Bitcoin and Other Cryptocurrencies - Page 4

Bitcoin’s emerging popularity has also been brought to the attention of the Internal Revenue Service. So if investors cashed out their Bitcoins after holding it for a year, they’d be subject to a capital gains tax, which is typically around 15%. So if investors cashed out a Bitcoin investment that was initially worth $100 but appreciated to $13,820 in a year, their tax could be around $1,923. But a short-term Bitcoin investor, who spent or sold their Bitcoin within a year of first buying it, they’d be taxed at the ordinary income tax rate, which can be as high as 39.6%. Capital gains taxes max out at a lower 20%.

One key factor of Bitcoin is anonymity. Who is going to report and pay taxes on that?

Anyone that isn't a thief?

Not paying Taxes makes you Smart ~ Donald J Trump

Bitcoin is no different in trade than the stock market or money market, it has ALWAYS been subject to capitol gains. Like gains, they are only real when exchanged, for example, if you think you can buy ten tvs on newegg with BTC and that liquidity isn't reported your wrong, what you have to do is treat it like pulling from your money market account to pay for things. The IRS has said this for YEARS about barter and trade. If you get real value off of trade you need to report it, likewise on losses. This is elementary stuff, I buy and sell cars with wins and losses and you better believe we report a loss on a trade if it ends up bad. Inventory can be treated the same way...and coinage digital or otherwise.

I personally use coindesk, I report capitol gains, and then the losses in electricity, equipment and guess what, when a business buys a car or truck it can take depreciation...you can do that with ANY depreciable asset. You have to be smart about mining and crypto in general, definitely DO NOT buy and sell on whims, don't flinch because of a 1500 drop in a day...or even a week. always look at trade volumes and if volume is low and still dropping, then its time to make a decision, high volume...leave it be.

Originally Posted by CapitalRecovery

I want to try my hand at crypto mining but I want to study more up on it. Does anyone have a good site I could read up on?

I am using a cloud mining website... genesis-mining.com/ You can mine several different cryptocoins. A friend of mine and I were talking about the run up and he told me about him the site. If interested, you can use my affiliate promo code rZMpnm to get a 3% discount on price. I have gotten some coin after just a couple days, but the payout seems small, but consistent. I am mining bitcoin and monero. At this point, the monetary equivalent seems close, but BTC may have taken a bit of a lead with the run up. I am looking at the other coin options to see if there may be a better choice to mine once the payouts accumulate to the point where it makes sense to pay the fee to transfer.

Ask Al Capone how serious the IRS takes tax evasion. That dude KILLED PEOPLE. But he went to jail for taxes.

It's cheaper to just render unto Ceasar up front and not worry about the inevitable knock on the door.