POLL: In what case will you be taxed on your bitcoin profits?

HELP.org

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Quote from: ?? on ??

Quote from: beetcoin on December 30, 2013, 06:15:08 PM

but the question is how to define "sell"? what if i used my bitcoins to purchase $1000 in gift cards? does that mean i sold my BTC? i'd think the more correct term would be exchange your bitcoins for fiat.

Yes.

Try NO. Of course you have created a taxable event when you trade Bitcoin for giftcards.

TERA

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I've come to the conclusion that a daytrader cannot possibly avoid taxes by buying or transferring bitcoins in a new position before the new year. This is because all the "taxable events" occurred earlier and are finished. The trader's new position is irrelevant to the previous taxable events. If he does happen to incur a loss on the trade then it will be applied next year. Is this correct?

Bitcoinpro

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Quote from: quone17 on December 30, 2013, 03:45:37 PM

Quote from: kjlimo on December 30, 2013, 01:09:42 AM

Quote from: giantdragon on December 29, 2013, 03:05:35 PM

The only safe way to don't pay taxes from your Bitcoins is to sell them for cash ("from one hands to another ones").

Until you use that cash to buy a Lamborghini and then the IRS asks "Where did all the cash come from?"

*Facepalm*

I could see your point with buying a car. But you could use the cash for things like food, clothes, and you should be fine.

just say you bought the Lambo with Bitcoin then floor it Cheesy

beetcoin

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Quote from: ?? on ??

Every time you sell coins for fiat it's a taxable event. Doesn't matter if the money stays on exchange or is re-invested or not.

Pretty sure under normal circumstances in the US we don't have to pay any tax on our net worth or anything like that. It's only when you earn money by working or by selling something for more than you paid.

But don't take my word for it. I'm just a random guy on the internet.

P.S. I didn't vote.

but the question is how to define "sell"? what if i used my bitcoins to purchase $1000 in gift cards? does that mean i sold my BTC? i'd think the more correct term would be exchange your bitcoins for fiat.

mgio

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Quote from: quone17 on December 30, 2013, 03:45:37 PM

Quote from: kjlimo on December 30, 2013, 01:09:42 AM

Quote from: giantdragon on December 29, 2013, 03:05:35 PM

The only safe way to don't pay taxes from your Bitcoins is to sell them for cash ("from one hands to another ones").

Until you use that cash to buy a Lamborghini and then the IRS asks "Where did all the cash come from?"

*Facepalm*

I could see your point with buying a car. But you could use the cash for things like food, clothes, and you should be fine.

What if you have a lot of bitcoins?

Then you are in trouble.

quone17

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Quote from: kjlimo on December 30, 2013, 01:09:42 AM

Quote from: giantdragon on December 29, 2013, 03:05:35 PM

The only safe way to don't pay taxes from your Bitcoins is to sell them for cash ("from one hands to another ones").

Until you use that cash to buy a Lamborghini and then the IRS asks "Where did all the cash come from?"

*Facepalm*

I could see your point with buying a car. But you could use the cash for things like food, clothes, and you should be fine.

kjlimo

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Quote from: giantdragon on December 29, 2013, 03:05:35 PM

The only safe way to don't pay taxes from your Bitcoins is to sell them for cash ("from one hands to another ones").

Until you use that cash to buy a Lamborghini and then the IRS asks "Where did all the cash come from?"

*Facepalm*

giantdragon

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The only safe way to don't pay taxes from your Bitcoins is to sell them for cash ("from one hands to another ones").

TERA

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I know there are many threads about this but no clear answers or agreements, so I have started a poll.

Also, could someone tell us exactly on what date/time the assets are counted?

Edit: This is for the United States. Also, this is assuming you're going to be completely honest. This is not about "what if I claim I lost my private keys" etc.

Topic: POLL: In what case will you be taxed on your bitcoin profits? (Read 1049 times)