TAX HELP - USA- MASS

[moontoon]

Let's say someone makes 10k from trading currencies on poloniex and wants to cashout bitcoins on coinbase to there bank account...How would they go about paying taxes on this? And is this short term or long term? For it to be long term gains would the bitcoin have to sit untouched for a year before cashing out on coinbase?

[1715625676]

1715625676

[BitcoinScamFighters]

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[xanga_17]

Let's say someone makes 10k from trading currencies on poloniex and wants to cashout bitcoins on coinbase to there bank account...How would they go about paying taxes on this? And is this short term or long term? For it to be long term gains would the bitcoin have to sit untouched for a year before cashing out on coinbase?

If you send 10k to your bank then your bank will have to let the IRS know. Send couple thousand dollars at a time and the bank will not report them to the IRS.

[erpbridge]

Let's say someone makes 10k from trading currencies on poloniex and wants to cashout bitcoins on coinbase to there bank account...How would they go about paying taxes on this? And is this short term or long term? For it to be long term gains would the bitcoin have to sit untouched for a year before cashing out on coinbase?

While legally you would be paying taxes on whatever you profit from the time you bought it. I would consider it to be short term. Perhaps a tax expert will be able to help you out better. Ask this in this thread: https://bitcointalk.org/index.php?topic=1724798.0

[achillez]

I'm also curious about this. Let's say you have an altcoin like ETH.  You trade it for BTC, and then later you sell the BTC for $. Do you pay the taxes at the point where you did the ETH -> BTC trade (and hence that is your new base), or do you pay only when you do the BTC -> $ sale (using the original base you may have paid for ETH)?

[dreamhouse]

You gain is like the capital gain, Uncle Sam wants a part of it. It is no different than stock trading. Unless you are sure the exchange don't report it to IRS, then you may take your chance. But dealing with IRS is no fun.

[achillez]

I'm also curious about this. Let's say you have an altcoin like ETH.  You trade it for BTC, and then later you sell the BTC for $. Do you pay the taxes at the point where you did the ETH -> BTC trade (and hence that is your new base), or do you pay only when you do the BTC -> $ sale (using the original base you may have paid for ETH)?

So no answers to this question?