yeah glad i punted for a Titan (yeah i know stupid..before IRS ruling...but i like to mine) ..hopefully i can run that beast for more then a year on some kinda sh*tcoin
to get ROI
anyway on a good note went to the Tax Lady CPA today....because to keep IRS happy (and as I suspected if you show 'good intent" on trying to go with the
guidelines which the tax lady said was "man they really don't like you miner guys" .....my butt is covered from 7yrs in the future them coming after my 'hopefully'
by that time 20k per btc coin...my main concern..you don't file 2013...they can go back and screw with you next 7 years in the future...
anyway....because I'm now a new business..and home office (150 sq ft) and the checkoff of the auto calc feature of home office (no need to itemize elec/gas/etc)...
for having a "clean record" so to speak on my puny 16 transactions to blockchain...my total GROSS INCOME mining was a bit over 16k which means I should
have owed 4k to IRS..due to 1/2 up front costs waived on BFL losses (8.5K) and KNC Jupiter Equip (7,131.80 usd) and then the rest is depreciated as computer
equipment for next 5 years (i really like the 3770 bucks i had in a GPU miner i never got going 'waiting" for my BFL never show equip last summer big stall)
on the above if BFL comes thru as their email states and gives me the 5k refund (yeah right) I'd have to put that as income on 2014 ..(yeah bfl refund heh unlikely)
anyway with all the above i pay the IRS 550 bucks back from my 2.2k refund of my previous (now amended) Tax form of 2013..and I'm golden imho
they can come back and tweak me or audit me..but everything is on the up and up as far as me and BTC is concerned according to my tax lady cpa.
ie 1yr and 1 day from now should I choose to sell (doubtful the CPA lady said holding was smart with how IRS is treating BTC) i pay a 20% capital gains
tax on btc increase thats it
if I'd have used BTC etc under above would have been 43% capital gains tax plus probably the full 25% taxes i managed to get out of by doing the above
now i understand people are 'why do this .how can the IRS find you?" well in my case 15 transactions on 1 blockchain only never sold any..all my info
obtainable via bitstamp/coinbase/etc due to the below paper trail.....also likely...to find me...and main thing
was the 'flubbed" 4 wire xfers for equip from knc i canceled..and the 2 that went thru last year...all of which i signed "you are not using this wire xfer
for tax avoidance purposes overseas" signed usual document for over 10k wire xfers overseas
...well according to the bank each sheet is looked at by an individual if you are over 5K and if the bank says
it is suspicious it goes up the line..pretty sure the bank up the line has flagged 4 of these (bank could not do a wire xfer after 4 tries to an fro ..changed banks)
plus the 2 wire xfers from the new bank..but alas paperwork still exists..ie screwed..
but yeah CPA lady said I look like I put 'landing lights" on my Tax Return this year for an IRS audit before I even came thru the door...so had to tidy up
now if I'd been more of the 'tin foil hat crowd" I'd have bought BTC back in july before required info on bitstamp etc of ID....paid btc for 1st Jupiter
and would be sitting on my coin on a usb stick waiting for congress to fix the IRS law this 2014 year..and probably still be ok
but alas....I'm papered up like a 'drug lord" so for my 550 bucks for fed/state taxes will be paid..ie this is the safe route
so anyway all in all pretty good shape...can show good intent...they want to tweak it IRS that is ...guidelines are so 'odd' not an issue penalty wise
and/or if congress gets act together can go back to this tax form next year..again according to my CPA not me...
so anyway according to the tax lady the IRS can't have it both ways if it is "property" and mining is my main method to get this for gross income then
I can take off every failed $$$ (BFL and GPU tower)
and successful (Knc jupiter) and future (titan) as long as paid this year
the catch is because of rules of this is a NEW BUSINESS and new businesses get 50% off equip purchases etc start up costs...not to mention
the rest of the home office /supplies/software etc etc deductions etc
so anyway with the tax liability i should have paid...makes the Titan look like a 10 percent or so off deal anyhow
anyway so if you are like me with a paper trail and have HELD COIN get your blockchain go to coinbase chart hover on each day your coin went from your
pool to your blockchain .hover on coinbase graph...write it down rinse/repeat
but anyway with all the junk i got from tables to fans to laptop to monitor Jupiter gpu tower fiasco bfl fiasco and the rest
i can sleep easy...worse that can happen is a tweak from IRS in future for more $$$ and or audit i suppose...but everything is now on the up and up
so at least according to my tax lady cpa ......i have done all i can..so should be ok
anyway....again IRS can't have it both ways call it 'property" and then not allow me to "possibly" take a 'capital loss' in the future if it all goes south
anyway with the below new legislation to fix BTC back to a virtual currency. and away from this IRS stupid guideline
..we should be good ....or the odds are good imho this will be fixed......only problem i see is this likely won't happen till after
Nov election imho...so anyway this is the stuff I've done to cover myself
http://www.forbes.com/sites/perianneboring/2014/04/08/breaking-rep-stockman-to-introduce-first-bitcoin-bill/hopefully it is fast tracked
anyway for I can eat 550 bucks to the IRS to protect my a**s.....we who live to run away live to mine another day...
again this is what i think from what my tax lady said consult your own tax person.....i make no claims this will stick
but she said it seemed no different then the other small business stuff she starts up as 'new business' each tax year
with the usual equipment issues via gross profit
and yeah I showed a 650 buck or so profit on paper (heh....i looks richer heh)
so it goes each week something new wonder what will fall of the truck BTC news wise next week
Searing
