Topic: New IRS rules for BTC as related to US Tax payers - page 4. (Read 5839 times)
For miners... just do it as a business and always post an operating loss. So easy. Buy more equipment lol.
If you wanna do it REALLY right take a look at http://www.ifrs.org/Use-around-the-world/Education/Recent-publications/Documents/Module30_Version_2011_09.pdf and to a lesser extent http://www.pwc.com/en_us/us/ifrs-tax-issues/assets/currency-gains-losses-ifrs.pdf . These PDFs are IFRS based BUT the methods and practices apply almost exactly the same for GAAP based accounting.
H@shKraker
H@shKraker
I like the way you guys are seeing things. I guess it's just the pessimist in me being negative Nancy...I really hope you're right. On a more selfish note, how should I, as a small time miner, keep track of my daily payouts? I'm open to any and all suggestions.
I, on the other hand, see this removal of uncertainty as a significant positive for businesses to accepts BTC as payment. You see, now where codification for its use and existence. It's only a matter of time until quickbooks integrates with bitpay integrates with TurboTax. You see, they want to take as much revenue as they can and now that there codification there's no reason to not allow service providers to accept payment (in whatever fiat) for providing small business accounting integrations. Simple as pie really now that the IRS is going to include rules in the tax code..
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H@shKraker
A lot of companies that are starting to accept Bitcoins use services like BitPay, where the Bitcoins received are immediately converted to fiat currency and put into the account of the business. The merchant has no problem under this scenario. From the merchant's perspective, he is being paid his local currency. This would not deter merchants at all.
This seems impossible to enforce for the consumer. If I buy $700 worth of stuff on Overstock in BTC that I paid $500 for how is the IRS going to track this or even know? Am I just on the honor system to report it? Good luck with that...
It will be very tough to enforce for the consumer, but it will be just as hard for a business like Overstock (that needs to keep diligent records) to remain above board on the tax code if they are accepting bitcoins as payment. Not only that, but it makes accepting bitcoins a major liability for any business that does numerous transactions and doesn't want the IRS crawling through their books. This seems to be the US government saying, fuck bitcoins, without having to say fuck bitcoins. I would not be surprised if you see the few major company's that do accept bitcoins stop doing so in the coming weeks. I hope I'm wrong, but that's the way I see it.
This seems impossible to enforce for the consumer. If I buy $700 worth of stuff on Overstock in BTC that I paid $500 for how is the IRS going to track this or even know? Am I just on the honor system to report it? Good luck with that...
What does this mean regarding minor miner? How am I supposed to file self-employment taxes?
Ahhhh .... another way to ask your question is "Why do we need CPAs?" .... oh yea .... this is why we need CPAs.
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I don't see how this is good news. I am not trying to troll here, I was just talking to people the other day and telling them my arguments for Bitcoin being around for a very very long time. I was really excited about Bitcoin.
But this is a deathblow. How will businesses keep track of what a coin was worth when they exchanged a good or service for said bitcoin? This Bloomberg article puts it perfectly
"Today’s IRS guidance will provide certainty for Bitcoin investors, along with income-tax liability that wasn’t specified before. Purchasing a $2 cup of coffee with Bitcoins bought for $1 would trigger $1 in capital gains for the coffee drinker and $2 of gross income for the coffee shop. "
http://www.bloomberg.com/news/2014-03-25/bitcoin-is-property-not-currency-in-tax-system-irs-says.html
I am no economics major, but can someone please explain to me how this is a positive bit of news? I was hoping Bitcoin would be handled as a currency, or at least a foreign currency...this pretty much means any business trying to adopt bitcoin will have to think long and hard about the implications.
But this is a deathblow. How will businesses keep track of what a coin was worth when they exchanged a good or service for said bitcoin? This Bloomberg article puts it perfectly
"Today’s IRS guidance will provide certainty for Bitcoin investors, along with income-tax liability that wasn’t specified before. Purchasing a $2 cup of coffee with Bitcoins bought for $1 would trigger $1 in capital gains for the coffee drinker and $2 of gross income for the coffee shop. "
http://www.bloomberg.com/news/2014-03-25/bitcoin-is-property-not-currency-in-tax-system-irs-says.html
I am no economics major, but can someone please explain to me how this is a positive bit of news? I was hoping Bitcoin would be handled as a currency, or at least a foreign currency...this pretty much means any business trying to adopt bitcoin will have to think long and hard about the implications.
Yea, I hate taxes too BUT this does remove a measure of uncertainty (and thus some risk). All in all I think it's a good thing to have some regulatory risk/uncertainty removed from the picture.
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H@shKraker
I hate taxes ...
Welp, finally a little stable news from the US GubMint -> http://www.usatoday.com/story/money/business/2014/03/25/irs-says-bitcoin-is-property/6873569/ . I'd say this is fairly good news as it provides legitimate taxation guidelines for US Citizens and partially legitimizes the BTC economic velocity. What you folks think?
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