Bitcoin Keeps Pushing Ahead & Coinbase Gives Data to the IRS

triwolf

Gawd
Joined
Dec 19, 2015
Messages
708
Barely have any time to do much of anything else aside from work/house/lawn/family/cars and everything else. A few minutes browsing and having fun on HardOCP and a little gaming in the evening. I also do not wish have any more heat generated in this house!!! 3 women is enough hot air.
LOL I hope at least your heat bills are a little lower :D
 

Nukester

[H]ard|Gawd
Joined
Mar 21, 2016
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LOL I hope at least your heat bills are a little lower :D

Funny you said that. When all 3 women are home, my heating bill drops about 50%. In fact it was lowest this year, and this was our coldest year in South Carolina :)
 

triwolf

Gawd
Joined
Dec 19, 2015
Messages
708
Funny you said that. When all 3 women are home, my heating bill drops about 50%. In fact it was lowest this year, and this was our coldest year in South Carolina :)

Every little bit helps, count your blessings. My mining rigs blow a lot of hot air too, something about them not quite as good as a woman.;)
 

dandirk

[H]ard|Gawd
Joined
Jun 5, 2004
Messages
1,832
There's over 10mil users on coinbase. 13k is extremely small amount of the user base.

I didn't get an email... looks like they wanted info from a few years ago....

I am contemplating what to do, I sold late last year for a good amount of $$$$. With the freely flowing of partial coins and out wonder how loose the "long" term definition is. If I held the amount of coins I sold for at least a year would that count?
 

HockeyJon

[H]ard|Gawd
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Dec 14, 2014
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I wonder if this will be considered stock, or currency. Because if it's considered currency you'd potentially have to pay capital gains on it every year I believe, while if it were considered stock you'd only have to pay when you cash out. Then again, if they consider it currency it might serve to legitimize its use which many governments would rather not as it will dilute the use of their currency.

Is certainly interesting. I'll be interested to see how it pans out. In my mind it's just digital penny stock. I'm under the impression that 99% of the people buying crypto currency are doing it for investment purposes, and the 99% of the 1% who aren't are doing something illegal.

They're treating it like a commodity, which makes sense because the future of money, Bitcoin, apparently really sucks as a currency so they had to call it something else.
 

craigdt

[H]ard|Gawd
Joined
Oct 27, 2016
Messages
1,068
Good! Tax them into submission. They contribute nothing, and take from those who pay the taxes. Don't care if you bash me or not. Send me a new GTX 1080TI at retail and I'll shut up. :)
Don't lump us all together. We are not all evil.
 

collegeboy69us

Supreme [H]ardness
Joined
Jul 27, 2003
Messages
5,256
Well I'm sorry if I work full time and take care of a family. If working a job and taking care of my family isn't "an ounce of effort", to get a video card, then just call me lazy.

Oh yeah, paying for my 2 daughters in college. Sorry if that isn't enough "collegeboy".

What's in a name? I made that up literally 15 years ago while (surprise) I was in college... I'm 35, work full time, have a mortgage, car note, all the normal stuff. Do you have a GPU of any kind? Put it to work, use that extra income/profit to buy a better GPU over time, wash/rinse/repeat. Stop making excuses

By ounce of effort, I mean pick up a damn calculator, do some research. Of the 22 GPU's I have in my house... guess how much I actually paid for all of them? Zero. My crypto income is passive and my setup was built in a slow roll snowball method where no actual money of mine was put on the line. I kept putting the profits into more hardware the past 6 months and built up a system that's currently paying my mortgage in full + money to spare every month for doing nothing.

If a bunch of people are making money or enjoying high end GPUs... you would think that instead of standing around bitching about it, you would try to understand the process and get in while the getting is good. With GPU prices the way they are, sure ROI takes longer now, but mining alt coins is still profitable. You've already made the decision to sit out of the game, so that's on you.

Are you the type of man who will whine and complain you didn't win the lottery even though you refuse to buy a ticket? Sounds like it!
 

Imhotep

Gawd
Joined
Feb 12, 2014
Messages
816
IRS asked for the biggest accts. since Coinbase didn't give them info on anyone. Looks like IRS aint getting shit :D
 

tetris42

Supreme [H]ardness
Joined
Apr 29, 2014
Messages
4,518
Are you the type of man who will whine and complain you didn't win the lottery even though you refuse to buy a ticket? Sounds like it!
I think it has more to do with not being able to purchase videocards at MSRB price after having been able to do so for decades.
 

