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I am confused about this. I made an account and it says i can buy icnx or icnp, but how do u buy ICN? That seems like it wilp be the ultimate winner.
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The correct way to treat this income is as interest income. So for example...
You have 1 btc with basis of $2000 and you lent it for 1 month and earned .1 btc and the btc price is now $2500
You would have interest income of $250 and unrealized capital gains of $500, which would be realized when you sell that coin. You now have a basis in the .1 of $250.
It may not be interest income. For federal tax purposes, virtual currency is treated as PROPERTY. So it's not a currency or financial instrument. It may be considered as property rental income. This is correct. Until the coins are sold, appreciation doesnt really matter from a legal standpoint. value is only taxed after it is realized as cash. so the sources of bitcoin, if legal are irrelevant. as you cant really spend bitcoin on anything of substance in the world, there is little risk of you evading taxes by buying physical goods. you will need to convert to fiat eventually; when you do, it will be recorded on most major exchanges. and like we learned with coinbase, if they have the records, no matter what the policy is, a government can/will access them to determine tax liability. Not quite correct, you will owe tax on the interest earned during the period that it was earned. That will establish your basis in the bitcoin (or other property). Then you are correct in that you are able to defer the appreciation of the property until it is realized. Thank you for the clarification. I wasnt aware of the need to establish basis but it makes perfect sense; it would be the citizen/corps responsibility to record/provide said information if the IRS asked. Of course they might want you to record the purchase price, so they know the actual rate of appreciation. One question though, would coin value growth qualify as appreciation or interest, and does the IRS perceive a difference in the two, as far as taxation goes? Im a novice legal enthusiast; its more to protect my own ass than to learn for the sake of learning, LOL. Also, as I asked in another thread (you seem educated on the subject, curious on your opinion). If I trade btc for physical items, or pay bills directly with btc, there was never a conversion to fiat BUT value was realized. If sales tax is paid, am I still on the hook for gains tax, as I was not the body that made the fiat/bitcoin conversion? Same with the bitcoin/altcoin debit cards. If im using it at a point of sale, good as cash, would I be subject to anything other than income/sales tax, and is income tax even applicable at that point? (im pretty much always holding crypto, on paper) I wonder if those sovereign citizen dudes know about bitcoin?  I am a tax accountant and do corporate taxes for a living, so I have a pretty good understanding of tax law and have been watching bitcoins role in tax very closely. Coin value growth would be appreciation, same as if you owned gold and sold it at a gain. You would have capital gains income on the growth. The IRS does perceive a difference in the two, they are taxed at different rates. Interest is just ordinary income and property would be subject to capital gains, either long term or short term, depending on how long you have held it for. There are 2 different questions in your second paragraph, the first is if you trade it for a physical item, and the answer to that is it depends on the item. If it is something like gold or silver, then generally no, your basis would just transfer to the new property. If it is something like computer parts, then yes, that would trigger capital gains on the appreciation of the price. The other side of that question is if you use it to pay utilities or some other service, yes you would owe capital gains tax then on the appreciation of the price. It doesn't really matter if there is a conversion to fiat in there, you are still realizing the gain with the purchase of something and that triggers tax. Sales tax is different than capital gains tax. One is based off of the purchase price of the item and the other is based off of basis you hold in whatever method your using to buy that item. Income tax really does not fit in here at all since you aren't providing service for income, but yes, using a debit cryptocard would still trigger the gains. Hopefully that was clear enough, feel free to ask anymore questions or if there isn't something that makes sense and I can clarify. |
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It is back up, now we can stop the fear mongering.
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Few pics of my mining gear and setup as it stands today. More being added shortly. Its a hot side cold side setup. Miners intake from the cold and exhaust into the hot side via sound lowering baffle box. Hot side air is controlled by thermostat controlled exhaust fans that kick into use as needed to regulate temperatures. Many months of 24/7 operation with this setup with happy miners and temps. Hot side doubles as storage and also a good place to spray some car panels http://imgur.com/a/rsVtZI like it, nice job with the separation of the hot and cold aisles. |
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The correct way to treat this income is as interest income. So for example...
You have 1 btc with basis of $2000 and you lent it for 1 month and earned .1 btc and the btc price is now $2500
You would have interest income of $250 and unrealized capital gains of $500, which would be realized when you sell that coin. You now have a basis in the .1 of $250.
