paulb787 (OP)
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November 29, 2015, 10:05:28 AM |
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I know this has been brought up. I get mixed answers though. Is coinbase reporting to the IRS? If I have bought, sold, and mined bitcoin but have made no money do I have to report that on my taxes?
Thanks, Paul
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Amph
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November 30, 2015, 09:16:57 AM |
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if there are no money made then you have nothing to report, and yes last time i've checked they are in touch with IRS
also if you are below $600 per year as income from bitcoin, you don't need to declare anything
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Mickeyb
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November 30, 2015, 09:55:12 AM |
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Of course they are reporting to the IRS. Pretty much everyone in the US are reporting to the IRS, nobody can escape this. It just depends how much money are you making yearly from Bitcoin operations like Amph has said!
It also makes no difference are you a company or just a regular person!
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Quickseller
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December 05, 2015, 09:04:00 PM |
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I don't believe that coinbase actually collects your full social security number when they verify your identity, and IIRC they do not actively disclose that they are reporting your transactions to the IRS. The potential reasons why coinbase might report something about your account to the IRS: - You received interest income (or something similar that is classified as interest for tax reporting purposes) in the amount of $10 or greater from coinbase -- this will almost certainly not apply, although it may if you received any kind of referral earnings
- coinbase is considered to be a brokerage firm (eg e-trade, sharebuilder, ect.) -- I am not sure if this is the case or not
Regardless of if coinbase reports to the IRS, it is highly advisable to, at the very least, to the best of your abilities to properly report your transactions to the IRS, although the best thing to do is to file an accurate tax return that accurately categorizes your bitcoin related income.
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LuckyYOU
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December 08, 2015, 01:54:20 PM |
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What about taxes in countries in Europe? Are they keeping and reporting that to those countries as well?
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virtualx
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December 08, 2015, 06:20:24 PM |
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What about taxes in countries in Europe? Are they keeping and reporting that to those countries as well?
Virtual currencies can be exchanged tax-free in the European Union, following a ruling from the highest court in Europe. The European Court of Justice ruled this in 2015.
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Eriksen24
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December 08, 2015, 09:59:59 PM |
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Probably not.
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Snorek
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December 11, 2015, 07:22:40 AM |
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If you are not big fish then you have nothing to worry about. But your credentials are stored on Coinbase's servers, and I believe that in the future when IRS or ask Coinbase about that data they will have to give it to IRS without questions. The same case as IRS have access to database of Mt.Gox users.
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bitcointaxes
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December 12, 2015, 04:50:53 AM |
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They will be submitting fraud information like any other financial institution. We have also heard that they track where coins are sent to from their wallets and have closed accounts on that alone. Nonetheless, if you haven't spent or sold any coins, you don't owe any taxes. If you have, you would need to calculate if you made any gains (or losses) and report them as part of 1040 Schedule D. also if you are below $600 per year as income from bitcoin, you don't need to declare anything
This is wrong. All gains need to be declared.
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https://bitcoin.tax - calculate taxes for Bitcoin and digital-currencies
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Amph
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December 12, 2015, 08:50:54 AM |
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also if you are below $600 per year as income from bitcoin, you don't need to declare anything
This is wrong. All gains need to be declared. https://www.irs.gov/pub/irs-drop/n-14-21.pdf, unless this is changed now, read carefully A-12: A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property. For example, a person who in the course of a trade or business makes a payment of fixed and determinable income using virtual currency with a value of $600 or more to a U.S. non-exempt recipient in a taxable year is required to report the payment to the IRS and to the payee. Examples of payments of fixed and determinable income include rent, salaries, wages, premiums, annuities, and compensation.
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Moneyburner
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December 14, 2015, 11:30:30 PM |
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also if you are below $600 per year as income from bitcoin, you don't need to declare anything
This is wrong. All gains need to be declared. https://www.irs.gov/pub/irs-drop/n-14-21.pdf, unless this is changed now, read carefully A-12: A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property. For example, a person who in the course of a trade or business makes a payment of fixed and determinable income using virtual currency with a value of $600 or more to a U.S. non-exempt recipient in a taxable year is required to report the payment to the IRS and to the payee. Examples of payments of fixed and determinable income include rent, salaries, wages, premiums, annuities, and compensation. Necessity to declare and actually owing taxes are two separate things. Please note the "subject to information reporting" part. Although the section quoted has more to do with fixed payments. I think you both are thinking of different versions of declared.
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Amph
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December 15, 2015, 11:26:46 AM |
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also if you are below $600 per year as income from bitcoin, you don't need to declare anything
This is wrong. All gains need to be declared. https://www.irs.gov/pub/irs-drop/n-14-21.pdf, unless this is changed now, read carefully A-12: A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property. For example, a person who in the course of a trade or business makes a payment of fixed and determinable income using virtual currency with a value of $600 or more to a U.S. non-exempt recipient in a taxable year is required to report the payment to the IRS and to the payee. Examples of payments of fixed and determinable income include rent, salaries, wages, premiums, annuities, and compensation. Necessity to declare and actually owing taxes are two separate things. Please note the "subject to information reporting" part. Although the section quoted has more to do with fixed payments. I think you both are thinking of different versions of declared. yeah my bad, you always need to declare, but in that particular case you don't need to pay taxes, that was i wanted to say at the beginning declaring or not was not my point, the tax payment always was, since by declaring you don't give anything to the government, until you actually pay your taxes
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