Topic: Bitcoin in relation to investing / TAX? (Read 1103 times)
I will not handle this. That's the whole answer
On a personal level, who you purchased from is irrelevant. However, as a precaution, if your purchases do total over $10,000 you should have some form of "receipt proof", with some form of simple ID to match.
If you operate as a business.. then it may or may-not matter who you purchase from, under $10,000. (May)
Your purchase on localbitcoins, through wire, is responsibility of localbitcoins, not you. You did not initiate a personal 1on1 transaction, the service "localbitcoins" has provided the "contact", and recorded what they should be recording as some form of identity. (Since they "facilitated the exchange".)
However, keep note of those BTC values when you purchased them. Because when you sell them, you have to deduct the price you paid from your "final sale price", which is your "NET" which is a taxable gain. (If you claim that income.)
Also, knowing what you paid for those, will help you determine the price to sell them for, or the price at which you need to buy more, to hedge your losses. (Eg, buying 1 at $1000/BTC, tehn buying 1 more at $500/BTC, now you have hedged the loss, making the average for the two $750/BTC, and thus, you would be gaining if you sold both those at $800/BTC now. With a taxable net gain. Unless you only sell one for $800, then you could claim a $200 loss, as you would rightfully have sold the highest debt first, for that loss claim. Unless you wanted to claim taxable gains by saying the $500 coin was sold for $800.. but that would not be as wise.
)
If you operate as a business.. then it may or may-not matter who you purchase from, under $10,000. (May)
Your purchase on localbitcoins, through wire, is responsibility of localbitcoins, not you. You did not initiate a personal 1on1 transaction, the service "localbitcoins" has provided the "contact", and recorded what they should be recording as some form of identity. (Since they "facilitated the exchange".)
However, keep note of those BTC values when you purchased them. Because when you sell them, you have to deduct the price you paid from your "final sale price", which is your "NET" which is a taxable gain. (If you claim that income.)
Also, knowing what you paid for those, will help you determine the price to sell them for, or the price at which you need to buy more, to hedge your losses. (Eg, buying 1 at $1000/BTC, tehn buying 1 more at $500/BTC, now you have hedged the loss, making the average for the two $750/BTC, and thus, you would be gaining if you sold both those at $800/BTC now. With a taxable net gain. Unless you only sell one for $800, then you could claim a $200 loss, as you would rightfully have sold the highest debt first, for that loss claim. Unless you wanted to claim taxable gains by saying the $500 coin was sold for $800.. but that would not be as wise.
)
Oh my god, that were not the best times to buy Btc! incredible price
You guys are missing the point though. I bought via localbitcoins.com wire.
Has anyone else had a similar experience?
Has anyone else had a similar experience?
I don't think there's a problem that you can't establish who you bought them from. If you're reporting them as capital gains/losses, you might want to show how long you've held them, so you get the long term capital gains tax rate rather than short term (if held for over 1yr). The blockchain has this info. Also, from what I understand, you don't have a taxable event until you exchange your bitcoins for USD, or trade them for goods or services (buy something). This is assuming you're in the US.
You guys are missing the point though. I bought via localbitcoins.com wire.
Has anyone else had a similar experience?
Has anyone else had a similar experience?
It’s a very wrong idea to purchase bitcoin from anonymous people. When buying or selling bitcoin, you must know who you’re dealing with to ensure that you will not be scammed. It’s also the same when you want to join in online casinos. You must choose the right website to prevent getting ripped off.
fishy? Lacking further clarification, I would assume that spyro is the President of a tiny corporation or the Manager of a single-member LLC. Seems normal.
What do you believe needs handling? You bought some bitcoins, and have not sold? IANAL, but I believe if you are in the US, you probably have no taxable event. If you had sold during the tax year, you should probably claim the difference in price as either a loss or a gain as applicable. IRS guidance is lacking on this at the moment. If I had such a taxable event, I'd claim as capital gain/loss (as opposed to ordinary income), and be prepared to argue my reasoning, should I get audited.
What do you believe needs handling? You bought some bitcoins, and have not sold? IANAL, but I believe if you are in the US, you probably have no taxable event. If you had sold during the tax year, you should probably claim the difference in price as either a loss or a gain as applicable. IRS guidance is lacking on this at the moment. If I had such a taxable event, I'd claim as capital gain/loss (as opposed to ordinary income), and be prepared to argue my reasoning, should I get audited.
Company accounts?
Something smells.
Something smells.
How would you handle this?
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