It may not be interest income. For federal tax purposes, virtual currency is treated as PROPERTY. So it's not a currency or financial instrument. It may be considered as property rental income. This is correct. Until the coins are sold, appreciation doesnt really matter from a legal standpoint. value is only taxed after it is realized as cash. so the sources of bitcoin, if legal are irrelevant. as you cant really spend bitcoin on anything of substance in the world, there is little risk of you evading taxes by buying physical goods. you will need to convert to fiat eventually; when you do, it will be recorded on most major exchanges. and like we learned with coinbase, if they have the records, no matter what the policy is, a government can/will access them to determine tax liability. Not quite correct, you will owe tax on the interest earned during the period that it was earned. That will establish your basis in the bitcoin (or other property). Then you are correct in that you are able to defer the appreciation of the property until it is realized. |
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The correct way to treat this income is as interest income. So for example...
You have 1 btc with basis of $2000 and you lent it for 1 month and earned .1 btc and the btc price is now $2500
You would have interest income of $250 and unrealized capital gains of $500, which would be realized when you sell that coin. You now have a basis in the .1 of $250.
It may not be interest income. For federal tax purposes, virtual currency is treated as PROPERTY. So it's not a currency or financial instrument. It may be considered as property rental income. No, even property (gold or silver) lent out and receiving interest on, will have the proceeds treated as interest income for federal tax purpsoses. |
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I hate to break in on it this way, but I only see 5 rounds here... there's 7 in a full set - grey, yellow, green, blue, violet, red and orange. Do you have the blue and violet ones also? If so then I'm also watching this intently.
And, anyone happen to have a violet one they'd be willing to sell? There's a few floating around and hoping someone has an extra they'd be willing to part with.
From what I remember, the violet and blue were only part of the bronze set. You can see the original brass node sales thread here: https://bitcointalk.org/index.php?topic=1209286.0And the bronze node here: https://bitcointalk.org/index.php?topic=1090921.0Thank you for the offer DebitMe, it's helpful to get an idea of what buyers will pay at the moment Sure thing, it is tough since you do not see these for sale very often, especially the colored ones, so it is hard to get a feel for the price. I could be way off, who knows. |
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Beautiful set, unfortunately i think 1 btc is too high. Id be willing to pay .45 btc for the set.
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Do this, go collect faucets to get a penny worth of bitcoin, use your method to get 60% weekly, have the entire worlds supply of money in just a few short months!
Stupid scammer, go scam somewhere else.
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I may be interested in purchasing some pre built rigs, could you give prices and speeds in USD and estimated shipping costs to the US?
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There are a bunch of other threads that have a discussion on it, but I will post here as well.
It is very simple to pay taxes on cryptocurrency in the United States. It is treated as property in the IRS's mind. So you would handle it the same way you would handle gold or silver profit/loss. No further discussion necessary unless they change the law.
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And expense/depreciation of equipment.
But with those numbers... surely you could stay ahead of the curve for a very long time, no? Was talking more about a tax deduction which will help with profitability. In my case....I'm looking at 50% to IRS if I hold coin I mined (talking LTC) 28% FED 10% STATE TAX 12% SOC SEC/MEDICADE (setup as self-employed) thus...I can give 50% to IRS/state/etc taxes and keep 1/2 my coin mined (or xfered from LTC to BTC etc in USA they call mining income..the IRS is not pleased mining coin out of thin air) or I can figure that 50% is lost...to the IRS as a done deal..and get another 25% off in equip deduction applied to taxes this year...I know I'm gonna pay some in anyway so that is 25% off in real $$$ towards this year's bill. and thus my real risk on a Siacoin miner is 25% more then Just paying the tax man for the BTC in question to purchase one...ASSUMING I pay this year and it arrives next year odds..its all about odds..why you see folk double down on equipment ..in USA if I make 60k in coin I pay 30k in taxes. (could be less of a % but had a huge year)....if I buy 60k in equip I owe nothing and have equip to putter along and mine into next year this goes for all equip I get this year ASIC wise etc ..no matter the flavor or ASIC or Coin mined. You get 100% off All equipment applied to your gross income. thus having an 'interesting' year be careful what you wish for mining ..you may surely get it  silly hobby I am looking into various methods, currently running down the idea of contributing into a retirement account to reduce income. If its on behalf of yourself, its not a deduction for the business, but is a pre-agi adjustment, so some tax benefit, but if its for an employee, say a spouse  , then its a deduction. I need to run some numbers. yeah.....I need to look into this probably.... but again my situation is unique this year with 4.15 to 50 buck LTC...thus will make in income 100k or more (40k spent to get me into this thing as it chugs along) and maybe 40-60k (all profit) due to all expenses for the year (elec/hosting/etc) already paid. If I can get over the hump into 2018...then back to normal ..you can't have above LTC price increase AND ROI on all your stuff (with prev ROI'd stuff) in 2 months without getting caught like this at the end of the year (knocks wood: hope same thing happens with obelisk sc-1 miners next year..that would teach me) the die is cast......at least for the next 5 months.....buy everything sheesh silly hobby HEHE I know the pain. If I come up with any other ideas I will make sure to pass it along to you. Being a tax accountant, this is always on my mind. |
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Here is my final offer, take it or leave it...
