Taxes and bitcoins

[dlc1962]

What is the situation as far as US taxes go for bitcoins?

[notlist3d]

What is the situation as far as US taxes go for bitcoins?

Best answer is ask a CPA in your area.  I have heard it both ways. I would guess proper answer depends on how much you make of "profit".

[dlc1962]

What is the situation as far as US taxes go for bitcoins?

Best answer is ask a CPA in your area.  I have heard it both ways. I would guess proper answer depends on how much you make of "profit".

Probably so. Just want to make sure Uncle Sam gets his part.

[Amph]

i remember the situation is under $600 you don't pay taxes for bitcoin

or just do face to face transaction to avoid it completely, buy food with it

[RodeoX]

Most people have to pay capitol gains tax when they sell or spend. The rate could be from 0% - 20% depending on your tax situation. You are paying on the money that BTC has appreciated since you bought it. So if you bought a coin for $200 and when you spent it it was worth $300, you owe on the $100 of capitol appreciation. If your rate was 5% then your taxes come to $5.00. If you are spending at a loss you could also claim a loss on your taxes.

[bryant.coleman]

In USA, Bitcoin is not recognized as a form of money. So you will have to pay the capital gains tax, if you sell your coins for a profit.

If you are in the 39.6% bracket, then the long term caps gain will be 20% of your profit. 

0% for the 10%–15% bracket.

[coinz19]

I looks like the US will have several different tax laws with regard to Bitcoin.
Right now California is on the fence and is fighting with Coin Base.

[jaberwock]

it might varies from state to state.
Better be more specific and don't trust too much forum people(after all, if we are mistaken they won't be hurt in any way)

[dlc1962]

I'm in Texas and to be honest I haven't heard about taxes on bitcoins one way or another. I think I'll check with a CPA to be sure what to do. That is if I can find one that even knows what a bitcoin is.

[worth]

Checking with a CPA is always a good idea (although the general level of unfamiliarity most people have with cryptocurrency means they may not really know the answer).  But the last I heard, the IRS hasn't changed their position from what they said last year:

http://www.bloomberg.com/news/articles/2014-03-25/bitcoin-is-property-not-currency-in-tax-system-irs-says

Basically as others have said, it's taxed with capital gains, and so basically treated like a stock, at least at the federal level.

You don't get taxed for holding it, but do when you convert to fiat.  So if you're a buying and holding for the long term then you should pay a lower percent of your gains.  If you're trading back and forth between fiat it will probably be more complicated. Hodl.  

[CryptoJunky]

I agree with the sentiment of checking in with a CPA. Last year I claimed it as capital gains, had a hard time finding a tax accountant knowledgeable about Bitcoin.

[dlc1962]

I agree with the sentiment of checking in with a CPA. Last year I claimed it as capital gains, had a hard time finding a tax accountant knowledgeable about Bitcoin.

If I make enough to tax I'm afraid I'll run into the same problems. Small Texas towns tend to be a little behind on things.

[sgk]

What is the situation as far as US taxes go for bitcoins?

Best answer is ask a CPA in your area.  I have heard it both ways. I would guess proper answer depends on how much you make of "profit".

And what if I make a loss? I think every country deals with such assets differently - and in most cases they don't have a defined guideline on how to report your assets/profits/loss and file taxes.

My suggestion is that if your country does not have any defined guidelines on crypto trading, just keep a detailed record of all your transactions in case authorities come asking anything, you should be able to produce proper records of everything. If they ask you why you didn't file taxes on it, you can just say you didn't have any guidelines to follow.

[bitcats]

   
If sex tax is a pain in the ass, then you're doing it wrong...