(HELP) How do i pay Taxes on Bitcoin or any other Atlcoins - page 2.

Lucky Cris

sr. member

Activity: 280

Merit: 250

Quote from: AltorXP on January 28, 2014, 12:41:25 AM

Quote from: Lucky Cris on January 28, 2014, 12:35:29 AM

Quote from: LittleD on January 28, 2014, 12:00:13 AM

Quote from: russokai on January 27, 2014, 11:52:45 PM

Just put all your money in a wheelbarrow and take it to the IRS and that's the only way they will be happy.

Then watch 95% of said money be funneled to the richest .01% and that's it.

i just know that one day the IRS will go after us (BTC Miners), why not just give them their cut now. intead of later down the road when BTC is much higher than now?

And 'they' know you're mining how? Disclaimer!!! Not real tax advice, but they don't know what they don't know, you know.

No, but they'd know if you exchange BTC to fiat Cry

So they'd easily be able to tax the money you got from selling those bitcoins. If the IRS did decide to tax everyone who converted bitcoin to fiat, I would assume that would be more costly than lucrative for the gov.

Indeed... But it also depends on your vehicle of exchange and volume. Should you take the cash road for example... Ok, I stop. I don't cheat Uncle Sam and I'm not telling anyone else to.

BTCisthefuture

sr. member

Activity: 364

Merit: 250

Quote from: AltorXP on January 28, 2014, 12:41:25 AM

Quote from: Lucky Cris on January 28, 2014, 12:35:29 AM

Quote from: LittleD on January 28, 2014, 12:00:13 AM

Quote from: russokai on January 27, 2014, 11:52:45 PM

Just put all your money in a wheelbarrow and take it to the IRS and that's the only way they will be happy.

Then watch 95% of said money be funneled to the richest .01% and that's it.

i just know that one day the IRS will go after us (BTC Miners), why not just give them their cut now. intead of later down the road when BTC is much higher than now?

And 'they' know you're mining how? Disclaimer!!! Not real tax advice, but they don't know what they don't know, you know.

No, but they'd know if you exchange BTC to fiat Cry

So they'd easily be able to tax the money you got from selling those bitcoins. If the IRS did decide to tax everyone who converted bitcoin to fiat, I would assume that would be more costly than lucrative for the gov.

Correct, the common assumption from what I've seen is that if you mine, make a profit , and cash out that profit you should treat it as capital gains. Again there are no officials rules on this from the IRS yet but this tends to be the safest thing to assume and the best approach to take from the few articles of read on this issue.

It is true that unless you were making absurd amounts of money the IRS is very unlikely to ever noticed....but it's also true that when you take a gamble with the IRS and you lose it's a HUGE headache to deal with later. I've known a few people who have been audited and it's a nightmare to but it mildly.

AltorXP

member

Activity: 71

Merit: 10

Quote from: Lucky Cris on January 28, 2014, 12:35:29 AM

Quote from: LittleD on January 28, 2014, 12:00:13 AM

Quote from: russokai on January 27, 2014, 11:52:45 PM

Just put all your money in a wheelbarrow and take it to the IRS and that's the only way they will be happy.

Then watch 95% of said money be funneled to the richest .01% and that's it.

i just know that one day the IRS will go after us (BTC Miners), why not just give them their cut now. intead of later down the road when BTC is much higher than now?

And 'they' know you're mining how? Disclaimer!!! Not real tax advice, but they don't know what they don't know, you know.

No, but they'd know if you exchange BTC to fiat Cry

So they'd easily be able to tax the money you got from selling those bitcoins. If the IRS did decide to tax everyone who converted bitcoin to fiat, I would assume that would be more costly than lucrative for the gov.

BTCisthefuture

sr. member

Activity: 364

Merit: 250

Quote from: LittleD on January 28, 2014, 12:00:13 AM

Quote from: russokai on January 27, 2014, 11:52:45 PM

Just put all your money in a wheelbarrow and take it to the IRS and that's the only way they will be happy.

Then watch 95% of said money be funneled to the richest .01% and that's it.

i just know that one day the IRS will go after us (BTC Miners), why not just give them their cut now. intead of later down the road when BTC is much higher than now?

It's important to stay on top of tax issues in America and play it as safe as possible. The IRS usually doesn't care when people use the excuse "oh I didn't know!" and they can and will come after things from previous years if they notice it.

To answer your question, right now there is no guidance from the IRS itself even after repeated requests from businesses and people asking the IRS for clear guidance. Currently your best bet is to hire an accountant/tax specialist , shop around and try to find one who might have some knowledge of bitcoin. This really is your best bet, you can get advice from someone who's career is based on these sort of things and you can rest easy knowing you handled it the best of your abilities. Even if a accountant/tax specialist who doesn't know much about bitcoin, if they are decent at their job they can and will take the time to look into it and develop the best game plane possible and let you know whats required on your end.

edit: Let us know what you find out after talking to tax consultant , I'm sure you're not the only person out there who has the same concerns when it comes to filing taxes and wanting to make sure you handle it the best way possible to avoid potential headaches down the road

Lucky Cris

sr. member

Activity: 280

Merit: 250

Quote from: LittleD on January 28, 2014, 12:00:13 AM

Quote from: russokai on January 27, 2014, 11:52:45 PM

Just put all your money in a wheelbarrow and take it to the IRS and that's the only way they will be happy.

Then watch 95% of said money be funneled to the richest .01% and that's it.

i just know that one day the IRS will go after us (BTC Miners), why not just give them their cut now. intead of later down the road when BTC is much higher than now?

And 'they' know you're mining how? Disclaimer!!! Not real tax advice, but they don't know what they don't know, you know.

AltorXP

member

Activity: 71

Merit: 10

Quote from: LittleD on January 28, 2014, 12:00:13 AM

Quote from: russokai on January 27, 2014, 11:52:45 PM

Just put all your money in a wheelbarrow and take it to the IRS and that's the only way they will be happy.

Then watch 95% of said money be funneled to the richest .01% and that's it.

i just know that one day the IRS will go after us (BTC Miners), why not just give them their cut now. intead of later down the road when BTC is much higher than now?

They'd actually go after the conversion of BTC to fiat, so you wouldnt lose money regardless of when you payed taxes

LittleD

hero member

Activity: 560

Merit: 500

StayFocus and LIVE

Quote from: russokai on January 27, 2014, 11:52:45 PM

Just put all your money in a wheelbarrow and take it to the IRS and that's the only way they will be happy.

Then watch 95% of said money be funneled to the richest .01% and that's it.

i just know that one day the IRS will go after us (BTC Miners), why not just give them their cut now. intead of later down the road when BTC is much higher than now?

russokai

full member

Activity: 130

Merit: 100

Just put all your money in a wheelbarrow and take it to the IRS and that's the only way they will be happy.

Then watch 95% of said money be funneled to the richest .01% and that's it.

Holliday

legendary