You don't pay for moving coins to a ledger anyway but not everyone will be 100% bitcoin when it goes above a million. Everyone in the US and on this forum may eventually get hit with the tax when bitcoin goes up combined with hyperinflation. Also, if the US goes to 43.8%, you can bet the EU will follow shortly. What happens when a million is equivalent to a current $100k because of inflation? Could happen in a few years at the current rate.
I think you do: If you move coins from an address to another then I thought it was a taxable event ("work" is being done, like those crazy Jewish sabbath rules). Maybe if it's not in your control, but if that's the case then the argument should be move coins around at will, tax when converted into fiat.
nah moving corn between addys under your control is not taxable. its like when you top your hot wallet up or xfer to/from an exchange. the taxable event occurs when you finally convert btc to fiat or anything else (altcoin, gold, etc), not from the coin itself moving around.
You are right, it is not, but somehow Coinbase used to portray (in their tax docs?) the move from their account to your personal one as a sell.
Not sure if it still holds true.
Yeah, something like 5 or 6 years ago I withdrew some USD from Coinbase and they sent me a 1099K recording the amount as a payment for services -- like Coinbase was paying me for something.
Of course all such statements get sent to the IRS too.
Funny thing is, it was money that I had deposited in Coinbase and later withdrew. So it wasn't capital gains, it wasn't a payment, it wasn't anything. I never made a single transaction, no buy or sell, nothing. It was me moving my own money around. Sending out a 1099K for shit like that is insane. It's indefensible.
Even if I had sold some coins, and had capital gains, that has to be calculated from my exchange transaction records. You can't go by bank transfers. And you don't record capital gains on a 1099K anyway. The whole thing is beyond idiotic.
Fortunately, the IRS apparently had enough sense to know that a 1099K from a bitcoin exchange made no sense and ignored it.
And from what I understand, Coinbase has stopped sending out 1099K's.
