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Thread: Cryptocurrencies and Taxes

  1. #1

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    Default Cryptocurrencies and Taxes

    If you own bitcoin, here’s how much you owe in taxes
    https://www.cnbc.com/2018/01/25/if-y...-in-taxes.html
    (VIDEO)
    "...

    As far as Uncle Sam is concerned, bitcoin is not currency. It's property. That means whenever you buy something with bitcoin, it's two transactions, not one. ...

    For many, though, bitcoin is just an investment. If you've held those bitcoins for less than a year and sell them, that cash will be taxed as income. If you've held for more than a year, it's taxed as a capital gain — which could run 20 percent. Adding on transaction and accounting fees could raise costs to 60 percent, as was the case for one early bitcoin adopter.

    ..."
    [COLOR=#0000ff][FONT=comic sans ms][I]"In the land of idiots, the moron is King."--Unknown[/I][/FONT][/COLOR]


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  3. #2

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    Default Re: Cryptocurrencies and Taxes

    Is this a percentage of the profit, or a percentage of the total value of the asset?

    Quote Originally Posted by userque View Post
    If you own bitcoin, here’s how much you owe in taxes
    https://www.cnbc.com/2018/01/25/if-y...-in-taxes.html
    (VIDEO)
    "...

    As far as Uncle Sam is concerned, bitcoin is not currency. It's property. That means whenever you buy something with bitcoin, it's two transactions, not one. ...

    For many, though, bitcoin is just an investment. If you've held those bitcoins for less than a year and sell them, that cash will be taxed as income. If you've held for more than a year, it's taxed as a capital gain — which could run 20 percent. Adding on transaction and accounting fees could raise costs to 60 percent, as was the case for one early bitcoin adopter.

    ..."

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  5. #3

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    Default Re: Cryptocurrencies and Taxes

    Quote Originally Posted by bmneveu View Post
    Is this a percentage of the profit, or a percentage of the total value of the asset?
    My guess is a percentage of the 'gains' ... or profit.
    [COLOR=#0000ff][FONT=comic sans ms][I]"In the land of idiots, the moron is King."--Unknown[/I][/FONT][/COLOR]

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  7. #4

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    Default Re: Cryptocurrencies and Taxes

    What if I buy cryptocurrency with my tax refund? Are they going to tax my crypto that I bought with taxes? (sadly yes, and I do plan to put a good chunk of my return into crypto).

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  9. #5

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    Default Re: Cryptocurrencies and Taxes

    Quote Originally Posted by bmneveu View Post
    What if I buy cryptocurrency with my tax refund? Are they going to tax my crypto that I bought with taxes? (sadly yes, and I do plan to put a good chunk of my return into crypto).
    My guess is that they will ... if you sell them and have gains that year.
    [COLOR=#0000ff][FONT=comic sans ms][I]"In the land of idiots, the moron is King."--Unknown[/I][/FONT][/COLOR]

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  11. #6

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    Default Re: Cryptocurrencies and Taxes

    FYI (From an anonymous reddit poster):

    "...

    So, I started with ~100k, made ~900k, lost 450k in January, and now will have to pay 450k in taxes. Everything is gone.

    ..."


    Full post here:
    https://www.reddit.com/r/btc/comment..._have_nothing/
    [COLOR=#0000ff][FONT=comic sans ms][I]"In the land of idiots, the moron is King."--Unknown[/I][/FONT][/COLOR]

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  13. #7

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    Default Re: Cryptocurrencies and Taxes

    (VIDEO) Barely anyone is paying the taxes they owe on their bitcoin gains
    https://www.cnbc.com/2018/02/13/bare...oin-gains.html
    [COLOR=#0000ff][FONT=comic sans ms][I]"In the land of idiots, the moron is King."--Unknown[/I][/FONT][/COLOR]

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