I can only assume that they will keep track of selling of bitcoin through their site, and generate the 1099 based on that. If it is withdrawn and then used elsewhere, I suppose no 1099 would be triggered.
Does anyone have any insight on this or received a 1099?
Topic: itBit and Tax Reporting to the IRS and 1099 Forms (Read 754 times)
Does anybody have any experience or insight as to how 1099 forms are generated at itBit or any other bitcoin exchange?
Response from itBit
"We cannot provide you with tax advice. Please consult with your accountant as to Bitcoin tax treatment and when you would need to report your asset holdings to the IRS. We cannot comment on when we will generate 1099 forms and in what conditions we will generate 1099 forms.
Regards,
itBit Support"
I understand that even if there is no reporting, it is my responsibility to report capital gains to the IRS. But I'm just wondering if the reporting and 1099 form generation is similar to a stock brokerage firm. For example a 1099 is not generated when you buy stock but is reported on a 1099-B when you sell stock (assuming you are buying to go long and then selling to close the long position). If dividends of $10 or more are received, that generates a 1099-DIV form. If the dividends are less than $10, no 1099-DIV form is generated but you are still required to report the dividends on your federal tax return. If interest of $10 or more is received, that generates a 1099-INT form. If the interest is less than $10, no 1099-INT form is generated but you are still required to report the interest on your federal tax return.
Does anybody have any experience or insight as to how 1099 forms are generated at itBit or any other bitcoin exchange?
"We cannot provide you with tax advice. Please consult with your accountant as to Bitcoin tax treatment and when you would need to report your asset holdings to the IRS. We cannot comment on when we will generate 1099 forms and in what conditions we will generate 1099 forms.
Regards,
itBit Support"
I understand that even if there is no reporting, it is my responsibility to report capital gains to the IRS. But I'm just wondering if the reporting and 1099 form generation is similar to a stock brokerage firm. For example a 1099 is not generated when you buy stock but is reported on a 1099-B when you sell stock (assuming you are buying to go long and then selling to close the long position). If dividends of $10 or more are received, that generates a 1099-DIV form. If the dividends are less than $10, no 1099-DIV form is generated but you are still required to report the dividends on your federal tax return. If interest of $10 or more is received, that generates a 1099-INT form. If the interest is less than $10, no 1099-INT form is generated but you are still required to report the interest on your federal tax return.
Does anybody have any experience or insight as to how 1099 forms are generated at itBit or any other bitcoin exchange?
The itBit.com website says
"All US traders will also receive year-end 1099 forms for tax reporting."
Does anybody know what actions will trigger a 1099 form? I know with a normal brokerage account a 1099 is generated only if you sell any securities (buys don't count) or if you have $10 or more in interest a 1099-int will be generated or $10 or more in dividends a 1099-div will be generated. The info on the 1099 is what is reported to the IRS.
If you deposit USD to itBit, buy BTC and withdraw the BTC will that generate a 1099?
"All US traders will also receive year-end 1099 forms for tax reporting."
Does anybody know what actions will trigger a 1099 form? I know with a normal brokerage account a 1099 is generated only if you sell any securities (buys don't count) or if you have $10 or more in interest a 1099-int will be generated or $10 or more in dividends a 1099-div will be generated. The info on the 1099 is what is reported to the IRS.
If you deposit USD to itBit, buy BTC and withdraw the BTC will that generate a 1099?
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