Selling Bitcoin for Real Estate

[NatureMoves]

Planning to sell some of my bitcoin for real estate investment. If bitcoin goes to $120k and I sell 2 whole bitcoins ($240k), how much tax will the government charge me if I live in Florida and only earn $50k a year?  

[un_rank]

You need expert help to help you in planning to file your taxes. If you want to do it yourself:

• Know the income tax percentage and laws around bitcoin
• Document what price you bought bitcoin at and how you made the purchase
• Know your tax bracket
• Calculate how much tax you are to pay

We do not have enough information to help you and you would want to do everything properly to avoid any errors.

- Jay -

[Nwada001]

For the tax system, I think it will be best if you contact the appropriate body to help you calculate that in order to be on the right track. 
 
But for the aspect of selling your bitcoin to invest in real estate, if the price eventually reaches $120,000, that is your own choice to make, and if you have up to that amount of bitcoin, you can't hold them forever.
 
At some point, when your target price reaches it, you will definitely have to sell them off. Investing in real estate is also profitable, especially when you invest in a good area that won't be devalued or tempted by government development.

[NatureMoves]

It says I will be charged almost 30k!! and I bought the bitcoin more than a year ago ....I used the bitcoin tax calculator to get a rough estimate: https://ibb.co/0M9mqRv

You need expert help to help you in planning to file your taxes. If you want to do it yourself:

• Know the income tax percentage and laws around bitcoin
• Document what price you bought bitcoin at and how you made the purchase
• Know your tax bracket
• Calculate how much tax you are to pay

We do not have enough information to help you and you would want to do everything properly to avoid any errors.

- Jay -

What do you think of Koinly to do my crypto taxes? Any experience with it? https://koinly.io/

For the tax system, I think it will be best if you contact the appropriate body to help you calculate that in order to be on the right track.
 
But for the aspect of selling your bitcoin to invest in real estate, if the price eventually reaches $120,000, that is your own choice to make, and if you have up to that amount of bitcoin, you can't hold them forever.

Why not hold them forever? Too risky? I'm a bit hesitant also, because what if it goes up to a million in 10 years?  

[tabas]

@OP you don't have to post consecutively with different quotes and replies, if you're going to reply and no one has replied yet you can merge all of your replies in one post.

Why not hold them forever? Too risky? I'm a bit hesitant also, because what if it goes up to a million in 10 years? 

It's not risky to hold them forever or if that's the risk that you're thinking about then don't sell all of your BTCs. Sell only what you are going to need and hold what you want to hold for that long.

It says I will be charged almost 30k!! and I bought the bitcoin more than a year ago ....I used the bitcoin tax calculator to get a rough estimate: https://ibb.co/0M9mqRv

That's a lot but knowing that it's one of the permanent things in the world, death and taxes. 

[Barikui1]

If bitcoin goes to $120k and I sell 2 whole bitcoins ($240k), how much tax will the government charge me if I live in Florida and only earn $50k a year? 

Actually op, it's quite funny that the title of this thread is totally different from what was written down and besides you would have thrown more light on what you were trying to say, so that you can get your desired response and suggestions you might be looking for.

And talking about the title of the thread, it's actually not a bad idea, because real estate is one of those lucrative Business or investment that can stand shoulder to shoulder with any business or investment in this whole wide world, because it's also an asset that appreciate in value overtime, just as Bitcoin is.

And as for the tax that will you will have to pay in Florida, to be frank with you, am not a citizen there, I wouldn't be in the best position to answer that, I believe that your fellow Americans will be in the best position to answer that.

[un_rank]

What do you think of Koinly to do my crypto taxes? Any experience with it? https://koinly.io/

I have not used it, but they have an active reddit community. They should have better information about it there.

Why not hold them forever? Too risky? I'm a bit hesitant also, because what if it goes up to a million in 10 years?  

You can hold them forever, it realistically will be higher in 20 years than it will be in 5. I will always hold a percentage of bitcoin.
What is your motive for selling? Diversification is very good, but you do not have to 100% liquidate to get into another sector.

