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.
Topic: Enjoy getting raided by the IRS for not reporting income and capital gains. - page 3. (Read 6814 times)
April 05, 2013, 01:05:10 AM
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.
April 05, 2013, 12:36:43 AM
I lost all my Bitcoins in an unfortunate boating accident.
IRS proof
April 05, 2013, 12:36:10 AM
I lost all my Bitcoins in an unfortunate boating accident.
April 05, 2013, 12:35:21 AM
This is something my 'friend' said to me when discussing bitcoins, how do i(you) respond?
Your friend is correct if you sell any of your bitcoins. Any bitcoins you sell/trade for $$$ you are suppose to report/pay when filing your taxes. If not you do run the risk of getting caught and being audited.
No one likes to pay taxes but you probably should even if you feel like its a small amount and the IRS would never notice, the last thing you want is to be audited, being audited can literally destroy your life and cause so many headaches. Better to just pay your taxes on any money you make from selling bitcoins.
April 05, 2013, 12:05:40 AM
Why does your friend assume you are not going to pay taxes? Consider yourself lucky to only pay 20% on any gain in value. The money you work your butt off for, that is income, likely costs you 30+%.
It sucks that it costs like 30% of your paycheck but what sucks more is the stress brought by overly complicated tax code.
If all 300 million people pay a simple tax of 1000 bucks a year to the US gubernment, they would have something like three hundred billion dollars to work with every year. Very simple tax and plenty of money for the government to run.
Alas, our government is not a lean, efficient machine.
Hundred of billion of dollars are lost every year to inefficient military research program, pointless wars, jails, porks, paperwork for social security, and enforcement cost for the US' byzantine tax code.
You know only 75% of the United States is 18+ right?
46% of working Americans don't pay any taxes or get refunds at the end of the year.
You can tax that way with the current system, a lot of people are barely making it, and the tax money at the end of the year is very helpful, let alone a husband and wife, with their 2 - 18yo just graduated kids owing 4k to the government.
April 04, 2013, 11:11:47 PM
Why does your friend assume you are not going to pay taxes? Consider yourself lucky to only pay 20% on any gain in value. The money you work your butt off for, that is income, likely costs you 30+%.
It sucks that it costs like 30% of your paycheck but what sucks more is the stress brought by overly complicated tax code.
If all 300 million people pay a simple tax of 1000 bucks a year to the US gubernment, they would have something like three hundred billion dollars to work with every year. Very simple tax and plenty of money for the government to run.
Alas, our government is not a lean, efficient machine.
Hundred of billion of dollars are lost every year to inefficient military research program, pointless wars, jails, porks, paperwork for social security, and enforcement cost for the US' byzantine tax code.
If tax laws where simple and short, how do you create loopholes?
April 04, 2013, 11:06:32 PM
Track what you put in and take out and pay the taxes on the balance an you should be fine. These are not stocks so it's not capital gains.
April 04, 2013, 10:46:17 PM
Why does your friend assume you are not going to pay taxes? Consider yourself lucky to only pay 20% on any gain in value. The money you work your butt off for, that is income, likely costs you 30+%.
It sucks that it costs like 30% of your paycheck but what sucks more is the stress brought by overly complicated tax code.
If all 300 million people pay a simple tax of 1000 bucks a year to the US gubernment, they would have something like three hundred billion dollars to work with every year. Very simple tax and plenty of money for the government to run.
Alas, our government is not a lean, efficient machine.
Hundred of billion of dollars are lost every year to inefficient military research program, pointless wars, jails, porks, paperwork for social security, and enforcement cost for the US' byzantine tax code.
Don't forget the billions wasted on generating misleading scientific publications due to the publish or perish atmosphere they have created.
April 04, 2013, 10:44:27 PM
Why does your friend assume you are not going to pay taxes? Consider yourself lucky to only pay 20% on any gain in value. The money you work your butt off for, that is income, likely costs you 30+%.
It sucks that it costs like 30% of your paycheck but what sucks more is the stress brought by overly complicated tax code.
If all 300 million people pay a simple tax of 1000 bucks a year to the US gubernment, they would have something like three hundred billion dollars to work with every year. Very simple tax and plenty of money for the government to run.
Alas, our government is not a lean, efficient machine.
Hundred of billion of dollars are lost every year to inefficient military research program, pointless wars, jails, porks, paperwork for social security, and enforcement cost for the US' byzantine tax code.
It's not the concept of taxes that irks me. It's the foolishness with which our government incompetently fritters it away.
April 04, 2013, 10:42:15 PM
I will be paying my taxes, next year...
