FrogFries Posted February 13, 2021 Report Share Posted February 13, 2021 Will be doing my 2020 taxes soon. What is the deal with Bitcoin? I just mostly used it to send to books and cash out here and there. Quote Link to comment Share on other sites More sharing options...
IAG Posted February 13, 2021 Report Share Posted February 13, 2021 Form asks you flat out if you owned, transferred, held etc Every single exchange is a taxable event. It’s a PITA. Extremely simplistically, If you bought at $1 and transferred to book when it was $2 you have to claim a $1 gain. Every time you moved it to book or cashed it out, you have to figure price at x date and time and determine gain/loss. if you used it to buy a cup of coffee, same thing. Quote Link to comment Share on other sites More sharing options...
HinesWard86 Posted February 13, 2021 Report Share Posted February 13, 2021 1 hour ago, IAG said: Form asks you flat out if you owned, transferred, held etc Every single exchange is a taxable event. It’s a PITA. Extremely simplistically, If you bought at $1 and transferred to book when it was $2 you have to claim a $1 gain. Every time you moved it to book or cashed it out, you have to figure price at x date and time and determine gain/loss. if you used it to buy a cup of coffee, same thing. Tax preparers are going to make a fortune from people not understanding how the government is taxing crypto Quote Link to comment Share on other sites More sharing options...
FairWarning Posted February 13, 2021 Report Share Posted February 13, 2021 1 hour ago, HinesWard86 said: Tax preparers are going to make a fortune from people not understanding how the government is taxing crypto yup Quote Link to comment Share on other sites More sharing options...
IAG Posted February 14, 2021 Report Share Posted February 14, 2021 1 hour ago, HinesWard86 said: Tax preparers are going to make a fortune from people not understanding how the government is taxing crypto Yep! Accountants don’t even want to mess with it tho they have had a few years to get used to it.. there is crypto tax software, and now the exchanges can provide more documents, but interpreting that information has to be tough for most esp if you are using multiple exchanges....send to books etc....Every time you swap BTC into an alt it is a taxable event. I just do the best I can. One of the primary reasons I stopped trading in 2018 and 19 now. Too much money to be made now though to worry about it. I’ll deal with it when the time comes. No one wants to do audit that shit anyway...lol. I made a thread about it years ago when the IRS clarified like-kind exchange rules. It caused quite the uproar, but you could technically still claim like kind exchange with trading eth into BTC etc for tax year 2017...now you would have a tough time making that argument. If you did, you would lose. Quote Link to comment Share on other sites More sharing options...
Moldoveanu Posted February 14, 2021 Report Share Posted February 14, 2021 I been doing that for years i did not do nothing for taxes I just use coinbase for bitcoin deposits i dont hold nothing just straight to the book Quote Link to comment Share on other sites More sharing options...
FrogFries Posted February 14, 2021 Author Report Share Posted February 14, 2021 just going to answer yes and move on. I did not get any forms or hold any bitcoins. Just transferred to block chain and cashed out some at Coinbase. Did not make any gains or losses. Quote Link to comment Share on other sites More sharing options...
IAG Posted February 19, 2021 Report Share Posted February 19, 2021 Yes. A profit of any amount needs to be reported to the IRS. For the first time, this tax season’s 1040 form includes a question about virtual currencies on the front page asking taxpayers if “at any time during 2020, did [they] receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” “The IRS thinks there’s massive, massive underreporting in this area,” Ryan Losi, a certified public accountant (CPA) with Piascik tells Make It. “And they’re going to start targeting it.” Indeed, the cryptocurrency question is the first item on the 1040 form, just below the individual’s contact information. In the past, taxpayers may have been able to feign ignorance about their obligation to report crypto gains, but that won’t fly anymore. “Everyone who signs the tax return is signing that under penalty of perjury from the U.S. government,” Losi says. “Now folks can’t say ‘I didn’t see the question’ or ‘it was buried on the document.’” https://www.cnbc.com/2021/02/19/do-you-owe-taxes-on-bitcoin.html Just saw this article today. PSA only. Not financial advice. No judgment, just information. Quote Link to comment Share on other sites More sharing options...
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