ProofOfLambo (OP)
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January 14, 2018, 01:05:23 AM |
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What degree of detail do I have to keep in order to properly declare my taxes regarding cryptocurrencies? Every operation, investment or ICO has to be recorded? I also have done a bit of mining and I have no idea on taxes regarding that.
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Pintasak
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March 05, 2018, 03:08:48 AM |
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What degree of detail do I have to keep in order to properly declare my taxes regarding cryptocurrencies? Every operation, investment or ICO has to be recorded? I also have done a bit of mining and I have no idea on taxes regarding that.
Keep two sets of records for your bussiness is rarely a good idea .bussiness can use the cash method for tax purposes.Some business must use the accrual methld.It recommends for both tax purposes and financial reporting |
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Coinky
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March 05, 2018, 03:48:25 AM |
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What degree of detail do I have to keep in order to properly declare my taxes regarding cryptocurrencies? Every operation, investment or ICO has to be recorded? I also have done a bit of mining and I have no idea on taxes regarding that.
You should keep track of all your purchases,sales and profits of your cryptos.If you have traded on exchanges,it is easy to get a statement.You can determine the profits and pay taxes acordingly Check this site https://cointracking.info |
::::I DON'T WEAR ANY SIGNATURE:::
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ProofOfLambo (OP)
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March 07, 2018, 02:39:29 PM |
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What degree of detail do I have to keep in order to properly declare my taxes regarding cryptocurrencies? Every operation, investment or ICO has to be recorded? I also have done a bit of mining and I have no idea on taxes regarding that.
You should keep track of all your purchases,sales and profits of your cryptos.If you have traded on exchanges,it is easy to get a statement.You can determine the profits and pay taxes acordingly Check this site https://cointracking.info Oh, thanks I use that one, but the non-paid version requires manual inputs. I may have to consider a subscription. |
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fiulpro
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March 07, 2018, 02:44:50 PM |
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You know it's easier if you take account of your profit your investments your every trade and your wallet balance and bank statements.
Well no one will ask you that's for sure until and unless someone reports about your earnings .. also even before asking if you pay the tax to the government then there won't be any problem.
Also most wallets have history , you can check the transactions since the start of time and most wallets are paired with your pan card thus government is already tracking you in a sense .
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Kronos21
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March 07, 2018, 02:50:22 PM |
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What degree of detail do I have to keep in order to properly declare my taxes regarding cryptocurrencies? Every operation, investment or ICO has to be recorded? I also have done a bit of mining and I have no idea on taxes regarding that.
Without opening a legal entity, you cannot prove your costs of acquiring mining equipment. This means that all amounts obtained from the sale of coins will be treated to your income and your duty is to pay their taxes. Such legislation is in my country. Perhaps in another country otherwise. But I think the rules are about the same everywhere. |
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owlman
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March 07, 2018, 03:14:56 PM |
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It all depends on the country in which you live, and how in this country belong to the crypto-currencies. Do you want to pay taxes, from profits with a crypto currency?
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cellard
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March 07, 2018, 03:40:28 PM |
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What degree of detail do I have to keep in order to properly declare my taxes regarding cryptocurrencies? Every operation, investment or ICO has to be recorded? I also have done a bit of mining and I have no idea on taxes regarding that.
Yes, everything must be reported as far as I know, which is a total bureocratic nightmare. I don't understand how they pretend that every trade must be reported. Everyone I know hast lost some of their trading history. For example,everyone in MtGox I know, has lost all of their trades as the exchange disappeared and back then people didn't pay as much attention. There are many altcoin exchanges that are dead now and people lost their trading history there. Honestly thinking about cashing out gives me a big headache given the complexity of reporting all the stuff, it's hell on earth not even counting the fact that you'll lose a big amount of purchasing power in the taxes. |
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aardvark15
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March 07, 2018, 03:45:05 PM |
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What degree of detail do I have to keep in order to properly declare my taxes regarding cryptocurrencies? Every operation, investment or ICO has to be recorded? I also have done a bit of mining and I have no idea on taxes regarding that.
