Paying taxes on Bitcoin income | Bitcointalksearch.org

2weiX

legendary

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Quote from: Gotta go fast! on December 03, 2012, 11:57:21 PM

Quote from: destruct on December 03, 2012, 11:29:24 AM

Question:

Isn't the entire point of Bitcoins to be annoymous and trade it for cash so it's tax free?

You guys seem to be missing the point if you're claiming it on your taxes.. just sayin.

Yes, it is the point of bitcoin to me.

as long as part of any business goes through "traditional" banks, that part needs to be declared.

LiteBit

legendary

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Quote from: Stephen Gornick on November 30, 2012, 05:29:43 AM

- http://en.bitcoin.it/wiki/Tax_compliance

Thanks for link

RhoDelta

newbie

Activity: 48

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A key aspect of bitcoin is to prevent against any outside interference, and yes that also includes taxation from governments.

With bitcoin you have the freedom to decide for yourself. Report or not, it is up to you.

Gotta go fast!

newbie

Activity: 45

Merit: 0

Quote from: destruct on December 03, 2012, 11:29:24 AM

Question:

Isn't the entire point of Bitcoins to be annoymous and trade it for cash so it's tax free?

You guys seem to be missing the point if you're claiming it on your taxes.. just sayin.

Yes, it is the point of bitcoin to me.

Foxpup

legendary

Activity: 4326

Merit: 3041

Vile Vixen and Miss Bitcointalk 2021-2023

Quote from: DannyHamilton on December 03, 2012, 11:41:19 AM

Quote from: slardar on December 03, 2012, 10:56:43 AM

I basically gave a link to the wiki page and weusecoins, her response was that "isn't this one big pyramid scheme where the early adopters have significantly more coins and the later ones pick up the scraps"

You may want to look into finding a new accountant. One who understands that in any form of ~~mining (Coal, Oil, Gold, Platinum, Diamond, etc)~~ investment the early adopters get access to significantly larger sources

You definitely need to find a new accountant. Preferably one who actually knows the meaning of the word "investment". Roll Eyes

DannyHamilton

legendary

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Quote from: slardar on December 03, 2012, 10:56:43 AM

Quote from: DannyHamilton on December 03, 2012, 09:53:11 AM

Quote from: slardar on December 03, 2012, 01:15:23 AM

Quote from: strspeed on December 02, 2012, 12:09:02 PM

Im sure if you call up an accountant and explain what they are to them they could tell you no problem

My accountant has no idea and just told me that it might be "wire fraud"

In the United States, wire fraud is any fraudulent scheme to intentionally deprive another of property or honest services via wire communication.

It seems you may have done an extremely poor job of explaining what bitcoin is to your accountant.If you got your profit from running a pyramid, ponzi, other scam, or stealing then your accountant is correct. If you received them from some legitimate process, then you explained it quite poorly.

I basically gave a link to the wiki page and weusecoins, her response was that "isn't this one big pyramid scheme where the early adopters have significantly more coins and the later ones pick up the scraps"

You may want to look into finding a new accountant. One who understands that in any form of mining (Coal, Oil, Gold, Platinum, Diamond, etc) the early adopters get access to significantly larger sources, while later ones have to work harder to find what they are looking for and are likely to find less of it. Does she consider gold to be "one big pyramid scheme"? Clearly I could have received $1,240 worth of gold in 1974 and today I could sell it for $17,000 while someone who bought $1,240 worth of gold in the past year wouldn't get more than $1,408 for it today. Doesn't that mean that as an early adopter I'd have significantly more wealth while later ones pick up the scraps?

Drifter

sr. member

Activity: 364

Merit: 252

Quote from: destruct on December 03, 2012, 11:29:24 AM

Question:

Isn't the entire point of Bitcoins to be annoymous and trade it for cash so it's tax free?

You guys seem to be missing the point if you're claiming it on your taxes.. just sayin.

No..that's not the point of bitcoin at all. Only to a few with an extremely limited mindset.

destruct

sr. member

Activity: 1232

Merit: 250

Alexander KOSTIN | GoldMint

Question:

Isn't the entire point of Bitcoins to be annoymous and trade it for cash so it's tax free?

You guys seem to be missing the point if you're claiming it on your taxes.. just sayin.

slardar

newbie

Activity: 37

Merit: 0

Quote from: DannyHamilton on December 03, 2012, 09:53:11 AM

Quote from: slardar on December 03, 2012, 01:15:23 AM

Quote from: strspeed on December 02, 2012, 12:09:02 PM

Im sure if you call up an accountant and explain what they are to them they could tell you no problem

My accountant has no idea and just told me that it might be "wire fraud"

In the United States, wire fraud is any fraudulent scheme to intentionally deprive another of property or honest services via wire communication.

