How to calculate BTC winnings with online betting

[Mahadragon]

I bought some BTC back in Nov 2019 at $8700/piece. The online betting site uses BTC and I won some BTC. I plan to sell all my BTC in Nov 2020 exactly 1 year so I can get the lower tax rate. However, I will have more BTC than when I started because of the gambling winnings. How do I figure out the taxes for the extra Bitcoins? I live in US.

[YOSHIE]

How do I figure out the taxes for the extra Bitcoins? I live in US.

Because you want to know about taxes and you live in the US.

You try to learn about this, maybe this can help you to find out how much tax is issued, if you sell Bitcoin.

Cryptocurrency taxes apply in different countries and in different ways everywhere. Both at the EU level and at the G20 summits, negotiations were held on the unification of the classification and taxation of cryptocurrencies around the world, but this is either a pipe dream or a nightmare, or for many years to come true.

Topic: Topic: [Tutorial] Crypto taxes for beginners

Note:
If you don't understand how to use what is said in the above topic, you can ask about taxation in that thread, later @Ratimov will provide detailed directions for you.

[odolvlobo]

The additional bitcoins you won are counted as income from gambling, so this is what I think you are supposed to do:

1. Gain in value of original bitcoins are counted as capital gains.
2. Value of bitcoins you won when you won them are counted as income from gambling.
3. Gain in value of the bitcoins you won since you won them are counted as capital gains.

I'm not an expert on taxes.
https://www.irs.gov/taxtopics/tc419

[jamalaezaz]

I bought some BTC back in Nov 2019 at $8700/piece. The online betting site uses BTC and I won some BTC. I plan to sell all my BTC in Nov 2020 exactly 1 year so I can get the lower tax rate. However, I will have more BTC than when I started because of the gambling winnings. How do I figure out the taxes for the extra Bitcoins? I live in US.

you pay tax for bitcoins in US? God thanks I am not from US. I don't give a single penny to govt from my Bitcoin holdings. what is the point of bitcoin if we pay tax out of them. BTW. govt played zero role in our bitcoin earning and holding. so they don't owe us anything. (specially Pakistani govt)

[AjithBtc]

I bought some BTC back in Nov 2019 at $8700/piece. The online betting site uses BTC and I won some BTC. I plan to sell all my BTC in Nov 2020 exactly 1 year so I can get the lower tax rate. However, I will have more BTC than when I started because of the gambling winnings. How do I figure out the taxes for the extra Bitcoins? I live in US.

you pay tax for bitcoins in US? God thanks I am not from US. I don't give a single penny to govt from my Bitcoin holdings. what is the point of bitcoin if we pay tax out of them. BTW. govt played zero role in our bitcoin earning and holding. so they don't owe us anything. (specially Pakistani govt)

That's true man. Even in my country the government doesn't do anything good to the cryptocurrency adoption or its growth. Government is always fond of making money out of it, and thats the reason oppositions are heavy than support. Also governments weren't able to have a clarity on making cryptocurrency taxable, because of transactions and earning happening in terms of cryptocurrency and very little associated with the banks on cashing out.

[coolcoinz]

The additional bitcoins you won are counted as income from gambling, so this is what I think you are supposed to do:

1. Gain in value of original bitcoins are counted as capital gains.
2. Value of bitcoins you won when you won them are counted as income from gambling.
3. Gain in value of the bitcoins you won since you won them are counted as capital gains.

I'm not an expert on taxes.
https://www.irs.gov/taxtopics/tc419

I'd probably do this. The problem is that it's hard to get all the needed proof of gains from the casinos and exchanges, so I'd pay someone to fill the paperwork for me and take the blame if anything goes wrong. Depends on how much gains you have to report. If it's something like 100k USD, don't ask on the forum or try to work it out alone. You have too much to lose.

you pay tax for bitcoins in US? God thanks I am not from US. I don't give a single penny to govt from my Bitcoin holdings. what is the point of bitcoin if we pay tax out of them. BTW. govt played zero role in our bitcoin earning and holding. so they don't owe us anything. (specially Pakistani govt)

What's the point of this post? He is asking how to pay his taxes in the US and your answer is "I don't live in the US and I don't pay taxes". That's not only off-topic but also brings nothing to the thread.

 

[jamalaezaz]

The additional bitcoins you won are counted as income from gambling, so this is what I think you are supposed to do:

1. Gain in value of original bitcoins are counted as capital gains.
2. Value of bitcoins you won when you won them are counted as income from gambling.
3. Gain in value of the bitcoins you won since you won them are counted as capital gains.

I'm not an expert on taxes.
https://www.irs.gov/taxtopics/tc419

I'd probably do this. The problem is that it's hard to get all the needed proof of gains from the casinos and exchanges, so I'd pay someone to fill the paperwork for me and take the blame if anything goes wrong. Depends on how much gains you have to report. If it's something like 100k USD, don't ask on the forum or try to work it out alone. You have too much to lose.

you pay tax for bitcoins in US? God thanks I am not from US. I don't give a single penny to govt from my Bitcoin holdings. what is the point of bitcoin if we pay tax out of them. BTW. govt played zero role in our bitcoin earning and holding. so they don't owe us anything. (specially Pakistani govt)

What's the point of this post? He is asking how to pay his taxes in the US and your answer is "I don't live in the US and I don't pay taxes". That's not only off-topic but also brings nothing to the thread.

 

it was not an answer to him. it was a question to him. and read my post. i did not only said "I don't live in the US and I don't pay taxes". i said more than that. especially I said there is no point of bitcoin if we have to pay tax for that.

[SaShiRaJaVu]

you pay tax for bitcoins in US? God thanks I am not from US. I don't give a single penny to govt from my Bitcoin holdings. what is the point of bitcoin if we pay tax out of them. BTW. govt played zero role in our bitcoin earning and holding. so they don't owe us anything. (specially Pakistani govt)

As if the government is playing a role in everything you earn in life and other financial investment, i am not aware how they are monitoring things but if you are selling the coins and converting the coins to your fiat currency through your bank account then you are liable to pay the tax if not you might get into trouble if you are dealing in big amounts.

@OP since gambling is a grey area in my country all the winnings and profits are shown as income from other source.

[Mahadragon]

How do I figure out the taxes for the extra Bitcoins? I live in US.

Because you want to know about taxes and you live in the US.

You try to learn about this, maybe this can help you to find out how much tax is issued, if you sell Bitcoin.

Cryptocurrency taxes apply in different countries and in different ways everywhere. Both at the EU level and at the G20 summits, negotiations were held on the unification of the classification and taxation of cryptocurrencies around the world, but this is either a pipe dream or a nightmare, or for many years to come true.

Topic: Topic: [Tutorial] Crypto taxes for beginners

Note:
If you don't understand how to use what is said in the above topic, you can ask about taxation in that thread, later @Ratimov will provide detailed directions for you.

Thanks for the link. Unfortunately, that link only contains the most basic of informations, like "Why you should report BTC gains". I understand the basic ins and outs of how to calculate my capital gains tax for BTC. I wish it were straight forward, buy 4 shares at $8700 each, sell 4 shares at $13,500, calculate the gains, report it, and call it a day. My situation isn't simple or straight forward.