$1450 shipped
That includes configuring simple miner to mine to my pool and address.
If you can do 1480 then i can do it. Plus ill help you configure simple miner. Its really easy No thank you, good luck with your sale. |
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Here is my final offer, take it or leave it...
$1450 shipped
That includes configuring simple miner to mine to my pool and address.
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I don't think anywhere will be able to help you unfortunately. The issue your facing is because of using a credit card. No one will take that risk.
Now if you do a cash advance with the card, we could talk and i would be happy to help you out.
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And expense/depreciation of equipment.
But with those numbers... surely you could stay ahead of the curve for a very long time, no? Was talking more about a tax deduction which will help with profitability. In my case....I'm looking at 50% to IRS if I hold coin I mined (talking LTC) 28% FED 10% STATE TAX 12% SOC SEC/MEDICADE (setup as self-employed) thus...I can give 50% to IRS/state/etc taxes and keep 1/2 my coin mined (or xfered from LTC to BTC etc in USA they call mining income..the IRS is not pleased mining coin out of thin air) or I can figure that 50% is lost...to the IRS as a done deal..and get another 25% off in equip deduction applied to taxes this year...I know I'm gonna pay some in anyway so that is 25% off in real $$$ towards this year's bill. and thus my real risk on a Siacoin miner is 25% more then Just paying the tax man for the BTC in question to purchase one...ASSUMING I pay this year and it arrives next year odds..its all about odds..why you see folk double down on equipment ..in USA if I make 60k in coin I pay 30k in taxes. (could be less of a % but had a huge year)....if I buy 60k in equip I owe nothing and have equip to putter along and mine into next year this goes for all equip I get this year ASIC wise etc ..no matter the flavor or ASIC or Coin mined. You get 100% off All equipment applied to your gross income. thus having an 'interesting' year be careful what you wish for mining ..you may surely get it silly hobby I am looking into various methods, currently running down the idea of contributing into a retirement account to reduce income. If its on behalf of yourself, its not a deduction for the business, but is a pre-agi adjustment, so some tax benefit, but if its for an employee, say a spouse , then its a deduction. I need to run some numbers. |
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I will offer $1200 shipped.
sorry thats a bit too low I thought that may be the case, I still think your price is a little high since these are used and 4 GB models. Would you consider meeting around $1350? I was thinking $1450 + shipping Sorry, $1350 was my limit, I can throw in shipping but that is as high as I can go. would you do $1400 + shipping? I would do $1400 shipped to KS 66062 and I will pay escrow. sorry man i need shipping to be covered aswell. Give me a shipping quote $80 What kind of speeds are you getting from the cards and I don't see what kind of hard drive is being used and what operating system is being ran. |
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The correct way to treat this income is as interest income. So for example...
You have 1 btc with basis of $2000 and you lent it for 1 month and earned .1 btc and the btc price is now $2500
You would have interest income of $250 and unrealized capital gains of $500, which would be realized when you sell that coin. You now have a basis in the .1 of $250.
Do they have 10% interest rate per month? It is huge hard to believe. It does not seem to be sustainable in the long run It has been fluctuating around .04 to .08% daily, which would be around 20 to 40% APR. HAHA, as soon as I type that I decide to look, currently at around 1.5% daily, which is 550% APR! That cannot and won't last. |
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I will offer $1200 shipped.
sorry thats a bit too low I thought that may be the case, I still think your price is a little high since these are used and 4 GB models. Would you consider meeting around $1350? I was thinking $1450 + shipping Sorry, $1350 was my limit, I can throw in shipping but that is as high as I can go. would you do $1400 + shipping? I would do $1400 shipped to KS 66062 and I will pay escrow. sorry man i need shipping to be covered aswell. Give me a shipping quote |
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I will offer $1200 shipped.
sorry thats a bit too low I thought that may be the case, I still think your price is a little high since these are used and 4 GB models. Would you consider meeting around $1350? I was thinking $1450 + shipping Sorry, $1350 was my limit, I can throw in shipping but that is as high as I can go. would you do $1400 + shipping? I would do $1400 shipped to KS 66062 and I will pay escrow. |
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