Paying taxes on Bitcoin - the IRS has a form, but Google can't find it!

[HabBear]

Taxes on Bitcoin?!

Obviously the IRS will try to get its hands on any money American's make. They even tax Americans on income generated outside the US while the American is living as an expat in another country! It's gotten so bad that some Americans have dropped their citizenship to protect from being a tax audit target.

Bitcoin is likely to be not different. The IRS claims they have a form that can be filed (form 8480) but out of general curiosity I tried to find it and Google couldn't even find it!

http://lmgtfy.com/?q=IRS+Form+8480

If one can't even find the form, how could they be expected to complete it?! (That is, of course, if anyone thought it was right and just to declare their hodlings for tax reporting!)

Apparently less than 1,000 people have filed the form in each of the last three years (2013-2015). https://news.bitcoin.com/807-people-declared-bitcoin-tax-purposes-according-irs/?utm_source=OneSignal%20Push&utm_medium=notification&utm_campaign=Push%20Notifications

Fortunately, if bitcoin isn't sold there's nothing to declare...it's just a holding like owning stock.

What's your take?

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[pooya87]

you can't find it because there is no such form, in other words you searched for a wrong form. the correct form is form 8949 and it is literary the first google search result!

also remember that a new site is not a good reference for things like this. go to the real place to read about important matters such as paying your taxes:
https://www.irs.gov/uac/newsroom/irs-virtual-currency-guidance
https://www.irs.gov/pub/irs-pdf/f8949.pdf
https://en.bitcoin.it/wiki/Tax_compliance
https://www.irs.gov/uac/newsroom/irs-virtual-currency-guidance

and consult a real expert, what you read online may not be correct

[Mometaskers]

Well I don't live in the US and don't pay income taxes since I'm not formally employed but this just strike me as extreme greed. When foreign nationals work in the US, they also pay income tax there right, not to their home country?

I'm curious how they'll handle bitcoin. You said that if bitcoin was sold, it'll have to be declared. Does cashing-out at exchanges count as "selling" your bitcoin or does the exchange's fee already handle that? Also, from what I understand, exchanges are registered with the government so they can monitor funds. So, when you send bitcoin from some other wallet to the exchange to cash out, do they ask you where you got the money?

I was wondering if it's better to buy btc f2f (never tried it before though).

[davis196]

I`m lucky i`m not an American.
The taxes in my country are way lower than US taxes and i don`t know do i have to pay any taxes for my btc.
I`m really curious about paying VAT for bitcoin trading.Some govermnments see bitcoin as a currency,but other see it as a commodity.I`m not familiar the with legislation.

 

[xypos]

Taxes on Bitcoin?!

Obviously the IRS will try to get its hands on any money American's make. They even tax Americans on income generated outside the US while the American is living as an expat in another country! It's gotten so bad that some Americans have dropped their citizenship to protect from being a tax audit target.

Bitcoin is likely to be not different. The IRS claims they have a form that can be filed (form 8480) but out of general curiosity I tried to find it and Google couldn't even find it!

http://lmgtfy.com/?q=IRS+Form+8480

If one can't even find the form, how could they be expected to complete it?! (That is, of course, if anyone thought it was right and just to declare their hodlings for tax reporting!)

Apparently less than 1,000 people have filed the form in each of the last three years (2013-2015). https://news.bitcoin.com/807-people-declared-bitcoin-tax-purposes-according-irs/?utm_source=OneSignal%20Push&utm_medium=notification&utm_campaign=Push%20Notifications

Fortunately, if bitcoin isn't sold there's nothing to declare...it's just a holding like owning stock.

What's your take?

Even if the US government tries to arrest you for tax evasion it will be incredibly hard for them to prove that you actually need to pay the taxes.

Bitcoin is designed against taxes and the government in general.

Fortunately i’m in an area where taxing is looser than in the US, and I don’t make that much at all with bitcoin to make me eligible to pay tax, which is great.

And that statistic about only 1000 forms has ever been filled out is pretty obvious to me, pretty much nobody cares.

[AT101ET]

This is very interesting. How is the tax rate determined seeing as the value fluctuates a lot?
Are BTC profits from earlier years (when BTC wasn't worth much) exempt or are hey taxed to and if they're taxed are they taxed at their original value or present value?

[PokerDiceMan]

I think if america country bitcoin user must paying taxes on bitcoin
america must regulate bitcoin, i think is not fair, if paying tax but bitcoin still not regulated

[pooya87]

Even if the US government tries to arrest you for tax evasion it will be incredibly hard for them to prove that you actually need to pay the taxes.

that may be, but your life is going to be hell, and you end up losing a lot of money, either because they confiscate your belongings (bitcoin included) or you end up paying a lot of lawyers fee to prove otherwise.
don't believe me ask this guy:
https://bitcointalk.org/index.php?action=profile;u=14808
https://bitcointalk.org/index.php?topic=934268.0

Bitcoin is designed against taxes and the government in general.

no it is not.
bitcoin gives you privacy and gives you a decentralized ledger you can use without hassle but it doesn't mean you are above the law.

And that statistic about only 1000 forms has ever been filled out is pretty obvious to me, pretty much nobody cares.

it is just statistics, don't think too much about it. and it is from a news site, they tend to lie a lot and publish poor articles.

[ImHash]

If you are a miner and mining hundreds of bitcoins each week and don't want governments to link your addresses which the mining rewards are deposited in them you could pay some fees and mix them/cover your tracks by using a mixing service such as BitMixer.io that way even if IRS or any government's agency are on your tail and trying to link you to some transactions they will fail most certainly.
And then you could find buyers willing to pay in cash/gold or any item with value as long as not deposited into your bank accounts.

We all know that bitcoin won't be mainstream until another decade only then you could solely rely on bitcoin without any need to exchange to fiat.

Though good luck paying tax to your government, doing so means that you agree with spending half of the taxes on weapons and financing wars around the globe. there is no need for you to report your properties and financial activities to the IRS just turn them into bitcoins and let them stay in unused addresses for 10-15 more years to completely operate and do business without the need to pay a penny as tax.

[Searing]

Taxes on Bitcoin?!

Obviously the IRS will try to get its hands on any money American's make. They even tax Americans on income generated outside the US while the American is living as an expat in another country! It's gotten so bad that some Americans have dropped their citizenship to protect from being a tax audit target.

Bitcoin is likely to be not different. The IRS claims they have a form that can be filed (form 8480) but out of general curiosity I tried to find it and Google couldn't even find it!

http://lmgtfy.com/?q=IRS+Form+8480

If one can't even find the form, how could they be expected to complete it?! (That is, of course, if anyone thought it was right and just to declare their hodlings for tax reporting!)

Apparently less than 1,000 people have filed the form in each of the last three years (2013-2015). https://news.bitcoin.com/807-people-declared-bitcoin-tax-purposes-according-irs/?utm_source=OneSignal%20Push&utm_medium=notification&utm_campaign=Push%20Notifications

Fortunately, if bitcoin isn't sold there's nothing to declare...it's just a holding like owning stock.

What's your take?

I've paid my taxes on bitcoin mininig and trading since 2013.....over 10k each year on ave....my CPA never uses that form...the IRS says bitcoin to be treated like land property
thus that is how we have done the taxes (this is calling the IRS line in 2013 and 2014)

thus the IRS is blowing smoke....you don't need to file the form in question...just report the taxes with notations etc on the long form

its a bait an switch.....by IRS to fumble thru  with a reason to go 'fishing' on coinbase...me I don't care ....I'm legit..just saying