Taxation Question for US citizens: Need your opinion

[badboyrazor]

I just looked over this notice: https://www.irs.gov/pub/irs-drop/n-14-21.pdf

Let say Person XYZ trades Alt coins to increase the number of BITCOINS. However, Person XYZ does not sell those bitcoins. Are those bitcoins taxable as income for fair market value? Or should the person be taxed after they convert to fiat?

[minersday]

Let say Person XYZ trades Alt coins to increase the number of BITCOINS. However, Person XYZ does not sell those bitcoins. Are those bitcoins taxable as income for fair market value? Or should the person be taxed after they convert to fiat?

You only need to pay taxes for all those bitcoins that you are going to withdraw to your bank account..

I went to the united states a few months ago, and i have been in there for more than a whole month (it happened on October to November of 2017)

But no, i preferred to withdraw my bitcoins by p2p with a guy that was a friend of mine, it went pretty smooth and you do not need to pay taxes for that.

60% of the people who are using bitcoins are doing the same in there.

[cryptoatomic]

I just looked over this notice: https://www.irs.gov/pub/irs-drop/n-14-21.pdf

Let say Person XYZ trades Alt coins to increase the number of BITCOINS. However, Person XYZ does not sell those bitcoins. Are those bitcoins taxable as income for fair market value? Or should the person be taxed after they convert to fiat?

You wont be taxex if you arent going to convert in using the banks,so if you can sell your btc by p2p transaction it will be taxless.

[StevenS]

According to that IRS notice, alt coins, as well as the Bitcoin example, meet the IRS definition of "convertible virtual currency". Therefore, trading alt coins for bitcoins is not a taxable event, because it merely changes the characteristics of the virtual currency as a capital asset. Trading alt coins for bitcoins does not valuate either in US dollars at the time of trade.

[squatz1]

You're going to be paying taxes on each transcation, as nothing here counts as a like-kind exchange. So you can't simply count the amount of bitcoin as income from trading and say that's your profit, you need to find your profit from each coin AS YOU'RE TRADING and then calculate all of it.

It's going to take sometime, but bitcoin.tax is going to work perfect for this. You just have to click off of like-kind exchanges.