N4CR

Supreme [H]ardness
Joined
Oct 17, 2011
Messages
4,807
No, you can opt out of the (social) contract. Calling them thieves is just begging the question.
Finally someone who understands the rothschilds world bank IMF local wing of your tax company/TIN use etc is just another voluntary contract.
 

nightanole

[H]ard|Gawd
Joined
Feb 16, 2003
Messages
2,021
What's in a name? I made that up literally 15 years ago while (surprise) I was in college... I'm 35, work full time, have a mortgage, car note, all the normal stuff. Do you have a GPU of any kind? Put it to work, use that extra income/profit to buy a better GPU over time, wash/rinse/repeat. Stop making excuses

By ounce of effort, I mean pick up a damn calculator, do some research. Of the 22 GPU's I have in my house... guess how much I actually paid for all of them? Zero. My crypto income is passive and my setup was built in a slow roll snowball method where no actual money of mine was put on the line. I kept putting the profits into more hardware the past 6 months and built up a system that's currently paying my mortgage in full + money to spare every month for doing nothing.

If a bunch of people are making money or enjoying high end GPUs... you would think that instead of standing around bitching about it, you would try to understand the process and get in while the getting is good. With GPU prices the way they are, sure ROI takes longer now, but mining alt coins is still profitable. You've already made the decision to sit out of the game, so that's on you.

Are you the type of man who will whine and complain you didn't win the lottery even though you refuse to buy a ticket? Sounds like it!

So this time last year when it was $1500 a coin, it was very profitable. And 9 months ago when it was $3000 a coin, it was very profitable. And 3 months ago when it was $20,000 a coin, it was very profitable. And today when its $10,000 a coin, it is very profitable. And during all of this it was profitable even with difficulty going up 10-15% per month.

At what point in the last year was the break even point when your farm was paying for the house, $1500,$3000,$20000,$10000?
 

lilbabycat

2[H]4U
Joined
Jun 21, 2011
Messages
3,810
At what point in the last year was the break even point when your farm was paying for the house, $1500,$3000,$20000,$10000?

Here's a guesstimate of what he's making right now:

https://www.cryptocompare.com/minin...sumption=3000&CostPerkWh=0.12&MiningPoolFee=2
~35MH/s x ~22 = ~700MH/s
~3000w @ ~0.12KWh/$ (probably lower?)
$1,182/mo
-$259/mo power

He's probably clearing $1,000/mo. If he bought and mined for a while then sold his coins during one of the BIG spikes, he probably made out extremely well. Now he has 22 cards that will keep being profitable for at least another 6 months, or until ETH/Other Coins lose 50%+ of their value.
 

nightanole

[H]ard|Gawd
Joined
Feb 16, 2003
Messages
2,021
Here's a guesstimate of what he's making right now:

https://www.cryptocompare.com/mining/calculator/eth?HashingPower=700&HashingUnit=MH/s&PowerConsumption=3000&CostPerkWh=0.12&MiningPoolFee=2
~35MH/s x ~22 = ~700MH/s
~3000w @ ~0.12KWh/$ (probably lower?)
$1,182/mo
-$259/mo power

He's probably clearing $1,000/mo. If he bought and mined for a while then sold his coins during one of the BIG spikes, he probably made out extremely well. Now he has 22 cards that will keep being profitable for at least another 6 months, or until ETH/Other Coins lose 50%+ of their value.

Yea but im talking about year to present.

Say at $1500(because just about everything is relative to bitcoin) this time last year, but difficulty was 2-4x easier. So instead of him making 10x less than today, he was making 2-3x less than today.

Im just curious on the coin cost vs difficulty. I mined for a few months during the litecoin days when it was only at 4000 difficulty, and you could make $150 a month per card. Then with the huge difficulty spikes, it wasnt worth it to mine, even with the coins staying at the same price.

If bitcoin was still $1500, it might not be worth it to mine at todays difficulty, the guy would only be bringing in $150 per month with 22 cards.
 

SomeoneElse

[H]ard|Gawd
Joined
Jan 16, 2007
Messages
1,940
I wonder if this will be considered stock, or currency. Because if it's considered currency you'd potentially have to pay capital gains on it every year I believe, while if it were considered stock you'd only have to pay when you cash out. Then again, if they consider it currency it might serve to legitimize its use which many governments would rather not as it will dilute the use of their currency.

Is certainly interesting. I'll be interested to see how it pans out. In my mind it's just digital penny stock. I'm under the impression that 99% of the people buying crypto currency are doing it for investment purposes, and the 99% of the 1% who aren't are doing something illegal.
I was just going to ask this same question.
Are they going to tax you on your potential gain or the gain in profits once you pull it out? Since all it is is digital currency and you haven't profited until you pull it out and exchange it for real physical currency. Just having it, I wouldn't think, should be enough to prompt taxation on it. Especially since its extremely volatile....
 
Joined
May 16, 2007
Messages
626
the irs probably got tipped off by the nsa but had to request the info to make their upcoming prosecutions 'legal'.
 

hiroler

Weaksauce
Joined
Jan 6, 2006
Messages
108
It's really not hard to do your taxes correctly and depreciate assets. Talk to anyone with multiple rental properties. Turbotax/h&r should create a CRYPTO deluxe version for next year's tax season. If you're making $2000+ a month, it's not a hobby.
 

bugleyman

[H]ard|Gawd
Joined
Oct 27, 2010
Messages
1,227
Finally someone who understands the rothschilds world bank IMF local wing of your tax company/TIN use etc is just another voluntary contract.

