declaring coins to the IRS?

[acct]

How do you do this?

[bitlife]

File it on your taxes you file every year as 1099...

[christop]

I'm wondering how that would work. Does the IRS recognize any currencies other than USD? Or do you have to declare them on your tax return only when you convert them back to USD?

[evolve]

I think that when you sell, you pay taxes on whatever profit was made (this would be considered "miscellaneous income" and filed on a 1099).

That said, I am not an accountant...you're best off seeking tax advice from a professional rather than random internet strangers.

[acct]

My issue is, they are not bonds or stocks. It will be far more difficult to prove what they were acquired for and I would hate to be taxed on the whole exchange and not just the profit gained in the exchange.

[whitenight639]

Its really sad to keep seeing this question, its like a slave being let out of his cage, dosnt know where to go or what to do.


you have been given the tools of freedom, be creative, why contribute to there fiat money ponzi scheme that is creating hell on earth for many people foreign and domestic?

why not calculate your taxes owed, do some creative magic with bitcoin, take 10% off for you and yours then donate the rest to local charitable projects?

[acct]

Sounds great but the whole avoidance thing is risky. Unfortunately they report bank transfers to the IRS and the polish cards seem like they would take forever.

[Stephen Gornick]

How do you do this?

Related:
 - http://en.bitcoin.it/wiki/Tax_compliance

[extrapaint]

Bitcoins should be seen as a commodity.

[steeldog803]

I don't even file my taxes. Havent since 09. Fuck em Bastards

[Bitcoin BEAR]

I don't even file my taxes. Havent since 09. Fuck em Bastards

This, but if you must declare, it's capital gains tax and only if profit is realized (cashed out)

[j26545]

I have wondered this too. Even if you treat it like a commodity when you mine a coin what is your cost basis when you sell it, $0 or the price of electricity it took to mine it?

[dratnos]

If you're living in a country with taxes, you are receiving the benefits of various public goods. If you don't think this is the case, go live in a tax haven - but if you're living in a first world country and not paying those taxes you are free-riding and morally in the wrong. Don't do that.

[Severian]

if you're living in a first world country and not paying those taxes you are free-riding and morally in the wrong.

We pay taxes on gasoline, utility bills,  phone and every other type of purchase we make. We're already taxed enough. Plus, there's no reason to volunteer to give the government more money when they've already proven they can't manage what they already have.

[okaythen]

If you're living in a country with taxes, you are receiving the benefits of various public goods. If you don't think this is the case, go live in a tax haven - but if you're living in a first world country and not paying those taxes you are free-riding and morally in the wrong. Don't do that.

In my country most taxes are spent on war rather than public goods. I would happily pay my full amount if there were more libraries and parks rather than drones and bunker busting missiles. Just my .02.

[deathcode]

If you're living in a country with taxes, you are receiving the benefits of various public goods. If you don't think this is the case, go live in a tax haven - but if you're living in a first world country and not paying those taxes you are free-riding and morally in the wrong. Don't do that.

In my country most taxes are spent on war rather than public goods. I would happily pay my full amount if there were more libraries and parks rather than drones and bunker busting missiles. Just my .02.

Maybe choosing your representatives better would work?

[Bitcoin BEAR]

If you're living in a country with taxes, you are receiving the benefits of various public goods. If you don't think this is the case, go live in a tax haven - but if you're living in a first world country and not paying those taxes you are free-riding and morally in the wrong. Don't do that.

I have a different approach.
Since mining is basically solving problems, and whoever solves problems first wins, and there's an amount of luck involved in finding the block solution to get the reward, then mining can be considered gambling.
You might apply gambling tax rules which I believe that you pay standard 25% over $5000 http://www.irs.gov/publications/p505/ch01.html#en_US_2012_publink10007297
So if less than $5000 you don't pay taxes, unless I read incorrectly or the government tell me "nice try kid"...

On this note, Mining is a profession. So general income taxes would be suitable and under $20,000 (if single) iirc is exempt for fed. Now, that is gross income which includes your day job.

[Lethn]

If you're living in a country with taxes, you are receiving the benefits of various public goods. If you don't think this is the case, go live in a tax haven - but if you're living in a first world country and not paying those taxes you are free-riding and morally in the wrong. Don't do that.

In my country most taxes are spent on war rather than public goods. I would happily pay my full amount if there were more libraries and parks rather than drones and bunker busting missiles. Just my .02.

Maybe choosing your representatives better would work?

PAHAHAHAHAHHAAAA!!!

Someone on this forum actually believes we choose the people who claim to represent us?

[Gator-hex]

No tax to pay until you swap them for legal tender and then don't forget to remove your electricity costs, equipment costs, ASIC scam losses, to come to your final capital gains.

[whitenight639]

if you're living in a first world country and not paying those taxes you are free-riding and morally in the wrong.

We pay taxes on gasoline, utility bills,  phone and every other type of purchase we make. We're already taxed enough. Plus, there's no reason to volunteer to give the government more money when they've already proven they can't manage what they already have.

+1

If you're living in a country with taxes, you are receiving the benefits of various public goods. If you don't think this is the case, go live in a tax haven - but if you're living in a first world country and not paying those taxes you are free-riding and morally in the wrong. Don't do that.

In my country most taxes are spent on war rather than public goods. I would happily pay my full amount if there were more libraries and parks rather than drones and bunker busting missiles. Just my .02.

+1

If you're living in a country with taxes, you are receiving the benefits of various public goods. If you don't think this is the case, go live in a tax haven - but if you're living in a first world country and not paying those taxes you are free-riding and morally in the wrong. Don't do that.

In my country most taxes are spent on war rather than public goods. I would happily pay my full amount if there were more libraries and parks rather than drones and bunker busting missiles. Just my .02.

Maybe choosing your representatives better would work?

PAHAHAHAHAHHAAAA!!!

Someone on this forum actually believes we choose the people who claim to represent us?

I lulz at this, hard