Enjoy getting raided by the IRS for not reporting income and capital gains. - page 2.

Bees Brothers

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Quote from: DigitalDoom on April 05, 2013, 02:27:05 PM

Quote from: Bees Brothers on April 05, 2013, 12:10:41 PM

I explained bitcoin to my accountant yesterday...he was very interested. I told him to wait a couple weeks before he looks into it more, otherwise he will get sucked in and be late getting taxes in for all his clients.

He told us to count all our sales as a regular income, and then later when we cash out to deal with capitol gains at that point.

Everyone keeps talking about cashing out...I don't get it!

The only time you owe the IRS a dime is when you make money...meaning US DOLLARS!!!

If the whole idea of BTC is to create a new currency that's free market...why "cash out"? As soon as everyone cashes out, the government gains and BTC loses!

While the whole BTC theory and concept is great...the "cash out" mindset is what will ultimately keep it from ever succeeding. People just can't think outside of Dollars...at least not here in America!

While I have never "cashed out" bitcoin into USDs, I have bought lots of things with btc. When things are bought with btc, the IRS thugs consider that "cashing out" even though they never touched USDs.

Also if some of those btc purchases are business expenses they can be used to lower your tax liability.

Talking to an CPA about hypothetical "cash outs" is not going to keep btc from succeeding, but allow you to stay in business another day to accumulate a little more btc.

DigitalDoom

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Quote from: omgitsmehehe on April 05, 2013, 11:02:21 AM

Wait... So if I keep my BTC that I bought at say $4 and don't cash it into fiat it is not liable to CGT since it is not actually 'money'?

If that is the case, I can just buy items with BTC and sell them for fiat on fleabay?

You're still going to have to report the income you make on ebay.

No matter how you try to get around it...when you exchange BTC for gain of USD you will have taxes to pay. Other than some kind of illegal, money laundering scam there's just no way around paying taxes on the gains in your investments.

It's going to be hilarious when all the "get rich quick" BTC buyers are sitting in Federal prison for trying to get around paying the government with stupid (and Felonious) schemes

DigitalDoom

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If you are planning to cash out, and you have a good amount of BTC...it might be a good idea to look into setting up a business for selling off your BTC. You'll give away a whole lot less US Dollars if you can write off all of the expenses for getting and selling the BTC.

I'm no CPA and surely no lawyer, but even a simple minded moron like me knows that it's a bad idea to "cash out" millions of dollars in product for your own personal gain.

Of course, a simple minded moron like me also understands that it's not a good idea to "cash out" a growing currency for a dying one. Wink

DigitalDoom

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Quote from: Bees Brothers on April 05, 2013, 12:10:41 PM

I explained bitcoin to my accountant yesterday...he was very interested. I told him to wait a couple weeks before he looks into it more, otherwise he will get sucked in and be late getting taxes in for all his clients.

He told us to count all our sales as a regular income, and then later when we cash out to deal with capitol gains at that point.

Everyone keeps talking about cashing out...I don't get it!

The only time you owe the IRS a dime is when you make money...meaning US DOLLARS!!!

If the whole idea of BTC is to create a new currency that's free market...why "cash out"? As soon as everyone cashes out, the government gains and BTC loses!

While the whole BTC theory and concept is great...the "cash out" mindset is what will ultimately keep it from ever succeeding. People just can't think outside of Dollars...at least not here in America!

DataPlumber

full member

Activity: 126

Merit: 100

Quote from: Bees Brothers on April 05, 2013, 12:10:41 PM

I explained bitcoin to my accountant yesterday...he was very interested. I told him to wait a couple weeks before he looks into it more, otherwise he will get sucked in and be late getting taxes in for all his clients.

Bees Brothers

sr. member

Activity: 457

Merit: 291

I explained bitcoin to my accountant yesterday...he was very interested. I told him to wait a couple weeks before he looks into it more, otherwise he will get sucked in and be late getting taxes in for all his clients.

He told us to count all our sales as a regular income, and then later when we cash out to deal with capitol gains at that point.

the founder

sr. member

Activity: 448

Merit: 251

Bitcoin

I asked my accountant this:

"If my bitcoins increased in value how do i account for it."

You know what her reply was? After asking WTF is a bitcoin? Her answer was perhaps the most simple I have ever heard.

"The same way you would account for any coin increasing in value, bit, gold or silver."

