1070ti/1080 availability

It's not "Free Money"

You pay hardware cost, you pay electric, you pay for A/C, you pay tax when you cash out, you pay tax when you trade coins, and guess what! You even pay tax when the coin is mined.

So no, not free money. It takes a decent amount of time and energy (no pun intended) keeping everything running, keeping up with coins, and appropriately tracking everything.
 
tacohunter52 said:
It's not "Free Money"

You pay hardware cost, you pay electric, you pay for A/C, you pay tax when you cash out, you pay tax when you trade coins, and guess what! You even pay tax when the coin is mined.

So no, not free money. It takes a decent amount of time and energy (no pun intended) keeping everything running, keeping up with coins, and appropriately tracking everything.
Click to expand...

anyone can install nicehash and mine to their wallet or an external wallet. It is literally that simple (on the simple end). Sure, you can mine certain coins etc etc etc but that is optional. Nicehash is really a set and forget setup.
 
mnewxcv said:
anyone can install nicehash and mine to their wallet or an external wallet. It is literally that simple (on the simple end). Sure, you can mine certain coins etc etc etc but that is optional. Nicehash is really a set and forget setup.
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First of all, you are still paying A/C, Electric, Hardware cost, and all of the taxes.

Second, you are now decreasing the amount of profit you would earn.

Third, these currencies were not meant to be mined through one central pool.., although I guess this doesn't matter to people who don't care about crypto.

But fourth, and most important, why in the fuck would you continue using nicehash after what happened. If you think this is a good solution then you have no business mining.
 
tacohunter52 said:
First of all, you are still paying A/C, Electric, Hardware cost, and all of the taxes.

Second, you are now decreasing the amount of profit you would earn.

Third, these currencies were not meant to be mined through one central pool.., although I guess this doesn't matter to people who don't care about crypto.

But fourth, and most important, why in the fuck would you continue using nicehash after what happened. If you think this is a good solution then you have no business mining.
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first and second are basically the same thing. To respond, yes, their is some cost to mining.

third, as I said, on the simple end, any user can do that.

fourth, because nicehash pays daily and has fee-less transfer to coinbase. So if you withdraw daily, the most you could lose with NH wallet is a day's mining. I would not suggest anyone exclusively use their wallet.
 
mnewxcv said:
first and second are basically the same thing. To respond, yes, their is some cost to mining.
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They are not the same.

First is the costs you deduct no matter what.

Second is the profit you are missing out on. Two fold here. First, nicehash is not paying you btc with dollar value equivalent to what you mined, so loss there. Second loss I'll let you figure out on your own.
 
tacohunter52 said:
They are not the same.

First is the costs you deduct no matter what.

Second is the profit you are missing out on. Two fold here. First, nicehash is not paying you btc with dollar value equivalent to what you mined, so loss there. Second loss I'll let you figure out on your own.
Click to expand...

So what? The point is it is still profitable.
 
tacohunter52 said:
First of all, you are still paying A/C, Electric, Hardware cost, and all of the taxes.

Second, you are now decreasing the amount of profit you would earn.

Third, these currencies were not meant to be mined through one central pool.., although I guess this doesn't matter to people who don't care about crypto.

But fourth, and most important, why in the fuck would you continue using nicehash after what happened. If you think this is a good solution then you have no business mining.
Click to expand...

And yet you will still use Toyota with the airbags that kill... you still use pharmaceuticals from companies responsible for millions of annual deaths, you still use Equifax after massive data breeches, you still pump that good old BP in your tank after the gulf spill, you still burn that lovely Exxon after the Valdez spill, still buy apple after thier 2015 data breach, and the list goes on. Whats your point?

Even PornHub had a massive user breach exposing millions of personal users to the open internet... they still get billions of hits a year.

And that power company that makes the environment all carbon fouled... we can go on and on.
 
My point was that it is not "free money". There are costs involved whether or not you use nicehash.

As for people that think nicehash is a good way to mine.., no words for you.
 
tacohunter52 said:
It's not "Free Money"

You pay hardware cost, you pay electric, you pay for A/C, you pay tax when you cash out, you pay tax when you trade coins, and guess what! You even pay tax when the coin is mined.

