Taxes must be crazy now

[claire]

Say I have a bitcoin that was worth $20.00 4 or 5 years ago. Say I cash it in (no idea how) and I get $20K so technically I've made a bigger than huge profit. How much of that would I have to pay in California and Federal taxes?

[cozk]

 

[brusnika]

Say I have a bitcoin that was worth $20.00 4 or 5 years ago. Say I cash it in (no idea how) and I get $20K so technically I've made a bigger than huge profit. How much of that would I have to pay in California and Federal taxes?

You are the first person i see here , who wants to pay taxes. are you serious with this question?

[integrap]

Say I have a bitcoin that was worth $20.00 4 or 5 years ago. Say I cash it in (no idea how) and I get $20K so technically I've made a bigger than huge profit. How much of that would I have to pay in California and Federal taxes?

You are the first person i see here , who wants to pay taxes. are you serious with this question?

As I know in some countries government ask for taxes such as in Germany And also in my country they will start to take taxes from your profit which is called income tax. Some countries do not accept crypto coins as a money. So there is no proper regulation yet.

[hndrk10]

Say I have a bitcoin that was worth $20.00 4 or 5 years ago. Say I cash it in (no idea how) and I get $20K so technically I've made a bigger than huge profit. How much of that would I have to pay in California and Federal taxes?

You are the first person i see here , who wants to pay taxes. are you serious with this question?

Why wouldn't he be? I mean, at some point governments will ask for taxes when it comes about Crypto. All the money are gonna be in here. Nations survive on taxes.

[Yakamoto]

Say I have a bitcoin that was worth $20.00 4 or 5 years ago. Say I cash it in (no idea how) and I get $20K so technically I've made a bigger than huge profit. How much of that would I have to pay in California and Federal taxes?

It all depends, but there's something like a 50% taxable rate for realized capital gains in Canada, if you made $1 or $10,000 (provided that it is in a taxable range) then you'd still be paying the 50%, either $0.50 or $5,000. It's not like the taxes grow more, the total sum just gets taxed more than what they would have been provided that you had earned less. I don't know what the tax rates are for the United States but I would assume that they're a bit less than those you find in Canada because this country seems determined to push away investors with exorbitant tax rates on everything.

[jdeanne92]

Yeah they are making easy money on it. These guys doesnt know the hardship we felt to acquire that bitcoin. They dont play equal. Another thing is the fee from sending bitcoin. An app that i use have very large fee. It goes around $40 just to send $5 worth of bitcoin

[Faroxx]

In theory you don't have to pay taxes. In the jurisdiction of California no such thing as "cryptocurrencies", and have to pay tax on them, you don't have to.

[CryptoBeesKnees]

a lot ha ! 

[claire]

Say I have a bitcoin that was worth $20.00 4 or 5 years ago. Say I cash it in (no idea how) and I get $20K so technically I've made a bigger than huge profit. How much of that would I have to pay in California and Federal taxes?

You are the first person i see here , who wants to pay taxes. are you serious with this question?

I'm very serious. I might not like taxes, but I know I'm required to pay them if I earn money somehow. I'd rather be safe than sorry.
<P>

[aaronfb]

You would probably pay regular income tax on them.  If you cash in 20K in bitcoin, add that to your total annual income and see which tax bracket you are in.

[Crypto Bloke]

This could also potentially be a problem here in Spain - it is dificult to find reliable information on such a 'new' phenomenon... 

[claire]

a lot ha ! 

Forums need hahaha and like buttons for these kinds of answers.

[TopherB]

Say I have a bitcoin that was worth $20.00 4 or 5 years ago. Say I cash it in (no idea how) and I get $20K so technically I've made a bigger than huge profit. How much of that would I have to pay in California and Federal taxes?

The difference between what you paid for it and what you sold it for (minus all fees) is capital gains.
The federal capital gains rate varies depending on your income. California has the second highest capital gains tax rate but it also varies depending on income. Cali has 10 brackets and will tax you even if your income was only $1.