Tax treatment for Long term/ short term held in BTC/ETH wallets

cryptoisdafuture

full member

Activity: 126

Merit: 100

Quote from: DaMut on September 01, 2017, 03:24:38 AM

actually you should not be worried about encash it from the start,
because there're a lot of exchanger that offer you to trade it with other people directly and using escrow system.
in other words,they will not make a report about your earning and other stuff.
it's like peer to peer platform,all that you need to do is find the buyer and then sell it to them directly.
other than that you also can sell it in here 'Currency Exchange'.
find the buyer/seller,hire the escrow and make the transaction.

so,everything will be fine right ?even if every exchanger around the world reporting everything to the goverment,you can sell it off markets which is prevent you being tracked by the goverment.
that's why Cryptocurrency known in the world because of the anonymity.
just don't let them know about your money and your coins,this should be fine.

That does sound interesting, something I didn't know about. However when that escrow gives me fiat currency, how do I account for the sudden spike in my account of USD? Surely I've to report that to IRS. Am I missing something?

DaMut

sr. member

Activity: 1274

Merit: 263

actually you should not be worried about encash it from the start,
because there're a lot of exchanger that offer you to trade it with other people directly and using escrow system.
in other words,they will not make a report about your earning and other stuff.
it's like peer to peer platform,all that you need to do is find the buyer and then sell it to them directly.
other than that you also can sell it in here 'Currency Exchange'.
find the buyer/seller,hire the escrow and make the transaction.

so,everything will be fine right ?even if every exchanger around the world reporting everything to the goverment,you can sell it off markets which is prevent you being tracked by the goverment.
that's why Cryptocurrency known in the world because of the anonymity.
just don't let them know about your money and your coins,this should be fine.

cryptoisdafuture

full member

Activity: 126

Merit: 100

Quote from: DaMut on September 01, 2017, 01:10:25 AM

for now it should be short-term capital gains,
because nobody know it and it's like you're storing your money in your own wallet and then a year later you spend it.
so,everybody should see it as your own that time.
(if we talk about it right now,because who knows what will happen in the coming year?)
you should not tell them about your money because you need to pay the taxes if they know it,
that's why i heard from someone in here that the goverment trying to track your money and coin in order to get the taxes.
obviously they'll rob you.
(this is why i said above if nothing goes wrong you should not be worry about it,but lately many exchanger trying to strict their rules and terms,i am afraid they will add it more and put the taxes for everything that we own in there)

I agree with you in not wanting to share the ETH because it's in a private wallet. My concern was when I finally encash it, they can see it where it came from and that I was holding it in this wallet for a few years so they can retroactively charge me taxes with penalty for "fraudulent" reporting.

DaMut

sr. member

Activity: 1274

Merit: 263

for now it should be short-term capital gains,
because nobody know it and it's like you're storing your money in your own wallet and then a year later you spend it.
so,everybody should see it as your own that time.
(if we talk about it right now,because who knows what will happen in the coming year?)
you should not tell them about your money because you need to pay the taxes if they know it,
that's why i heard from someone in here that the goverment trying to track your money and coin in order to get the taxes.
obviously they'll rob you.
(this is why i said above if nothing goes wrong you should not be worry about it,but lately many exchanger trying to strict their rules and terms,i am afraid they will add it more and put the taxes for everything that we own in there)

cryptoisdafuture

full member

Activity: 126

Merit: 100

I see there has been discussion on this, but I didn't find any recent threads. My question is:

If I hold my ETH in a wallet (hardware, MyEther or Mist etc) for a while (more than a year) and then move it to Coinbase/ Bittrex and then sell it in USD, does it get treated as long-term capital gains or short-term capital gains? Is it a year from the time of when it came to my Wallet or when it came to a "trackable interface".

Also the ETH I have were given to me for "work" to my Wallet. Do I need to report this in taxes as ordinary income? Is there a way for authorities to know?

Topic: Tax treatment for Long term/ short term held in BTC/ETH wallets (Read 315 times)