It depends on what country you are from. If you are American, then technically I think you are supposed to track every trade. I think earnings from mining would be income. It is probably the same as someone getting paid in Bitcoins for a job. I probably have to do the same thing for signature campaign earnings. Prior to this year, I think trades could be claimed as like kind exchanges. |
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Basmic
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March 07, 2018, 03:55:23 PM |
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What degree of detail do I have to keep in order to properly declare my taxes regarding cryptocurrencies? Every operation, investment or ICO has to be recorded? I also have done a bit of mining and I have no idea on taxes regarding that.
It depends on what country you are from. If you are American, then technically I think you are supposed to track every trade. I think earnings from mining would be income. It is probably the same as someone getting paid in Bitcoins for a job. I probably have to do the same thing for signature campaign earnings. Prior to this year, I think trades could be claimed as like kind exchanges. Natural exchange is barter. Such transactions are not subject to taxation. But they're only allowed for humans. What's more, you can't say that you change your coins to Fiat. In all countries, such transactions are taxable transactions. In any country you have to pay taxes on such transactions. It is time to organize the market of sale and purchase of goods for bitcoins. This is supposed to be duty free. |
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cellard
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March 07, 2018, 03:55:45 PM |
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What degree of detail do I have to keep in order to properly declare my taxes regarding cryptocurrencies? Every operation, investment or ICO has to be recorded? I also have done a bit of mining and I have no idea on taxes regarding that.
It depends on what country you are from. If you are American, then technically I think you are supposed to track every trade. I think earnings from mining would be income. It is probably the same as someone getting paid in Bitcoins for a job. I probably have to do the same thing for signature campaign earnings. Prior to this year, I think trades could be claimed as like kind exchanges. But who does that? I don't know anyone that has reported signature campaign earnings, did you? If someone actually does it let us know, and state the country you are from as well. A lot of people are concerned to report the gains, but then they may not like that you made money in some forum and they will research more, and what if the earned coins from your signature campaign where used to trade altcoins in exchanges which are now dead? like I said, this has happened before, and im not sure how this would turn out, if they look on the blockchain and records don't match, and you lost your trading history, it may lead to problems as you couldn't be able to prove the origin of the coins, even if you obtained them legally. |
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nightmanisrightman
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Global Risk Exchange - gref.io
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March 07, 2018, 05:02:26 PM |
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What degree of detail do I have to keep in order to properly declare my taxes regarding cryptocurrencies? Every operation, investment or ICO has to be recorded? I also have done a bit of mining and I have no idea on taxes regarding that.
It depends on what country you are from. If you are American, then technically I think you are supposed to track every trade. I think earnings from mining would be income. It is probably the same as someone getting paid in Bitcoins for a job. I probably have to do the same thing for signature campaign earnings. Prior to this year, I think trades could be claimed as like kind exchanges. But who does that? I don't know anyone that has reported signature campaign earnings, did you? If someone actually does it let us know, and state the country you are from as well. A lot of people are concerned to report the gains, but then they may not like that you made money in some forum and they will research more, and what if the earned coins from your signature campaign where used to trade altcoins in exchanges which are now dead? like I said, this has happened before, and im not sure how this would turn out, if they look on the blockchain and records don't match, and you lost your trading history, it may lead to problems as you couldn't be able to prove the origin of the coins, even if you obtained them legally. Woah never considered that slippery slope side of things. The bigger problem may arise if some report, and some don't because then they may come looking for the others. Highly unlikely though, as the amounts are extremely small and I doubt you will use a ton of resources to pursue some Joe who made $500 shilling a new gig. |
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BillCoin
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March 07, 2018, 05:24:24 PM |
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My bank refused to take my money as they realized that it was earned from bitcoin trading.
Even after I paid the appropiate tax that was required for bitcoin trading, they told me that they would need a detailed proved of ANY transaction that I have ever made in the bitcoin world, from the first transaction of buying the first bitcoin, to the last transaction of selling it.