- Jay -

[hugeblack]

Do not take tax advice from an online forum. It is better to ask an accountant or tax specialist, but in general
In Florida, there is no state income tax, so the tax you will pay is federal tax, and this tax varies from 0% and 20% if you own Bitcoin for less than a year, or between 10% and 37% for more than a year, and therefore the maximum amount you will pay is 37%. The least is zero.

[siniminomorocomunisakito]

Plan well enough and if you are subject to taxes in the range of amounts you should contact the tax authorities in Florida and meet with Internal Revenue Service (IRS) staff. There there will be questions and answers and you will find out the amount that must be deposited.

[Hewlet]

If bitcoin goes to $120k and I sell 2 whole bitcoins ($240k), how much tax will the government charge me if I live in Florida and only earn $50k a year? 

forget about the IF question and face the reality. How many Bitcoin do you have in your wallet as we speak? Sometimes I guess it's necessary we try to talk about realities here rather than creating unreal stories that isn't what's our current state so we don't analyse situation that's not useful to you as it's possible you're not living in Florida or ever planning to do so.

2 Bitcoin is worth $140k  and for an average person, it's deficult to assume that you have access to such amount of Bitcoin in your wallet. If you had, you would probably not be asking this kind of question in the first place as it's most likely that you've probably stayed in the bitcoin ecosystem long enough to have known some basics and areas where the government justification gets to as long as it concerns Bitcoin. Maybe this thread can be of help if you can walk through the thread and the comments section. https://bitcointalk.org/index.php?topic=5480307.msg63436721#msg63436721

[SquirrelJulietGarden]

If bitcoin goes to $120k and I sell 2 whole bitcoins ($240k), how much tax will the government charge me if I live in Florida and only earn $50k a year? 

I don't live in the USA. and I can not answer this but you can find information from guide of IRS.
https://www.irs.gov/pub/irs-pdf/p17.pdf

I read in the forum that in the USA. you will be taxed like 30% or 40% from your profit of selling. Someone from this country can help you with more accurate information.

Does this Federal Income Tax have anything to do with "Selling Bitcoin for real estate"?

This is bad idea because real estates can be constructed with time but Bitcoin will have only 21 million bitcoins in total supply, no more. If you buy a real estate, hold it like 10 or 20 years, it will give you less ROI than holding your bitcoins 10 or 20 more years.

[NatureMoves]

If bitcoin goes to $120k and I sell 2 whole bitcoins ($240k), how much tax will the government charge me if I live in Florida and only earn $50k a year?  

forget about the IF question and face the reality. How many Bitcoin do you have in your wallet as we speak? Sometimes I guess it's necessary we try to talk about realities here rather than creating unreal stories that isn't what's our current state so we don't analyse situation that's not useful to you as it's possible you're not living in Florida or ever planning to do so.

2 Bitcoin is worth $140k  and for an average person, it's deficult to assume that you have access to such amount of Bitcoin in your wallet. If you had, you would probably not be asking this kind of question in the first place as it's most likely that you've probably stayed in the bitcoin ecosystem long enough to have known some basics and areas where the government justification gets to as long as it concerns Bitcoin. Maybe this thread can be of help if you can walk through the thread and the comments section. https://bitcointalk.org/index.php?topic=5480307.msg63436721#msg63436721

According to the articles, only if someone sends you $10k or more worth of bitcoin should you report to IRS within 15 days. Nobody is sending me any bitcoin nor am I sending anyone bitcoin. I'm just simply cashing out. I'm not even a trader, I don't use crypto for doing business, I'm just a regular investor who want to cash out.

[NatureMoves]

If bitcoin goes to $120k and I sell 2 whole bitcoins ($240k), how much tax will the government charge me if I live in Florida and only earn $50k a year?  

This is bad idea because real estates can be constructed with time but Bitcoin will have only 21 million bitcoins in total supply, no more. If you buy a real estate, hold it like 10 or 20 years, it will give you less ROI than holding your bitcoins 10 or 20 more years.

Planning to sell some of my bitcoin because I'm afraid of future regulations by the government.   But ofcourse, I'm not planning to sell all of them. Just want to diversify.