Bitcoin Forum
September 01, 2015, 02:09:55 PM *
News: New! Latest stable version of Bitcoin Core: 0.11.0 [Torrent]
 
   Home   Help Search Donate Login Register  
Pages: [1] 2 3 »  All
  Print  
Author Topic: US citizens, do you pay taxes on bitcoin exchange?  (Read 3495 times)
awigaxeh-443
Newbie
*
Offline Offline

Activity: 28


View Profile

Ignore
March 23, 2012, 12:27:22 PM
 #1

Do you consider it as capital gains tax?
1441116595
Hero Member
*
Offline Offline

Posts: 1441116595

View Profile Personal Message (Offline)

Ignore
1441116595
Reply with quote  #2

1441116595
Report to moderator
1441116595
Hero Member
*
Offline Offline

Posts: 1441116595

View Profile Personal Message (Offline)

Ignore
1441116595
Reply with quote  #2

1441116595
Report to moderator
1441116595
Hero Member
*
Offline Offline

Posts: 1441116595

View Profile Personal Message (Offline)

Ignore
1441116595
Reply with quote  #2

1441116595
Report to moderator
COINROYALE BITCOIN CASINO GET UP TO 1 BTC FREE Use Code: FORUM100 PLAY NOW
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1441116595
Hero Member
*
Offline Offline

Posts: 1441116595

View Profile Personal Message (Offline)

Ignore
1441116595
Reply with quote  #2

1441116595
Report to moderator
1441116595
Hero Member
*
Offline Offline

Posts: 1441116595

View Profile Personal Message (Offline)

Ignore
1441116595
Reply with quote  #2

1441116595
Report to moderator
1441116595
Hero Member
*
Offline Offline

Posts: 1441116595

View Profile Personal Message (Offline)

Ignore
1441116595
Reply with quote  #2

1441116595
Report to moderator
BadBear
v2.0
Administrator
Legendary
*
Offline Offline

Activity: 1442



View Profile WWW
March 23, 2012, 12:42:18 PM
 #2

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

1Kz25jm6pjNTaz8bFezEYUeBYfEtpjuKRG | PGP: B5797C4F

Tired of annoying signature ads? Ad block for signatures
payb.tc
Hero Member
*****
Offline Offline

Activity: 812



View Profile

Ignore
March 23, 2012, 04:13:01 PM
 #3

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.

awigaxeh-443
Newbie
*
Offline Offline

Activity: 28


View Profile

Ignore
March 23, 2012, 05:40:26 PM
 #4

How much are you guys paying in the USA?
Uliena
Newbie
*
Offline Offline

Activity: 11


View Profile

Ignore
March 23, 2012, 07:22:52 PM
 #5

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
Newbie
*
Offline Offline

Activity: 28


View Profile

Ignore
March 23, 2012, 08:08:06 PM
 #6

You can't tax unrealized capital gains.
Stephen Gornick
Legendary
*
Offline Offline

Activity: 1652



View Profile WWW

Ignore
March 23, 2012, 09:01:49 PM
 #7

Related:
 - http://en.bitcoin.it/wiki/Tax_compliance

payb.tc
Hero Member
*****
Offline Offline

Activity: 812



View Profile

Ignore
March 23, 2012, 09:52:47 PM
 #8

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
Newbie
*
Offline Offline

Activity: 28


View Profile

Ignore
March 24, 2012, 03:21:10 AM
 #9

Other currencies are not unrealized tax gains, those are already realized.

You should see BTC more as stocks, only taxable once sold.
payb.tc
Hero Member
*****
Offline Offline

Activity: 812



View Profile

Ignore
March 24, 2012, 03:24:26 AM
 #10

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
Newbie
*
Offline Offline

Activity: 28


View Profile

Ignore
March 24, 2012, 03:47:33 AM
 #11

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
Xanax
Newbie
*
Offline Offline

Activity: 28


Bitcoins are my life.


View Profile WWW

Ignore
March 24, 2012, 03:49:39 AM
 #12

 I think so.

BTC : 1KcZsTuuigHLohpnCEiUY1cfZmdsZZioUy
BadBear
v2.0
Administrator
Legendary
*
Offline Offline

Activity: 1442



View Profile WWW
March 24, 2012, 04:07:50 AM
 #13

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.

1Kz25jm6pjNTaz8bFezEYUeBYfEtpjuKRG | PGP: B5797C4F

Tired of annoying signature ads? Ad block for signatures
awigaxeh-443
Newbie
*
Offline Offline

Activity: 28


View Profile

Ignore
March 24, 2012, 04:08:14 AM
 #14

If BTC were to be made "centralized" then yeah why not
awigaxeh-443
Newbie
*
Offline Offline

Activity: 28


View Profile

Ignore
March 25, 2012, 01:19:41 AM
 #15

US CITIZENS, HOW MUCH ARE YOU PAYING AS CAPITAL GAINS TAX?HuhHuhHuhHuhHuhHuh
Stephen Gornick
Legendary
*
Offline Offline

Activity: 1652



View Profile WWW

Ignore
March 25, 2012, 01:31:10 AM
 #16

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

JoelKatz
Legendary
*
Offline Offline

Activity: 1358


Democracy is vulnerable to a 51% attack.


View Profile WWW

Ignore
March 25, 2012, 01:36:59 AM
 #17

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.
1Joe1Katzci1rFcsr9HH7SLuHVnDy2aihZ BM-NBM3FRExVJSJJamV9ccgyWvQfratUHgN
JoelKatz
Legendary
*
Offline Offline

Activity: 1358


Democracy is vulnerable to a 51% attack.


View Profile WWW

Ignore
March 25, 2012, 05:05:27 AM
 #18

Do I have to pay taxes every time I level up

you're supposed to declare your net capital gain or loss once per year.

So do people in Australia not play MMORPGs? Or do they all break the law?

I am an employee of Ripple Labs, the company behind the Ripple payment network.
1Joe1Katzci1rFcsr9HH7SLuHVnDy2aihZ BM-NBM3FRExVJSJJamV9ccgyWvQfratUHgN
amytron
Newbie
*
Offline Offline

Activity: 28



View Profile

Ignore
March 25, 2012, 06:11:28 PM
 #19

i don't pay taxes on bitcoins
JoelKatz
Legendary
*
Offline Offline

Activity: 1358


Democracy is vulnerable to a 51% attack.


View Profile WWW

Ignore
March 26, 2012, 12:45:41 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.

you only report after you sell your account, not when you can...
That's the law in the United States. Capital gains are not taxed until realized. But read what payb.tc said, "you're supposed to declare any income earned and pay tax on it's AUD equivalent, whether you cashed out or not". I don't see how such a system could possibly work. It would mean that if you acquired any virtual asset you could sell (such as an MMORPG account with characters and items), you'd have to pay taxes on its increase in value.

I am an employee of Ripple Labs, the company behind the Ripple payment network.
1Joe1Katzci1rFcsr9HH7SLuHVnDy2aihZ BM-NBM3FRExVJSJJamV9ccgyWvQfratUHgN
Pages: [1] 2 3 »  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!