Tax on profit from bitcoin trading? (in US)

krigger

sr. member

Activity: 518

Merit: 250

Presale is live!

Quote from: Tabata11 on March 01, 2015, 06:39:52 PM

When calculating tax for BTC, do I treat it as property and calculate the total tax I need to pay from trading?

You probably asking about Bitcoin exchange.
And anser is yes. Every time you make a trade you pay a small tax for it.
So make sure you are in profit with that -% which goes for tax.

RodeoX

legendary

Activity: 3066

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The revolution will be monetized!

Note that you only pay once you have realized a profit. So if your BTC is worth more now then when you bought you may still not owe anything. You will owe capitol gains once you have spent or sold the BTC. If your just holding then you have not gained yet. You can also claim a loss on any coins that you spend/sell for less than what you paid.

infovortice2013

legendary

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supposed to pay over profits you take back to your bank from bitcoin markets, like wall street traders

bitcointaxes

jr. member

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Merit: 10

Yes, it's property so you treat it as capital gains.

Work out the difference between what you bought the coins for and what you sold them for, less any fees. That is you capital gain or loss. It is reported in total on 1040 Schedule D and line by line in Form 8949.

You can use https://bitcoin.tax if you need help.

Tabata11

sr. member

Activity: 290

Merit: 250

When calculating tax for BTC, do I treat it as property and calculate the total tax I need to pay from trading?

Topic: Tax on profit from bitcoin trading? (in US) (Read 2116 times)