Anyone use this service/site to calculate crypto taxes? A few redditors say it works pretty well.
https://bitcoin.tax/
https://bitcoin.tax/
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Itemized deductions. Although with such a small amount of hardware, it's unlikely to make a difference in your taxes since it probably doesn't exceed the percentage of expenditures for your income bracket.so what would one have to do in order to claim mining hardware as a deduction on their taxes? i just started mining and only have 3 cards going at the moment bringing in about $200 per month.
Itemized deductions. Although with such a small amount of hardware, it's unlikely to make a difference in your taxes since it probably doesn't exceed the percentage of expenditures for your income bracket.
Not quite... Business expenses are not put into itemized deductions like your mortgage interest, kids, donations, etc. There is an entirely different form you fill out for business expenses.. I take the standard deduction because I can't itemize. That doesn't take business expenses and income into account.
In order to really claim business expenses, you will need to have made more than $600 for the year from your mining operation.
I itemize my deductions every year and I don't have a business. I get more back over the standard deduction.. I even claim some of my computer/electricity/cell phone use for work related deductions for when I work from home. I don't see why it would be any different for claiming cryptocurrency related deductions. On form 1040, you could put it under unimbursed miscellaneous expenses. https://www.thebalance.com/itemized-deductions-3192880 or https://www.schwab.com/resource-center/insights/content/investment-expenses-whats-tax-deductible It does not highlight anything cryptocurrency related, but if we're expected to be taxed on it now, certainly you must be able to deduct expenses. After all, it is an investment expense. As it stands right now, you're able to deduct software and online services that are used for "traditional" investment management -- with cryptocurrency that would be considered the hardware/electricity used to manage your investment.Not quite... Business expenses are not put into itemized deductions like your mortgage interest, kids, donations, etc. There is an entirely different form you fill out for business expenses.. I take the standard deduction because I can't itemize. That doesn't take business expenses and income into account.
In order to really claim business expenses, you will need to have made more than $600 for the year from your mining operation.
you'll basically end up having coinbase treat this almost like a retirement cashout where they'll auto hold a big chunk that gets sent straight to the IRS. I'd probably just go through whatever the next layer of validation is keep doing whatever my daily limit with CB is. I'd probably split it across many exchanges though doing the daily limits i hit for each but yeah you can bet money on having to kiss a lot goodbye to the IRS quickly. I'd funnel it overseas though and opt out of paying taxes on it. when you're in the $1M+ range you have options for legal tax evasion though.I'm curious, has anyone deposited out a large amount ($1 mill+) vfrom Coinbase (or an exchange) to your bank? If so, did you make a single deposit or did you split it up? Any lessons learned? Asking for a friend.
do you have to have a "business" setup in order to claim the business expenses? or can you just claim it as a home business without having to file anything to create an official business? i mined in 2017 for 2 months and didn't cash anything out until yesterday, so i have barely anything to report, but i hope to have more than $600 in mining for 2018 and would like to understand how this would work for next year.
I itemize my deductions every year and I don't have a business. I get more back over the standard deduction.. I even claim some of my computer/electricity/cell phone use for work related deductions for when I work from home. I don't see why it would be any different for claiming cryptocurrency related deductions. On form 1040, you could put it under unimbursed miscellaneous expenses. https://www.thebalance.com/itemized-deductions-3192880 or https://www.schwab.com/resource-center/insights/content/investment-expenses-whats-tax-deductible It does not highlight anything cryptocurrency related, but if we're expected to be taxed on it now, certainly you must be able to deduct expenses. After all, it is an investment expense. As it stands right now, you're able to deduct software and online services that are used for "traditional" investment management -- with cryptocurrency that would be considered the hardware/electricity used to manage your investment.
LocalBitcoins solves this and many issues. The amount you receive from selling is also much higher.2. As far as cashing out goes, I'm sure that will be cracked down upon as well. I'm trying to come up with a legal strategy to cash out in the future to pay minimal taxes on this. I'm thinking of possibly using a donation method or gift method.
