Question: If I don't own a business and Bitcoin is my 'hobby' so to speak, how do I file my taxes when the profit is generated online, there is no record of that, and is on the basis of “for sport or recreation, not to make a profit". This would mean mostly Bitcoin sportsbetting and very rarely freelancing (which is basically doing odd jobs for people on this forum like many others do.)
Thank you in advance!
Topic: Bitcoin Attorney Will Answer All Questions: - page 8. (Read 19909 times)
George,
You should explain to the folks what the two plea deals in Missouri and Detroit means for bitcoiners in the US and why they should be thinking about the future.
By the way, my lawyer filed a new amended complaint: http://article78againstnydfs.com/raw.php
Should be a good read.
Regards,
Theo
You should explain to the folks what the two plea deals in Missouri and Detroit means for bitcoiners in the US and why they should be thinking about the future.
By the way, my lawyer filed a new amended complaint: http://article78againstnydfs.com/raw.php
Should be a good read.
Regards,
Theo
The answer is: Not likely.
However, that does not make it right. I'm a Citizen of this Country. Taxes are not the enemy.
Concentration of wealth and power and failure to fairly tax the upper one half of one percent is the problem.
Best:
George D. Greenberg, Esq.
www.attorneybitcoin.com
However, that does not make it right. I'm a Citizen of this Country. Taxes are not the enemy.
Concentration of wealth and power and failure to fairly tax the upper one half of one percent is the problem.
Best:
George D. Greenberg, Esq.
www.attorneybitcoin.com
I have a question about Coinbase and the IRS.
Say someone is accumulating cryptocurrency at Coinbase and the value sold and used to buy back more crypto or transferred to other wallets is less than $1k, nothing has been sent back to a bank account or withdrawn as cash. I assume there are hundreds of thousands of people (with a fairly low-level of transfer activity) in this category. How likely is the IRS to target a person like this for an audit if they do not report this activity?
Say someone is accumulating cryptocurrency at Coinbase and the value sold and used to buy back more crypto or transferred to other wallets is less than $1k, nothing has been sent back to a bank account or withdrawn as cash. I assume there are hundreds of thousands of people (with a fairly low-level of transfer activity) in this category. How likely is the IRS to target a person like this for an audit if they do not report this activity?
How ownership of bitcoins is defined? I mean technically it is just a knowledge of the private key. What if many people has/know the wallet private key but not all of them ever used it?
For example:
Some non-US person John (he is not very good with computers) ask his son Sam to buy some bitcoins for him, and Sam is a US tax resident.
Now assume that a Sam traded some time after that and earn more bitcoin/altcoins from his father bitcoins assuming that he manage his father capital. Does Sam need to pay US taxes in this case?
For example:
Some non-US person John (he is not very good with computers) ask his son Sam to buy some bitcoins for him, and Sam is a US tax resident.
Now assume that a Sam traded some time after that and earn more bitcoin/altcoins from his father bitcoins assuming that he manage his father capital. Does Sam need to pay US taxes in this case?
Whomever claimed ownership of the coins would have to pay taxes on any gains, but ONLY when the owner converts (or has someone on his behalf convert,) the BTC to Fiat.
Best:
George D. Greenberg, Esq.
www.attorneybitcoin.com
George, thanks for this. NH looks like it will explicitly define BTC as not a MSB https://legiscan.com/NH/bill/HB436/2017 once governor signs. Sounds like Nevada is in same boat. For these states, if one were to operate a cash>bitcoin ATM, drawing from a hot wallet (not an exchange), I assume one still needs to register with Fincen. In doing so what is the simplest way to comply with AML/KYC? For example requiring all transactions above a certain $ amount to supply a phone number or ID? Would like it to be simple from the customer and the ATM owner perspective. Does below a certain $ amount require no KYC procedure that the customer must supply?
That's a lot of questions, lol! There are answers to all of them that have been researched and labored over Yes, you would still need to register with FinCEN and make a good faith effort to comply with AML and KYC. As to the other information, well, I paid dearly to get it so I charge to share it. You are welcome to contact me via PM. BTW, I'm not convinced that exchanging cash for BTC and the reverse is not acting as a money transmitter. Yes, there are some educated guesses that have to be made as the regulator's are not sure either. However there are steps that can be taken preemptively to give you some cover, at least for awhile.
