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Title: Selling on eBay tax question Post by: parat8t9 on September 21, 2013, 05:37:53 PM Good afternoon everyone.
I had a question regarding selling items like ASIC miners on eBay. If a large amount of items are sold (Say thousands of dollars of sales for a year) How would one claim this as income for tax purposes? My concern is if you buy something in BTC and sell in USD, how do you prove to uncle sam that it's not all profit since you have to buy/mine BTC? Anyone have experience with buying items that were paid in BTC and sold on eBay want to chime in? Thanks! Rob Title: Re: Selling on eBay tax question Post by: TECSHARE on September 21, 2013, 11:49:58 PM I am not a lawyer, accountant, or tax professional in any way. Use my advice at your own risk.
From what I understand you owe taxes only on your profits, not your total income. Of course you owe sales tax, but you would otherwise claim your mining gear and maintenance costs as expenses. Any time you purchase Bitcoin with cash you will probably also want to have an electronic trail so you can claim that as an expense as well and therefore balance out your incoming money stream with your actual expenses. In the end some kind of tax professional might be what you need. Title: Re: Selling on eBay tax question Post by: parat8t9 on September 21, 2013, 11:57:26 PM Thank you, I never really thought of claiming mining equipment of expenses... but they are :-)
I'll talk to my accountant when tax season comes and see what he thinks. Thanks :-) Title: Re: Selling on eBay tax question Post by: neutralist on September 23, 2013, 05:29:27 AM Since USB BEs are considered capital assets (used for generating income), if you sold them at a loss you might be able to deduct as capital loss against either your capital gain or ordinary income (up to $3000 per year)
For example, you bought 50 BEs at $50, and you sold them all at average $15 a piece, you have a total capital loss deduction of 50*35 = $1750. |