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Topic: Bitcoins and Tax - page 3. (Read 9608 times)

member
Activity: 79
Merit: 10
October 09, 2014, 02:07:10 PM
#33
One of the articles I read mentioned transactions consisting of $600 or more, so you're probably fine.  

There is no threshold for capital gains. The "$600" is often misunderstood, it is a form filing requirement for business and just not relevant to capital gains.

So will people be taken for taxes this year because of property?  Is there a small amount of coins you can sell without worrying, I have sold some through coinbase(probably under $200) should I even be worried at all?

Yes, just like last year and the year before, people will pay taxes on any gains they made selling or spending crypto-currencies.

There is nothing to worry about. When you spend a coin, you just need to know what you bought it for and when, so you can work out if you made a profit (or loss). You then declare that on your tax forms as capital gains/losses (Schedule D). The only time you can ignore it is if the gain is < $0.50, because you only report rounded whole dollars.

Coinbase has a Gains report, so just use that. Or use bitcointaxes.
full member
Activity: 532
Merit: 100
October 09, 2014, 12:22:48 PM
#32
So will people be taken for taxes this year because of property?  Is there a small amount of coins you can sell without worrying, I have sold some through coinbase(probably under $200) should I even be worried at all?

One of the articles I read mentioned transactions consisting of $600 or more, so you're probably fine.  I'd say you are ok regardless because this is all in relative infancy and the IRS is just now starting to actively take interest in it.  Most people aren't even aware that the IRS is claiming they will tax bitcoin now.
sr. member
Activity: 308
Merit: 250
October 09, 2014, 10:14:16 AM
#31
So will people be taken for taxes this year because of property?  Is there a small amount of coins you can sell without worrying, I have sold some through coinbase(probably under $200) should I even be worried at all?
full member
Activity: 532
Merit: 100
October 09, 2014, 09:56:04 AM
#30
There is NO LAW requiring you to pay any taxes on your bitcoin.

If the IRS said you had to pay taxes on your WoW gold, would some of you dunces pay them for that, too?

Isn't there though? The IRS is now treating bitcoin as "property" instead of currency for tax purposes. This means that people (in the U.S.) treating bitcoin as an investment could be subject to capital gains taxes when they sell it. I don't know the name of the law this falls under though. 
http://dealbook.nytimes.com/2014/03/25/i-r-s-says-bitcoin-should-be-considered-property-not-currency/?_php=true&_type=blogs&_php=true&_type=blogs&hp&_r=1

http://www.irs.gov/pub/irs-drop/n-14-21.pdf

http://money.cnn.com/2014/03/25/technology/innovation/irs-bitcoin/


legendary
Activity: 1120
Merit: 1003
October 03, 2014, 04:01:05 PM
#29

There may not be a law that requires you to pay taxes on your BTC, but evading taxes is illegal in most (if not all countries).   

Wow, that is one stupid ass statement.
legendary
Activity: 2590
Merit: 1022
Leading Crypto Sports Betting & Casino Platform
September 30, 2014, 02:47:47 PM
#28
They can try to tax bitcoin, but it shows that the government is so ignorant about the Bitcoin. How can they ask for taxes if they cant prove who make the transactions?

and imagines when anon features will hang bitcoin, no one can prove that anymore, bitcoin should be tax free, treated as a currency
legendary
Activity: 3346
Merit: 3130
September 27, 2014, 04:08:41 PM
#27
 They can try to tax bitcoin, but it shows that the government is so ignorant about the Bitcoin. How can they ask for taxes if they cant prove who make the transactions?
legendary
Activity: 1456
Merit: 1001
This is the land of wolves now & you're not a wolf
September 26, 2014, 04:39:23 PM
#26
There is NO LAW requiring you to pay any taxes on your bitcoin.

If the IRS said you had to pay taxes on your WoW gold, would some of you dunces pay them for that, too?

There may not be a law that requires you to pay taxes on your BTC, but evading taxes is illegal in most (if not all countries).   If you are buying and selling a few BTC per year, then you will probably be overlooked.   But if you regularly have deposits in excess of 5-10k in and out of your bank account, and claim nothing, you will more than likely get audited, and then you are up shit creek...
newbie
Activity: 49
Merit: 0
September 26, 2014, 08:43:17 AM
#25
Don’t you just love how specific the rules are for us small guys, while the big guys like Goldman Sachs get million and billion dollar tax breaks for no good reason?