Best:
George D. Greenberg, Esq.
www.attorneybitcoin.com
How ownership of bitcoins is defined? I mean technically it is just a knowledge of the private key. What if many people has/know the wallet private key but not all of them ever used it?
For example:
Some non-US person John (he is not very good with computers) ask his son Sam to buy some bitcoins for him, and Sam is a US tax resident.
Now assume that a Sam traded some time after that and earn more bitcoin/altcoins from his father bitcoins assuming that he manage his father capital. Does Sam need to pay US taxes in this case?
For example:
Some non-US person John (he is not very good with computers) ask his son Sam to buy some bitcoins for him, and Sam is a US tax resident.
Now assume that a Sam traded some time after that and earn more bitcoin/altcoins from his father bitcoins assuming that he manage his father capital. Does Sam need to pay US taxes in this case?
George, thanks for this. NH looks like it will explicitly define BTC as not a MSB https://legiscan.com/NH/bill/HB436/2017 once governor signs. Sounds like Nevada is in same boat. For these states, if one were to operate a cash>bitcoin ATM, drawing from a hot wallet (not an exchange), I assume one still needs to register with Fincen. In doing so what is the simplest way to comply with AML/KYC? For example requiring all transactions above a certain $ amount to supply a phone number or ID? Would like it to be simple from the customer and the ATM owner perspective. Does below a certain $ amount require no KYC procedure that the customer must supply?
Your question is too general for me to answer effectively. Assuming you have a gaming web site in a state that allows it, you will need a business license and perhaps other types of licenses related to gaming.
Let's assume your gaming web site is legal and you have all the licenses required; is your question then whether or not laws related to gaming apply to BTC as the medium of wager? There have been many such sites closed down by the Feds and by States so I do not believe it is an escape hatch.
Best:
George D. Greenberg, Esq.
www.attorneybticoin.com
Let's assume your gaming web site is legal and you have all the licenses required; is your question then whether or not laws related to gaming apply to BTC as the medium of wager? There have been many such sites closed down by the Feds and by States so I do not believe it is an escape hatch.
Best:
George D. Greenberg, Esq.
www.attorneybticoin.com
is it illegal to run my bisiness without a licence>? a gaming website
Hello George, thanks for creating this thread, hope you don't mind me bumping it.
What's your expertise on proceeds from bitcoin gambling sites winnings? Assuming online gambling is legal in ones state/jurisdiction, but the gambling site itself is not registered/licensed anywhere - would such proceeds be deemed as illegal?
On one hand, I'm guessing that it's not the user's responsibility to check whether site is operating legally. On the other hand, anyone could create gambling site overnight and use it for money laundering.
Another one:
Is "51% attack" illegal (by US laws)? If a large bitcoin miner gains enough hashpower to perform a double-spend, would it be seen as a criminal behaviour? After all, there's no "hacking" involved, nor any other unauthorised access of information, and all the participants should be aware that Bitcoin protocol allows it to happen (all network operates on hope that hashpower will stay decentralised).
I appreciate there may not be an easy answer, as there's no precedent to it, but just curious on your opinion.
Personally, I don't see anything illegal in the act itself, but there's definitely an intent to deprive users/entities of their bitcoin wealth.
I have no expertise on gaming law as to BTC or any other gaming endeavor, however the user is responsible to know whether
his actions are legal or not.
As to 51% attack I agree that if there is intent to steal or defraud or destroy or manipulate for personal gain that it might be deemed an illegal act and the perpetrator could be subject to civil or criminal prosecution.
Best:
George D. Greenberg, Esq.
www.attorneybitcoin.com
Hello George, thanks for creating this thread, hope you don't mind me bumping it.
What's your expertise on proceeds from bitcoin gambling sites winnings? Assuming online gambling is legal in ones state/jurisdiction, but the gambling site itself is not registered/licensed anywhere - would such proceeds be deemed as illegal?
