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August 27, 2015, 03:40:31 AM |
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Response from itBit
"We cannot provide you with tax advice. Please consult with your accountant as to Bitcoin tax treatment and when you would need to report your asset holdings to the IRS. We cannot comment on when we will generate 1099 forms and in what conditions we will generate 1099 forms.
Regards,
itBit Support"
I understand that even if there is no reporting, it is my responsibility to report capital gains to the IRS. But I'm just wondering if the reporting and 1099 form generation is similar to a stock brokerage firm. For example a 1099 is not generated when you buy stock but is reported on a 1099-B when you sell stock (assuming you are buying to go long and then selling to close the long position). If dividends of $10 or more are received, that generates a 1099-DIV form. If the dividends are less than $10, no 1099-DIV form is generated but you are still required to report the dividends on your federal tax return. If interest of $10 or more is received, that generates a 1099-INT form. If the interest is less than $10, no 1099-INT form is generated but you are still required to report the interest on your federal tax return.
Does anybody have any experience or insight as to how 1099 forms are generated at itBit or any other bitcoin exchange?
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