Bees Brothers

sr. member

Activity: 457

Merit: 291

Quote from: Aseras on April 05, 2013, 11:41:25 AM

the US tax law is absurd, ...

I think a good way to start to fix it would be to allow everyone to deduct the time and money it takes to attempt to comply with their absurd tyranny. That would clean it up real fast.

Just spent two very late nights trying to comply with this crap...should be done by this weekend. I get more angry every year having to waste my time, and then be forced to "donate" to an organization that increasingly tramples and destroys individual rights... which is the opposite of what government should do.

I feel dirty and abused doing taxes Angry

Aseras

hero member

Activity: 658

Merit: 500

the US tax law is absurd, really. it would be so much easier to make everyone pay a flat sales tax. dump all the loopholes for corps and fat cats. 12-15% on everything, no exceptions except for perhaps good and medicine.

Dacm4n

sr. member

Activity: 363

Merit: 250

Quote from: kiba on April 04, 2013, 10:24:36 PM

For the love of god, just charge a uniform added value tax or a sale tax.

Who fricking cares about capital gains, income tax, property tax, etc?

ONE TAX! ZERO LIABILITY!

And no, you can't use the tax law to implement your favorite social engineering scheme. Also, I don't give a damn about those fucking turbotax and the rest of the tax preparation industry. Go do something more productive and fulfilling than doing tax.

Yea everyone would pay taxes if they made it as simple as a flat tax on every item for sale and got rid of the rest. You shouldn't have to buy any programs or hire anyone just to pay your taxes. It would force the government to reduce it's size too.

Bees Brothers

sr. member

Activity: 457

Merit: 291

Quote from: Gurthang on April 05, 2013, 07:18:14 AM

Freedom is not free. Your freedom is paid for with money and the blood of patriots.

That's the truth! You have to pay the government, and then you need to help fund numerous organizations to help protect you from them!

omgitsmehehe

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Wait... So if I keep my BTC that I bought at say $4 and don't cash it into fiat it is not liable to CGT since it is not actually 'money'?

If that is the case, I can just buy items with BTC and sell them for fiat on fleabay?

RodeoX

legendary

Activity: 3066

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The revolution will be monetized!

Quote from: axus on April 05, 2013, 10:40:01 AM

You only report realized USD profits. If you sell off your bitcoins, subtract what you spent for them. If you don't sell your bitcoins, you are fine. It's the same rules as gold coins.

I'm not a lawyer, but this is my understanding and what my financial advisor thinks.

axus

full member

Activity: 129

Merit: 100

You only report realized USD profits. If you sell off your bitcoins, subtract what you spent for them. If you don't sell your bitcoins, you are fine. It's the same rules as gold coins.

DataPlumber

full member

Activity: 126

Merit: 100

Not a lawyer, but I don't think you need to report capital gains until they're realized (ie, you cash out.)

Personally, I'm reporting that income should I incur some, because my, um, "respect" for the IRS outweighs my greed.

Besides, capital gains is taxed at a way lower rate than money I actually had to work for. (Which is a doorway to a very off-topic discussion I'll leave closed.)

mobile4ever

hero member

Activity: 546

Merit: 500

Quote from: marcus_of_augustus on April 05, 2013, 01:05:10 AM

Quote from: thebaron on April 05, 2013, 12:36:10 AM

I lost all my Bitcoins in an unfortunate boating accident.

I forgot the password, haxor took them, hard drive failure, brain wallet explosion when you kicked my door in, dog ate my paper wallet ... endless lulz to be had with that one.

That is probably not necessary. I am not a tax expert, but this guy has some good things to say. I believe he knows what he is talking about. The tax rates for certain lifestyles are very different.

kiba

legendary

Activity: 980

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Quote from: Gurthang on April 05, 2013, 07:18:14 AM

Freedom is not free. Your freedom is paid for with money and the blood of patriots.

That's propaganda speak.

Nobody wants to believe that the founding of their nation is based on a stupid war based on naked financial interest and tinfoil religious conspiracy theory.

johnyj

legendary

Activity: 1988

Merit: 1012

Beyond Imagination

Do you need to pay tax if you bought some wow gold?

Gurthang

newbie

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Quote from: Lethn on April 04, 2013, 06:54:07 PM

If I have no choice but to pay taxes I'll gladly pay Bitcoins to a government department of my choosing that I actually believe in, so no military funding for youuuu! Tongue