Bitcoin and Taxes - Tax Guide for Bitcoins CryptoTax
How Bitcoin Is Taxed - Forbes
Crypto and Bitcoin Taxes in the US: 2020 Edition Coinbase
Bitcoin and Crypto Taxes
Bitcoin - The Currency of the Internet
A community dedicated to Bitcoin, the currency of the Internet. Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. You might be interested in Bitcoin if you like cryptography, distributed peer-to-peer systems, or economics. A large percentage of Bitcoin enthusiasts are libertarians, though people of all political philosophies are welcome.
Hi all, I have a simple question on what event trigs a taxable event with bitcoin. i know buying bitcoin is not but selling, converting, trading bitcoin, as I understand, creates a taxable event. So wouldn't use of cypto cards, with each transaction, create a taxable and reportable event?
Seasoned HODLer here with a question. I’m expecting a big bonus in mid 2021 and I looked into call options for mid 2021 or end 2021 because I’m bullish. I signed up for an account on LedgerX but I’m unfamiliar with how bitcoin options are treated by the IRS. Let’s say I exercise an option at expiry and I decide to transfer the ownership of the bitcoin to an address, is that a taxable event? Scenario: I pay a $1500 premium for the option to buy 100 mini contracts at .01 btc each at a strikeprice of $50,000 with an expiry of December 31, 2021. Now let’s suppose S2F is right and bitcoin reaches $100,000 at expiry. I would then have a gain of $100,000 - $50,000 - $1,500 = $48,500. LedgerX would then give me the option to transfer ownership of the bitcoin once I fund my account. If just send that bitcoin to an address after funding the account for $50,000 is that event taxable? I get it’s taxable if I sell it. BUT is it taxable if I hodl?
Given the USA's power privilege on the world stage, if they were to adopt Bitcoin, instead of attacking it, and accept it as a form of tax payment, it might actually cement the US government's leadership role on the world stage for years to come. It's actually scary that this is one possible future
What if the US government decides to pay the Pentagon in Bitcoin instead of USD?
In the US, lost your job, and selling long held Bitcoin to pay your bills? Watch out for estimated taxes and underpayment penalties.
Some people here are in the unfortunate position of having been furloughed or recently lost their jobs due to the pandemic, but are in the highly fortunate position of having well appreciated Bitcoin holdings that can be sold to pay your living expenses. In the US this situation presents a minor tax risk in that you might not be expecting. The IRS (and many states) require that you make payments through the year which total either 90% of your tax obligations or 100%* of last years taxes (* 110% if your AGI is over 150k). If you don't meet these requirements and owe $1000 or more in taxes there is an underpayment penalty of roughly 0.5% per month under paid plus interest (recently around 5% but it may drop to 3.25% due to the federal funds rate changing). When you have an ordinary job payroll tax deductions mostly take care of meeting your obligations, or at least getting close to them. However, if you lose your job and start living off selling Bitcoin you'll owe taxes on your capital gains and you won't have payroll withholdings. Any time you have large capital gains the same sort of risk exists but the combination of gains plus having lost your payroll withholding create an increased risk of large penalties. To address this you're supposed to make quarterly tax payments. Perhaps you're unable to do so. A tax penalty isn't the end of the world. Maybe because of the pandemic they'll wave or lower penalties (they have done so in the past when changes in taxes left many people under-withheld)-- I wouldn't count on it, it's better. Regardless, better to be forewarned so you can incorporate it in your planning!
I'm planning on selling some of my Bitcoin for the first time. I know taxes are a long way away, but I want to make sure I've got my record keeping down. All of my Bitcoin has been gained as income for employment, over a period since 2017 (on and off). Previous years I never reported it because my total income was below the minimum required for filing taxes. This year I will (hopefully) be over the income to file, so I will be reporting my income that I've earned in Bitcoin this year as normal income taxes. However, I'm also planning on selling for the first time. I know the US charges capital gains tax on Bitcoin sales, but the way I have researched it, since my Bitcoin has been gained for a service (my employment), I do not have to list them as capital gains. Is that correct? Has this been everyone else's experience?
If you're a US citizen, the long-term capital gains tax you pay on Bitcoin is equivalent to a property sale (up to 15% depending on income). The long-term capital gains tax on Gold? 28%. Seems like another advantage to BTC over Gold.
