Bitcoin Forum
December 06, 2016, 10:26:45 AM *
News: To be able to use the next phase of the beta forum software, please ensure that your email address is correct/functional.
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Bitcoins & Taxes  (Read 1900 times)
lessPlastic
Jr. Member
*
Offline Offline

Activity: 56



View Profile
June 15, 2011, 03:50:40 AM
 #1

How exactly does it work if you trade/mine a large amount of Bitcoins, and you get profits of thousands of USD. What do you tell the IRS?
1481020005
Hero Member
*
Offline Offline

Posts: 1481020005

View Profile Personal Message (Offline)

Ignore
1481020005
Reply with quote  #2

1481020005
Report to moderator
1481020005
Hero Member
*
Offline Offline

Posts: 1481020005

View Profile Personal Message (Offline)

Ignore
1481020005
Reply with quote  #2

1481020005
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1481020005
Hero Member
*
Offline Offline

Posts: 1481020005

View Profile Personal Message (Offline)

Ignore
1481020005
Reply with quote  #2

1481020005
Report to moderator
1481020005
Hero Member
*
Offline Offline

Posts: 1481020005

View Profile Personal Message (Offline)

Ignore
1481020005
Reply with quote  #2

1481020005
Report to moderator
1481020005
Hero Member
*
Offline Offline

Posts: 1481020005

View Profile Personal Message (Offline)

Ignore
1481020005
Reply with quote  #2

1481020005
Report to moderator
Etlase
Newbie
*
Offline Offline

Activity: 10


View Profile
June 15, 2011, 03:51:47 AM
 #2

http://en.wikipedia.org/wiki/Capital_gains

BitCoin: Backed by the Wizard of Oz.
Anonymous
Guest

June 15, 2011, 03:53:17 AM
 #3

You don't.

You keep what you have earned through your own virtues. You owe them nothing for your labor.
lessPlastic
Jr. Member
*
Offline Offline

Activity: 56



View Profile
June 15, 2011, 03:54:03 AM
 #4


Even if you mine and convert it all straight to USD, it still counts as cap gains?
Vince Torres
Sr. Member
****
Offline Offline

Activity: 337


View Profile
June 15, 2011, 03:54:39 AM
 #5

Just pay your damn taxes you DO NOT want the IRS riding your ass and auditing you every 4 weeks.

Namecoin.com .bit domain registrar. Register a new .bit domain for just $1!
BTC: 1LpKzg24NHmrxLZbnVphcstV3s7uA8cSnT
LTC: LWHswCFRPouCXTNiT8B9HUVnGrae9eojVg
imperi
Full Member
***
Offline Offline

Activity: 196


View Profile
June 15, 2011, 03:55:04 AM
 #6

Another terrible thread... Can we move this to the "Redundant" section?
Anonymous
Guest

June 15, 2011, 03:55:49 AM
 #7

Just pay your damn taxes you DO NOT want the IRS riding your ass and auditing you every 4 weeks.
Heh, but if you are mining through tor and bought your hardware anonymously as well, can they really hold you to anything?
jimbobway
Legendary
*
Offline Offline

Activity: 1380



View Profile
June 15, 2011, 03:56:25 AM
 #8

capital gains don't apply to mined coins since there is no gain like trading a stock.  it's a hazy area.

░░░░░░░░░██████░░░░░░░░░░░░▄▄▄
░░███░░██████░░░░░▄▄▄▄▄░░██
░░███░░█████████████
░░░░░░░░██████▀▀██████████
░░░░░░░░██████░░░░░██████████
░░░░░░▄▄▄▄▄▄░░░▄▄▄░░░░███████
░░░░░██████░░░███░░░░███████
░░░░░██████░░░███
░░░░░███████▄▄▄▄▄████████
░░░░░████████████████████
░░▄▄▄▄▄░░█████░░░░█████████
█████░░█████░░░░█████████
█████░░░░░░░░░░░░█████████
█████░░░░░░░░░░░░░█████████

START GETTING PAID FOR YOUR ATTENTION!
███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████
JUSTICE IN THE WORLD OF ONLINE ADVERTISING!

