Pages:
Author

Topic: Taxes on Bitcoin - page 4. (Read 10930 times)

hero member
Activity: 578
Merit: 508
January 12, 2017, 08:31:29 AM
#94
I have an issue with New Egg which I believe has negative tax consequences. I have already complained to no avail.

I am looking to purchase more Sapphire RX470 8gb cards after evaluating one. Currently this card from NE is listed at $214 with a free $60 game.

The problem is the way they invoice. For the one card I purchased, they supplied two invoices.

The first invoice takes the card price of $214 and then an obscurely written 2nd line on the invoice subtracts  "a credit" for $60. So the first invoice shows that the net card cost is $154.

The second invoice is for the $60 video game and the total line has $60. Adding the two together and voila, we get the $214 catalog price total.

My complaint to them was that they are potentially hurting any business customer because their way of invoicing shows cost basis of the card as $154 not $214. While the chance of an audit is tiny, your invoice has reduced the cost basis of this card by $60 and you have given me a game invoice for $60. Especially for an order of say five, what is the audit defense against expensing 5 identical $60 computer games.?



Just want to make sure I understand, but you are actually paying $214, but then you get a game worth $60?  So when you make the purchase, $214 is coming out of your bank account?

Correct. $214 on a cc. You are given 2 separate invoices with completely different invoice numbers. The one for $154, is the RX470. The other one for is $60, a "Hitman" PC game. The price on their website for this card is $214. No mention of this weird allocation of cost. The game is some sort of incentive in lieu of a discount. I asked about getting a further discount and no game. No can do.
legendary
Activity: 2800
Merit: 1012
Get Paid Crypto To Walk or Drive
January 11, 2017, 11:35:21 PM
#93
I have an issue with New Egg which I believe has negative tax consequences. I have already complained to no avail.

I am looking to purchase more Sapphire RX470 8gb cards after evaluating one. Currently this card from NE is listed at $214 with a free $60 game.

The problem is the way they invoice. For the one card I purchased, they supplied two invoices.

The first invoice takes the card price of $214 and then an obscurely written 2nd line on the invoice subtracts  "a credit" for $60. So the first invoice shows that the net card cost is $154.

The second invoice is for the $60 video game and the total line has $60. Adding the two together and voila, we get the $214 catalog price total.

My complaint to them was that they are potentially hurting any business customer because their way of invoicing shows cost basis of the card as $154 not $214. While the chance of an audit is tiny, your invoice has reduced the cost basis of this card by $60 and you have given me a game invoice for $60. Especially for an order of say five, what is the audit defense against expensing 5 identical $60 computer games.?



Just want to make sure I understand, but you are actually paying $214, but then you get a game worth $60?  So when you make the purchase, $214 is coming out of your bank account?
hero member
Activity: 578
Merit: 508
January 11, 2017, 11:31:21 PM
#92
I have an issue with New Egg which I believe has negative tax consequences. I have already complained to no avail.

I am looking to purchase more Sapphire RX470 8gb cards after evaluating one. Currently this card from NE is listed at $214 with a free $60 game.

The problem is the way they invoice. For the one card I purchased, they supplied two invoices.

The first invoice takes the card price of $214 and then an obscurely written 2nd line on the invoice subtracts  "a credit" for $60. So the first invoice shows that the net card cost is $154.

The second invoice is for the $60 video game and the total line has $60. Adding the two together and voila, we get the $214 catalog price total.

My complaint to them was that they are potentially hurting any business customer because their way of invoicing shows cost basis of the card as $154 not $214. While the chance of an audit is tiny, your invoice has reduced the cost basis of this card by $60 and you have given me a game invoice for $60. Especially for an order of say five, what is the audit defense against expensing 5 identical $60 computer games.?

legendary
Activity: 2800
Merit: 1012
Get Paid Crypto To Walk or Drive
January 11, 2017, 06:02:02 PM
#91
Hi Everybody,

When getting Satoshi/Bitcoins from the internet in general, could you please tell me whether you have to pay tax to the country you get them from or do you just pay taxes to your own country?

Thanks for your help.

In USA, Depending on what your doing with bitcoin, if your mining bitcoin you have to pay income tax on every cent you make. Also if the price of bitcoin goes up even 1 cent you also have to pay a tax on that called, Capital Gains tax. In your trading bitcoin, you may require registering for a "FinCEN" as it may be classified as money transmitting. As far as I know, these taxes must be payed based of the place you live no matter where you buy the bitcoin.

I don't think you will need to pay tax when you mine bitcoin. You are required to report tax only if you sell bitcoin to fiat. In which case it is treated like if you are selling the stocks, same rules apply.

