Seems very likely that that would be considered a hobby loss and disallowed, unless you can demonstrate a reasonable expectation of profit. Talk to a professional.

Reddit is highly inclusive, all you need to participate is internet access. Adding a requirement to have to have a verifiable Bitcoin balance to participate fully is a horrible idea as it excludes a ton of people (not just non Bitcoin die hards but poor people as well).

There already are restrictive requirements on many boards - you need to post so long and have an account so long here to send PMs for example. I think you were taking his post too literally, though. Users could earn the coins first by posting valuable content or getting upvoted before getting voting rights. There are many ways to do this without being exclusionary to those providing value. Meanwhile, it gives benefits for the company to actually make revenue rather than the stupid reddit gold system they have now. Now I'm not sure why a decentralized ledger makes this all that useful, though the lack of needing any kind of account and bank account link might make it easier.

From what I understand, there were some talks to almost create an alt-coin that was rewarded to contributors. The general flow would be from those who add value from those who do not. This is not a bad thing.

You prove yourself a moron more everyday.

It would be interesting to see what someone like you is like IRL.

i think this was the original idea that they scrapped in favor of building on top of the blockchain.

I got questions about bitcoin and taxes as if i read if you sell bitcoin and you profit you pay capital gains on it.


1. So if i buy $5000 worth of BTC to deposit into a sportsbetting site like heritage/5dimes, then i later withdraw the BTC to my blockchain then to coinbase... let say in the end i have $5050 worth of BTC, that has to be reported or not? Or only if it goes to my bank account?


2. I filed as professional gambler a while back and my taxes are filed by my accountant but obviously i never dealt with bitcoins before and i dont want any more headaches. So if someone let say has $5000 worth of bitcoin bought from coinbase and only deposited it into a bitcoin site that uses BTC for example, let say they have $50000 worth of BTC at the end of the year. But they never withdrawn the money to their blockchain or coinbase account. Do they have to pay taxes on their btc if they never cashout? Because for online poker, let say you up 50k for the year. But u only withdrawn 30k, u are suppose to report 50k and not 30k even though u only withdrawn 30k. But how does bitcoin work then here since 50k worth of btc would be worth 45k the next day. Does that mean u dont get taxed on any BTC until you sell it into real money?


3. What if i just buy $5k worth of bitcoin, deposit it into sportsbetting site that accept bitcoin such as heritage/5dimes. Let say when i sent the money into it at the time, it converted into $4980. When i withdraw the money in BTC later on... let say i have $8000 worth of BTC when they sent it to my blockchain. But i leave those BTC in blockchain or coinbase and dont convert it into cash. So basically the only tax i would pay is if i convert it to cash? Thus if i just let the btc stay in coinbase or blockchain or btc sportsbook... then i dont have to report until i convert it?


4. What if i bought $5000 worth of bitcoin, send it to heritage/5dimes and have $4980 there. They convert the btc to usd automatically. But say once i have $8000 there and i cash it out by check or wire as oppose to btc. Obviously i pay taxes on like $3000 minus the cashout fees. But if i plan to withdraw it via btc, then i dont have to report it until i cashout fully? Im just confused if i buy 5k worth of btc, have it deposited it into a site that converts it into usd... then pay me out in btc again.


5. Would i have any tax issues if i buy btc sole for depositing into the sportsbooks that convert it into usd. Obviously in the end whatever i have to cashout back to bank acct, i report but does bitcoin draw any red flags just for buying bigger amounts and sending it? Im confused b/c i read its anonymous yet if its anonymous, i hear ppl want to avoid trails? Isn't trading your btc for someones boa online transfer pretty much the same as if u trade poker funds for boa? For some reaosn it feels like btc its more strict and guidellines. Or am i wrong here?


Basically im not looking for BTC to invest. Im looking for BTC so i could get funds in and out of sportsbooks so i know there will be times that when i send or receive btc to a sportsbook whether its a cash book or btc book, there will be fluctuations. I dont believe i ever had any information in my taxes about capital gains b/c i only played poker and thats what my taxes were so just having bitcoin seems to make things really complicated as im not sure how the tax code is.

Nothing dumber than suggesting at any point during the last year, one could instantaneously capture 20-40% of the network for 20million usd.

Yeah, it's unclear what they'll do, might be some alt-asset on top, might be offchain transactions like changetip.