So no, not free money. It takes a decent amount of time and energy (no pun intended) keeping everything running, keeping up with coins, and appropriately tracking everything.
Click to expand...

Paying tax? Oh you sweet child. The only time you have to worry about that is if you cash out to your bank account through an American exchange. You don't pay tax when you mine coins. I don't know where you got that B.S. from.

And the IRS certainly doesn't have the resources to enforce its inane clusterfuck of tax guidelines on crypto-to-crypto trades. *Technically* you are supposed to pay tax every single time you do a trade but that is an absolutely absurd requirement that no one follows. If you're not making at least tens of thousands of dollars annually from crypto then they certainly don't have the resources to go after your small fry ass.

The only thing the IRS realistically has the resources to track and enforce is your payment of a capital gains tax when you cash out from crypto to fiat. And if you're smart you won't cash out right away, so your holdings will be long term capital gains tax instead of short term and probably have increased considerably in value over time.

I've been mining crypto off and on since 2011, and I patiently held on to Litecoins I mined since it was worth less than $4 instead of immediately blowing my load for a few measly thousand dollars now I'm a millionaire. All the miners cashing out right away for a measly few hundred dollars of profit here and there instead of aiming to make hundreds of thousands or even millions in the future are chumps.

And lastly, air conditioning is not a concern if you stick the machine in your basement or a garage... How the hell could you stand the noise of running a mining op anywhere else in the house?

Have fun wage cucking the rest of your life :)
 
wigglywaffles said:
Paying tax? Oh you sweet child. The only time you have to worry about that is if you cash out to your bank account through an American exchange. You don't pay tax when you mine coins. I don't know where you got that B.S. from.

And the IRS certainly doesn't have the resources to enforce its inane clusterfuck of tax guidelines on crypto-to-crypto trades. *Technically* you are supposed to pay tax every single time you do a trade but that is an absolutely absurd requirement that no one follows. If you're not making at least tens of thousands of dollars annually from crypto then they certainly don't have the resources to go after your small fry ass.

The only thing the IRS realistically has the resources to track and enforce is your payment of a capital gains tax when you cash out from crypto to fiat. And if you're smart you won't cash out right away, so your holdings will be long term capital gains tax instead of short term and probably have increased considerably in value over time.

I've been mining crypto off and on since 2011, and I patiently held on to Litecoins I mined since it was worth less than $4 instead of immediately blowing my load for a few measly thousand dollars now I'm a millionaire. All the miners cashing out right away for a measly few hundred dollars of profit here and there instead of aiming to make hundreds of thousands or even millions in the future are chumps.

And lastly, air conditioning is not a concern if you stick the machine in your basement or a garage... How the hell could you stand the noise of running a mining op anywhere else in the house?

Have fun wage cucking the rest of your life :)
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So tax fraud then...


Also: https://www.coindesk.com/irs-bitcoin-tax-guidelines-mean/
 
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name calling will not be tolerated
Call it whatever you want.

Nothing wrong with avoiding over-taxation.

Stay poor, little wage cuck.
 
wigglywaffles said:
Call it whatever you want.

Nothing wrong with avoiding over-taxation.

Stay poor, little wage cuck.
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Well according to the country you live in it's a felony: https://www.irs.gov/compliance/criminal-investigation/related-statutes-and-penalties-general-fraud


Also, if you really have made millions and have been avoiding those taxes (sounds like you need to do some research) be careful. Anyone can report you, and would then be entitled to a reward: https://www.irs.gov/compliance/whistleblower-informant-award
 
wigglywaffles said:
Call it whatever you want.

Nothing wrong with avoiding over-taxation.
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Sounds like you just called it whatever you wanted. Sadly for you calling it what you want and adhering to what it is doesn't favor your opinion. It seems you don't like the law of the land so thankfully for you when you're charged with the Felony of tax evasion, all your rights will be stripped away so you won't have to worry about the laws. And you'll be enjoying your little cuck wage for years to come working as a dishwasher. (nothing wrong with being a dishwasher, I've done it.)
 
