bitcoin capital gain tax

[real_newguy05]

With bitcoin hitting all time high, like to hear what everyone is doing with their taxes for the profits.  Be honest, lets have a open discussion.

I plan to file with irs and pay the capital gain tax. I think it's just a matter of time before coinbase hands over all records to irs anyway, they are fighting for the 2015 and earlier info now, but i am sure 2016/2017 will be easier to get. 

I am fine paying my share of the taxes due, only real concern is irs will use it as an indicator to flag me for audit.  So basically trying to do it right but end up getting screwed.

What is everyone's thoughts and plan? given it's almost tax season.

[TheGodFather]

With bitcoin hitting all time high, like to hear what everyone is doing with their taxes for the profits.  Be honest, lets have a open discussion.

I plan to file with irs and pay the capital gain tax. I think it's just a matter of time before coinbase hands over all records to irs anyway, they are fighting for the 2015 and earlier info now, but i am sure 2016/2017 will be easier to get. 

I am fine paying my share of the taxes due, only real concern is irs will use it as an indicator to flag me for audit.  So basically trying to do it right but end up getting screwed.

What is everyone's thoughts and plan? given it's almost tax season.

In our country at oeast no regulation is being made for this and it would act like a separated income into which a tax cannot be applied to it. I think if there is I would be open into filing for it and giving taxes just so i can continue enjoying this

[chuongvannguyen02]

If bitcoin governments around the world will gain a large tax revenue and growth rate will be amazing. But it is hard to know who owns bitcoin and is trading them.

[coolcountry]

This is still a gray area in my country, and as far as I know if your additional earnings are below something like $250K per year, it doesn't trigger the systems of our versions of IRS. I know the US is very strict when it comes to things like this, and I would definitely pay taxes instead of constantly worrying about whether they will find out.

[bitfools]

With bitcoin hitting all time high, like to hear what everyone is doing with their taxes for the profits.  Be honest, lets have a open discussion.

I plan to file with irs and pay the capital gain tax. I think it's just a matter of time before coinbase hands over all records to irs anyway, they are fighting for the 2015 and earlier info now, but i am sure 2016/2017 will be easier to get. 

I am fine paying my share of the taxes due, only real concern is irs will use it as an indicator to flag me for audit.  So basically trying to do it right but end up getting screwed.

What is everyone's thoughts and plan? given it's almost tax season.

WORD on street is that if U cashed out on MORE than $20K in BTC on COINBASE then the IRS has their target bead painted on your ass.

What this means is that you have $20K undeclared income fully taxed with back taxes and penalty's owed, which can easily exceed the original $20k,

IF you mine, then burden is on U to prove your mining and equipment costs less your profit, the FULL amount on COINBASE is used to as un-reported taxable income.

MORAL of story, is NEVER use an EXCHANGE based in USA, or based on USA law, otherwise U R Fucked.

The current debate is that IRS wants ALL records for all time down to $10k, now they have all records for all time down to $20k, but standard approach, COINBASE has already proven themselves as willing to have their customers to be ass-raped by GOV.

ALL exchanges & mining-pools on USA soil to become USA-IRS tax agents.

[Rabiulawal12]

Basically, the tax agency views bitcoins and other cryptocurrencies as property and not currency for tax purposes. And although you may not receive a Form 1099 from whatever exchange you trade on, you remain responsible for paying taxes on gains.

[bitfools]

If bitcoin governments around the world will gain a large tax revenue and growth rate will be amazing. But it is hard to know who owns bitcoin and is trading them.

Which is why all the 'satoshi' legacy coin has never been spent,

Once you spend a coin, and cash out at an official USA BANK IRS SPYING location then you are fucked and hard.

Probably better to go on vacation in BTC friendly country, and do a LOT of gambling, enjoy lots of girls, and wear a disguise.

[bitfools]

Basically, the tax agency views bitcoins and other cryptocurrencies as property and not currency for tax purposes. And although you may not receive a Form 1099 from whatever exchange you trade on, you remain responsible for paying taxes on gains.

U work for me, I will give U a motorcycle, its still income in view of IRS, of the FMV of what you got, all the games have come & gone, including getting paid in ten cent silver coins, really worth $10 each.

IRS is NOT stupid,

Houses, Dildos, beany-babys, or BITCOIN's all have a fair market value, to be taxed, unless its an estate gift, ...but then that should have been already declared,

The entire deal, is that they just 'take it all', say you sold $50k on coinbase, and that was 3+ years ago, you get a letter you owe $150k in back taxes, penalty's and fines, then they just take out all the money from your bank accounts and put a lien on your property, the burden is on U, to file retroactive tax forms and PROVE that taxable income is less than they report, but then you still have to pay all the fines and penalty's, and don't forget the fortune that your CPA & Lawyers charge you for having to defend you against the IRS, and good luck getting your money back from the IRS that they nabbed from your bank accounts, 401k's, credit-unions, and trust-accounts.

Moral of STORY, if U play BITCOIN, then don't use a USA backed exit when you get off the BITCOIN-HIGHWAY.