On one hand, I'm guessing that it's not the user's responsibility to check whether site is operating legally. On the other hand, anyone could create gambling site overnight and use it for money laundering.
Another one:
Is "51% attack" illegal (by US laws)? If a large bitcoin miner gains enough hashpower to perform a double-spend, would it be seen as a criminal behaviour? After all, there's no "hacking" involved, nor any other unauthorised access of information, and all the participants should be aware that Bitcoin protocol allows it to happen (all network operates on hope that hashpower will stay decentralised).
I appreciate there may not be an easy answer, as there's no precedent to it, but just curious on your opinion.
Personally, I don't see anything illegal in the act itself, but there's definitely an intent to deprive users/entities of their bitcoin wealth.
The problem is that many people don't understand it and don't understand why it's important to donate.
For example, Nick Spanos of the Bitcoin Center explain it simply in under a minute:
https://twitter.com/A78gnstNYDFS/status/843340008903901185
For example, Nick Spanos of the Bitcoin Center explain it simply in under a minute:
https://twitter.com/A78gnstNYDFS/status/843340008903901185
Please forgive me I do not have the time to become involved in that discussion. i wish you the best.
George D. Greenberg, Esq.
George D. Greenberg, Esq.
Would be lovely if you could spark and moderate discussion on the forums about my NY Lawsuit.
There is a lot of misunderstanding of it: http://www.article78againstnydfs.com
I have asked for the court transcripts of the first hearing and will post them as soon as they send them to me.
There is a lot of misunderstanding of it: http://www.article78againstnydfs.com
I have asked for the court transcripts of the first hearing and will post them as soon as they send them to me.
Answered in PM.
Please advise on the following. In a legal matter where the subject matter is a breach of contract and the funds at issue have been deposited in a Bitcoin a/c , will a court be able to "freeze/ preserve" that specific a/c and secure the funds therein ie preserve/secure the fund value at that point in time until the contractual legal issue has been resolved ? (I am fully aware that the laws pertaining to certain countries may not apply in mine).
Your kind reply will be appreciated.
Your kind reply will be appreciated.
Thank you so much for replying to my question. I have one more question if you have the time!
Does providing a virtual currency -> virtual currency conversion service subject myself kyc/aml regulations? For example, letting users convert from Bitcoin to Ethereum and charging a small fee, do I need to identify the user? I would not be interacting with fiat currency.
Does providing a virtual currency -> virtual currency conversion service subject myself kyc/aml regulations? For example, letting users convert from Bitcoin to Ethereum and charging a small fee, do I need to identify the user? I would not be interacting with fiat currency.
That is a GREAT question. The answer is maybe, but I doubt it. It may depend upon how you structure the business venture. For example if you are acting as a business entity such as an LLC or a Corporation then you are more likely to need to comply. If you are doing it for yourself only then you are not handling fiat directly and it becomes less likely. Any fees you earn would be income subject to income tax, if the fees were in fiat that is. If not then when you convert the fee to fiat it then becomes taxable as income. Any costs and expenses would be deductible.
When you say you collect a small fee, is the fee collected in a virtual coin? That would also remove you one step further away from being regulated as a money transmitter. You can PM me if you want to discuss further.
Best:
George D. Greenberg, Esq.
www.attorneybitcoin.com
Thank you so much for replying to my question. I have one more question if you have the time!
Does providing a virtual currency -> virtual currency conversion service subject myself kyc/aml regulations? For example, letting users convert from Bitcoin to Ethereum and charging a small fee, do I need to identify the user? I would not be interacting with fiat currency.
Does providing a virtual currency -> virtual currency conversion service subject myself kyc/aml regulations? For example, letting users convert from Bitcoin to Ethereum and charging a small fee, do I need to identify the user? I would not be interacting with fiat currency.
Yes, as a United States Citizen I pay my taxes. I'm not here to advise on how to avoid payment of taxes. In addition I'm not a C.P.A. nor am I a tax attorney. I have already given my opinion to you. If you want to explore it further then you would indeed need to hire a C.P.A. or a tax attorney to help you.
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