Comixbooks said:
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I like JazZ, his whole platform did not exist 15 years ago, even 10 years ago. Rapid advancements allowed content that he makes and even make a living off of it. His rise of stardom may fall just as fast. Is JayZ going to say the same thing when more GPUs are produced for AI work loads such as millions of cars every quarter, even more HPC's, big 3D render farms (quality is now there) and the lists goes on? I think in this case he is not smelling the roses and some big shifts, even uneasy shifts in a field he already knew was rapidly changing. Anyways I just disagree with his assessment - you can be an avid gamer and mine as well when not gaming and help pay for your costs - even to point where you now can buy a better gaming rig. Most folks really do not have the room, electrical and cooling capacity - nor desire to line their homes with video cards. We do see some examples of it but it is not really very common.
 
tacohunter52 said:
So tax fraud then...


Also: https://www.coindesk.com/irs-bitcoin-tax-guidelines-mean/
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You don't pay taxes till you cash out period, its like buying a stock, you don't pay taxes on them as they go up, you pay taxes on them once you sell them and make money on them.

From your article that you linked they said it too

This means that if and when they sell the bitcoins that they have mined, they will have to pay capital gains tax on any profit that they have made while owning them. Furthermore, if an individual mines bitcoin as a business, the net earnings from that business will be treated as self-employment income, and will be subject to self-employment tax.
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So mining them you aren't making money till you sell. Now as a business, its the same thing, the coins you sell to keep the business up and going, you must report that. If the company holds on to the coins and doesn't report (lets say a privately owned company), they don't need to report that, the moment those coins go out of that business though that company must report it. Because that point others can report taking in BTC in a transaction and if it points back to the business and that business didn't report it, well yeah that business is screwed.
 
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Dark12 said:
Jeez. Crypto really brings out the crazy in some people.
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Sometimes I regret not investing a couple hundred bucks in Bit coin back when they were just under a dollar.

But then I realized that if I struck it that rich, I would never be the same person. Nor would any of the people around me (wife included).

When you have too much money, you just end up wanting more. And fuck the laws, those are for the poors.

I'll stick with just a couple million in my retirement account when I hit 65, thank you very much.
 
defaultluser said:
Sometimes I regret not investing a couple hundred bucks in Bit coin back when they were just under a dollar.

But then I realized that if I struck it that rich, I would never be the same person. Nor would any of the people around me.

When you have too much money, you just end up wanting more. And fuck the laws, those are for the poors.
Click to expand...


mo' money mo problems lol, nah money doesn't change people, people change themselves when they have more money. If ya don't let yourself change, you will be the same person. One thing I noticed though people that make tons of money without working for it, are the people that are just bad people lol.
 
razor1 said:
You don't pay taxes till you cash out period, its like buying a stock, you don't pay taxes on them as they go up, you pay taxes on them once you sell them and make money on them.

From your article that you linked they said it too



So mining them you aren't making money till you sell. Now as a business, its the same thing, the coins you sell to keep the business up and going, you must report that. If the company holds on to the coins and doesn't report (lets say a privately owned company), they don't need to report that, the moment those coins go out of that business though that company must report it. Because that point others can report taking in BTC in a transaction and if it points back to the business and that business didn't report it, well yeah that business is screwed.
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This is so wrong.., here let me do your research for you..., omfg.

https://www.irs.gov/irb/2014-16_IRB#NOT-2014-21

Q–8: Does a taxpayer who “mines” virtual currency (for example, uses computer resources to validate Bitcoin transactions and maintain the public Bitcoin transaction ledger) realize gross income upon receipt of the virtual currency resulting from those activities?

A–8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income. See Publication 525, Taxable and Nontaxable Income, for more information on taxable income.
Click to expand...


If you think being in a pool gets you out of taxes:

Q–3: Must a taxpayer who receives virtual currency as payment for goods or services include in computing gross income the fair market value of the virtual currency?

A–3: Yes. A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, measured in U.S. dollars, as of the date that the virtual currency was received. See Publication 525, Taxable and Nontaxable Income, for more information on miscellaneous income from exchanges involving property or services.
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Do you have to pay capital gains on trades??? YES,, fucking read dammit:

Q–6: Does a taxpayer have gain or loss upon an exchange of virtual currency for other property?

