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Red Emerald
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April 17, 2012, 07:27:44 AM |
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Taxes are due by midnight!
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GernMiester
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April 17, 2012, 05:51:47 PM |
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If USD is made we are supposed to claim it. It seems BTC turned into USD would be taxed as additional income but I am no CPA.
Made 50K USD plus 1K USD from BTC. 51K USD to tax as far as the IRS sees it.
Not being recognized as anything of value by government it doesn't seem to fit capital gains tax.
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highlevelminer
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Activity: 42
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April 17, 2012, 08:23:07 PM |
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Yeah I can't imagine the us government wasting any more money as it is to investigate claims of possession of anonymous currency so I would say all the tax dodgers and illegal buisiness owners are safe for now.
Besides the bitcoin more than likely will be profitable in the long run especially seeing as how the endurance of the currency is implied by the very algorithm that runs it.
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JoelKatz
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Activity: 1596
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Democracy is vulnerable to a 51% attack.
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April 17, 2012, 08:56:05 PM |
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If USD is made we are supposed to claim it. It seems BTC turned into USD would be taxed as additional income but I am no CPA.
Made 50K USD plus 1K USD from BTC. 51K USD to tax as far as the IRS sees it. It all depends *how* you make it. If it was earned income (like a salary paid in bitcoin), then it would be taxed as a barter even if you haven't sold the bitcoins. If it was a gift, it would be taxed as a gift. Not being recognized as anything of value by government it doesn't seem to fit capital gains tax. It doesn't matter whether the government considers it a thing of value or not. If you bought it for price X and sold it for price Y, that could be a capital gain. If you received it in exchange for labor, it's a barter. |
I am an employee of Ripple. Follow me on Twitter @JoelKatz
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triplehelix
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Activity: 84
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April 17, 2012, 11:13:06 PM |
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Besides the bitcoin more than likely will be profitable in the long run especially seeing as how the endurance of the currency is implied by the very algorithm that runs it.
the algorithm doesn't imply anything other than the technical merit. profitability has nothing to do directly with the technical details of bitcoin. the algorithm enables the things that give bitcoin its value, specifically the security to allow it to be used as a value transfer mechanism, but its the actual use that gives it its value. you want bitcoin to be worth more? spend your bitcoins on products and services. ironic i know, but there you go. |
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TragicWish
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April 18, 2012, 07:41:35 AM |
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Interesting thread. One thing I was considering is starting an LLC for to operate BitCoin mining rigs under. I have a few other business ideas that I have been floating that could operate under the same LLC and if it worked I would be able to separate my personal finances from the LLC’s I then give myself a salary (in the off chance I actually made money). I doesn’t cost much to start an LLC and it offers some protections from taxes and liabilities. For instance all your equipment and power investment can be written off as a loss. You can also write off the deprecation of your equipment as it ages. I have no idea if any of this is relevant or even worthwhile, it’s just something that was rattling around in my head.
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jertbertuc
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April 18, 2012, 07:48:40 AM |
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tax is intermediary when online exchanges are concerned
it is taken off when u initiated sumthing from ur bank or exchange fees
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jbob06
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April 23, 2012, 07:43:28 PM |
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isn't the entire point of BTC to get around this?
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EhVedadoOAnonimato
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April 23, 2012, 07:53:09 PM |
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isn't the entire point of BTC to get around this?
+1  |
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triplehelix
Member
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April 24, 2012, 03:08:58 PM |
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isn't the entire point of BTC to get around this?
no |
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Red Emerald
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April 24, 2012, 06:06:20 PM |
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isn't the entire point of BTC to get around this?
no +1 The point of BTC is not tax evasion. The point is actually being able to own and transfer your own money. |
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ktrade
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April 25, 2012, 01:02:37 AM |
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btc is supposed to be independent of other currencies, so you shouldn't be taxed at all.
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Red Emerald
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April 25, 2012, 01:09:39 AM |
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btc is supposed to be independent of other currencies, so you shouldn't be taxed at all.
That isn't true. If you got paid in chickens, you would pay taxes based on the USD value of the chickens. It doesn't matter that you aren't paid in USD. |
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EhVedadoOAnonimato
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April 25, 2012, 07:44:17 AM |
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isn't the entire point of BTC to get around this?
no +1 The point of BTC is not tax evasion. The point is actually being able to own and transfer your own money. Which by itself is a way to evade the worst tax of all: inflation. If you like giving your wealth to your government, than keep using fiat. BTC is a good tool for tax evasion in internet transactions. I just hope more and more people realize it. |
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EhVedadoOAnonimato
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April 25, 2012, 07:45:29 AM |
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btc is supposed to be independent of other currencies, so you shouldn't be taxed at all.
FTFY. |
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kaiser11
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April 23, 2015, 07:00:15 PM |
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With the large numbers of [day/short-term] traders out there Today, this question seems relevant more than ever.
Do most/all exchanges work under the premise that the traders are responsible for reporting about profits/losses at their country of origin ?
IF an Exchange is cooperating with global authorities/regulators [according to customer's country of origin] , is it doomed to fail ?
will traders keep away from Exchanges that work with regulators ?
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