+1
sr. member
Activity: 249
Merit: 250
September 17, 2014, 07:48:55 AM
#24
If Bitcoin is property it therefore would be subject to all sorts of sales
taxes as it changes hands.
full member
Activity: 197
Merit: 100
September 11, 2014, 12:52:09 AM
#23
The bigger question is how could the IRS possibly enforce this? With help from the NSA?
sr. member
Activity: 593
Merit: 250
September 10, 2014, 12:42:20 AM
#22
So what does that mean about  mining equipment? Are they tax deductible?
sr. member
Activity: 414
Merit: 250
September 09, 2014, 08:14:15 AM
#21
Don’t you just love how specific the rules are for us small guys, while the big guys like Goldman Sachs get million and billion dollar tax breaks for no good reason?
sr. member
Activity: 378
Merit: 250
September 09, 2014, 07:30:37 AM
#20
The unfortunate truth is that it's an object of wealth, therefore is subject to tax just like anything else - you may be able to avoid it if you just don't trade it for FIAT however if you make a large enough purchase like a house you'll be getting some questions....and probably a hefty tax bill from the IRS lol
sr. member
Activity: 414
Merit: 250
September 09, 2014, 06:30:33 AM
#19
If Bitcoin is property it therefore would be subject to all sorts
of sales taxes as it changes hands.
This is an attempt by the IRS to tax Bitcoin to death.
legendary
Activity: 910
Merit: 1006
BCH Advocate.
September 08, 2014, 07:30:04 PM
#18
There is NO LAW requiring you to pay any taxes on your bitcoin.

If the IRS said you had to pay taxes on your WoW gold, would some of you dunces pay them for that, too?

+1
full member
Activity: 235
Merit: 250
September 08, 2014, 11:58:13 AM
#17
They should make this even more complicated and onerous,How is the tax paid,
 in Bitcoin? Is it calculated in USD?
legendary
Activity: 2590
Merit: 1022
Leading Crypto Sports Betting & Casino Platform
September 07, 2014, 09:51:58 AM
#16
there are some countries where bitcoin is tax free, they declared it, i don't remember now the name of those
legendary
Activity: 1358
Merit: 1000
September 03, 2014, 11:08:15 AM
#15
There is NO LAW requiring you to pay any taxes on your bitcoin.

If the IRS said you had to pay taxes on your WoW gold, would some of you dunces pay them for that, too?

Haha its not wow gold when they have changed it back to Fiat, it really would depend if they sold

it back on an exchange that has their details and most probably be reporting to the tax office

and with your details attached, that being said their would have to be a reasonable amount

of money in it for the tax office for them to bother chasing you.

Their is plenty of people running non bitcoin enterprises that have staggering tax bills who

probably thought at the time they weren't going to get caught either.

If you made money from mining the coins it would be very easily to write of all your

taxes as business expenses which they most probably where anyway, unless you

managed to mine bitcoin out in the rain at some stage or from your car.
full member
Activity: 178
Merit: 100
September 03, 2014, 03:35:03 AM
#14
Reading today a post on onestopbrokers.com from the source theaustralian about paying capital gains tax on selling Bitcoins it seems to me that more and more countries are looking to control the idea of cryptocurrencies. Yes, on one part this is good not only for the "security" of these assets but also for the community in general but on the other hand it seems that the meaning of buying and selling crypto currencies in general but also paying with these assets for purchasing stuff is loosing the meaning of the idea of creating and possessing such assets. It seems that crypto currencies will be "another" currency like the others.
I don't know, maybe I'm wrong because I'm new to Bitcoin and crypto currencies but this is how I feel.

You don't need to worry about paying capital gains tax - that's the friendlies tax of them all. We have a situation on our hands in Australia with the Goods and Services Tax. You can find out more about it here and take action:

https://www.change.org/p/treasury-of-the-australian-government-make-australia-a-bitcoin-friendly-country

Please sign and share!
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