TAXATION IN NYS

[kjdc]

I recently won a lot of BTC via online casino gambling. I am going to get my winnings taxed when i withdraw and tax season rolls around. How do I do it? Do I tax it as Gambling winnings? or do I tax it as bitcoin is stated in NYS as 'property'. If anyone has any idea or experience in this let me know. PLEASE

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[Amph]

if you do not convert them there should not be any problem with tax, you do not declare anything

i doubt there is any country that is taxing bitcoin directly

[Possum577]

Amph has the best plan - just use them as BTC.

For tax advice, you should probably go to the NYS department of revenue website to see what they have to say about it first. I'm sure there's an article on it. And if not, you may have more liberty to make your own call on how you treat it - property vs. income.

And you could also look at how NYS treats any gambling winnings.

[kjdc]

yeah i'll have to do some research I guess. Now that you say that though I do remember reading somewhere that nothing has to get taxed if you never trade it.

[needFREElunch]

I'm not sure if the bitcoin is taxed directly. It also depends on how you treat them. Either it is a property to you , or maybe you might consider it as your income. I would prefer to go for property here.

[NUFCrichard]

In Germany you have to pay tax if you hold them for less than 1 year.
That might be different if you won them, but I wouldn't want to explain bitcoin gambling winnings to the IRS either!

It's a very grey zone, but I guess you will keep it all if you are smart about it

[kjdc]

Yeah I think I'm going to end up just keeping them. I can't find any official document related to New York State bitcoin regulations covering 'earnings', which is what I think it would be classified as. I did find that if I don't exchange it for another property (cash, goods) then it doesn't become taxed. I think i'll just let them sit.

[pereira4]

if you do not convert them there should not be any problem with tax, you do not declare anything

i doubt there is any country that is taxing bitcoin directly

But he won a lot of money. If he wants to buy something nice like a bike or a car (let alone a property), he will raise alarms and get investigated, so unless you want your bitcoins to buy beermoney stuff (small purchases) you'll end up forced to get it taxed.

[Amph]

if you do not convert them there should not be any problem with tax, you do not declare anything

i doubt there is any country that is taxing bitcoin directly

But he won a lot of money. If he wants to buy something nice like a bike or a car (let alone a property), he will raise alarms and get investigated, so unless you want your bitcoins to buy beermoney stuff (small purchases) you'll end up forced to get it taxed.

he wasn't talking about that in his post, so i assumed that he does need to convert them for the time being, and in this case there is no need to declare anything

otherwise it go without saying that he need to declare is income in the event that he want to buy something big, especially in newwork when their rules ar every sever about bitcoin