Follow the tax laws of your country. BTC isn't special in almost every case. When you deposit, you technically are selling the BTC for USD (or credits), so you would pay capital gains there. Each bet you would make would be taxable at that point, with a stipulation for losses. Cashing in and out has nothing to do with it. If they pay you $5050 worth of Bitcoins and that amount changes by the time you sell it, you pay gains or losses.

It will be more headaches. Capital gains don't need to be paid until you sell an asset. Gambling gains will need to be paid immediately.

Same answer as above.

No. This is no different than USD.

No. It might be easier since you are unlikely to have any capital gains/losses if it transfers quickly.

It's fairly simple in the US. If you sell BTC for more than you paid for it, it's a gain. If you sell it for less, it's a loss.

Actually that was true. The network was at 7,500,000 gh/s a year ago.

Unless you somehow have a way to build a time machine for $20,000,000, and transport today's hardware back then, it's not. But you'll never realize this because it doesn't fit your narrative of the sky falling, Chicken Little.

I made the statement back then and it was true. Just because the chip producers didn't do it in their best interest, doesn't mean the statement isn't true.

http://www.coindesk.com/good-samarit...55-btc-speaks/

WTF is this about

Blockchain.info had a bug where it was possible to figure out peoples private keys. This bug has hit a lot of places in the past who weren't properly implementing signing. Someone noticed, and "stole" the coins before anyone else could that were from affected accounts. He then returned the coins to blockchain.info to deal with.

Thanks for the response. I'm from the usa.


Well the thing is i only want BTC to deposit it into 5dimes/heritage. You mention if u just want it as a way to deposit bigger amount to a site, you won't incur profit/loss because its very fast but the thing is when i deposit those BTC into it, im 100 percent sure it won't show $5000 USD as it takes 1-2 hours to get credited. I basically wanted to know if all i did was this, would this have any issues in tax such as would this ever be reported if i fail to report a small amount of profit?


Example say when i have my acct do my gambling taxes, i forgot to put 150 dollar in profit from a site that i played for 1 day but the other sites i added it all correctly. So my net income for the year let say is 56780 but the actual amount was 56930 but i forgot to add 150 to it due to one site i played on but withdrew but i forgot to add 150. Let say i already filed my taxes already. There is no way i would do a refile of my taxes b/c i forgot to add 150 dollar profit due to one poker site profit that i forgot to add b/c its 150 dollar. It would seem very silly as it would be a huge headache having to redo it as its a small amount and mistake. Basically my question is say i deposited $5000 worth of btc into 5dimes/heritage, it turns into usd and you say thats selling b/c its converts into usd. So if it was $5015, if i don't put the 15 dollar profit from bitcoin added to my taxes, this would be an issue? The thing is theres no 1099 on this though right? Because the reason i dont want to do bitcoin is b/c i read taxes is going to get complicated for it. My taxes are pretty simple since its just profit/loss. Its no big deal if its for bigger amounts but for just a small 15 dollar profit if i make converting it to usd in a sportsbook, seems to be such a hassle for taxes.


So what happens here. Deposit 5k worth of bitcoin into site. Let say the amount when deposited is $5005. Then the funds are $15005. I then withdraw it all via checks. In my gambling taxes for this account of mine, my profit would be $10005. But what you are saying here is it would be $10000 but that $5 would be capital gains? So if i just put $10005 for netincome but no capital gains, would they know about it? But let say my funds are $15005 usd in the 5dimes acct. I withdraw it all in bitcoins. Let say time i do that for whole amount, its $14500. So that means my net income is how much and capital gains is how much? Because isn't my capital gains now not +$5 but now -$500 because of the -$505 conversion loss since i lose. But if i don't withdraw it and i keep the $14500 on btc there and don't cashout to bank account, then what are my capital gains and net income?


What just confuses me is the yes i know gambling winnings count the moment u win, thats how i do it... but btc only when you sell it. But if have gambling winnings, then withdraw it by btc later on... thus i report my gambling winnings but haven't withdrawn it yet, then use btc to withdraw, this seems to be really really complicated.

i thought buying bitcoins was suppose to be easy ive been trying all afternoon and i cant find anything? wtf

Coinbase and Circle if you are in the US.

And no, it's not "easy", but easier than it used to be.

If you find a dollar on the street, you are supposed to report it as income. Will the IRS audit you and find this? Probably not. Your mileage will vary on how much you want to "report" vs. what you'd get caught not reporting.

If you want to be on the up and up, you'd report the capital gain or loss on the Bitcoin you bought and how much you were credited with.