It seems you may have done an extremely poor job of explaining what bitcoin is to your accountant.If you got your profit from running a pyramid, ponzi, other scam, or stealing then your accountant is correct. If you received them from some legitimate process, then you explained it quite poorly.

I basically gave a link to the wiki page and weusecoins, her response was that "isn't this one big pyramid scheme where the early adopters have significantly more coins and the later ones pick up the scraps"

2weiX

legendary

Activity: 2058

Merit: 1005

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i do have bitcoin income from mining, my store and from trading.
since all my bitcoin deals are against the EURO, it's easy to make a simple P/L calculation and pay capital gains tax (25%) on them.

DannyHamilton

legendary

Activity: 3416

Merit: 4658

Quote from: slardar on December 03, 2012, 01:15:23 AM

Quote from: strspeed on December 02, 2012, 12:09:02 PM

Im sure if you call up an accountant and explain what they are to them they could tell you no problem

My accountant has no idea and just told me that it might be "wire fraud"

In the United States, wire fraud is any fraudulent scheme to intentionally deprive another of property or honest services via wire communication.

It seems you may have done an extremely poor job of explaining what bitcoin is to your accountant.If you got your profit from running a pyramid, ponzi, other scam, or stealing then your accountant is correct. If you received them from some legitimate process, then you explained it quite poorly.

Stephen Gornick

legendary

Activity: 2506

Merit: 1010

Quote from: slardar on December 03, 2012, 01:15:23 AM

Quote from: strspeed on December 02, 2012, 12:09:02 PM

Im sure if you call up an accountant and explain what they are to them they could tell you no problem

My accountant has no idea and just told me that it might be "wire fraud"

You probably should find an accountant who has a clue.

slardar

newbie

Activity: 37

Merit: 0

Quote from: strspeed on December 02, 2012, 12:09:02 PM

Im sure if you call up an accountant and explain what they are to them they could tell you no problem

My accountant has no idea and just told me that it might be "wire fraud"

strspeed

newbie

Activity: 23

Merit: 0

Im sure if you call up an accountant and explain what they are to them they could tell you no problem

btctalk

full member

Activity: 137

Merit: 112

If you change them to USD or spend USD to get BTC then you can include them in your income/outcome. but if I were you I wouldn't mix the BTC and the USD currencies together for a while;)

Stephen Gornick

legendary

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Merit: 1010

Quote from: slardar on November 30, 2012, 12:19:27 AM

Do people do this? Is it required? Does this count as "gifts" or "barter" or "income" or expensable/are bitcoin donations converted to fiat amounts tax-deductible if you donate to a bitcoin charity?

What "Bitcoin income".

From mining?

From selling something where you take bitcoins for payment?

From gains realized from speculation? Is this long term gains (one year or more) or short term (less than a yaer)?

All have different treatment.

- http://en.bitcoin.it/wiki/Tax_compliance

Foxpup

legendary

Activity: 4326

Merit: 3041

Vile Vixen and Miss Bitcointalk 2021-2023

IANAL, but in most places (it would be helpful if you were more specific), if you earn bitcoins by mining, or as payment for services, then you have to pay regular income tax on the fiat value of your bitcoins when you received them. If you bought bitcoins at an exchange, there is no income tax, but if you later sell or trade your bitcoins for more than what you paid for them, then you have to pay capital gains tax on the difference (if you sell or trade your bitcoins for less than what you paid for them, that's a capital loss which may (or may not) be tax deductible). Bitcoin donations are probably not tax deductible in most cases.

If you search this forum, you will no doubt come across absurd arguments that bitcoins aren't taxable because they aren't real money, or aren't really property, or some other ridiculous reason. Most governments don't actually care about any of that. It doesn't matter in the slightest whether bitcoins are money, a commodity, virtual property, or something else entirely; as long it has value, and you make an income or profit from that value, then you have to pay tax on that value.

odolvlobo

legendary

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Quote from: slardar on November 30, 2012, 12:19:27 AM

Do people do this? Is it required? Does this count as "gifts" or "barter" or "income" or expensable/are bitcoin donations converted to fiat amounts tax-deductible if you donate to a bitcoin charity?

I am not an accountant, nor a lawyer. The information I've seen says that it is considered barter income. When you donate something to a charity, you can deduct the amount that they sell it for.

slardar

newbie

Activity: 37

Merit: 0

Do people do this? Is it required? Does this count as "gifts" or "barter" or "income" or expensable/are bitcoin donations converted to fiat amounts tax-deductible if you donate to a bitcoin charity?

Topic: Paying taxes on Bitcoin income (Read 1481 times)