im lost
say i mined 10 Bitcoins over 1 year. i did not sell any. i accumulated extra $200 per month in electricity than normal. i also paid say $3,000 for my mining gear. what do i report/deduct for my taxes?
the only thing i understand is that while i created 10 bitcoins out of thin air, i did not sell it for cash, so i do not report capital gains. but can i still claim a deduction to my expenses such as the electrcity, mining gear, and the depreciation?
I don't think you can deduct personally. It must be a business. And yes no gains, just like unsold inventory. My understanding is that it is considered a hobby at the level you describe, and therefor you cant deduct beyond the amount you sell. if it cost you $4000 for the year to mine, and you sold $4500 worth, then you could subtract the cost from the income and pay taxes on the $500. Since you did not "sell" any of the product of your hobby, you don't have anything to deduct the expenses from. Anything left in bitcoin wouldn't show up on your taxes this year. If you sell a bitcoin 2 years from now, there may be more clear regulations, or you may have to do it as a capitol gains where you paid $0 for the asset, then sold it for $100,000. I am not a tax accountant or lawyer, but this is how I'm handling my mining and selling of my bitcoins until more specific laws are revealed. |
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Not exactly useful for BTC mining any more. I thought it was just interesting to see a company as large as Newegg mention Bitcoin in any advertisement regarless of how accurate it is.
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Not sure if this was posted elsewhere, but I noticed that newegg is advertising video cards as Bitcoin mining gear. Its under computer hardware/video cards, the first advertisement in their slide deck at the moment.  |
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this is another place to use bitcoin as a currency instead of as an investment which is great. Things will start to get really interesting when stores like this can actually use the btc rather than convert to $ immediately. Once they can use BTC to pay their suppliers, or their employees, then BTC will truly be a real currency and the overall value will rise.
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Just purchased some new sheets using bitcoin.
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This is a joke. The last bubble/correction hasn't even begun yet. It needs to get back to 200-300 before its next move of up or down.
I disagree. Each burst has gone down to between half and a third of the peak (except for the June 2011 peak which went very low). This last peak was ~1200, so finding support between 400 and 600 would follow the previous trend. |
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so the end of 2014 looks to be around $6k and end of 2015 looks to be about $100k. Not a bad little chart. Im guessing 2014 will be higher than the chart has it, and 2015 will be a little lower
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If the amount of your $USD didn't change then there is no capital gain. If you sold $10,000 of BTC on Jan1, then only bought $1000 on Dec 31, then you would have a gain for the year of $9000. IANAL  |
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I usually send my BTC from BTC-E to coinbase, then cash out there. Coinbase has a higher exchange rate typically, and so far they have worked really well for me. The only issues I've heard are with a couple people buying bitcoins, never heard any issues with cashing out.
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and it('s value) extends towards infinity and beyond >>
But the life of this coin is still limited.. Ok, not that I'm going to face the end of the coin, but somewhere in 3012 it might end. I was think it would go to 3013, or maybe 3014. 3012 is just too early... |
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Honey Caramels from Bees Brothers... awesome stuff.
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I would say $10k would be the 2-4 year outlook. 5-10 year may be closer to 100k
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Coinbase usually transfers coins from the address you send it to to another one they control. Have you actually logged in and checked? Do you have an authenticator set up?
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64% of the weeks are actually positive for bitcoin, only 36% have been negative.
| Holding period | Percent positive | Percent negative | | 1 day | 55.9% | 40.0% | | 7 days | 63.9% | 36.1% | | 30 days | 63.0% | 37.0% | | 60 days | 73.2% | 26.8% | | 90 days | 78.8% | 21.2% | | 365 days | 89.3% | 10.7% | | 730 days | 100% | 0% | |
Awesome breakdown. Quoting so I can find it later :-) |
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perhaps a better and more cost effective idea would be to send and receive a bitcoin transaction on the ISS.
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Access to any exchange would allow you to track the coins, this isn't something specific about coinbase. Some methods of exchange may be slightly closer to being anonymous, but none are completely anonymous. If you really want to get coins in a way that can't be tracked, then solo mine so that no one has any info on you.
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I see what you are getting at. No point in mining when there is 0 reward, wait for transactions then start to mine. If a block is found just seconds after the last block, then there may not be any/enough transactions to actually have a reward in it.
I don't think this will happen. Either bitcoin will no longer exist in any real use by the time the block reward goes to 0, or it will be so widespread that there will be plenty of transactions generated every second, enough to reward miners. I'm hoping for the later of those options
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But can government afford to mint such a coin?
Just a ounce of the stuff cost 1500USD... And they are insolvent. How can they afford such a payment?
It could still be a one ounce coin that has a face value of 1 Trillion Dollars. A government issue coin doesn't have to have any relation between face and melt value. |
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