Are you keeping your crypto records?

[Periodik]

When I was new to crypto I did became careless and being less knowledgeable didn't help. Lost some few coins because I didn't kept back up files. Not much but maybe around 0.2 btc all in all. Now I am tracking all my crypto with records and lots of back up files. Tt's very good to see some of these coins you think are shits but at now at material value already.

[xSkylarx]

No I am not really keeping a records of my crypto's,
I mean I don't see why would I save some of the history of my transaction.

[Wendigo]

No. It's a waste of time.

Origin - freelancing on the Internet.
Total amount - current wallet balance.
File tax form and get my fiat.
Happy ending.

How do you go about explaining bigger than your stated total earnings expenses in Fiat? There are real
limitations mate & we all face them while trying to stay say 90% tax free.

I file for taxes when I am ready to convert Bitcoins to fiat sent to my bank account. What is there to explain?

If you convert significant amount, you should expect to be asked for the origins of your bitcoins.

And no, saying 'I've done some freelancing on the internetz' won't cut it. You could get a bit easier treatment, since cryptocurrencies are new concept, but generally - no one cares what you say, you have to be able to prove it. Otherwise money laundering would be a child's play.

And (depending on your jurisdiction), if you undertake any continuous business activities (such as freelancing), you'd be expected to register as a self-employed and be liable for corporation/income tax rather than Capital Gains tax. Makes no difference whether you take $/BTC/live stock as a payment.

Have you reported your Bitcoins earned here from campaigns or any other side gigs to the tax agency? I guess not.

[stargroup19]

Hello There ! i'm not keeping any crypto record . when any one include with crypto trading here is all history shows . When i buy or sell and all details show in my crypto account so no need to records.

[pawel7777]

...

Have you reported your Bitcoins earned here from campaigns or any other side gigs to the tax agency? I guess not.

Irrelevant. My actions don't constitute the law.
You can be sure as hell, that if you ever run into trouble for not declaring your income, "b..but pawel7777 from the forum also didn't declare those" won't serve you well as a line of defence.

[Wendigo]

...

Have you reported your Bitcoins earned here from campaigns or any other side gigs to the tax agency? I guess not.

Irrelevant. My actions don't constitute the law.
You can be sure as hell, that if you ever run into trouble for not declaring your income, "b..but pawel7777 from the forum also didn't declare those" won't serve you well as a line of defence.

Really? You wrote a lengthy list of guidelines and all I asked you about is if you are doing these yourself. I have already consulted a specialist in my country so I know what I have to do. But do you oh fellow keyboard warrior (specialist)? 

[HaXX0R1337]

Till now i have not made any records what so ever,i am yet to join an alt coin signature campaign that provides coins and all my investments are still in that respected coins,so i am not worried about anything now because it is not a very huge amount,until i start cashing out i can do what ever i want.

[soul-impact]

It occurred to me that if I wanted to get rid of everything I'd be liable for capital gains and if The Man wanted to know the origins of those funds I'd better get my house in order as it's rather convoluted.

To those ends I've dug out all the old private keys I could find, noted forum posts for giveaways and taken screenshots of exchange histories to show to my tormentors.

Say if something like Byteball really did end up ginormous that's a lot of money for nothing coming from a mystery origin unless you have some sort of paper trail such as your forum posts or wallet backup.

Are many people here doing the same thing? It may pay off a long way down the line so it's worth a few hours of notation and tucking those things away.

So basically you are worried that the taxman will be coming to haunt you that you had been trading in Bitcoins and that you did not pay your taxes, I don't think I am worried as there was no law that I had to pay taxes and I am not going to pay taxes, as simple if I wanted to, I would not buy Bitcoin. Even if we hide all the history, our IP address can be traced back to us any way to get rid of that. I keep on deleting from my mail box Bitcoins mail. That's the only thing I know.

When a country accepts bitcoin, it puts it into the legal and taxable system, which is a bad thing for all of us. On my own, I prefer a freer bitcoin, freedom will make it easier for us to work with bitcoin, and we will be more comfortable. Although when governments adopt bitcoin, its value will increase higher, but I do not want to be managed.

[joebrook]

I really dont have anything to worry here, my government doesnt take into account money earned on the internet, there is no way they can keep track of it, there isn't any system to do that at all. so no need to keep these records for me, i would if there was gonna be a price though. lol

[pawel7777]

...
Really? You wrote a lengthy list of guidelines and all I asked you about is if you are doing these yourself.

I haven't wrote a single 'guideline' and stated multiple times that I'm not an expert.

Again, my actions/inactions are irrelevant to the topic. You're derailing and inflaming discussion to earn some easy money from your sig campaign. That's all there is.

...
I have already consulted a specialist in my country so I know what I have to do

You haven't consulted shit, you're just spouting nonsense because it makes sense in your head. Lets verify it, what "specialist" was it? Care to provide his details? Which country are you based in?

