Bitcoin Forum

When I played poker I used Hold'em manager to keep track of my income so I could report it on my tax return... yeah I know, one of the few.

Does a tool like this exist for BitCoin trading?

Bitcoins are not recognized by the US as a currency or commodity, so there are no governmental laws regulating trade.  If you're concerned about a possibly applicable capital gains tax, that wouldn't apply unless you liquidated your Bitcoins (eg. removing funds from your exchange account).  Even then, there's a question of whether or not a capital gains tax should even be applied to Bitcoin, but we're in uncharted waters and that's a larger question.

If you trade on an exchange, such as mtgox, that would be your best source of records of deposits, withdrawals, and trades.

Thanks for the replies.

I paid my accountant $75.00 to tell me that I should report it as misc. income if I cash out bitcoins... lulz.

Anything with value is taxable in the US pretty much..

I'd imagine that you'd follow in the same footsteps as the guys who sell large value items in Second Life. I wonder how long it will be before the IRS starts auditing your digital possessions and transactions. It's coming...

And that makes me sad. At least groceries are untaxed here in Nebraska. For now.

I think most states have a similar law and I don't see it as being likely to change. And legislation that hurts the poor or middle class is pretty much political suicide.

but for how long can we go on like we currently are? I gotta pay taxes for shitty roads and my income. I pay more percentage wise on my taxes than multi-millionaires! curses, says I!

Curses.. Curses..  >:(

All well.. What can we do? USE BTC!

I'm going to conisder BTCs an asset in in the isle of man where I live and where there capittal gains taxes are @ 0%, so won't have to pay any taxes.

I started thinking this way the other day. Very depressing. I use such little roads I wish they were all tollways. Pay-Per-Use roads ftw.

Reoporting Bitcoins for taxes is A GIANT STEP IN THE WRONG DIRECTION.  If that is something you want to do, then please find something else to kill your time with.  Bitcoin is not for you.

PLEASE DO NOT DO THAT, ID10T.

Speaking of idiots wasting their time...

https://i.imgur.com/g7FYO.jpg



Did you pay money for them? Did you make money when you sold them? Then it's expected that you'd pay taxes on the capital gains. Grow up.

You two are for sure, not welcome in my house.

That's not nice. I'd invite you into my house if you ever came to South Korea.  :-\

So why do you think we should pay taxes on it, if you don't even live here?  Are you just mad at the world, as usual, today?

So, if I pay taxes on bitcoin, then is the US Government going to back them for me?  Is the government going to take over and operate bitcoin exchanges?  No.  Because they don't give a fuck about digital coins that nerds like us buy and sell.

So please, aim before you shoot a little more.  Your uninformed, thoughtless post was wimpy.

And for the record, I would NEVER, EVER go to Korea LOL wow.  No wonder you are so mad.

LLOLOLOLOLRITE OMG  OMG LOLOLOL


Because I'm a US Citizen, of course.

Does the US back the stock market or silver? No, but you still need to pay capital gains tax when you buy and sell it for a profit.


You've never actually done your taxes before, have you?

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You've never actually done your taxes before, have you?
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Sounds about right.
This is, more or less, the conversation I had with the accountant, and very similar to the conversation I had with him 3 years ago when playing poker online was profitable.

Edit: By the way, I was also advised to not cash out without a substantial bank roll. I usually only cashed out in multiples of $5,000 and reported them in blocks. I suspect the same would be true with MtGox, Tradehill, etc. because it's not income until its in your bank account.

Wait, you mean not everyone agrees with my ideology? I'm so MAD!

Yep. I've already gone through that thought train. However, many make less than enough to be excluded from the EITC. With EITC, there are quite a few cases where "paying taxes" is more like "collecting welfare," especially if you have kids.

This is complete nonsense. The US recognizes Bitcoins as "stored value", and even if it hadn't yet, you could be sure it's something, and everything is regulated/taxable.

I think you misunderstood what I meant.  There is no governmental regulation of Bitcoin trading, unlike other currency trading.  The regulation doesn't happen until the Bitcoins are converted to fiat currency.

As long as bitcoins aren't recognised as a currency,why worry about tax? I'd say,sit back and njoy the ride. :)

im sure u dont have to tell the govt everything

I'll drink to that :)
Freedom is free :)

Don't have to no, I have too much to lose from gaining the govts attention though. Choose your battles wisely.

Depending on how much you made it is possible that no one would know. But tax wise even bartering (trade my skills for your skills) is taxable. Both parties are supposed to pay taxes on the fair value of what they recieved. That having been said unless you work at mikey Ds and drive a lambo or do other crazyness it likely wouldn't get you an audit. The benefit is unless your posessions are impossible to afford on your income it is hard to prove what you made. Tips, cash payments etc some people don't claim. If it isn't reported and you don't go crazy you may not get caught. If you live off your BTC earnings may be safer to claim them.

pay me $50 then:

if you trade bitcoins you should use same tax model as when trading currencies, or buying/selling stock market commodities, your profit is taxed

if you mine bitcoins you need to own a company cause mining expenses cannot be substracted from your profit...


pubic hair is not recognized either, but if you buy low and sell high, you make profit, profit is taxable...