Bitcoin and Altcoin Taxes for USA

[ssnova]

Probably not a popular subject, but something that should be discussed since we don't live in a free market.


Just opening up a general discussion on it.

[oblivi]

Probably not a popular subject, but something that should be discussed since we don't live in a free market.


Just opening up a general discussion on it.

As far as I know, all you need is report it as capital gains, and depending on how much time you hold it, you will pay more or less.

If it's hold for less than 1 year, 45% is what you will lose.

If you hold for more than a year ,it's much lower, 20%? I think. It's a bit of a mess since BTC is so new, every country has different laws about it.

[DebitMe]

There are a bunch of other threads that have a discussion on it, but I will post here as well.

It is very simple to pay taxes on cryptocurrency in the United States.  It is treated as property in the IRS's mind.  So you would handle it the same way you would handle gold or silver profit/loss.  No further discussion necessary unless they change the law.

[AjithBtc]

When it comes to taxation bitcoin in a short will be categorized under the list of taxable assets. At the beginning governments feel difficulty in regulating taxes and little by little when usage increase the necessary syatematic function will make the taxation effective. As a part already few countries like Israel have recorded bitcoin similar to an taxable digital asset.

[|Bitkoin|]

Probably not a popular subject, but something that should be discussed since we don't live in a free market.


Just opening up a general discussion on it.

Bitcoin and altcoins are no different when it comes to taxes. Sure, they are different coins (obviously), but whatever you make must be reported, legally speaking, to your respective government.

Personally I think it is a bit complicated given the nature of the crypto market (extremely volatile), but in any case it does not exclude anyone from their legal financial obligations.

[ssnova]

There are a bunch of other threads that have a discussion on it, but I will post here as well.

It is very simple to pay taxes on cryptocurrency in the United States.  It is treated as property in the IRS's mind.  So you would handle it the same way you would handle gold or silver profit/loss.  No further discussion necessary unless they change the law.

But what about for shapeshifts and stuff? It's almost like a barter, one good for another good. 

[ssnova]

Probably not a popular subject, but something that should be discussed since we don't live in a free market.


Just opening up a general discussion on it.

Bitcoin and altcoins are no different when it comes to taxes. Sure, they are different coins (obviously), but whatever you make must be reported, legally speaking, to your respective government.

Personally I think it is a bit complicated given the nature of the crypto market (extremely volatile), but in any case it does not exclude anyone from their legal financial obligations.

Agreed, do things legit and as right as possible, which is why I thought it'd be good to open discussion. Since it is new, even though some posters say it's just like capital gains property, there are other complex things like shapeshifts/direct exchange (coin to another coin), etc.

[ssnova]

Hey guys, I just stumbled upon this, great start, which addresses exchanges like shapeshifts etc:

https://www.reddit.com/r/Bitcoin/comments/1uccfz/i_am_a_tax_attorney_here_are_my_answers_to_the/?st=j5o6aew8&sh=8979a0b2

#4: What if I exchange my bitcoins for altcoins? Is this a like-kind exchange?
This is a fair question and implicates what is known as a "like-kind exchange." Under Section 1031 of the tax code, exchanges of like-kind property do not trigger recognition of capital gains, and therefore are tax-free. Whether or not bitcoins/altoins are like-kind is uncertain to say the least. As intangible property, bitcoins/altcoins would qualify as like-kind only if they have the same rights, characteristics, and obligations. This is a very difficult test to apply to virtual currency.

[oblivi]

There are a bunch of other threads that have a discussion on it, but I will post here as well.

It is very simple to pay taxes on cryptocurrency in the United States.  It is treated as property in the IRS's mind.  So you would handle it the same way you would handle gold or silver profit/loss.  No further discussion necessary unless they change the law.

I think in the USA it's exactly as I described. Depending on the amount of time you hold it, you will pay more or less tax, so just hold your BTC from the time you receive it +1 year.

Just in case (because you never know when they will change laws...) try to keep every transaction logged and every trade. Im trying to do this and it's a mess trying to keep up with every tx but I try.