bitcoin is exempt from taxes in many country only in America they regulate it and tax it like no tomorrow
False.
The IRS has no direct interest in crypto coins as an asset and treat it the same as when investing in metals or other securities: Only when cashing out do they want taxes and that is only on the amount exchanged into fiat. At that point it become a matter of simple Capital Gains income.
As for the States, same applies but also Sales taxes on items paid for with BTC come into play. Then same as any mail order or internet purchase, when you file your State taxes each year you are supposed to list purchases and pay any State sales taxes due that were not collected at time of sale.
I understood that if I buy bitcoin on coinbase for example and sale later at the higher price, I should pay U.S. federal income tax on the difference of capital gains. What about if I got bitcoins by mining, should the entire amount be taxed as an income tax? What if I transfer it to btc-e and cash it out there?
Show Posts