You have to pay tax on the mining of bitcoin.  You can deduct things like cost of machines (depreciation) and electricity, but tax is still owed.  Consult an accountant (like me) for further insight.

Really? but how to calculate the value of the bitcoin? at the time of mined? Say I got each day some bitcoins because of mining, I have to record the price that day for my tax purpose? It will be a lot of work.

Technically to be 100% right, you should record the price after each block found with the pool you are using.  Of course that is not going to happen (although would be a great piece of software idea..) so instead I mine all coins to a single address that I dump at the end of each month and record my basis as that.  So you owe ordinary income on that part, then any fluctuation of price when you sell the assets would be capital gains.
hero member
Activity: 868
Merit: 1003
January 11, 2017, 05:55:37 PM
#90
Hi Everybody,

When getting Satoshi/Bitcoins from the internet in general, could you please tell me whether you have to pay tax to the country you get them from or do you just pay taxes to your own country?

Thanks for your help.

In USA, Depending on what your doing with bitcoin, if your mining bitcoin you have to pay income tax on every cent you make. Also if the price of bitcoin goes up even 1 cent you also have to pay a tax on that called, Capital Gains tax. In your trading bitcoin, you may require registering for a "FinCEN" as it may be classified as money transmitting. As far as I know, these taxes must be payed based of the place you live no matter where you buy the bitcoin.

I don't think you will need to pay tax when you mine bitcoin. You are required to report tax only if you sell bitcoin to fiat. In which case it is treated like if you are selling the stocks, same rules apply.

You have to pay tax on the mining of bitcoin.  You can deduct things like cost of machines (depreciation) and electricity, but tax is still owed.  Consult an accountant (like me) for further insight.

Really? but how to calculate the value of the bitcoin? at the time of mined? Say I got each day some bitcoins because of mining, I have to record the price that day for my tax purpose? It will be a lot of work.
legendary
Activity: 2800
Merit: 1012
Get Paid Crypto To Walk or Drive
January 11, 2017, 05:27:48 PM
#89
Hi Everybody,

When getting Satoshi/Bitcoins from the internet in general, could you please tell me whether you have to pay tax to the country you get them from or do you just pay taxes to your own country?

Thanks for your help.




In USA, Depending on what your doing with bitcoin, if your mining bitcoin you have to pay income tax on every cent you make. Also if the price of bitcoin goes up even 1 cent you also have to pay a tax on that called, Capital Gains tax. In your trading bitcoin, you may require registering for a "FinCEN" as it may be classified as money transmitting. As far as I know, these taxes must be payed based of the place you live no matter where you buy the bitcoin.

I don't think you will need to pay tax when you mine bitcoin. You are required to report tax only if you sell bitcoin to fiat. In which case it is treated like if you are selling the stocks, same rules apply.

You have to pay tax on the mining of bitcoin.  You can deduct things like cost of machines (depreciation) and electricity, but tax is still owed.  Consult an accountant (like me) for further insight.
sr. member
Activity: 504
Merit: 250
January 11, 2017, 02:37:58 PM
#88
Hi Everybody,

When getting Satoshi/Bitcoins from the internet in general, could you please tell me whether you have to pay tax to the country you get them from or do you just pay taxes to your own country?

Thanks for your help.




In USA, Depending on what your doing with bitcoin, if your mining bitcoin you have to pay income tax on every cent you make. Also if the price of bitcoin goes up even 1 cent you also have to pay a tax on that called, Capital Gains tax. In your trading bitcoin, you may require registering for a "FinCEN" as it may be classified as money transmitting. As far as I know, these taxes must be payed based of the place you live no matter where you buy the bitcoin.

I don't think you will need to pay tax when you mine bitcoin. You are required to report tax only if you sell bitcoin to fiat. In which case it is treated like if you are selling the stocks, same rules apply.
hero member
Activity: 714
Merit: 501
Real Eyes, Realize, Real Lies.
January 10, 2017, 04:07:30 AM
#87
Hi Everybody,

When getting Satoshi/Bitcoins from the internet in general, could you please tell me whether you have to pay tax to the country you get them from or do you just pay taxes to your own country?

Thanks for your help.