A–6: Yes. If the fair market value of property received in exchange for virtual currency exceeds the taxpayer’s adjusted basis of the virtual currency, the taxpayer has taxable gain. The taxpayer has a loss if the fair market value of the property received is less than the adjusted basis of the virtual currency. See Publication 544, Sales and Other Dispositions of Assets, for information about the tax treatment of sales and exchanges, such as whether a loss is deductible.
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Recent change in tax law MAKING ALL TRADES TAXABLE:

http://bitcoinist.com/cryptocurrency-investors-lose-tax-break/


Further, from the article I linked (did you even read it?)

Miners that produce their own bitcoins are now subject to two different tax charges. They must include the fair market value of the virtual currency on the day that it is mined into their gross income.
Click to expand...
 
tacohunter52 said:
This is so wrong.., here let me do your research for you..., omfg.

https://www.irs.gov/irb/2014-16_IRB#NOT-2014-21
Click to expand...


You should report that you have a gotten a certain amount of bitcoin yes, is that amount taxable, no, because you can take deductions on that amount based on investment, even on private level. But if you are making more than the invested amount, you do not need to report the extra, and actually you shouldn't because the volatility of crypto currencies with the addition of taxes can screw you and yes if this law is enforced, the US gov, IRS will lose in court if that happens I will point you to case and point

http://www.moneymanagement.org/Comm...y/Do-you-have-to-pay-taxes-on-found-gold.aspx

When it comes to your self-panned gold nuggets, however, I wouldn’t be worried about taxes until you’ve actually sold the gold. At that point it’s clearly additional income with a paper trail. Make sure you keep track of all documentation and claim the proper amount on next year’s taxes.
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The moment you want to cash out or use those bitcoins to get goods or services, hell ya report it. Cause it will be found out you have it. Until that point, there is really no need to disclose it.

Its like a stripper making money, she doesn't need to report it, but if she is going to put it into a bank, she better report it.

Small amounts of transactions and small amounts of money being made is not what the gov is looking for, they wanted anyone with transactions of over 10k at a single time to be automatically be sumbitted by exchanges, and pushed for this with Coinbase, Coinbase told them to F off, but later on Coinbase stated to the IRS they will do it for anything over 20k. The reason for this, is because of the amount of transactions under that 20k limit were so many that it would be pretty much impossible to do.


If you think being in a pool gets you out of taxes:
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Pools are different, wasn't talking about those, but in that case, pools should be incorporated as a business and business incorporation don't need to be in the US, this is where things get really complex and the US gov can't control this, Even if the "owner", even a sole proprietor, is living in the US, he doesn't need to report if he doesn't need to, the moment he brings those coins over to the US though lol, yeah he should do it. The reason being, there is absolutely no way to track if it when it was mined, where it was mined in an offline wallet.

Do you have to pay capital gains on trades??? YES,, fucking read dammit:


Recent change in tax law MAKING ALL TRADES TAXABLE:

http://bitcoinist.com/cryptocurrency-investors-lose-tax-break/
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There is absolutely no way to enforce that, not only can't they enforce that, its actually against other laws that predate it! I can show you a myriad of ways to stop things like that. Look the government wants to tax crypto, but its not going to happen, the whole point of cryptocurrancies is to stop having governments putting hands in your wallet lol. Well they can go the China way and pretty much ban it, that would be the only way. BTW that doesn't work either. They would have to do it at the exchange level, and that would be against free business laws.

As much as people like Trump, he doesn't know shit about things like this, not only that, there is no one in the world that can do anything about things like this. Cryptocurrancies were made so the people have their money and can do as they wish with it, that's the whole decentralized notion. They can keep trying but the way blockchains evolve there is no way to stop them ;). The only way to tax them is when converting to fiat currencies or using them to buy services or good.


Further, from the article I linked (did you even read it?)
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Yes I did read it, and its up to the person to disclose or not. If the person doesn't want to do it they don't and the fact is if the IRS takes ya to court for it, they will lose because currently unless you use cryptocurrancy as cash, there is no way to give it a monetary value because its untrackable.
 
