Once again, I was wrong with what I said about taxes. The point is moot because tax implications on avoinding a $20 fee on sending $100 is in some cases null and void and in other cases pointless to even bring up. You guys tried to extrapolate it to selling a million dollars in bitcoin. If your selling a million in bitcoin and reading my comments on taxes instead of paying someone to help you or doing the research yourself you deserve to lose your money.

At what point between $100 and a million do you think you're obligated to pay taxes?

say i buy 50k worth of coin and when it goes up i sell enough to get back my initial investment and keep the rest in coin. do i owe taxes on the 50k? or only when i sell the rest which is now all profit?

I think it’s kinda ironic that the **** posters who “LOLd” me last page might be figuring out after reading this tax discussion that because the network doesn’t measure fees in usd that this has implications far beyond transactional costs.

What is that supposed to mean? Are you going to tell the IRS you don't owe them taxes because you don't recognize the USD value of bitcoins?

No taxes on your initial investment

Source: I’m a CPA

+1

this is not correct.

If you buy $50k worth of a coin (let's say all at once to keep the analysis simpler) and it becomes worth $100k and you sell $50k of it back for USD, then you sold assets with a cost basis of $25k for $50k. Therefore you'd make a $25k gain and owe tax. You would still have $50k worth of that coin with $25k cost basis, and therefore $25k in unrealized gains (on which you'd currently not owe tax).

Don't take my word for it or anyone on this forum. Consult a professional or at minimum use some software that allows you to import all your trades.

Sounds like we need a crypto tax sticky because these same questions have been asked and answered many times already.

you are either wrong or you misunderstood the question. lots of accountants dont understand the rules because noone wants an accountant that interprets the rules strickly. They want a loose accountant so they can achieve deniability in the case of an audit. So the accountance establish common practice which equates to "this is what weve been getting away with", but it doesnt correlate at all to the actual rule. you are very wrong and giving bad advice

does deniability matter in the case of an audit? sorry for the derail. and thanks for the answers.

yes that means there is no proof of collusion or criminal intent. just ooops we messed up sorry what do we owe + interest? which is the same as you would owe if you declared it in the first place.

If you actively collude you can go to jail

which is why its great to find an accountant like Iwreckshop that blindly interprets the rules in your favor without any collusion necessary. ITs a freeroll

somethign else thats interesting is that auditors like KPMG....that we think are the most trusted are in on this game as well. They want customers and noone wants a ball busting auditor...just one that signs off and takes most of the blame. its funny i have lots of examples but that would really derail. Government auditors are following the rules strictly and it can be a fairly sizable ***** slap when you talk to a government auditor that knows the rules

Yeah, they're called socialists. I'm one of them.

Your premise seems to be that it's more unethical for crypto new money investors to lose to whatever nonsense, than it is for them to stay away and instead invest in private prisons and defense contractors and such.

Lol, 'innocent investors'.

O wait sorry dudes, no politics in the champagne room.

THoughts on GBTC? All time highs today... wondering if now is a good time to go long GBTC?

This is correct

You pay taxes on the actual shares (or amount of coins you sell)

As of right now you can choose which lot your shares come from if you made multiple purchases but that part of the tax code may change

Also if trading crypto is anything like gambling taxes for pro gamblers most accountants don't know anything so I suggest you do your own research so you can figure out if your accountant actually knows what he's doing.

thats just a proxy for bitcoin. yes if you can find a way to get GBTC in an account with tax advantages go for it. if not just buy coins. I asked around I cant put GBTC in my LIRA TFSA or RRSP (in canada not sure US equivalent)

IF you want to buy something in an account with tax advantages buy square or mogo

What exchanges do you guys recommend for a bitcoinnewbie? I opened a account with Coinbase but was wondering what other reputable exchanges you recommend to buy Bitcoins?

Ummm that's not what a socialist is but ok not gonna go anywhere with that as arguing over important definitions seems to be a waste of time around here.

My premise is I'm against pyramid/ponzi schemes because they're fraud. You and I can share certain ethical concerns over things like private prisons, defense contractors, even for profit health care but those are currently legal, legitimate businesses that create real wealth. Bitcoin does not generate revenue, so even speaking about it like it's an investment is somewhat erroneous.

The way I see bitcoin is like a gold rush. A lot of people can make money off the speculation but in the end if there is no gold in them thar hills then it's all a fugazi. TIT and others seem to think that's ok. I personally don't, so I stay away, and I encourage others to follow suit.

I had a professor in a tax accounting class that said the first rule he goes by is: If it isn't specifically banned by the tax code, give it a try. What are they going to do? Make you pay interest? Uncle Sam gives great rates.

Hmm, did you know over 100K merchants accept btc payment now, and that eBay and Amazon are currently evaluating it? And that most major banks are now working on ways to use blockchain technology, and thousands of developers are working on apps? You should read a book about why it's better than the current monetary system. Eventually some form of digital currency using blockchain will absolutely be the defacto standard on Earth. It may not be bitcoin specifically, but it will be close if not.

Without even looking, I'm going to guess Bitcoin has shot up massively against pounds, euros, and yen as well. Am I wrong? No? If you want to measure tx fees in pounds, or euros, or yen, or yuan instead, then go for it. It's all going to be bad news.

So what? Steam and many other businesses stopped accepting it. We can go back and forth with counterexamples of adoption/rejection and it doesn't prove anything. If we look at first principles, then bitcoin will never be used more widely than 'dirty fiat' until it can offer more utility than 'dirty fiat.' It currently doesn't do so anywhere but the dark market, and so that's the only place it's widely used.

Again, so what? This is an argument for the utility of open source blockchain technology, not bitcoin.

Well currently it's just...not. I personally doubt bitcoin will ever solve its efficiency/scalability problems.

Blockchains will be used in a few limited ways imo as they're simply too inefficient to be used in sectors where usability is more important than security----cross border remittances between banks for example----but it's extremely unlikely they will use a cryptocurrency they cannot control.

But you're conflating, again, the utility of blockchain with the value of bitcoin.

From this response I suppose it's possible I misunderstood the point of your other post.