Cryptocurrencies and Taxes
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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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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
"...
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.
..."
Re: Cryptocurrencies and Taxes
Quote:
Originally Posted by
bmneveu
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.
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).
Re: Cryptocurrencies and Taxes
Quote:
Originally Posted by
bmneveu
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.
Re: Cryptocurrencies and Taxes
FYI (From an anonymous reddit poster):
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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/
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
