Taxes on bitcoin is actually a dicey area for most governments of the world since its not something that has been with us for ages or time immemorial and this is something facing even the advanced countries in terms of technologies and expertise not to talk of developing countries and third world countries but I see government finding a way around the blockchain technology by getting their own share of the cake by making everyone declare his or her income from whatever means whether electronic or physical with that they get to tax bitcoin in an indirect manner.
How is that any different than the way things are now? The United States are pretty clear on how bitcoins should be taxed and you have always owed tax on income obtained by whatever means electronic or physical. Maybe for next time don't be so generic and instead try talking about the laws of your country. Learn some grammar also and includes some periods and other punctuation  |
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My guess is that it will directly correlate with whether bitcoin price continues to rise. I have noticed when price is not changing much, the older users posts and logins start to slow down. But if things keep increasing year after year, you can bet there will be some dedicated users around as long as things remain interesting.
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So, this is a less efficient version of the S9? They are taking a step back with this.
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If you buy from the store, you also pay for shipping costs and you need a PSU to power your unit. These 2 things pretty much make up that difference.
But they offer Ant S7 miners for $370 having the same power supply requirements and the same size (so I assume that shipping costs and PSU are the same for S9 and S7). And total cost for S7 is even less than the price difference between "physical" and "cloud" S9. I believe that price of GHs on Ant S9 may fall by that difference (i.e. 25%) and it is not worth buying more. I would better buy less and add more when it becomes cheaper. These markets are not rational, and will not act rational. Also remember that there is no oversight to stop people from manipulating the markets. Historically there has always been a sharp decline at some point when a new hash is offered, but who knows when or how much. |
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I'm looking into a possibility of buying a hashnest contract. However, I have some concerns. In particular, they offer AntMiner S9 contract for $1699 whereas they (Bitmain shop to be precise, but they are the same organization) physically sell (sold out) AntMiner S9-B22 for $1232 and they currently sell AntMiner T9 for $1104. Well, I understand that hosting in the cloud requires some additional costs, but not 25% ($450) really?
How do you explain such cost difference?
If you buy from the store, you also pay for shipping costs and you need a PSU to power your unit. These 2 things pretty much make up that difference. |
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Just sent 3.57 btc for the repayment of my loan. Thank you and I will let you know if I need it again!
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Are you asking how much I earn at my job or what I earn using my bitcoin?
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Technically to be 100% right, you should record the price after each block found with the pool you are using. Of course that is not going to happen (although would be a great piece of software idea..) so instead I mine all coins to a single address that I dump at the end of each month and record my basis as that. So you owe ordinary income on that part, then any fluctuation of price when you sell the assets would be capital gains.
This is interesting. The question is how the IRS will know that I mined bitcoin, if no pool reports it to the IRS. Many pools are not even in US, I doubt they will take the trouble to report to IRS, moreover the pool has no idea which country I live. The IRS will probably not know if you mine bitcoins or not, especially on the level of home mining. But the question was how you should report your income. What your suggesting is tax evasion which is illegal in the United States and probably most countries in the world. Just because the IRS doesn't know about something doesn't mean it is OK not to do it. I know some friends report the bitcoin income only when they sell them. They report it like capital gains and deduct their mining efforts/cost etc. But they don't seem to report it after mining, as it seems too much cumbersome. As a CPA I would advise against this. They really should be reporting that income in the year it was earned. If they get audited they would certainly be assessed penalties and interest on the unpaid taxes associated with the mining. OK Got it. Thanks for the info. But if I buy bitcoin from exchanges, I don't need to report until I sell it right? It should be just like the stock trading. For mining it could be different due to the cost base. Otherwise I don't see much diff. Yes I agree, if you buy it from an exchange, then your basis is whatever you paid, and when you sell it you will either recognize a gain or a loss. (hopefully a gain, lol). Although I am unfamiliar of reporting requirements. For example, if you have a foreign bank account, you need to report that to the IRS with amounts and what not. I don't believe that is required with bitcoin, but I am not totally sure. |
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I can confirm they are busy contacting people who can optimize the code.
They have contacted me, and for what I know of one other person, and we are in the process of constructing a deal (I don't own an A4 at the moment for example).
Awesome news! Whats the potential in optimizing the code? Are we talking higher hashrates and/or lower power consumption? Any estimate as to how much? |
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Technically to be 100% right, you should record the price after each block found with the pool you are using. Of course that is not going to happen (although would be a great piece of software idea..) so instead I mine all coins to a single address that I dump at the end of each month and record my basis as that. So you owe ordinary income on that part, then any fluctuation of price when you sell the assets would be capital gains.