In USA, Depending on what your doing with bitcoin, if your mining bitcoin you have to pay income tax on every cent you make. Also if the price of bitcoin goes up even 1 cent you also have to pay a tax on that called, Capital Gains tax. In your trading bitcoin, you may require registering for a "FinCEN" as it may be classified as money transmitting. As far as I know, these taxes must be payed based of the place you live no matter where you buy the bitcoin.
legendary
Activity: 2814
Merit: 1192
January 09, 2017, 03:20:33 PM
#86
In US, coinbase and other exchanges will report your sales to IRS, so you'll have a include it in the tax return. There's no way to get around it, it's just like selling stocks, all brokerages give the info to IRS.
Yes, you are expected to report revenue from Bitcoin trading, just like any other.
In EU it's different, they (the exchanges) don't have to report you and usually don't, but if a person is being investigated for tax evasion they may be asked to reveal the transaction details to the tax office.
hero member
Activity: 868
Merit: 1003
January 08, 2017, 05:42:03 PM
#85
In US, coinbase and other exchanges will report your sales to IRS, so you'll have a include it in the tax return. There's no way to get around it, it's just like selling stocks, all brokerages give the info to IRS.
hero member
Activity: 1008
Merit: 1000
December 05, 2016, 11:27:06 PM
#84
Those who think that no taxes need to be paid are about to find out otherwise.  Wink

https://www.justice.gov/opa/press-release/file/914226/download

Orders to turn over all transaction records are being sent to exchanges and software to determine ownership of addresses has gone live. If you are caught cheating on your taxes you will wish you had just paid them. It would have been far cheaper.

The US has made a start, but all governments are sure to follow suit. As long as you keep your bitcoins, the government will decide to ignore you. Once you convert it to fiat or spend it, the taxman will start breathing down your neck.

I wouldn't get too worried they are concerned with the big tax cheats and not the small fish like most of here are.  They do not have the resources to hunt down every person that owes the IRS 10 bucks in taxes

Sigh, a couple of good quality posts and then back to utter shit.  It's OK to do because you probably won't get caught.  Real good advice to give you idiot.

Sorry I'm trying to be some what logical and look at what it really means.

Better make sure you the pay tax man his share when you sell those baseball cards cuz the nsa is watching your every move.

Your talking to a CPA.  It would be against my oath to taxpayers and the government if I were to not claim that money.  Because, once again, lets break the rules if we might not get caught, way to live your life.

Sure but the people who are worried about their past transactions getting handed over to the irs are the people who DID NOT file it with the irs the last 3 years.  If they did file and pay the taxes then they would not be concerned about this order or care.

So yeah it's completely relevant to discus if those people have something to worry about, furthermore those tax years are now OVER so it is helpful to talk about who the irs will be targeting.
hero member
Activity: 910
Merit: 525
December 05, 2016, 08:11:48 PM
#83
Just pay tax on your country.
But bitcoin is not legal in many countries that mean you don't have to pay any tax from bitcoin transaction if the country doesn't admit bitcoin as a currency.
Maybe the tax is apply in exchanger. Cmiiw
legendary
Activity: 2800
Merit: 1012
Get Paid Crypto To Walk or Drive
December 05, 2016, 08:04:39 PM
#82
Those who think that no taxes need to be paid are about to find out otherwise.  Wink

https://www.justice.gov/opa/press-release/file/914226/download

Orders to turn over all transaction records are being sent to exchanges and software to determine ownership of addresses has gone live. If you are caught cheating on your taxes you will wish you had just paid them. It would have been far cheaper.

The US has made a start, but all governments are sure to follow suit. As long as you keep your bitcoins, the government will decide to ignore you. Once you convert it to fiat or spend it, the taxman will start breathing down your neck.

I wouldn't get too worried they are concerned with the big tax cheats and not the small fish like most of here are.  They do not have the resources to hunt down every person that owes the IRS 10 bucks in taxes

Sigh, a couple of good quality posts and then back to utter shit.  It's OK to do because you probably won't get caught.  Real good advice to give you idiot.

Sorry I'm trying to be some what logical and look at what it really means.

Better make sure you the pay tax man his share when you sell those baseball cards cuz the nsa is watching your every move.

Your talking to a CPA.  It would be against my oath to taxpayers and the government if I were to not claim that money.  Because, once again, lets break the rules if we might not get caught, way to live your life.
hero member
Activity: 1008
Merit: 1000
December 05, 2016, 07:38:05 PM
#81
Those who think that no taxes need to be paid are about to find out otherwise.  Wink

https://www.justice.gov/opa/press-release/file/914226/download

Orders to turn over all transaction records are being sent to exchanges and software to determine ownership of addresses has gone live. If you are caught cheating on your taxes you will wish you had just paid them. It would have been far cheaper.

The US has made a start, but all governments are sure to follow suit. As long as you keep your bitcoins, the government will decide to ignore you. Once you convert it to fiat or spend it, the taxman will start breathing down your neck.