April 04, 2013, 10:38:31 PM
Why does your friend assume you are not going to pay taxes? Consider yourself lucky to only pay 20% on any gain in value. The money you work your butt off for, that is income, likely costs you 30+%.
It sucks that it costs like 30% of your paycheck but what sucks more is the stress brought by overly complicated tax code.
If all 300 million people pay a simple tax of 1000 bucks a year to the US gubernment, they would have something like three hundred billion dollars to work with every year. Very simple tax and plenty of money for the government to run.
Alas, our government is not a lean, efficient machine.
Hundred of billion of dollars are lost every year to inefficient military research program, pointless wars, jails, porks, paperwork for social security, and enforcement cost for the US' byzantine tax code.
April 04, 2013, 10:33:11 PM
Why does your friend assume you are not going to pay taxes? Consider yourself lucky to only pay 20% on any gain in value. The money you work your butt off for, that is income, likely costs you 30+%.
Look, paying taxes is like praying to god except its real. Enough people stop paying and the world crumbles.
Look, paying taxes is like praying to god except its real. Enough people stop paying and the world crumbles.
Oh, you
April 04, 2013, 10:31:59 PM
Why does your friend assume you are not going to pay taxes? Consider yourself lucky to only pay 20% on any gain in value. The money you work your butt off for, that is income, likely costs you 30+%.
Look, paying taxes is like praying to god except its real. Enough people stop paying and the world crumbles.
Look, paying taxes is like praying to god except its real. Enough people stop paying and the world crumbles.
April 04, 2013, 10:27:25 PM
I wonder how the sale of the Porsche for 300 Bitcoins went. What do you do when registering?
April 04, 2013, 10:27:22 PM
This is something my 'friend' said to me when discussing bitcoins, how do i(you) respond?
How do I respond? That I report all my income and capital gains.
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.
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.
April 04, 2013, 10:19:24 PM
This is something my 'friend' said to me when discussing bitcoins, how do i(you) respond?
Do you have to pay income/capital gains if you say take USD to buy Euros, then use those Euros to buy football tickets to see Germany vs. France on a Friday night? No, then why should you have to with bitcoin?
Do you have to pay taxes on those Euros you bought if they just sit in your wallet/purse inactive even if Euro price appreciates vs the dollar? No, then why should you have to with bit coin?
Now on the flip side, do you pay taxes/capital gains when you buy Euros with USD and when their value vs USD goes up you sell the Euros for more USD than you started with (thus a profit)? Yes, then you should do the same with bitcoin.... but really the goal in developing bit coin is to improve the first scenario, not this scenario.... this scenario will be happily pulled up by the first scenario.
The likely IMHO most violated tax depending on each persons applicable laws are sales taxes and all their forms.....
April 04, 2013, 10:17:09 PM
Capital gains only apply when you *sell* bitcoins.
Exactly. Im pretty sure most people here are holding or trading BTC for alt coins, and spending their fiat money they would otherwise invest in something else.
April 04, 2013, 10:05:01 PM
Implying we live in the U.S.
The best analogy to describe the world I've heard so far is that every country is like a drunkard, every drunkard drinks a bottle of vodka until he is lying with the face in the mud unable to stand up properly, the U.S. however is a pretentious drunkard that also works as a school bus driver, so it's not really that other countries are necessarily better or worse than the U.S., it's just that the U.S. allows itself wayy wayyy too much for the state it's currently in.
The country can't even go a decade without invading a foreign country and exploiting it in exchange for natural resources. If I was you bitcoin taxes would be the least thing I'd worry about.
The best analogy to describe the world I've heard so far is that every country is like a drunkard, every drunkard drinks a bottle of vodka until he is lying with the face in the mud unable to stand up properly, the U.S. however is a pretentious drunkard that also works as a school bus driver, so it's not really that other countries are necessarily better or worse than the U.S., it's just that the U.S. allows itself wayy wayyy too much for the state it's currently in.
The country can't even go a decade without invading a foreign country and exploiting it in exchange for natural resources. If I was you bitcoin taxes would be the least thing I'd worry about.
April 04, 2013, 09:47:09 PM
Paying taxes on bitcoin is likely to raise flags. Once they know what you're involved with Bitcoin, they're gonna presume you're underreporting and audit you.
What? You don't even have to specify exactly what the gain was from. Just put "Services Rendered" on the Schedule D. Also, if you can't even cite a single instance of this happening, you're just a total FUDmaster here.
Of course no one can cite an instance of audit caused by suspicious IRS filings related to Bitcoin. I should have said (for the statistically impaired): I strongly suspect that anyone who writes "Bitcoin trading" on their tax return is going to markedly increase their odds of being audited.
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