You can decide how much risk and reward there is to you in failing to submit correct taxes. We can't really help you there. Are you going to be a big target for not reporting something that they *probably* won't know about? Probably not. Are you going to be caught if you start declaring all your gambling winnings in a single day as a session instead of each bet individually? Probably not. But the law is the law and quite clear, and you can decide how far you want to ignore it. I'm probably not going to report dollar bills I find on the street.


Two separate transactions. You are exchanging Bitcoins for a credit immediately. You gained $5 on the way in. Each bet you win or lose is a gambling win or loss treated separately. Reporting only income is not correct, you'll have gambling wins and losses, and unless you never lose a bet, you aren't doing it right. But let's say you just bet it all and won 10k on that bet. You have $15005 in your account, you cash out Bitcoins and it's worth $14500. That's a $505 capital loss.


Yes, taxes are complicated. This is actually one of the more simple situations to deal with. Deal with the conversions only for Bitcoin. Calculate gains and losses. Report and document.

what about if canadian?

Thanks for the responses tom collins. Well the thing is if im buying/selling BTC for profit/investment, obvioulsy i have to pay taxes. But the last thing i want is when i have my taxes done by my accountant, then forgot to put something silly like $15 profit from btc conversion b/c i didn't know about it, i dont want that to be the issue. I do know about it now but if i just have that profit counted as netincome, i mean its probably not a big deal as 15 dollars though right? Similar to the 1 dollar u find on the street because im sure no one would report any money they found on the street if its so little. Basically does the system have you profiting 15 dollars from btc sale though as i know theres lot of ppl who sell/buy bitcoins? Last time i want is if ihad an audit, they see nothing wrong with my 50k in income claimed but then see u didn't put 15 dollars in btc capital gain and you just put it in net income.


Yes i understnad there is risk. If i could send bigger amounts faster without using btc, i wouldn't bother with btc. It seemed like a very easy way to do it but then i read the moment you send it, you selling it and theres always going to be a small profit/loss everytime as my acct will 10 percent not be $5000. Thus it might be 4982.30 or 5003.10 etc. But would anyone actually redo their taxes if they forgot to add like 30 dollars from btc though? Thus if your income for the year is 50k, im sure most ppl are not going to bother redoing their taxes after its already submitted b/c of a 30 dollar mistake that theres no 1099 right?


Two separate transactions. You are exchanging Bitcoins for a credit immediately. You gained $5 on the way in. Each bet you win or lose is a gambling win or loss treated separately. Reporting only income is not correct, you'll have gambling wins and losses, and unless you never lose a bet, you aren't doing it right. But let's say you just bet it all and won 10k on that bet. You have $15005 in your account, you cash out Bitcoins and it's worth $14500. That's a $505 capital loss.


I filed as a professional gambler so my accountant back then ask me what is my net. I believe the statement you posted is for recreationals as they could never net gambling winnings. That is a huge negative of being a recretaionally player when doing taxes. I believe if a recreational player filed taxes on gambling winnings, they might have like a ridiculous amount of wins and losses where their net income would be so small.

It doesn't matter what you are using it for, intent doesn't matter.

You need a new accountant. He has no clue what he is doing.

ATMs, localbitcoins.com, cavirtex, vaultofsatoshi

..

Ty for all your excellent posts; I have gained quite abit of understanding of BitCoins through this thread; and especially your well thought out comments and opinions. I just personally see Bitcoins getting ready to blast off; the Microsoft addition to the equation; the fact that when there are auctions for large volumes of Bitcoins; it does not seem to cause a decline in price. But, the fact Bitcoins become more commonly used as an exchange medium does not necessarily mean their value will increase; or does it. I am committed to placing about 10-18% of my long term portfolio into BitCoins; I feel they will go to USD$1500/BC within 2-3 years. Also looking for companies which will benefit..TY for all you do; good luck..

How is dark coin coming along? I thought it was a pretty great idea, generally speaking, when it was first introduced, but I haven't been keeping up lately.

i absolutely love the tech behind this coin but network effects, investment $$ / vc funds, altcoin hate, the probability something better will surpass darkcoin tech in the coming whatever and numerous other reasons hold it back. also the name probably will have a hard time sitting with jack and jill.

i own some but i think its about as close to punting money as it comes. my litecoins are worse but i dont hold very many alt coins at all in relation to btc.

darkcoin is a gimmick (and the dev insta-mined 10% of coins in the first 5 hrs, 50% in first 24 hrs). it is a copy of bitcoin with coinjoin built into the client. if you're interested in true anonymity and reasonable distribution, check out Monero.