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razor1 said:
You should report that you have a gotten a certain amount of bitcoin yes, is that amount taxable, no, because you can take deductions on that amount based on investment, even on private level. But if you are making more than the invested amount, you do not need to report the extra, and actually you shouldn't. The moment you want to cash out or use those bitcoins to get goods or services, hell ya report it. Cause it will be found out you have it. Until that point, there is really no need to disclose it.

Its like a stripper making money, she doesn't need to report it, but if she is going to put it into a bank, she better report it.

lets say you found a gold mine in your back yard. Do you need to disclose it? No you don't. Until you start using that gold, you don't need to do anything about it. It can sit there for years if you want to.

Small amounts of transactions and small amounts of money being made is not what the gov is looking for, they wanted anyone with transactions of over 10k at a single time to be automatically be sumbitted by exchanges, and pushed for this with Coinbase, Coinbase told them to F off, but later on Coinbase stated to the IRS they will do it for anything over 20k. The reason for this, is because of the amount of transactions under that 20k limit were so many that it would be pretty much impossible to do.




Pools are different, wasn't talking about those, but in that case, pools should be incorporated as a business and business incorporation don't need to be in the US, this is where things get really complex and the US gov can't control this, Even if the "owner", even a sole proprietor, is living in the US, he doesn't need to report if he doesn't need to, the moment he brings those coins over to the US though lol, yeah he should do it. The reason being, there is absolutely no way to track if it when it was mined, where it was mined in an offline wallet.


Do you have to pay capital gains on trades??? YES,, fucking read dammit:




There is absolutely no way to enforce that, I can show you a myriad of ways to stop things like that. Look the governement wants to tax crypto, but its not going to happen, the whole point of cryptocurrancies is to stop having governements putting hands in your wallet lol. Well they can go the China way and pretty much ban it, that would be the only way. BTW that doesn't work either. They would have to do it at the exchange level, and that would be against free business laws.




Yes I did read it, and its up to the person to disclose or not. If the person doesn't want to do it they don't and the fact is if the IRS takes ya to court for it, they will lose because currently unless you use cryptocurrancy as cash, there is no way to give it a monetary value because its untrackable.
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Then you are talking about tax fraud.

A few posts up I posted an irs link explaining what it is.., feel free to read.

Whether or not you agree with it, the law is the law. The IRS clearly states you pay tax for when coins are mined and when they are traded, as well as when you receive them... it's all taxable, not reporting it is fraud.

I mean, even if you are in the lower 2 tax brackets and are lucky enough to pay 0% capital gains, you STILL have to report it.
 
tacohunter52 said:
Then you are talking about tax fraud.

A few posts up I posted an irs link explaining what it is.., feel free to read.

Whether or not you agree with it, the law is the law. The IRS clearly states you pay tax for when coins are mined and when they are traded, as well as when you receive them... it's all taxable, not reporting it is fraud.

I mean, even if you are in the lower 2 tax brackets and are lucky enough to pay 0% capital gains, you STILL have to report it.
Click to expand...


You should yeah do you have to nope, is it tax fraud, nope, this is a grey area because currently virtual assets are not based on IRS's own rules, as capital assets, those are the ones that must fall into "taxable items of worth". Until that is done, even after that, not going anywhere. The reason why crypto's were made man, they aren't taxable at least not straight forward. Its going to be a real pain in the ass for governments to enforce these things.

that is something you can take to court and actually win. Because the IRS must prove to the court when those coins were mined by that particular person, at a particular time and were sent to that persons account at a particular time. Pools don't even have that info lol how the hell is the government going to get that info, there is no paper trail.

There is a statute of limitations on that, think it was 3 years.

The law is the law, the law states if you find a gold treasure your back yard, you have to report it too. Hell if I found a gold treasure in my backyard, I'm sure hell not going to report it, till I'm ready to do it or need the money. Thats the same thing here, there is no way the IRS can do anything unless you

A) live outside your supposed means
B) others tell the IRS about you which points to A anyways

To do any of these things, Virtual currencies must be exchanged to fiat currencies, at which point you should pay taxes on them.

If you pay taxes on a depreciating asset, that person is kinda screwed, this is exactly why you can't pay taxes on mined coins, cause one day they are up and the next they are down. Smart miners sell when the coin is up, well they just made money, they should report that.
 
