They are working on additional layer to make Bitcoin anonymous transactions.
I don't see how government will manage to regulate that stuff anyway.

i don't think there is any debate at this point

like-kind exchange does not apply crypto to crypto. Therefore anytime you sell a cryptoasset (whether for USD, another cryptoasset, or goods priced in a cryptoasset), you must calculate your gain based on 1) cost-basis in USD 2) sale value in USD. The difference is the loss/gain. If held for > 1 year it is long-term cap gains, if < 1 year, short-term cap gains.

as for the person mentioning buying something in euros and the USD price being irrelevant -- the IRS doesn't view BTC as a currency. It is property (like gold).

Can we make a separate thread for tax discussion? This comes up nearly every page and it's getting kind of tired here.

We are in agreement.

Yes, we need more back and forth between "Ponzi!!, Bubble!!!" and "HODL!!". That makes for great reading.

heh...




edit: happy new yr fellow cryptothusiasts... cryptofolio is +1800% YoY even after all the dips and twists. the year of the alts is clearly upon us. gl

I would recommend being aggressive in not paying taxes on crypto gains. It is pretty unlikely the IRS is going to seek penalties considering that they are not even requiring exchanges to collect data/tell you your tax liability, which would be super simple. Even then, aren't penalties like a max of 25%?... and the IRS audits around ~1% of the population.

well...first they make all exchanges provide ID, then they could set requirements for a digital paper trail that is auditable given a judges order.

A black market would still exist...but the exchanges and coins would have to decide which side of the law they want to be on or risk prosecution. And if they go dark...it would be a real pain in the ass to get money in/out of zcash for instance, and someone would have to come along and do things like Bodog does with a bunch of obscure companies processing transactions to hide where it came from.

aside from coinbase what is a good site for americans to buy btc/crypto with a debit/credit card without ridic fees ala changelly ?

Hard to regulate oversea exchanges. Decentralized exchanges are coming soon aswell.

But at some point you will want to bring cash back into the U.S. in the form of USD, or bring the crypto into a U.S. Exchange to convert it here. Crypto money stuck offshore that can only be used to buy from Bitcoin-enabled merchants may one day be more useful but in large amounts it isn't useful now.

Just pay the taxes. Anyone can afford a 15% haircut on 100%+ gains.

15% on your fiat deposits is a given, but im sure there will be alot of people claiming long term gains when short term apply, especially concerning non fiat swaps.

true but this isnt like online poker...there wont be a prohibition. There will be plenty of coins / exchanges that are legit options. There just wont be any need for the average person to dabble in dark coins.

IRS audits less than 1% of citizen returns. They target flag criteria that is automatically picked up by computers. Most flags involve high income, pass-through, and deductions. Their goal isn't to catch the biggest or baddest evaders, its to incentivize the most people to pay taxes so they don't have to worry about catching evaders.

If the government is forced to care, they will likely do a random grab. There will be a few landmark targets that they will chase into oblivion. Kim Dotcom might be a similar example. They will also likely target a few random Joes and throw the book at them like they did to a few random Joes on the internet pirating issue. This creates the image that no one is safe and you might as well just pay the taxes on your internet wizard money.

Chances are you will be fine not treating every transaction as a potentially taxable gain. Especially when things are popping off in the Wild West era. That said, you should probably just pay your taxes.

You should definitely seek your tax advice offline from an expert as well.

****ing hilarious.. gotta watch whole thing:

https://youtu.be/KTf5j9LDObk

Fanduel & bitcoin. Wow.

https://twitter.com/darrenrovell/sta...57155878469633

Probably the best tax advise in the thread. IRS already got the large transaction data from coinbase and the IRS and FBI are analyzing the blockchain to track large transactions and connect them to people. This is all automated so much easier than a normal audit.

Thanks. It does look like each transaction is indeed taxed. But as another pointed out 15% tax on gains isn't all that bad considering we're getting amazing gains

That's kinda sick actually.

Also, thanks Peter Thiel.

https://www.cnbc.com/2018/01/02/bitc...e-amounts.html

lot to catch up on but reading page 1 was thoroughly entertaining.

A lot of people will be in the 38% short term bracket.

Bitcoin Cash Plus another scam fork yesterday?

This is A+

Here's my 2 cents on BTC and Cryptocurrency. I think the solution to crypto being mass adopted is when the general population understand how to use it. Right now it's too complicated for the average person to use crypto as a form of payment. Companies don't want to get into crypto because it's too complicated. My mom doesn't have a clue what BTC even is. We need to make Crypto more user-friendly. That means everyone can use it, like money to you use to pay groceries. Easy. That's when Crypto booms. That's when it takes over fiat money.

Crypto takes over when the places that are not using it are falling behind the places that are.