Full disclosure: I hold both. But as an investor, I'm always looking at all of the various advantages in assets/positions. Tax implications are a big deal. To me and to institutional investors. I won't be surprised to see a lot of institutional investors choosing BTC as their inflation hedge in this current economic climate over gold-- or at least weighting it heavier (like I am). Time will tell though. Good luck guys!
hello , i have friend moved to USA (will stay there for 2-5 years ) , he want to transfer money to my country that don't support international transfer , solution is buy bitcoin in US and send it . Question is : there is any tax he have to pay it to IRS or the tax service ?( he want to send 5k$ ) i hope you get the idea of what i mean waiting for you guys thank's
05-25 08:24 - 'The US Dollar has a captive audience as in taxes in the world's largest economy and commodities such as oil are paid for in US Dollars, whereas Bitcoin can be used to avoid inspection when paying for illegal activities, avoid...' by /u/_kessete removed from /r/Bitcoin within 11-21min
''' The US Dollar has a captive audience as in taxes in the world's largest economy and commodities such as oil are paid for in US Dollars, whereas Bitcoin can be used to avoid inspection when paying for illegal activities, avoid fees when transferring money internationally, and to avoid sanctions. With Bitcoin you can buy drugs on dark net markets anonymously and across borders, transfer money to countries sanctioned by the US through blocking the use of SWIFT (Venezuela, Russia, Iran) and avoid the effects on fiat currencies caused by Fed policy (such as QE and potentially negative interest rates). While Gold can be used as alternative store of value, it isn't as easy to transfer over large distances. And as seen in the UK, countries can deny transferring gold for political reasons. [link]1 I personally believe that if the US continues to sanction countries by using SWIFT in blocking crossborder financial payments, cryptocurrencies and foreign CBDCs (digital yuan) will grow in influence as the US's international financial power diminishes. Especially if its traditional allies (EU, UK) do not agree with the sanctions that are applied to foreign countries. The use of cryptocurrencies could accelerate at an even greater rate if there is an economic and/or cold war between the US and China. [link]2 ''' Context Link Go1dfish undelete link unreddit undelete link Author: _kessete 1: **w.b*oomberg.c*m/news/*rt*cle*/*019-01-2**u-k*said-to*deny-**duro-s-***-t*-pull-1***b*llio*-of-g**d 2: *o*nt*le*raph.*om/ne*s/jp*morga*-cbdc**h*ea**ns-**ge*on*-of-us-dollar Unknown links are censored to prevent spreading illicit content.
Tax for investing in US stocks and also in Bitcoins
Hi there. I am trying to understand when I have to pay tax and when not, now that I started investing. I live in UK and just recently opened and account in Trading 212 (ISA account) for buying stocks and in Coinbase for buying Bitcoin. My questions are:
Does earnings from US stocks count from ISA account as capital gains? ( I've read that earnings from ISA do not need to be reported to HMRC and are all tax free, but I also read that we need to pay tax 15% in our earnings from US stocks after passing the capital gain free allowance ) . What is true here?
If earnings from US stock count as capital gains and are taxed. Does that mean that only UK shares are tax free when investing from an ISA account ?
Is it correct that my coinbase account does not count as ISA, and all my earnings coming from Bitcoin count as capital gains, and will be taxed 10 or 20% after £12000?
In the U.S., long-term capital gains tax rates are 0% for people with taxable incomes less than $78,750, 15% for single tax filers with taxable incomes between $78,750 and $434,550 ($488,850 for ... In response, the tax agency demanded thousands of client records from a popular US exchange, using this data to pursue unpaid taxes. How Bitcoin and Cryptocurrency is Classified in The USA. Most world governments do not recognize Bitcoin or crypto as legal tender, and the US is no exception. However, most governments tend to pigeonhole Bitcoin ... Crypto and bitcoin taxes in the US Updated 01/28/2020. Did you sell, use, or convert crypto? If so, you may owe taxes if you’re a US taxpayer. Here’s a look at what that could mean, the steps you may have to take, what forms you’ll need, and how gains and losses might affect your taxes. First, let’s get this out of the way... Coinbase doesn’t provide tax advice. We put this guide ... Calculate Cryptocurrency Taxes Easily File Your Bitcoin and Crypto Taxes. If you own or have traded cryptocurrencies, you may need to include these in your tax forms, even if you didn't make any money. Bitcoin.Tax is the most established crypto tax calculation service that can work out your capital gains and losses and produce the data and forms you need to file your taxes. How to Pay Taxes on Bitcoin . Establish a record-keeping system for all your transactions and keep track of when you acquire and when you dispose of Bitcoin. Identify your cost basis method and your exchange rate. Then record the dispositions of Bitcoin on Schedule D and Form 8949.
CRYPTO TAXES 2020 - Cryptocurrency Taxes for Bitcoin and ...
I tried to call the IRS....4 times. No luck. I decided to hunt around on my own. This is what we got. The IRS wants every single transaction calculated to US Dollars. Buying and selling on ... Cryptocurrency/Bitcoin taxes are quite confusing and there's a lot of wrong information floating around about them. In this video, we will explain 5 Frequently Asked Questions about US crypto ... Welcome to our video aboutt crypto taxes 2020. We'll discuss your crypto tax, your bitcoin taxes, and everything you need to know about cryptocurrency taxes ... For more information, Checkout our Complete 2020 Guide To Cryptocurrency Taxes: https://www.cryptotrader.tax/blog/the-traders-guide-to-cryptocurrency-taxes T... Only 21 days until NAC3 in Las Vegas. Limited tickets still available https://www.nac3.io In this episode of crypto riot we explore the messy world of bitcoin and tax. Each country has their own ...