Reporting BitCoins on Taxes

[Kluge]

taxes = government robbing you.

Why pay if they have no way to force you to pay?

It's like mailing a mugger a check, because what? you're suppose to pay them?

And if your country is involved in a war not on your own soil, then your taxes are paying to kill innocent people... and in fact it would be your moral duty to NOT pay taxes.

Yep. I've already gone through that thought train. However, many make less than enough to be excluded from the EITC. With EITC, there are quite a few cases where "paying taxes" is more like "collecting welfare," especially if you have kids.

[Luke-Jr]

Bitcoins are not recognized by the US as a currency or commodity, so there are no governmental laws regulating trade.

This is complete nonsense. The US recognizes Bitcoins as "stored value", and even if it hadn't yet, you could be sure it's something, and everything is regulated/taxable.

[draco49]

Bitcoins are not recognized by the US as a currency or commodity, so there are no governmental laws regulating trade.

This is complete nonsense. The US recognizes Bitcoins as "stored value", and even if it hadn't yet, you could be sure it's something, and everything is regulated/taxable.

I think you misunderstood what I meant.  There is no governmental regulation of Bitcoin trading, unlike other currency trading.  The regulation doesn't happen until the Bitcoins are converted to fiat currency.

[gorgo1]

As long as bitcoins aren't recognised as a currency,why worry about tax? I'd say,sit back and njoy the ride.

[JZ999]

im sure u dont have to tell the govt everything

[gorgo1]

im sure u dont have to tell the govt everything

I'll drink to that
Freedom is free

[BadBear]

Don't have to no, I have too much to lose from gaining the govts attention though. Choose your battles wisely.

[Askit2]

Depending on how much you made it is possible that no one would know. But tax wise even bartering (trade my skills for your skills) is taxable. Both parties are supposed to pay taxes on the fair value of what they recieved. That having been said unless you work at mikey Ds and drive a lambo or do other crazyness it likely wouldn't get you an audit. The benefit is unless your posessions are impossible to afford on your income it is hard to prove what you made. Tips, cash payments etc some people don't claim. If it isn't reported and you don't go crazy you may not get caught. If you live off your BTC earnings may be safer to claim them.

[jkminkov]

Thanks for the replies.

I paid my accountant $75.00 to tell me that I should report it as misc. income if I cash out bitcoins... lulz.

pay me $50 then:

if you trade bitcoins you should use same tax model as when trading currencies, or buying/selling stock market commodities, your profit is taxed

if you mine bitcoins you need to own a company cause mining expenses cannot be substracted from your profit...

As long as bitcoins aren't recognised as a currency,why worry about tax? I'd say,sit back and njoy the ride.

pubic hair is not recognized either, but if you buy low and sell high, you make profit, profit is taxable...