I wouldn't get too worried they are concerned with the big tax cheats and not the small fish like most of here are.  They do not have the resources to hunt down every person that owes the IRS 10 bucks in taxes

Sigh, a couple of good quality posts and then back to utter shit.  It's OK to do because you probably won't get caught.  Real good advice to give you idiot.

Sorry I'm trying to be some what logical and look at what it really means.

Better make sure you the pay tax man his share when you sell those baseball cards cuz the nsa is watching your every move.
legendary
Activity: 2800
Merit: 1012
Get Paid Crypto To Walk or Drive
December 05, 2016, 05:19:35 PM
#80
Those who think that no taxes need to be paid are about to find out otherwise.  Wink

https://www.justice.gov/opa/press-release/file/914226/download

Orders to turn over all transaction records are being sent to exchanges and software to determine ownership of addresses has gone live. If you are caught cheating on your taxes you will wish you had just paid them. It would have been far cheaper.

The US has made a start, but all governments are sure to follow suit. As long as you keep your bitcoins, the government will decide to ignore you. Once you convert it to fiat or spend it, the taxman will start breathing down your neck.

I wouldn't get too worried they are concerned with the big tax cheats and not the small fish like most of here are.  They do not have the resources to hunt down every person that owes the IRS 10 bucks in taxes

Sigh, a couple of good quality posts and then back to utter shit.  It's OK to do because you probably won't get caught.  Real good advice to give you idiot.
hero member
Activity: 1008
Merit: 1000
December 05, 2016, 03:16:48 AM
#79
Those who think that no taxes need to be paid are about to find out otherwise.  Wink

https://www.justice.gov/opa/press-release/file/914226/download

Orders to turn over all transaction records are being sent to exchanges and software to determine ownership of addresses has gone live. If you are caught cheating on your taxes you will wish you had just paid them. It would have been far cheaper.

The US has made a start, but all governments are sure to follow suit. As long as you keep your bitcoins, the government will decide to ignore you. Once you convert it to fiat or spend it, the taxman will start breathing down your neck.

I wouldn't get too worried they are concerned with the big tax cheats and not the small fish like most of here are.  They do not have the resources to hunt down every person that owes the IRS 10 bucks in taxes
legendary
Activity: 1582
Merit: 1064
December 04, 2016, 07:54:53 PM
#78
Those who think that no taxes need to be paid are about to find out otherwise.  Wink

https://www.justice.gov/opa/press-release/file/914226/download

Orders to turn over all transaction records are being sent to exchanges and software to determine ownership of addresses has gone live. If you are caught cheating on your taxes you will wish you had just paid them. It would have been far cheaper.

The US has made a start, but all governments are sure to follow suit. As long as you keep your bitcoins, the government will decide to ignore you. Once you convert it to fiat or spend it, the taxman will start breathing down your neck.
hero member
Activity: 700
Merit: 500
Massive price drop coming...
December 02, 2016, 04:17:03 PM
#77
i can not imagine if government approve bitcoin and then makes people to pay taxes. what will be happen with this? i hope the government which already approve bitcoin don't make any regulation that could make bitcoin not growth.
I do not heard any news that there is government that approve to use bitcoin local but there is a country right now that i heard are using bitcoin locally.
I heard that brazil has 150+ stores are accepting bitcoin as payment and i think there is no taxes using bitcoin instead there is rebate promotion for some stores using bitcoin.. that can help bitcoin to grow in their country,,

The only tax I pay for using BTCs is the wallet transaction fee and the exchange fee to turn BTCs into local currency money. Until now the government isn't taking any part of my money. It's not a problem for them yet, because only few people are using Bitcoins here and the sum isn't so big yet.
There is no tax in bitcoin the fee is not for government it is just a fee for transaction that can get by miners..
I think taxes only is in government. we have a freedom to use bitcoin and some online wallet are giving free service without fee for every transaction but the problem like coinbase you can not use it for gambling activity it is against of their rules..
legendary
Activity: 3066
Merit: 1147
The revolution will be monetized!
December 02, 2016, 03:30:49 PM
#76
Those who think that no taxes need to be paid are about to find out otherwise.  Wink

https://www.justice.gov/opa/press-release/file/914226/download

Orders to turn over all transaction records are being sent to exchanges and software to determine ownership of addresses has gone live. If you are caught cheating on your taxes you will wish you had just paid them. It would have been far cheaper.
legendary
Activity: 2800
Merit: 1012
Get Paid Crypto To Walk or Drive
November 27, 2016, 01:30:00 AM
#75
Probably about time I post again and tell anyone who is reading this that 99% of the posts above are so very wrong it isn't even funny.  You owe taxes on any gains you make with bitcoin.  Consult a CPA about your tax situation instead of random strangers on the internet.
Pages:
Jump to: