www.minecraftcc.com/getpaid/ - up to 0.04 BTC/week is paid out based on your gameplay. I regularly pay 0.04 BTC to at least 20-25 players each week - it is very acheivable.
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So it seems safe to say you must report earnings if you had funds from trading on exchanges deposited in your account to the IRS. If you are mining at home can you write off a portion of your electrical bill? https://en.bitcoin.it/wiki/Tax_complianceQuote: What expenses can I deduct/expense/itemize if I set up a Bitcoin mining operation?
That depends on your situation. Generally speaking, though, you can deduct business expenses that are ordinary and necessary. Buying video cards would be both of these, buying a big screen TV to watch while mining would be neither.Yes, but there are a lot of rules you need to follow if you are operating a business out of your home. If you are attempting to write off electricity you probable need to have a separate meter on your mining equipment so you can say exactly how much electricity it is using and write off that portion. Also note that you are writing it off against your mining income. So you need to declare every satoshi you mine and the exchange rate it was at the time you mined it and declare it as income. Well that first bit is simply not true. You can make estimates as long as they are reasonable (for instance, 24/7 mining @ 275w per device for 3 devices = $X). |
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I'd be careful and consult a tax specialist before you go ahead and classify your gains on bitcoin as capital gains. The IRS has yet to issue a determination on bitcoin, and it could just as easily classify bitcoin as a foreign currency, in which case there ARE NO CAPITAL GAINS ONLY REGULAR INCOME OR LOSS. Again, consult a tax specialist, especially if you have significant gains from bitcoin. http://www.forbes.com/sites/greatspeculations/2013/12/03/the-tricky-business-of-taxing-bitcoin/The worst they could do is backdate you with ordinary income rates though right? They can't slap you with extra fines on something they haven't released clarification on... |
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It sounds like he created the transaction using brainwallet.org from a brain wallet address to the payee address without a change address. So there is 20.199BTC input and 0.05271705 BTC output. https://en.bitcoin.it/wiki/Transactions#OutputAny input bitcoins not redeemed in an output is considered a transaction fee; whoever generates the block will get it. This website should be changed to default to sending the change back to the original address. There is no reason to default to sending the change as a tx fee. |
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Yes we got a brand new lambo in the usa. 216 btc. Will leave cali mon morn.
Also btc is not illegal in the thailand that news story was wrong.
Hey hey Goat not fair! You promised me the photos as soon as you get the delivery. When are we going to see them pics? As soon as i get delivery. Many congratulations to you btw. That lambo is my dream  and will remain one atleast in this lifetime. Have heard that company lets you drive it in a track in Italy for $1000 or something. Will try that sometime in the near future, if I will have enough fiat to travel to Italy. You can do stuff like this in Vegas as well In NY you can do that as well. I did the Gotham Dream Car Sprint, I got as a birthday gift, I drove a Ferrari 458 and I got to drive a lambo. I enjoyed the 458 a lot more, because of the tunnel noise. How much? |
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Thanks for the bash rabit, I'll consider it..! Thanks, that makes sense. I was hoping to not have to deal with JSON-RPC because I am so unfamiliar with it, but perhaps it is time to force myself to learn more about it.
Hey you can always parse the raw blockchain files  . I have some Perl code for that if you're interested. Oooh, nice!  |
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The American Taxpayer Relief Act of 2012 (signed on January 2, 2013) made qualified dividends a permanent part of the tax code but added a 20% rate on income in the new highest 39.6% tax bracket. As a result:
The long-term capital gains tax rate is 20% (0% for taxpayers in the 10% and 15% tax brackets).
I'm not sure where you are getting that. From that wikipedia page you linked: "The long-term capital gains tax rate is 15% (0% for taxpayers in the 10% and 15% tax brackets, and 20% for taxpayers in the 39.6 bracket)." To be in the 39.6% tax bracket you need to make about $400k/yr Wikipedia is currently wrong then.  https://www.fidelity.com/viewpoints/personal-finance/taxpayers-guideStill trying to figure out how this works exactly. I have precisely $0 of non-capital gains income, and less than 450k of capital gains. Are capital gains counted in determining your rate for capital gains? And if it is, is the first $36250 at 0% and the remainder at 15%, or is all of it at 15%? Yes, capital gains are counted in determining the rate. And yes, the first $36,250 is at 0%, and the remainder (up to $450k) at 15%. But if you already have $40k in adjusted gross income, you'll have 15% tax on any capital gains. |
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A Lamborghini is something you buy to reward yourself. Reliability, gas mileage, servicing costs, repair costs ... all these become unimportant if you can truly afford it.
After VW bought Lamborghini in '98 reliability stopped being an issue as it once was in the older days.
With your budget you should be able to afford a low miles 2004-2008 Gallardo which is an amazing machine.
Stop listening to all the people "in the know", most of whom, sadly, probably never got to even sit in one, let alone drive it or own it. Listen to your heart if your wallet can afford it.
There's also the R8 which is basically a cheaper Gallardo that's a bit more fun to drive (the awd system is more rear biased) but lacks the same prestige.
He already bought a brand new one for ~216 BTC last week. |
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Capital gain only counts when you cash out to fiat, currently there is no clear rules when you exchange it with goods This is challenging for accounting. Imagine that you spent 100 coins at the beginning of the year ($1500) in your business and get a return of 10 coins at the end of the year($9000), then your result is a loss of 90 coins, you should get a tax deduction of 90 coins, which is $81000  However, if counted in USD, you have a net gain of $7500, so you have to pay income tax... Almost everything you said is wrong. |
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Why change bitcoin back to dollars?
Just hold till your ready to spend when everyone accepts it in a year or two.
Buy and holding will reward savers of this currency immensely.
As long as there aren't dollars involved in the transaction, I don't see where they have jurisdiction.
I'm no lawyer but this whole bitcoin system is design to get out from under their thumb, we should use it as such, not just a speculation instrument.
what they don't know, we shouldn't report, see 5th amendment,
Happy BankRunning
Personally, I'd really love to pay off my house and not have that to worry about anymore, regardless of where BTC ends up in the future. And last I checked, Wells Fargo doesn't take BTC for mortgage payments. |
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The American Taxpayer Relief Act of 2012 (signed on January 2, 2013) made qualified dividends a permanent part of the tax code but added a 20% rate on income in the new highest 39.6% tax bracket. As a result:
The long-term capital gains tax rate is 20% (0% for taxpayers in the 10% and 15% tax brackets).
I'm not sure where you are getting that. From that wikipedia page you linked: "The long-term capital gains tax rate is 15% (0% for taxpayers in the 10% and 15% tax brackets, and 20% for taxpayers in the 39.6 bracket)." To be in the 39.6% tax bracket you need to make about $400k/yr Wikipedia is currently wrong then. https://www.fidelity.com/viewpoints/personal-finance/taxpayers-guide |
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Now after few days, they again replied to my original question with more details, may be they are reading these threads Email from IRS: The IRS has not issued guidance specific to bitcoins. The profit you derive from bitcoin transactions is taxable. Per Publication 525, Taxable and Nontaxable Income, In most cases, an amount included in your income is taxable unless it is specifically exempted by law. Income that is taxable must be reported on your return and is subject to tax. The Financial Crimes Enforcement Network ("FinCEN") has issued interpretive guidance to clarify the applicability of the regulations implementing the Bank Secrecy Act ("BSA") to persons creating, obtaining, distributing, exchanging, accepting, or transmitting virtual currencies. Refer to http://www.fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.htmlOur basic Electronic Tax Law Assistance is designed to assist the general public in complying with their Federal tax obligations. Our goal is to provide complete and accurate responses to as many taxpayers as possible. With that goal in mind and to maximize our resources, we are unable to provide assistance on highly technical and complex issues that involve lengthy research. Due to the technical or complex nature of virtual currency exchange rate gain we are unable to provide any further response via this service. Still doesn't say whether capital gains tax rates apply though, or whether it is taxed at ordinary income rates. Taxed at ordinary income rates would suck.  |
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If you are bitcoin miner and trade at Bitstamp or Mtgox, do you need a business money transmitter license? I live in USA California.
The exchange already takes care of MT/MSB requirements. You'd only need your own if you sell directly to other people. |
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My problem comes in getting the data from bitcoin-qt (or another source) in the first place.
I'd like to set up some sort of cron job that looks for new addresses in the latest blocks coming through, and adds said addresses to the MySQL DB after 6 confirmations. What's the best way to accomplish this?
I'd do a getblock and for each transaction in it, do a decoderawtransaction and iterate the vouts in it. Thanks, that makes sense. I was hoping to not have to deal with JSON-RPC because I am so unfamiliar with it, but perhaps it is time to force myself to learn more about it. |
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How can I automatically add all Bitcoin addresses ever used to a MySQL database in realtime?
I need to move firstbits.net away from using blockchain.info's API, since the firstbits no longer appear to be working at blockchain.info and haven't been for some time. I'm no expert programmer, but I know enough about PHP and MySQL querying to get the website job done. My problem comes in getting the data from bitcoin-qt (or another source) in the first place.
I'd like to set up some sort of cron job that looks for new addresses in the latest blocks coming through, and adds said addresses to the MySQL DB after 6 confirmations. What's the best way to accomplish this?
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Is it an option to sell just commemorative coins and send the empy holograms with it and we fund the coin?
People can always check in the blockchain if the coin is funded before they buy one. As long as the holograms is intact, there should not be a problem...
That would certainly be risky, because if anyone found a way to remove / reprint the "first 8 bits" on the hologram, they would not need to ever fund the coin; they could just change the address on the back to one that is funded and sell it. Also, it would break the current trusted casascius standard which is that "as long as the hologram is intact, a casascius coin is funded" scotjam If anyone found a way to remove / reprint the first 8 bits, it would be a problem regardless of whether it is a Mike-funded or user-funded coin. And it doesn't break the trust. Mike can still provide the private key behind the hologram, but the user just sends funds to the full address after it arrives. I think funded coins coming from the man himself is very important.
I was lucky enough to order a silver 1 BTC coin a couple of days before his announcement. It's a beauty. I really hope a way is found for other people to keep on obtaining them in the future.
What about waiting to fund it until it is delivered? Then you're not sending any money through the mail, you're simply sending it electronically after the fact. |
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Yeah I think you legally should be paying CGT... If you are mining, and making a profit, then you are self employed and should be keeping records, right? Not sure how you calc ££ profits in this case though, maybe as you earn, or maybe at the end of the year see what your bitcoins are worth and convert the appropriate amount to ££ for tax. You probably could get away with it, but don't expect a tax man to be lenient... personally I would not take such a risk. Yeah you're right, I got a bit more sense the second time I phoned HMRC, they basically said yeah, CGT is payable on any profit over £10,900/year. But they didn't have much clue about how I should calculate my profit, especially when I mentioned mining and trading altcoins (no surprise really..) It seems a bit unfair if you're a really savvy daytrader, that's accumulated say 100BTC from well-timed trading (not me btw  )to get taxed for all of it. I mean gambling wins are CGT-free, why should BTC trading be any different? When people started playing around with it, it was highly experimental. Hmmm guess we'll just have to wait for the first BTC-Tax-evasion case to find out where we stand I'll certainly be paying capital gains on any significant cash outs I do. I don't want to run into trouble with the tax man. If you're a miner, and you invest in equipment, you could call that your cost basis. Then when you sell some of your Bitcoins, you can deduct a percentage of that basis based on the percentage of Bitcoin you sell. |
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I'm sure Goat and Rpietila are one of them hmm... yeah I am one of them. So Goat owns at least 1k BTC! Weirdly, that doesn't sound like all that much. I am kind of surprised that only 927 addresses have at least 1k bitcoins in them. |
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I didn't see this coming. I'm surprised that speculators are not going crazy and raising the price of bitcoins to 1.2k in these last few minutes!
David Marcus has been a proponent of Bitcoin for a long time. I believe this is the first time he had admitted to owning some, but it's not surprising news to anyone who has been paying attention for the past year. |
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