Go to HR Block with your blockchain screenshots and tell them to file your taxes accordingly. If you mined 100 BTC last year prepare to give Uncle Sam around 13 BTC. May vary depending on your state.
Maria 2.0
Maria 2.0
But for real, im assuming just go in with a list of Mtgox Withdrawals to cash, since what do they care how much BTC i have.
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Im in USA
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For this tax return, I can define the income as pure income, and still come out okay, since I have a $300 deduction left and and pay 10% on the rest.
But the smarter way would be to setup depreciation if applicable, and subtract utility bills, since next year my expected income is going to be off the charts.
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Would it be filing as a small business?
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Before you can determine if you are subject to self-employment tax and income tax, you must figure your net profit or net loss from your business. You do this by subtracting your business expenses from your business income. If your expenses are less than your income, the difference is net profit and becomes part of your income on page 1 of Form 1040. If your expenses are more than your income, the difference is a net loss.
It is unlikely that they care how much BTC you have.. it is the cashing out part that they would care about.
