Will people be selling after the 1st of the year for tax benefits? - page 4.

neordicICE

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Quote from: nastybit on December 27, 2013, 06:59:36 PM

Quote from: btcprice on December 27, 2013, 02:16:52 PM

A lot of bitcoiners and altcoiners made a lot of money this year with the runup. If they cash out their profit before the end of the calendar year they (theoretically) have to pay taxes on their gains.

I'm guessing a lot of people are waiting until after the 1st of the year to sell their coins in order to cash out and realize a profit. Cashing out after the 1st of the year allows them one whole year to find tax havens such as mortgage interest and Roth IRAs.

Will people be selling a lot after the 1st of the year?

There will be no major cash out, US citizens only hold a small part of the BTC in circulation
And you forget that holders are greedy, we are all waiting for the next bubble aren't we

This applies to most countries I guess, I mean paying taxes from income in previous year

And I dont plan to sell, because the right time to sell is when you dont need to sell anymore

2dogs

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Quote from: btcprice on December 27, 2013, 02:16:52 PM

A lot of bitcoiners and altcoiners made a lot of money this year with the runup. If they cash out their profit before the end of the calendar year they (theoretically) have to pay taxes on their gains.

I'm guessing a lot of people are waiting until after the 1st of the year to sell their coins in order to cash out and realize a profit. Cashing out after the 1st of the year allows them one whole year to find tax havens such as mortgage interest and Roth IRAs.

Will people be selling a lot after the 1st of the year?

I was wondering the same thing.

nastybit

newbie

Activity: 42

Merit: 0

Quote from: btcprice on December 27, 2013, 02:16:52 PM

A lot of bitcoiners and altcoiners made a lot of money this year with the runup. If they cash out their profit before the end of the calendar year they (theoretically) have to pay taxes on their gains.

I'm guessing a lot of people are waiting until after the 1st of the year to sell their coins in order to cash out and realize a profit. Cashing out after the 1st of the year allows them one whole year to find tax havens such as mortgage interest and Roth IRAs.

Will people be selling a lot after the 1st of the year?

There will be no major cash out, US citizens only hold a small part of the BTC in circulation
And you forget that holders are greedy, we are all waiting for the next bubble aren't we

Raize

donator

Activity: 1419

Merit: 1015

I sold ~$50k this year (Novemberish) to see what will happen with my taxes. I should know by April 15th if I'm going to continue to live in the US or not as I still own coin. If you guys want, I can start a blog about it or something. Right now I'm just doing as many home improvements and charity donations as I feasibly can.

virtualfaqs

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Quote from: Soopaman on December 27, 2013, 04:37:02 PM

Quote from: Joe200 on December 27, 2013, 04:34:30 PM

Quote from: btcprice on December 27, 2013, 02:16:52 PM

I'm guessing a lot of people are waiting until after the 1st of the year to sell their coins in order to cash out and realize a profit. Cashing out after the 1st of the year allows them one whole year to find tax havens such as mortgage interest and Roth IRAs.

My understanding of tax law in the US is that, for forex (and bitcoin), you pay taxes on a marked to market basis. You calculate dollars out (or dollar value of bitcoins) minus dollars in, and pay taxes on that. It does not matter whether you "cash out" or not -- the tax is the same.

If you've been hodling since the beginning of the year and haven't done any day trading, you don't have any taxes since you haven't realized profits. I think the idea here is that some of these long term hodlers may be waiting for the beginning of the year to realize their profits so the income isn't factored into their 2013 taxes when they file them in April.

That's what I was thinking. Also another strategy is if you sold during the year and rebought. If the price drops significantly, you can resell and rebuy to offset capital losses, but with slippage that might not work at all.

Soopaman

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Quote from: Joe200 on December 27, 2013, 04:34:30 PM

Quote from: btcprice on December 27, 2013, 02:16:52 PM

I'm guessing a lot of people are waiting until after the 1st of the year to sell their coins in order to cash out and realize a profit. Cashing out after the 1st of the year allows them one whole year to find tax havens such as mortgage interest and Roth IRAs.

My understanding of tax law in the US is that, for forex (and bitcoin), you pay taxes on a marked to market basis. You calculate dollars out (or dollar value of bitcoins) minus dollars in, and pay taxes on that. It does not matter whether you "cash out" or not -- the tax is the same.

If you've been hodling since the beginning of the year and haven't done any day trading, you don't have any taxes since you haven't realized profits. I think the idea here is that some of these long term hodlers may be waiting for the beginning of the year to realize their profits so the income isn't factored into their 2013 taxes when they file them in April.

Joe200

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Quote from: btcprice on December 27, 2013, 02:16:52 PM

I'm guessing a lot of people are waiting until after the 1st of the year to sell their coins in order to cash out and realize a profit. Cashing out after the 1st of the year allows them one whole year to find tax havens such as mortgage interest and Roth IRAs.

My understanding of tax law in the US is that, for forex (and bitcoin), you pay taxes on a marked to market basis. You calculate dollars out (or dollar value of bitcoins) minus dollars in, and pay taxes on that. It does not matter whether you "cash out" or not -- the tax is the same.

jamesc760

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hodl instead of sodl until 2016???

Chalkbot

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Quote from: btcprice on December 27, 2013, 02:16:52 PM

Cashing out after the 1st of the year allows them one whole year to find tax havens such as mortgage interest and Roth IRAs.

...While not cashing out saves them this headache altogether... hmmm.

Wilhelm

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Yes everyone will cash out at once Roll Eyes

btcprice

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A lot of bitcoiners and altcoiners made a lot of money this year with the runup. If they cash out their profit before the end of the calendar year they (theoretically) have to pay taxes on their gains.

I'm guessing a lot of people are waiting until after the 1st of the year to sell their coins in order to cash out and realize a profit. Cashing out after the 1st of the year allows them one whole year to find tax havens such as mortgage interest and Roth IRAs.

Will people be selling a lot after the 1st of the year?

Topic: Will people be selling after the 1st of the year for tax benefits? - page 4. (Read 4352 times)