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razor1 said:
You should yeah do you have to nope, is it tax fraud, nope, this is a grey area because currently virtual assets are not based on IRS's own rules, as capital assets, those are the ones that must fall into "taxable items of worth". Until that is done, even after that, not going anywhere. The reason why crypto's were made man, they aren't taxable at least not straight forward. Its going to be a real pain in the ass for governments to enforce these things.

that is something you can take to court and actually win. Because the IRS must prove to the court when those coins were mined by that particular person, at a particular time and were sent to that persons account at a particular time. Pools don't even have that info lol how the hell is the government going to get that info, there is no paper trail.

There is a statute of limitations on that, think it was 3 years.

The law is the law, the law states if you find a gold treasure your back yard, you have to report it too. Hell if I found a gold treasure in my backyard, I'm sure hell not going to report it, till I'm ready to do it or need the money. Thats the same thing here, there is no way the IRS can do anything unless you

A) live outside your supposed means
B) others tell the IRS about you which points to A anyways

To do any of these things, Virtual currencies must be exchanged to fiat currencies, at which point you should pay taxes on them.

If you pay taxes on a depreciating asset, that person is kinda screwed, this is exactly why you can't pay taxes on mined coins, cause one day they are up and the next they are down. Smart miners sell when the coin is up, well they just made money, they should report that.
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There is no grey area if you are a US citizen. The IRS considers cryptocurrency property and you pay capital gains/losses on the difference between your basis and what it is sold for. Now that they limited 1031 to real estate (2018 onward), technically all crypto-to-crypto trades are considered taxable events. As for mining, while you can argue there is no paper trail, the guidance given as per their last statement (https://www.irs.gov/pub/irs-drop/n-14-21.pdf) states that mining is income at the point the coins are earned. From that point you have basis and have capital gains/losses.
 
tacohunter52 said:
Man you are in denial.., and now I dont think you understand what capital loss is...
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Capital loss only works for tax deductions, form a personal point of view, doesn't work because it must be done in the same year, otherwise it drops 50% each following year. From a corporate point of view it can be used for a tax deduction in the same manner as well, and it works better there because fiscal Quarters can be shifted to account for that.
 
razor1 said:
Capital loss only works for tax deductions, form a personal point of view, doesn't work because it must be done in the same year, otherwise it drops 50% each following year. From a corporate point of view it can be used for a tax deduction.
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No.
 
oblox said:
No.
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ah yes, I have had 2 corporations that I have run in the past, and that is the why my accountant handled capital loss.

I put in close a million bucks of my personal money for initial investment for my game company in 2005, I didn't expect any money to come in for 5 years, so when it came to fiscal Q's we shifted our Fiscal Q for 2 years out which at that point I sold the company and took my tax break based on 50% of the initial investment. That is all I was able to take a deduction on, even though I made the 1 million back. I literally had to pay more taxes on taxed paid money because the yearly time limit was there.

You can't take tax breaks on capital losses, unless you have income coming from somewhere else. At a personal level, if your income doesn't cover the amount you lose, you will never see that money again. Not only that, you will have to spend tax paid money on other taxes, which by all accounts can't be pushed if you have crypto, cause you might not be able to sell your crypto at a given time because of exchange limitations that are in place.
 
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razor1 said:
ah yes, I have had 2 corporations that I have run in the past, and that is the why my accountant handled capital loss.

I put in close a million bucks of my personal money for initial investment for my game company in 2005, I didn't expect any money to come in for 5 years, so when it came to fiscal Q's we shifted our Fiscal Q for 2 years out which at that point I sold the company and took my tax break based on 50% of the initial investment. That is all I was able to take a deduction on, even though I made the 1 million back. I literally had to pay more taxes on taxed paid money because the yearly time limit was there.
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My no is in reference to a personal tax return... you can use your capital losses to offset capital gains in there entirety and if you additional losses, you can use $3k to offset ordinary income every year with the remaining as a carryforward. Without knowing about your corporate situation more, hard to really say what happened there.
 
oblox said:
My no is in reference to a personal tax return... you can use your capital losses to offset capital gains in there entirety and if you additional losses, you can use $3k to offset ordinary income every year with the remaining as a carryforward. Without knowing about your corporate situation more, hard to really say what happened there.
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That is true but that won't work with crypto well though because that will force people to sell their crypto, and there are limitations on that because exchanges are limited in many regards to how much you can transfers, sell, buy etc.

