USA capital gains - page 2. | Bitcointalksearch.org

hanwong

member

Activity: 73

Merit: 10

Quote from: beetcoin on December 01, 2013, 03:23:57 AM

but how does one prove when he purchased his BTC? what if i purchased it say 2 years ago, but in 1 year i want to sell off some coins and want to claim that i bought it 1 year prior.. i'd effectively pay significantly less since the value of BTC today is $1,000 more than last year, and it'd be 15% only.

you prove your purchases and sales by having good records. in an audit situation, the IRS generally will accept your records as long as they meet their standards for good recordkeeping, must have quantity, price, buy/sell dates. if you want to lie about your records, then you go ahead and lie on your taxes and suffer the consequences if you get caught. if you don't get caught, then you don't get caught. how will the IRS know if you are lying? well...

beetcoin

sr. member

Activity: 434

Merit: 250

Quote from: TheButterZone on December 02, 2013, 11:01:48 PM

Quote from: beetcoin on December 02, 2013, 01:24:27 AM

you can do a little research before seeking help. i just looked up some info here http://www.bankrate.com/finance/money-guides/capital-gains-tax-rates-1.aspx

capital gains taxes apply if your taxable income is less than $35k (single) or $70k (joint).. otherwise, you don't have to pay them. so if you don't make that much money, you can buy/sell as you like.. so long as your total income does not exceed $35k. you also need to own the asset for more than 1 year before selling it, so no day trading.

Shouldn't that less be more?

you're right.. i had a brain fart Grin

but yeah, if you made so much off bitcoins that you don't want to work.. you could just withdraw $35k a year without getting taxed and live off of that.

TheButterZone

legendary

Activity: 3010

Merit: 1031

RIP Mommy

Quote from: beetcoin on December 02, 2013, 01:24:27 AM

you can do a little research before seeking help. i just looked up some info here http://www.bankrate.com/finance/money-guides/capital-gains-tax-rates-1.aspx

capital gains taxes apply if your taxable income is less than $35k (single) or $70k (joint).. otherwise, you don't have to pay them. so if you don't make that much money, you can buy/sell as you like.. so long as your total income does not exceed $35k. you also need to own the asset for more than 1 year before selling it, so no day trading.

Shouldn't that less be more?

beetcoin

sr. member

Activity: 434

Merit: 250

you can do a little research before seeking help. i just looked up some info here http://www.bankrate.com/finance/money-guides/capital-gains-tax-rates-1.aspx

capital gains taxes apply if your taxable income is less than $35k (single) or $70k (joint).. otherwise, you don't have to pay them. so if you don't make that much money, you can buy/sell as you like.. so long as your total income does not exceed $35k. you also need to own the asset for more than 1 year before selling it, so no day trading.

Minor Miner

legendary

Activity: 2338

Merit: 1013

Be A Digital Miner

Quote from: henryreardon on December 01, 2013, 07:10:33 AM

Quote from: Minor Miner on December 01, 2013, 03:43:41 AM

yes, there are also zero tax brackets. Easy to get into them too.

I certainly will consult a tax professional, but could you expand on this?

It was sarcasm. google it. if you make little enough, you pay no taxes. same with capital gains.

henryreardon

newbie

Activity: 59

Merit: 0

Quote from: Minor Miner on December 01, 2013, 03:43:41 AM

yes, there are also zero tax brackets. Easy to get into them too.

I certainly will consult a tax professional, but could you expand on this?

beetcoin

sr. member

Activity: 434

Merit: 250

ah, it was 15% last year during the presidential election. i guess big brother needed to collect revenues somehow. 20% is too damn high. i guess i'd have to see a tax specialist.

Minor Miner

legendary

Activity: 2338

Merit: 1013

Be A Digital Miner

Quote from: ?? on ??

Quote from: Minor Miner on December 01, 2013, 03:27:07 AM

US capital gains is 20%. plus another 3.8% if you make over 250k to pay for obamacare.

There are lower tiers for capital gains including 0%.
Seek professional tax advice.

yes, there are also zero tax brackets. Easy to get into them too.

Minor Miner

legendary

Activity: 2338

Merit: 1013

Be A Digital Miner

Quote from: SaltySpitoon on December 01, 2013, 03:32:44 AM

Depends, if you lose money, can you claim a tax refund for capital losses?

NO. They roll and you can write off $3500 of the loss each year.

SaltySpitoon

legendary

Activity: 2590

Merit: 2154

Welcome to the SaltySpitoon, how Tough are ya?

Depends, if you lose money, can you claim a tax refund for capital losses?

Minor Miner

legendary

Activity: 2338

Merit: 1013

Be A Digital Miner

Quote from: beetcoin on December 01, 2013, 03:23:57 AM

but how does one prove when he purchased his BTC? what if i purchased it say 2 years ago, but in 1 year i want to sell off some coins and want to claim that i bought it 1 year prior.. i'd effectively pay significantly less since the value of BTC today is $1,000 more than last year, and it'd be 15% only.

US capital gains is 20%. plus another 3.8% if you make over 250k to pay for obamacare.

beetcoin

sr. member

Activity: 434

Merit: 250

but how does one prove when he purchased his BTC? what if i purchased it say 2 years ago, but in 1 year i want to sell off some coins and want to claim that i bought it 1 year prior.. i'd effectively pay significantly less since the value of BTC today is $1,000 more than last year, and it'd be 15% only.

hanwong

member

Activity: 73

Merit: 10

You report all transactions delineated by date of purchase and date of sale.

Your losses will offset your gains. Your tax owed will be calculated on 5K profit.

henryreardon

newbie

Activity: 59

Merit: 0

Am I required to pay capital gains on every separate profitable BTC sale I make? Or only on the total gain from all my trades at the end of the year?

E.g. I make 3 buys, all appreciate, I sell all coins and clear 10K profit. But then, later that year, I buy some more, price drops the next day, I sell and take a 5K loss. So at the end of that year do I owe capital gains on 10K or on 5K?

Topic: USA capital gains - page 2. (Read 4404 times)