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Title: US Tax laws in reguards to BTC Post by: dlauth on March 04, 2013, 03:34:44 AM What are the laws as far as BTC is concerned. I know you could remain under the radar but if one were playing by the rules, do you have to report earnings on currency swaps with BTC?
Title: Re: US Tax laws in reguards to BTC Post by: D35TR0Y3R on March 04, 2013, 03:36:12 AM What are the laws as far as BTC is concerned. I know you could remain under the radar but if one were playing by the rules, do you have to report earnings on currency swaps with BTC? As of now, in the US, nope. Title: Re: US Tax laws in reguards to BTC Post by: DannyHamilton on March 04, 2013, 03:40:47 AM What are the laws as far as BTC is concerned. I know you could remain under the radar but if one were playing by the rules, do you have to report earnings on currency swaps with BTC? As of now, in the US, nope.Almost certainly US Law requires that you report all earnings, and pay the appropriate taxes. You should probably talk to a tax professional if you want to properly comply with US Law. Title: Re: US Tax laws in reguards to BTC Post by: Stephen Gornick on March 04, 2013, 04:14:21 AM do you have to report earnings on currency swaps with BTC? Here's some more info on that topic: - http://en.bitcoin.it/wiki/Tax_compliance Title: Re: US Tax laws in reguards to BTC Post by: hockey on March 04, 2013, 04:22:45 AM BTC investment is still relatively new. I hope there's explicit tax report requirement about this from gov
Title: Re: US Tax laws in reguards to BTC Post by: dlauth on March 04, 2013, 04:23:31 AM Very good read. Find it interesting that you could say the mining operation is your business and deduct expenses. aka gpu or $13000 ASICs lol
Title: Re: US Tax laws in reguards to BTC Post by: Jutarul on March 04, 2013, 04:39:19 AM If you move as much $$ into bitcoin as you move out of it you should just break even. Holding bitcoin itself "should" (not 100% certain) not cause any tax liabilities, only if you use them to generate $$ through sales.
E.g, this year: now, buy 100 BTC for 35 USD each, 3500 USD out end of year, sell 10 BTC at 350 USD, 3500 USD in Net: 0 USD (taxable), 90 BTC (non-taxable) next year: sell 10 BTC at 350 USD, 3500 USD in Net: 3500 USD (taxable), 80 BTC (non-taxable) Title: Re: US Tax laws in reguards to BTC Post by: hockey on March 04, 2013, 04:56:21 AM If you move as much $$ into bitcoin as you move out of it you should just break even. Holding bitcoin itself "should" (not 100% certain) not cause any tax liabilities, only if you use them to generate $$ through sales. E.g, this year: now, buy 100 BTC for 35 USD each, 3500 USD out end of year, sell 10 BTC at 350 USD, 3500 USD in Net: 0 USD (taxable), 90 BTC (non-taxable) next year: sell 10 BTC at 350 USD, 3500 USD in Net: 3500 USD (taxable), 80 BTC (non-taxable) very nice example Title: Re: US Tax laws in reguards to BTC Post by: sublime5447 on March 04, 2013, 05:17:09 AM If you move as much $$ into bitcoin as you move out of it you should just break even. Holding bitcoin itself "should" (not 100% certain) not cause any tax liabilities, only if you use them to generate $$ through sales. E.g, this year: now, buy 100 BTC for 35 USD each, 3500 USD out end of year, sell 10 BTC at 350 USD, 3500 USD in Net: 0 USD (taxable), 90 BTC (non-taxable) next year: sell 10 BTC at 350 USD, 3500 USD in Net: 3500 USD (taxable), 80 BTC (non-taxable) You wouldn't have to pay taxes on the bitcoin inventory but you do still have to put it on you taxes as inventory in a dollar amount. All of the money is accounted for the government just looks at the inventory as assets that they will receive taxs on in the future. You could do this your whole life but when you dies the government is gonna get theirs. |