The whole record has to be in supported exchanges, and it has to be fully detailed and from trusted sources, if at the middle you did something like selling the bitcoin for cash, you will get rejected by your bank as you won't be able to prove the authorize of your transactions.
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Manchumichael
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March 07, 2018, 05:27:11 PM |
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Any government put a tax on only your income, they only consider your fiat transaction they will not check your crypto transactions because tracking this record is not easy.
So just take your all banks yearly report and calculate how much you earned this year, in that minus your country taxless amount, for example in my country less than $6k is the taxless amount we no need to pay any tax to our government. suppose if our income is more than this amount we have to pay tax for that remaining amount in all country same rule.
First ask anyone how much percentage your government announced tax for crypto earning based on that calculates your tax amount that's it.
The simple solution is contact any accountant in your place they only prepares your IT report
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aardvark15
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March 08, 2018, 06:01:22 PM |
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What degree of detail do I have to keep in order to properly declare my taxes regarding cryptocurrencies? Every operation, investment or ICO has to be recorded? I also have done a bit of mining and I have no idea on taxes regarding that.
It depends on what country you are from. If you are American, then technically I think you are supposed to track every trade. I think earnings from mining would be income. It is probably the same as someone getting paid in Bitcoins for a job. I probably have to do the same thing for signature campaign earnings. Prior to this year, I think trades could be claimed as like kind exchanges. But who does that? I don't know anyone that has reported signature campaign earnings, did you? If someone actually does it let us know, and state the country you are from as well. A lot of people are concerned to report the gains, but then they may not like that you made money in some forum and they will research more, and what if the earned coins from your signature campaign where used to trade altcoins in exchanges which are now dead? like I said, this has happened before, and im not sure how this would turn out, if they look on the blockchain and records don't match, and you lost your trading history, it may lead to problems as you couldn't be able to prove the origin of the coins, even if you obtained them legally. I have not reported any signature campaign earnings yet. But the problem is that if I accumulate Bitcoins from signature campaigns and don’t report them, and then I cash them out on Coinbase, isn’t there a chance that Coinbase will disclose the sale to the IRS and audit my tax return? I just don’t want the IRS on my case if I have not reported everything. To your second point, I lost some coins on Cryptsy, so my plan is to claim a loss on my taxes. You can claim losses in addition to gains. |
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budz0425
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March 08, 2018, 06:30:18 PM |
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It depends on your country's requirement what they prefer and how they are going to calculate tax, so better to use the 2 methods mention above the accrual and cash purposes, here in our country we are using accrual in paying for our tax, but when it comes to paying for the income in crypto was not yet regulated.
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juicyjanet88
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MFG Token Sale - 1st of January
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March 08, 2018, 06:36:04 PM |
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As well as all of the suggestions it's important to keep track of any spending, depending on your earnings it may be taxed as capital gains or as income. If it's income then you'll be able to deduct a lot of expenses. Things like new laptops, a phone, internet costs etc.
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juicyjanet88
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MFG Token Sale - 1st of January
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March 09, 2018, 06:40:22 PM |
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I have not reported any signature campaign earnings yet. But the problem is that if I accumulate Bitcoins from signature campaigns and don’t report them, and then I cash them out on Coinbase, isn’t there a chance that Coinbase will disclose the sale to the IRS and audit my tax return? I just don’t want the IRS on my case if I have not reported everything.
This will almost certainly be flagged. Every time you convert crypto to fiat you will likely owe some tax. I think that signature campaigns would be treated as income (for the initial payment) and then if you decide to hold them beyond that time then any further increases would be capital gains. |
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nitrousteam
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March 09, 2018, 06:49:28 PM |
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It all depends on the country in which you live, and how in this country belong to the crypto-currencies. Do you want to pay taxes, from profits with a crypto currency?
Taxes can be avoided but in most cases, you need to pay taxes. If you mine you are storing the amount of the profit in your wallet which is taxable at the moment you are retrieving that money to the FIAT ( currency depends on the country of residence).The OP can avoid the taxes for some time but he can be tracked. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Every transaction to the FIAT is trackable and every government has their own regulation that the tax regulator is working with. |
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