BUY MASS COIN 】【 ICO PROSPECTUS
VISIT OUR WEBSITE
TWITTER 】【 FACEBOOK 】【 TELEGRAM

Dude65535
Full Member
***
Offline Offline

Activity: 126


View Profile
June 15, 2011, 03:56:38 AM
 #9

For mining bitcoins the value at the time you first got them minus cost would probably be considered normal income. Any increase in value between acquiring them and selling them would be capital gains. I have no training in the tax code but that is what I have picked up reading these forums.

1DCj8ZwGZXQqQhgv6eUEnWgsxo8BTMj3mT
tymothy
Full Member
***
Offline Offline

Activity: 224


View Profile
June 15, 2011, 04:25:48 AM
 #10

Just pay your damn taxes you DO NOT want the IRS riding your ass and auditing you every 4 weeks.
Heh, but if you are mining through tor and bought your hardware anonymously as well, can they really hold you to anything?

Well there's a distinction between what you could do and what you should do legally. Yes, you probably could get away without reporting profits generated from mining, but if you were found out, it could be bad, especially if it's a significant chunk of change. The size of your operation also might determine your risk. Just as millions of people might sell a thing or two on ebay or craigslist and not report the proceeds as income, they legally should, though the IRS really focuses most of its resources on recovering the most in unpaid taxes. Yes, if you do anything that generates a profit, technically you should report it. If you do run a mining operation that's quite significant in terms of profits, you might consider registering with your state as a sole proprietor or S-Corp. It would allow you to deduct the cost of your rigs from your taxable income. I'm not a tax professional.
Maxxx
Member
**
Offline Offline

Activity: 70



View Profile
June 15, 2011, 05:08:18 AM
 #11

You don't.

You keep what you have earned through your own virtues. You owe them nothing for your labor.

Time is money. This means that if you have spare time, you can use it to make money.

Modular, open, and stack-able miner case.
airdata
Sr. Member
****
Offline Offline

Activity: 406


View Profile
June 15, 2011, 05:26:23 AM
 #12

You don't.

You keep what you have earned through your own virtues. You owe them nothing for your labor.

I think this. 

Especially if so many detractors don't want to recognize bitcoin as being legit.
Stephen Gornick
Legendary
*
Offline Offline

Activity: 1988



View Profile
June 15, 2011, 05:48:04 AM
 #13

How exactly does it work if you trade/mine a large amount of Bitcoins, and you get profits of thousands of USD. What do you tell the IRS?

Covered here:
 - http://en.bitcoin.it/wiki/Tax_compliance

TheGer
Hero Member
*****
Offline Offline

Activity: 490



View Profile
June 15, 2011, 06:47:25 AM
 #14

cash out in cards and not cash.  problem solved
AnonymousBat
Member
**
Offline Offline

Activity: 111


View Profile
June 15, 2011, 06:51:10 AM
 #15

If you keep your income as bitcoins, how many US dollars of income do you have?

0.

What's the tax rate on zero dollars?

0 dollars.
triforcelink
Member
**
Offline Offline

Activity: 112



View Profile
June 15, 2011, 09:55:25 AM
 #16

If you keep your income as bitcoins, how many US dollars of income do you have?

0.

What's the tax rate on zero dollars?

0 dollars.
+1

killer2021
Member
**
Offline Offline

Activity: 84


View Profile
June 15, 2011, 10:00:20 AM
 #17

You don't.

You keep what you have earned through your own virtues. You owe them nothing for your labor.

I'll side with mr. Atlas. *Tips hat*

http://www.youtube.com/watch?v=G1-_k6mKSxk

Anonymous Cash-By-Mail Exchange: https://www.bitcoin2cash.com
1H6mqgB6UcqKt2SrCmhjxUp9np1Xrbkdj7
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!