For all you PUMPERS trying to get NORMAL-JOE on the BITCOIN train, remember that your really making his life to be a HELL ON EARTH

BITCOIN was never to have mining pools, gov controlled exchanges, or any of this current BULLSHIT

BITCOIN was a peer2peer barter transaction environ, off the grid, and unseen by GOV.

[bug.lady]

With bitcoin hitting all time high, like to hear what everyone is doing with their taxes for the profits.  Be honest, lets have a open discussion.

I plan to file with irs and pay the capital gain tax. I think it's just a matter of time before coinbase hands over all records to irs anyway, they are fighting for the 2015 and earlier info now, but i am sure 2016/2017 will be easier to get. 

I am fine paying my share of the taxes due, only real concern is irs will use it as an indicator to flag me for audit.  So basically trying to do it right but end up getting screwed.

What is everyone's thoughts and plan? given it's almost tax season.

WORD on street is that if U cashed out on MORE than $20K in BTC on COINBASE then the IRS has their target bead painted on your ass.

What this means is that you have $20K undeclared income fully taxed with back taxes and penalty's owed, which can easily exceed the original $20k,

IF you mine, then burden is on U to prove your mining and equipment costs less your profit, the FULL amount on COINBASE is used to as un-reported taxable income.

MORAL of story, is NEVER use an EXCHANGE based in USA, or based on USA law, otherwise U R Fucked.

The current debate is that IRS wants ALL records for all time down to $10k, now they have all records for all time down to $20k, but standard approach, COINBASE has already proven themselves as willing to have their customers to be ass-raped by GOV.

ALL exchanges & mining-pools on USA soil to become USA-IRS tax agents.

this is why maybe you should not use an echange at all. Spend bitcoin on goods and services directly, then it will not become a taxable event, then you will be able to spend it and avoid taxes and maybe even bitcoin will grow even more before you spend it all

Or if you really want to exchange it to cash, you can do it via some other good, like gold for instance, chances are it will not be a taxable event either.

[icanscript]

If you have not sold bitcoin for dollars, then what kind of capital gains can there be.
Pay bitcoins for the goods or participate in projects outside your country.

[piloder]

There is no any type of taxation for capital gain with bitcoin here so i am not liable of paying any taxes by law but i am also afraid to go myself and pay taxes telling them that i m earning from bitcoin and woud like to pay tax. They might start to make an inquiry about the source of those bitcoin and blah blah...

I am currently only selling my bitcoin in face to face deal so my government doesnt have any idea about my holding.

[michellee]

I think its depend on each country to apply tax from withdrawing our bitcoin. but for the country that doesn't care about the money, then we don't have to pay tax. so far, I am not paying any tax in my country for withdrawing my bitcoin. but if in the future, my government wants me and another bitcoin user to pay the tax, I think we need to obey the rules and we don't want the government think that we use bitcoin for money laundering.

[bitcoinman93]

You are right, better than being greedy and sorry. But before there is proper framework for regulation I don't see a reason to really file with IRS. I'm keeping some money aside for that, but will file only once the guidance for crypto exists.

[TTITA]

With bitcoin hitting all time high, like to hear what everyone is doing with their taxes for the profits.  Be honest, lets have a open discussion.

I plan to file with irs and pay the capital gain tax. I think it's just a matter of time before coinbase hands over all records to irs anyway, they are fighting for the 2015 and earlier info now, but i am sure 2016/2017 will be easier to get. 

I am fine paying my share of the taxes due, only real concern is irs will use it as an indicator to flag me for audit.  So basically trying to do it right but end up getting screwed.

What is everyone's thoughts and plan? given it's almost tax season.

your plan is very good, of course you live in USA where bitcoin has been legal right.
this becomes important where every investment advantage you make you should pay taxes for it.
in my country bitcoin transactions are prohibited, so transactions including investments are illegal, this is true also in some other countries so I have no plan to pay taxes. To plan ahead, of course I hope to change my bitcoin investment into a real investment that I can pay taxes for her so it does not against the law.

[InGODweTrast3]

The most important thing is when you go out into the cache,
banks can file reports to the state tax authorities..

[InGODweTrast3]

The most important thing is when you go out into the cache,
banks can file reports to the state tax authorities..

It is very important to find a safe way to cash out, I think for this you need to create cloud cryptobanks ..

[real_newguy05]

You are right, better than being greedy and sorry. But before there is proper framework for regulation I don't see a reason to really file with IRS. I'm keeping some money aside for that, but will file only once the guidance for crypto exists.

Not sure what you mean irs has strict guidance on bitcoins exchanged for cash. If you used an exchange like coinbase but don’t file, once coinbase give them the transactions they will come for you with interest and penalty.

[Deubila]

My country does not accept bitcoin. Bitcoin is not a coin. and they have no value for exchange. So bitcoin is not taxed.

[VIDEOsecure2]

To gain capital, you must sell your bitcoin at a high price. But if you can to sell more than your buying price, then it is not possible to make a profit.

[real_newguy05]

To gain capital, you must sell your bitcoin at a high price. But if you can to sell more than your buying price, then it is not possible to make a profit.

Btc is at 15k+, you think people selling now is not making a profit ?