Except it is the maximum form of shadiness (sometimes dangerous -- I'm near Detroit). Also, there have already been people busted for money laundering within 30 miles of me using LocalBitcoins.LocalBitcoins solves this and many issues. The amount you receive from selling is also much higher.
thats probably because they were money laundering and not paying taxes.Except it is the maximum form of shadiness (sometimes dangerous -- I'm near Detroit). Also, there have already been people busted for money laundering within 30 miles of me using LocalBitcoins.
You don't have to actually meet anyone to use localbitcoins...Except it is the maximum form of shadiness (sometimes dangerous -- I'm near Detroit). Also, there have already been people busted for money laundering within 30 miles of me using LocalBitcoins.
when you're in the $1M+ range you have options for legal tax evasion though.
I know, I've just read numerous reddit posts on payment reversals, even from bank transfers once the BTC send cleared.You don't have to actually meet anyone to use localbitcoins...
Well, I called two today (one @ H&R, the other at Jackson Hewitt). They said they hadn't heard anything about cryptocurrency and just said "keep your receipts" if you're audited, lol. This might get a little complicated and involved..thank God this isn't a tax forum... People would be confused ...
don't read this shit. Consult an accountant... Hopefully...... They know what the fuck they are doing.
If your itemized deductions are lower than the standard deduction then you can't itemize things like mortgage interest and donations...
Yes, you can. It would be foolish, but you can do it.
you'll basically end up having coinbase treat this almost like a retirement cashout where they'll auto hold a big chunk that gets sent straight to the IRS. I'd probably just go through whatever the next layer of validation is keep doing whatever my daily limit with CB is. I'd probably split it across many exchanges though doing the daily limits i hit for each but yeah you can bet money on having to kiss a lot goodbye to the IRS quickly. I'd funnel it overseas though and opt out of paying taxes on it. when you're in the $1M+ range you have options for legal tax evasion though.
he said its straight forward... didn't say it was easy.
So, anyone use one of those bitcoin ATMs to get money out?
Also can't you just report your btc to bank account as income? Avoid all the captial gains and headaches crap? (I realize this would cost $$$ but would avoid guesses incase audited?)
You could. But would you be doing it right? There seems to be a healthy amount of confusion and speculation about that. Someone above mentioned they we went to two different tax places and both simply said "keep receipts". I'd like to hear from a tax expert that may actually have more advice than "keep receipts", someone that's dug into it a bit. A tax preparer at HR might be good at preparing your run-of-the-mill tax situations, but they likely haven't bothered to research crypto currencies.
http://bitcoinist.com/cryptocurrency-investors-lose-tax-break/
1. So, how will everyone be handling this? For one, I don't have records of all my transactions, since some were done on exchanges that are long gone, or wallets that are long gone. Maybe those are exempt since the rule kicks in Jan 2018.
2. As far as cashing out goes, I'm sure that will be cracked down upon as well. I'm trying to come up with a legal strategy to cash out in the future to pay minimal taxes on this. I'm thinking of possibly using a donation method or gift method.
Anyone care to share some insight? -- remember, keep it legal so the thread doesn't get closed.
It's cheaper just to take a long term capital gain tax for me. The BTC ATM machine around the corner from me charges 15-20% fees.So, anyone use one of those bitcoin ATMs to get money out?
It's cheaper just to take a long term capital gain tax for me. The BTC ATM machine around the corner from me charges 15-20% fees.
So what do I do if I mined coins back in 2014 and no longer have access to my mining pool account? Or does this even matter? I am extremely confused.
When does the coin become mine? I would assume once it goes into my wallet and a mining pools wallet?
What is the value of the coin when it enters my wallet? I would assume nothing until it gets to an exchange or else it's impossible to calculate or keep track of?
I recovered my wallet and it has some coins. WSE server just paid for itself Amazingly it's not $40 worth of coins anymore (or whatever it was worth when I stopped mining). more like 3k worth? I still cannot get into my Coinotron account. I think it's toast but I had it set to auto payout so probably not allot on there anyhowDo you have the coins or did you lose them?