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Author Topic: US citizens, do you pay taxes on bitcoin exchange?  (Read 2405 times)
awigaxeh-443
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March 23, 2012, 12:27:22 PM
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Do you consider it as capital gains tax?
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BadBear
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March 23, 2012, 12:42:18 PM
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Yes I do, just look at the many times in history where major criminals were arrested for tax evasion in lieu of other evidence (Al Capone being a notable example). Don't want to give them any more reason to scrutinize my finances, I'd have a hard time explaining where a lot of my income comes from.  Wink

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seriouscoin
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March 23, 2012, 04:06:55 PM
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actually one of the thing i'm very curious about bitcoin was tax...

How can the government force tax on bitcoins? if you dont exchange and bitcoin was being use for transaction.

As for the bitcoin exchange, how do you file tax? do you get the account history and attach that in your "other" income box?

I bet most big miners (30ghs or above) wont file tax on their bitcoin "income"
payb.tc
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March 23, 2012, 04:13:01 PM
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actually one of the thing i'm very curious about bitcoin was tax...

How can the government force tax on bitcoins? if you dont exchange and bitcoin was being use for transaction.

As for the bitcoin exchange, how do you file tax? do you get the account history and attach that in your "other" income box?

I bet most big miners (30ghs or above) wont file tax on their bitcoin "income"


it is only income once it is us dollars. its like growing corn. farms don't pay tax on 12 tons of corn. they pay tax on the amount they sold the corn for minus costs...

doesn't work like that in australia. you're supposed to declare any income earned and pay tax on it's AUD equivalent, whether you cashed out or not.

seriouscoin
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March 23, 2012, 04:17:24 PM
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actually one of the thing i'm very curious about bitcoin was tax...

How can the government force tax on bitcoins? if you dont exchange and bitcoin was being use for transaction.

As for the bitcoin exchange, how do you file tax? do you get the account history and attach that in your "other" income box?

I bet most big miners (30ghs or above) wont file tax on their bitcoin "income"


it is only income once it is us dollars. its like growing corn. farms don't pay tax on 12 tons of corn. they pay tax on the amount they sold the corn for minus costs...

Thats not true if bitcoin is being used as a currency

I'm not sure about commodity, its not legal where i am to buy and trade gold as standard. (sell my car for gold)

 
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March 23, 2012, 04:23:14 PM
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actually one of the thing i'm very curious about bitcoin was tax...

How can the government force tax on bitcoins? if you dont exchange and bitcoin was being use for transaction.

As for the bitcoin exchange, how do you file tax? do you get the account history and attach that in your "other" income box?

I bet most big miners (30ghs or above) wont file tax on their bitcoin "income"


it is only income once it is us dollars. its like growing corn. farms don't pay tax on 12 tons of corn. they pay tax on the amount they sold the corn for minus costs...

Thats not true if bitcoin is being used as a currency

I'm not sure about commodity, its not legal where i am to buy and trade gold as standard. (sell my car for gold)

 

if you are in the USA,and you used a gold coin from the us mint its legal. they are $100 coins... its like using a silver nickle... or a copper penny...
Thats not the point as they consider that as "money" by their monetary policy.
awigaxeh-443
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March 23, 2012, 05:40:26 PM
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How much are you guys paying in the USA?
Uliena
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March 23, 2012, 07:22:52 PM
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Do I understand correctly, if my idea on this is, that as long as I only collect bitcoins and don't exchange them for items or usd/eur I should not include them to my tax report?
awigaxeh-443
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March 23, 2012, 08:08:06 PM
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You can't tax unrealized capital gains.
Stephen Gornick
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March 23, 2012, 09:01:49 PM
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Related:
 - http://en.bitcoin.it/wiki/Tax_compliance

payb.tc
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March 23, 2012, 09:52:47 PM
 #11

You can't tax unrealized capital gains.

if a US citizen accumulates millions of AUD, EUR, YEN, WON... is that just unrealized capital gains?

government will eventually include BTC in that list one way or the other, no matter how many try to argue that it's just a commodity, etc.
awigaxeh-443
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March 24, 2012, 03:21:10 AM
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Other currencies are not unrealized tax gains, those are already realized.

You should see BTC more as stocks, only taxable once sold.
payb.tc
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March 24, 2012, 03:24:26 AM
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Other currencies are not unrealized tax gains, those are already realized.

You should see BTC more as stocks, only taxable once sold.

as i said, governments will eventually put BTC in the list of 'currencies' if for nothing else but taxation purposes.
awigaxeh-443
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March 24, 2012, 03:47:33 AM
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buddy don't speculate, and no i doubt it will be put on a list as currency, usually anything the government can't control won't be given such luxury
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March 24, 2012, 03:49:39 AM
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 I think so.

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BadBear
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March 24, 2012, 04:07:50 AM
 #16

Do I understand correctly, if my idea on this is, that as long as I only collect bitcoins and don't exchange them for items or usd/eur I should not include them to my tax report?

This is pretty much what my accountant said word for word when I asked him. Sure if it's recognized as a currency that will change, but it isn't.

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awigaxeh-443
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March 24, 2012, 04:08:14 AM
 #17

If BTC were to be made "centralized" then yeah why not
awigaxeh-443
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March 25, 2012, 01:19:41 AM
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US CITIZENS, HOW MUCH ARE YOU PAYING AS CAPITAL GAINS TAX?HuhHuhHuhHuhHuhHuh
Stephen Gornick
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March 25, 2012, 01:31:10 AM
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US CITIZENS, HOW MUCH ARE YOU PAYING AS CAPITAL GAINS TAX?HuhHuhHuhHuhHuhHuh

Oh, you are just asking for the rate at which long term capital gains are taxed?  15% (for most, from 0% to 28% for others)
 - http://www.irs.gov/newsroom/article/0,,id=106799,00.html
 - http://en.wikipedia.org/wiki/Capital_gains_tax#United_States
 - http://www.bankrate.com/finance/money-guides/capital-gains-tax-rates-1.aspx

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March 25, 2012, 01:36:59 AM
 #20

doesn't work like that in australia. you're supposed to declare any income earned and pay tax on it's AUD equivalent, whether you cashed out or not.
So if I play World of Warcraft and in a raid I get an item I could sell for $30, I have a taxable gain of $30? Do I have to pay taxes every time I level up -- after all, I could sell my account.

I am an employee of Ripple Labs, the company behind the Ripple payment network.
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