This is interesting. The question is how the IRS will know that I mined bitcoin, if no pool reports it to the IRS. Many pools are not even in US, I doubt they will take the trouble to report to IRS, moreover the pool has no idea which country I live. The IRS will probably not know if you mine bitcoins or not, especially on the level of home mining. But the question was how you should report your income. What your suggesting is tax evasion which is illegal in the United States and probably most countries in the world. Just because the IRS doesn't know about something doesn't mean it is OK not to do it. I know some friends report the bitcoin income only when they sell them. They report it like capital gains and deduct their mining efforts/cost etc. But they don't seem to report it after mining, as it seems too much cumbersome. As a CPA I would advise against this. They really should be reporting that income in the year it was earned. If they get audited they would certainly be assessed penalties and interest on the unpaid taxes associated with the mining. |
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It is good topic.
First of all it will depend on the country and the nature of the transaction.
If you are just doing private transactions there is anything to tax, but governments are getting more creative every day. If the crypto transaction is part of a business deal I would assume that the same tax rules apply as would for a transaction with fiat money.
But for now I think some rules concerning cryto transactions are not described completely in laws.
I mean mechanism and system of laws and taxes has not been completely created.
Please do not give what you "think" because it is not true and frankly doesn't matter. You need to specify what country your giving your "opinion" about also, because everything you just said above is FUD for the United States, which has actually pretty clearly laid out how bitcoins should be taxed. |
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Technically to be 100% right, you should record the price after each block found with the pool you are using. Of course that is not going to happen (although would be a great piece of software idea..) so instead I mine all coins to a single address that I dump at the end of each month and record my basis as that. So you owe ordinary income on that part, then any fluctuation of price when you sell the assets would be capital gains.
This is interesting. The question is how the IRS will know that I mined bitcoin, if no pool reports it to the IRS. Many pools are not even in US, I doubt they will take the trouble to report to IRS, moreover the pool has no idea which country I live. The IRS will probably not know if you mine bitcoins or not, especially on the level of home mining. But the question was how you should report your income. What your suggesting is tax evasion which is illegal in the United States and probably most countries in the world. Just because the IRS doesn't know about something doesn't mean it is OK not to do it. |
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A bigger display would probably put the device out of most peoples price range. I had a request for same size screen in red and black even my suppliers in china wanted to charge more then twice the price I pay for the screens and strongly recommended against this because it looks bad apparently. What about screens like this? They are cheap but look decent. Might be worth a try if you ask me. I would however recommend hiding the bottom bar of icons as it might confuse people, so maybe also create a whole new case for these units.  Yea I would really love something bigger and I bet you would still have a good customer base by offering another size screen,, even with the increase in price. Perhaps 5 to 8 inches? |
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Please state what cards you actually have for sale and how you obtain them.
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I would say you can use any of the major exchanges, as long as you continue to use the same one. You would want to use the one with the highest price, as that would give you the most basis, but just be consistent. Would look really fishy to be jumping around all the time using different exchange prices without a valid reason.
So, to answer your second part, think about it like this. You are walking down the street and find an ounce of gold on the ground and say 1 ounce of gold is currently worth $1000. You now have income of $1000 that is due in the current year. So everything is hunky dory, you pay the tax on your fortunate find, but decide to sell the gold next year when the price is $1500 an ounce. You will now owe a $500 capital gain.
It is the same for bitcoin. When you mine, you "find bitcoins" that you would owe ordinary income on, and you would need to record a basis for. When you sell those bitcoins, you will owe capital gains tax based on the appreciated value of the coins you mined.
His response isn't different than mine, he just isn't referencing mining but is talking about buying and holding bitcoin for a period of time. You won't owe capital gains on the appreciation until you sell it.
Does that clear it up a bit?
All clear My question comes to the fact that I'm used to treating my held coins as not taxable. Sure, you can report how your investment is doing each year, or month, but this means you are monitoring the price and frequently reporting gains and losses, like a trader, instead of just doing it when you finally decide to sell it. I sell coins over localbitcoins. So I treat them as inventory instead of as an investment. So once a month I revalue my inventory and put the difference to a gain or loss account so my balance sheet stays up to date with actual values. |
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Hi Everybody,
When getting Satoshi/Bitcoins from the internet in general, could you please tell me whether you have to pay tax to the country you get them from or do you just pay taxes to your own country?
Thanks for your help.
