sell it doesn’t look like you owe anything in your bracket 👍. If you hold for less than a years and sell you owe 10% if you make gains. If you sell on one and make a gain and sell on another and make a loss, your tax is based off the difference in the gain and loss. Hope this helps 👌

it helps me thanks a ton we'll see how things are going before i sell, doge may consolidate and attempt to break through the resistance and push forward, good chance,

While I dont do American taxes in Canada you would be issued a T3 or T5 slip from whatever broker platform you're using. Those slips also go to CRA in America you likely have equivalent slips going to IRS.

All taxable transactions are tracked and included on slips so IRS knows what you should be including on your tax return. This includes capital gains, interest, dividends, return on capital (treatment varies depending on remaining cost base) and other transactions or related items like foreign withholding tax, etc.

By not reporting the transactions on your tax return you're not reporting information that IRS already knows and you run the potential risk of reassessment. Even when reassessed you might still owe zero due to personal tax credits reducing any taxes owing to zero but regardless its not intelligent to not report if IRS already has the information via a direct slip from your brokerage or bank.

Again I only do Canadian taxes , i don't do deal with Americans but I am certain your system is sophisticated enough that transactions are reported to IRS via a slip of some sort.

If you haven't sold anything you only have unrealized gains or losses anyway which is not a taxable transaction. If you received a dividend OR you opted to DRIP a taxable transaction did occur.

Also as previously mentioned IRS / CRA whatever tracks losses so by not reporting any transactions that you lost money on via selling an equity for instance you're losing out since you can both carry forward and carry back losses against prior year gains.

Again, this is from a Canadian tax perspective. In Canada, CRA has provided guidence and Crypto is taxes as a commodity since its not legal tenure. Its subject to capital gains tax unless you're in the business of day trading it essentially then its taxed as business income at your personal rate and you dont have the benefit of a capital gains inclusion rate.

This post was edited by SBD on Oct 28 2021 10:15am

those are a lot of big words i barely understood but i think i got the gist of it

even though i may not owe anything, its better to report it.

As long as a taxable transaction occurred that was recorded elsewhere and reported to IRS from elsewhere, yes best to report it since IRS already has the information.

Most tax software even free versions like Turbo tax now in Canada you dont have to report anything yourself (as in physically write it in the correct boxes) since CRA already has the info and you just download everything you would have normally reported yourself years ago into the software. Its great, but it makes it so you cant get away with much when it comes to equity trading.

This post was edited by SBD on Oct 28 2021 10:18am

thats fair, i dont plan on making 10's of thousands as i mostly invest into meme crypto coins and hope for the best kekw.

but if for some reason i turn 1k into 200k, then im sure i wouldnt mind losing 20k

I dont know IRS's stance on crypto, maybe its not taxable in America. No idea. A quick google search tells me yes but id need to see actual IRS rulings.

"Buying and selling crypto is taxable because the IRS identifies crypto as property, not currency. As a result, tax rules that apply to property (but not real estate tax rules) transactions, like selling collectible coins or vintage cars that can appreciate in value, also apply to bitcoin, ethereum, and other cryptocurrencies.

The IRS isn’t kidding around. Failure to report income, including income from the sale of crypto, could result in IRS levying penalties. Starting with 2019 tax returns, the IRS requires you to answer “yes” or “no” to a question about whether you had any crypto transactions during the year. Please consult with a tax-planning professional regarding your individual reporting obligations."

i cant afford no professional since i live in bumfuck texas with $20 to my name

tbh i wouldn't even worry about it.. at your level the IRS won't take a second look at you

(NFA)