[vapourminer]

since i use coinbase to convert btc to fiat and visa versa i just print out a buy/sell list from coinbase and hand it to my accountant.

i sold more that i bought last year so i had to explain what mining was, as thats were the bulk of my coins come from. i can prove it by printing my wallet transactions showing weekly deposits from nicehash or whatever pool ive used for that year.

so basically ive paid taxes to the government best way my accountant knew how to figure it.

figure if the irs comes after me ive done my best to do the taxes right and ill have my accountant to back me up. might have to pay some if the accountant did it wrong but at least i cant be accused of trying to avoid taxes.

edit: my accountant said he had one other person claim bitcoin on his/her taxes. and my accountant does hundreds of returns.

[choppork]

Not really, everything is already on blockchain. Simply seeing the history of the address says it all. But I really don't think that they are putting tax on cryptocurrencies. In my country, they are just taxing the exchanges. Regular bitcoin users are paying no tax at all and they are not required to pass any form of income tax. At least that's the case for now, it can all change one day when the government wakes up and thought that it might be a good way of corrupting more money if they tax bitcoin users especially those that have made millions. It will be such a slap in the face when that happens but whatever.

Like the previous guy said, if you earned a couple of bucks from a sideline, will you include that in your report? Of course not. Bitcoin is just like that but sometimes your earning from trading and signature campaigns blows up that you're not sure if they count as a "sideline" anymore.

[btctousd81]

you mean bookkeeping., for tac purpose, then nope.
i dont make that much from crypto coins trding so have not done anything about it., if btc reaches 20k then i might have to do something about it.

[ImHash]

Why would we keep them are you crazy? there are companies dedicated to destroy all the links between you and your bitcoins a good example is Bitmixer, no government on earth could catch you on any transactions sent to mixer or received from them because you are literally and intentionally giving away your coins in trust of the mixer though and receive them from an anonymous end.
Stop scaring people to give in so easily.

[gentlemand]

Why would we keep them are you crazy? there are companies dedicated to destroy all the links between you and your bitcoins a good example is Bitmixer, no government on earth could catch you on any transactions sent to mixer or received from them because you are literally and intentionally giving away your coins in trust of the mixer though and receive them from an anonymous end.
Stop scaring people to give in so easily.

Eh?

If you end up with several million dollars in your bank account should you want a house or something, the likelihood is that someone somewhere will politely enquire how you came to own them.

What are you going to do? Shout' Bitmixer' and jump into a lake and stay submerged until they let you keep all of your money?

I cannae believe the level of naivety on here sometimes. Just because it's 'on the internet' doesn't mean you're somehow let off all the crap that everyone else is subject to.

Crypto profiteers may feel that they're special cases. The Man will not agree with you and enforce that in a rather distressing manner unless you have your shit together.

[Russlenat]

For me I don't record my crypto records because it still small amount and easy to remember for now, I just list my bitcoin wallet addresses and url in case I forgot of those wallet.

[freedomno1]

I keep records to an extent, some sites went down and lost logs cough cavirtex and the sort, but have legacy sites
Others have losses like btct bitfunder havelock that besides burnsides and havelocks old logs some data is missing.
So the records cover it to an extent.

[Kakmakr]

In my country you get tax exemption up to a specific amount, so you do not have to pay tax on that income, if you do not exceed that amount. I just make sure that I stay within the guidelines of these tax exemptions provided. You also pay tax on Capital gains, so you move within fiat systems, between the allowed parameters. I do not mind paying taxes, but if they allow for tax exemptions and it is within the "rules", I will use it. ^smile^ 

[UCHCHILD]

So far not, but I rely on the transaction records in that is in online. So far I am not paying tax no records needed. Because I can see all the transactions I made online, I can see them all there so if some one ask me where did I get my money I can let them see my records online just give them the account address or where ever they can see the details of where I get my money.

[cafucafucafu]

It occurred to me that if I wanted to get rid of everything I'd be liable for capital gains and if The Man wanted to know the origins of those funds I'd better get my house in order as it's rather convoluted.

To those ends I've dug out all the old private keys I could find, noted forum posts for giveaways and taken screenshots of exchange histories to show to my tormentors.

Say if something like Byteball really did end up ginormous that's a lot of money for nothing coming from a mystery origin unless you have some sort of paper trail such as your forum posts or wallet backup.

Are many people here doing the same thing? It may pay off a long way down the line so it's worth a few hours of notation and tucking those things away.

Technically, yeah.

It is obviously best if you keep track of every transaction that you make, note down every change address that you use so that if there was some sort of tax problem with you having bitcoin then it can be solved quickly by providing these necessary proofs.

What I do is i keep notes of basically what each transaction is spent on on my wallet. This way, i am able to keep track without keeping every online receipt which is really quite a hard task to achieve.

But still, i've seen many people that don't keep track at all - it is extremely rare that the government is going to chase you down for bitcoin related taxation issues, because there are so little people using it atm that it's not worth it. I haven't heard of anyone personally, either. Most of the times they don't even know that you're using btc unless you're blatantly transacting thousands from your bank account to coinbase daily.