In USA, Depending on what your doing with bitcoin, if your mining bitcoin you have to pay income tax on every cent you make. Also if the price of bitcoin goes up even 1 cent you also have to pay a tax on that called, Capital Gains tax. In your trading bitcoin, you may require registering for a "FinCEN" as it may be classified as money transmitting. As far as I know, these taxes must be payed based of the place you live no matter where you buy the bitcoin. I don't think you will need to pay tax when you mine bitcoin. You are required to report tax only if you sell bitcoin to fiat. In which case it is treated like if you are selling the stocks, same rules apply. You have to pay tax on the mining of bitcoin. You can deduct things like cost of machines (depreciation) and electricity, but tax is still owed. Consult an accountant (like me) for further insight. Really? but how to calculate the value of the bitcoin? at the time of mined? Say I got each day some bitcoins because of mining, I have to record the price that day for my tax purpose? It will be a lot of work. Technically to be 100% right, you should record the price after each block found with the pool you are using. Of course that is not going to happen (although would be a great piece of software idea..) so instead I mine all coins to a single address that I dump at the end of each month and record my basis as that. So you owe ordinary income on that part, then any fluctuation of price when you sell the assets would be capital gains. How do you calculate the price? Based on which exchange? Always the same one or maybe the one, which has the lowest price at the moment? Why at the end of each month, couldn't you do it once a year? Aren't you supposed to report gains only when you turn coins to fiat? There are stances completely different to yours, for example: To the best of my understanding. When I keep BTC in BTC any income I make in BTC is not taxable as to Federal Income Tax. When I cash out BTC, and have made a profit, that is taxable as income. State taxation laws will vary. Can you be more specific about the situation you are seeking clarification on please? Best: George D. Greenberg, Esq. www.attorneybitcoin.comI would say you can use any of the major exchanges, as long as you continue to use the same one. You would want to use the one with the highest price, as that would give you the most basis, but just be consistent. Would look really fishy to be jumping around all the time using different exchange prices without a valid reason. So, to answer your second part, think about it like this. You are walking down the street and find an ounce of gold on the ground and say 1 ounce of gold is currently worth $1000. You now have income of $1000 that is due in the current year. So everything is hunky dory, you pay the tax on your fortunate find, but decide to sell the gold next year when the price is $1500 an ounce. You will now owe a $500 capital gain. It is the same for bitcoin. When you mine, you "find bitcoins" that you would owe ordinary income on, and you would need to record a basis for. When you sell those bitcoins, you will owe capital gains tax based on the appreciated value of the coins you mined. His response isn't different than mine, he just isn't referencing mining but is talking about buying and holding bitcoin for a period of time. You won't owe capital gains on the appreciation until you sell it. Does that clear it up a bit? |
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I have an issue with New Egg which I believe has negative tax consequences. I have already complained to no avail.
I am looking to purchase more Sapphire RX470 8gb cards after evaluating one. Currently this card from NE is listed at $214 with a free $60 game.
The problem is the way they invoice. For the one card I purchased, they supplied two invoices.
The first invoice takes the card price of $214 and then an obscurely written 2nd line on the invoice subtracts "a credit" for $60. So the first invoice shows that the net card cost is $154.
The second invoice is for the $60 video game and the total line has $60. Adding the two together and voila, we get the $214 catalog price total.
My complaint to them was that they are potentially hurting any business customer because their way of invoicing shows cost basis of the card as $154 not $214. While the chance of an audit is tiny, your invoice has reduced the cost basis of this card by $60 and you have given me a game invoice for $60. Especially for an order of say five, what is the audit defense against expensing 5 identical $60 computer games.?
Just want to make sure I understand, but you are actually paying $214, but then you get a game worth $60? So when you make the purchase, $214 is coming out of your bank account? Correct. $214 on a cc. You are given 2 separate invoices with completely different invoice numbers. The one for $154, is the RX470. The other one for is $60, a "Hitman" PC game. The price on their website for this card is $214. No mention of this weird allocation of cost. The game is some sort of incentive in lieu of a discount. I asked about getting a further discount and no game. No can do. I wouldn't worry about it. Just keep a list of your "fixed assets" or if you are choosing to just expense it keep some record of the payment and make sure everything is documented well. As long as the full $214 hit your credit card, I wouldn't be worried about the IRS not believing you actually paid that amount for the card. |
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I have an issue with New Egg which I believe has negative tax consequences. I have already complained to no avail.
I am looking to purchase more Sapphire RX470 8gb cards after evaluating one. Currently this card from NE is listed at $214 with a free $60 game.
The problem is the way they invoice. For the one card I purchased, they supplied two invoices.
The first invoice takes the card price of $214 and then an obscurely written 2nd line on the invoice subtracts "a credit" for $60. So the first invoice shows that the net card cost is $154.
The second invoice is for the $60 video game and the total line has $60. Adding the two together and voila, we get the $214 catalog price total.
My complaint to them was that they are potentially hurting any business customer because their way of invoicing shows cost basis of the card as $154 not $214. While the chance of an audit is tiny, your invoice has reduced the cost basis of this card by $60 and you have given me a game invoice for $60. Especially for an order of say five, what is the audit defense against expensing 5 identical $60 computer games.?
Just want to make sure I understand, but you are actually paying $214, but then you get a game worth $60? So when you make the purchase, $214 is coming out of your bank account? |
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And you didn't take the time to verify your provably fair bets?
Provably fair means nothing. Make sure you don't provide any references, any proofs, anything other than your very own opinion to support that stance. Please backup how probably fair means nothing. By definition, provably fair means that you can verify the site cannot screw you over. |
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