You can't just sell and buy when you want to.

If the IRS want to pursue something like that with an exchange not in the US, good luck. Because well its not going to get very far. Their actions will cause people to loose money, and guess what IRS can't force you to sell your assets without a court order by the department of justice, and let me tell ya that is not easy for them to do with hard assets like a house or car or any type of physical asset a person has, let alone crypto.
 
razor1 said:
That is true but that won't work with crypto well though because that will force people to sell their crypto, and there are limitations on that because exchanges are limited in many regards to how much you can transfers, sell, buy etc.

You can't just sell and buy when you want to.
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Exchange limitations have nothing to do with what an owner can do with their assets. If you sell to USD on an exchange, even if you cannot transfer the dollars out that day due to account limitations, it is still a capital gain/loss in the eyes of the IRS depending on the price you sold it for against your basis.

I'm going to suggest you quit giving advice on the subject because it doesn't sound like you have a full understanding of IRS guidance.
 
oblox said:
Exchange limitations have nothing to do with what an owner can do with their assets. If you sell to USD on an exchange, even if you cannot transfer the dollars out that day due to account limitations, it is still a capital gain/loss in the eyes of the IRS depending on the price you sold it for against your basis.

I'm going to suggest you quit giving advice on the subject because it doesn't sound like you have a full understanding of IRS guidance.
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if you sell to usd it goes straight to a bank account, that money doesn't stay in the exchange. The only excahnge that I have seen that can do that is Coinbase (keep your money in your account at coinbase), and they will report to the IRS if its over 20k so.....

There is literally no verification on those accounts, and you can set up many accounts if you are going over the daily limits.

How are they going to trace those? They can't.

I'm talking about off shore exchanges like in Europe or Japan. Good luck trying to find those, cause there is no damn paper trail lol. Worse yet if that DC was sent straight to an offline wallet from the pool, not going to find that anywhere.

The moment you use Coinbase to transfer to USD, well then you should report that because that is traceable.
 
razor1 said:
if you sell to usd it goes straight to a bank account, that money doesn't stay in the exchange. The only excahnge that I have seen that can do that is Coinbase (keep your money in your account at coinbase), and they will report to the IRS if its over 20k so.....

I'm talking about off shore exchanges like in Europe. Good luck trying to find those, cause there is no damn paper trail lol. Worse yet if that DC was sent straight to an offline wallet from the pool, not going to find that anywhere.
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...and the IRS expects you to report these transactions. It's up to you to roll the dice on not reporting. I've said my piece, the guidance is there, do with it as you wish. While their guidance needs much clarity in so many areas of crypto, the burden of proof is on the filer, not them.
 
oblox said:
...and the IRS expects you to report these transactions. It's up to you to roll the dice on not reporting. I've said my piece, the guidance is there, do with it as you wish. While their guidance needs much clarity in so many areas of crypto, the burden of proof is on the filer, not them.
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If the US starts shifting Crytocurrancies into commodities, I think it would be wise to report mined coins, but until there is a strong notion of doing that, all these tax laws are just ways for the IRS to fail miserably at taxation.
 
The issue with mining is that you're essentially being paid for creating nothing of value. The hashing computations that take place solve no problem, contribute to nothing, and serve only the purpose of regulating how the currency is distributed - you're being paid for accomplishing nothing while wasting a bunch of energy, which is simply not sustainable, especially given new ones keep popping up. It's all a shell game and they never end well.
 
bobzdar said:
The issue with mining is that you're essentially being paid for creating nothing of value. The hashing computations that take place solve no problem, contribute to nothing, and serve only the purpose of regulating how the currency is distributed - you're being paid for accomplishing nothing while wasting a bunch of energy, which is simply not sustainable, especially given new ones keep popping up. It's all a shell game and they never end well.
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The implications are much more than currency. The distributed nature and security embedded into a blockchain have far reaching implications, not just currency.
 
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