Can anyone give me an easy explanation of US tax laws with bitcoins?
Not too sure but if they follow suit of the Australian Govt., they will tax it ASAP.
Topic: Taxes? (Read 580 times)
Can anyone give me an easy explanation of US tax laws with bitcoins?
They can tax you when you have massive gains while getting FIAT.So if I load up my bank account I have to declare it as income?
Taxes? what taxes? No sir I don't have any bitcoins.
There are no taxes on Bitcoins transactions, however exchanging Bitcoins to fiat can be referred to as Capital Gains, and the gains you made by an increase in Bitcoin's value can be taxed as income.
Jak is right, in regards to purchasing and holding bitcoins. However, when selling bitcoins in return for USD, any profit made due to rise in bitcoin value, is taxable. Whether you report it or not is another thing. In most cases, a small profit will go unnoticed by the IRS, but substantial gains can set of red flags.
All cryptocurrencies are considered a "private currency" and therefore are not taxed because you are bartering with what the government would consider an item. It's in the same sense if you bought stuff with gold there would be no tax. The opposite of a private currency would be a fiat currency, or one that is fedrally backed and issued by the government.
Can anyone give me an easy explanation of US tax laws with bitcoins?
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