This Is What Happens When Bitcoin Miners Take Over Your Town

noko said:
Correct, you pay the value that was mined in US dollars, if you hold onto them and then accrue and gain value and years later you convert them into $, they then become taxable for capital gains. Now I am not sure if you don't convert but then bought something with them directly how taxes would apply. For example ETN over 3 years become $10/coin while today it is 5 cents. I buy some junk from China using ETN which I already paid taxes on - Is that really taxable?
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Any time you convert a commodity or security to something else, you are required to pay fair market rate capital gains on any accrued value. AKA, if I get paid in stock at 1 penny per share and then buy a car/house from someone with it when it is worth $1 per share, I owe the IRS capital gains on 99 cents. Basically, any time you transact something, you are instantly on the hook for any unrealized gains that become realized at the time of the transaction (and that applies even if the thing you traded WITH or traded FOR then because worthless). As another example, say I had 1000 options that I got at a value of $1 and activated them at $10 but wanted to hold onto the stock for 1 year to get long term cap gains, but the stock immediately tanks to worthless. I would still owe cap gains on $9 for every converted share because that was the realized gain.
 
AliceCooper said:
Lots of wheelin spots are getting closed down around here. Been some logging and what sounds like land swapping going on. Bird and large game hunting is still awesome though.
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I have to be honest, it’s been a while since I’ve been out there. My grandmas boyfriend died in Winatchee when his CJ rolled, he wasn’t 100% tightened in and his head was just outside the rollcage. Unfortunate, he was a really good guy :(

Now that I’ve said that...sort of sounds like something from Napolean Dynamite.
 
aaronspink said:
Any time you convert a commodity or security to something else, you are required to pay fair market rate capital gains on any accrued value. AKA, if I get paid in stock at 1 penny per share and then buy a car/house from someone with it when it is worth $1 per share, I owe the IRS capital gains on 99 cents. Basically, any time you transact something, you are instantly on the hook for any unrealized gains that become realized at the time of the transaction (and that applies even if the thing you traded WITH or traded FOR then because worthless). As another example, say I had 1000 options that I got at a value of $1 and activated them at $10 but wanted to hold onto the stock for 1 year to get long term cap gains, but the stock immediately tanks to worthless. I would still owe cap gains on $9 for every converted share because that was the realized gain.
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You can claim your losses right? Over years? The problem that Crypto currency is going to have, some of them, is they are virtually untraceable, called privacy coins which will of course folks to hide/shield/etc. from paying taxes. Of course some of us will just go ahead and pay taxes, I did for last year but many may not which what sort of government regulation will be brought down dealing with that will be interesting. Many of the coins could fork if it becomes forbidden and become less private if need be but then the value of that coin that depended upon that privacy would probably tank. Those in country's with corrupt governments would then be pushed back into the dark ages for access to a private currency with potential intrusive spying.
 
noko said:
You can claim your losses right? Over years? The problem that Crypto currency is going to have, some of them, is they are virtually untraceable, called privacy coins which will of course folks to hide/shield/etc. from paying taxes. Of course some of us will just go ahead and pay taxes, I did for last year but many may not which what sort of government regulation will be brought down dealing with that will be interesting. Many of the coins could fork if it becomes forbidden and become less private if need be but then the value of that coin that depended upon that privacy would probably tank. Those in country's with corrupt governments would then be pushed back into the dark ages for access to a private currency with potential intrusive spying.
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Taxes on gains are unlimited while losses are capped even when applied over multiple years. And gains are do now, while losses almost always have to be spread out over many years due to caps. That's how people ended up owing literally millions to the IRS after the dotcom crash.
 
triwolf said:
Oh. So if the person just uses them and never turns them into cash, then you would never know. Also, if you can break any encryption, I guess you will eventually track down and make them all pay. Good to know. Also it must be nice to say "Well we can do it, believe us, but we can't tell you how." I always believe people when they say things like that. I mean, you wouldn't be lying would you?

Silk Road didn't use any advanced Crypto coins. Also the person running it was lazy and left lots of tracks.
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No reply huh? So you don't like being proven wrong Gideon? Enjoy your crypto hating echo chamber where you can all have your little hate fest. See ya, wouldn't wanna be ya. I'm busy counting my coins and planning on making even more.
 
triwolf said:
No reply huh? So you don't like being proven wrong Gideon? Enjoy your crypto hating echo chamber where you can all have your little hate fest. See ya, wouldn't wanna be ya. I'm busy counting my coins and planning on making even more.
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I am not the one risking playing hide the coin with Bubba in prison. But if you want to find out the hard way that your presumed guilty by the IRS and you have to prove your innocence in court which is much harder. If your as careless as you are on here in what you mention it will only be a matter of time.
 
Gideon said:
I am not the one risking playing hide the coin with Bubba in prison. But if you want to find out the hard way that your presumed guilty by the IRS and you have to prove your innocence in court which is much harder. If your as careless as you are on here in what you mention it will only be a matter of time.
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LOL, nice, you can't take it when you are wrong! Way to answer my questions. Don't worry about me, worry about yourself. I think you might be the one with a problem with Bubba! LOL You are so stupid to think I am that dumb, you keep calling me stupid and claiming I incriminated myself! You are weak! Typical government sycophant. look it up if you don't know what it means! I won! LOL You didn't even try to answer my reply! HAHAHAHA
 
This is an Internet forum, there are no winners, only whiners. ;) or is that wieners? :eek:
 
Mugato said:
I have to be honest, it’s been a while since I’ve been out there. My grandmas boyfriend died in Winatchee when his CJ rolled, he wasn’t 100% tightened in and his head was just outside the rollcage. Unfortunate, he was a really good guy :(

Now that I’ve said that...sort of sounds like something from Napolean Dynamite.
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Sorry to hear that. There was a roll over just out of town within the last few years, they weren't wearing seat belts nor did they have a cage, and were wheeling alone... But dang, even with cages, helmets are smart.
 
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