Strictly speaking, it is, though as indicated I appreciate that it's far from trivial to up and leave the country.

As for being a contract: Personally, I view taxation as more an opt-out situation, which isn't exactly without precedent. For example, if you're walking down the street and are hit by a car, lose consciousness, and are then given life-saving medical treatment, are you not obligated to pay for that treatment? Even if you didn't explicitly enter into a contract? Yes, yes you are. Since you couldn't speak for yourself, your consent was assumed. Likewise, as a child you can't opt out of the social contract, so consent is assumed. However, once you become an adult, you can, in fact, opt out by leaving the country, or by not participating in the legitimate economy (and thereby reporting no taxable income). Note I didn't say those were good options, but they are options, and the alternative (continuing to receive the benefits of society, but refusing to pay for them) seems more like theft to me than does taxation.
 

tetris42

Supreme [H]ardness
Joined
Apr 29, 2014
Messages
4,518
Strictly speaking, it is, though as indicated I appreciate that it's far from trivial to up and leave the country.

As for being a contract: Personally, I view taxation as more an opt-out situation, which isn't exactly without precedent. For example, if you're walking down the street and are hit by a car, lose consciousness, and are then given life-saving medical treatment, are you not obligated to pay for that treatment? Even if you didn't explicitly enter into a contract? Yes, yes you are. Since you couldn't speak for yourself, your consent was assumed. Likewise, as a child you can't opt out of the social contract, so consent is assumed. However, once you become an adult, you can, in fact, opt out by leaving the country, or by not participating in the legitimate economy (and thereby reporting no taxable income). Note I didn't say those were good options, but they are options, and the alternative (continuing to receive the benefits of society, but refusing to pay for them) seems more like theft to me than does taxation.
The thing is there are all kinds of invisible benefits also. If you didn't get shot from crossfire today because the police are doing their job, that's not the sort of thing you generally notice. Same for not drinking water that has toxins in it, or being able to read and communicate with people because that was taught in public schools, etc.

Also In your example, even if you were conscious and they DIDN'T have your consent, someone who practices medicine would have an obligation to help you anyway. That's how society works. You get help whether you want it or not. It unravels the more that is removed. For someone to think that's all theft shows an ignorance of everything they've already taken from society.
 

AliceCooper

[H]ard|Gawd
Joined
Mar 25, 2007
Messages
1,476
I'll send you a crate of firepros below MSRP if ya want ya salty hoe.

On a side note they really need to fix the taxes on mining. It's not even remotely possible to record value if a coin at the time mined. I wouldn't mind paying whenever it's withdrawn to usd

The strategy I am using this year is since it is impossible to record the amount at the exact moment it was mined, I am going for the daily high. The taxes ask for the "fair market value at time of payment" but that is extremely hard so since the daily high will blanket cover any amount for the day, its an easy way not to get rekt by IRS if you get audited. The only problem is you will be paying more in taxes.
 

Jon855

[H]F Junkie
Joined
Aug 25, 2005
Messages
10,554
The strategy I am using this year is since it is impossible to record the amount at the exact moment it was mined, I am going for the daily high. The taxes ask for the "fair market value at time of payment" but that is extremely hard so since the daily high will blanket cover any amount for the day, its an easy way not to get rekt by IRS if you get audited. The only problem is you will be paying more in taxes.
IRS also would accept an average basis for the day (Lowest + Highest) / 2.

Your approach is even safer as you're going by the highest of the day however, depending on the price swing on that day, you may want to reconsider that but it's extremely viable and a safe approach to take until things get much more clearer and the structure is more formidable in the near future.
 

cdabc123

2[H]4U
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Messages
3,508
I may go ageah and just call it 100% trading gains. With crypto there is really no way to tell how someone got it other then that they sold some of it
 

lilbabycat

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Joined
Jun 21, 2011
Messages
3,810
Yea but im talking about year to present.

Say at $1500(because just about everything is relative to bitcoin) this time last year, but difficulty was 2-4x easier. So instead of him making 10x less than today, he was making 2-3x less than today.

Im just curious on the coin cost vs difficulty. I mined for a few months during the litecoin days when it was only at 4000 difficulty, and you could make $150 a month per card. Then with the huge difficulty spikes, it wasnt worth it to mine, even with the coins staying at the same price.

If bitcoin was still $1500, it might not be worth it to mine at todays difficulty, the guy would only be bringing in $150 per month with 22 cards.

Eth is a better measure for GPU mining. You could look at other coins that went up exponentially but that assumes he got really lucky.
https://bitinfocharts.com/comparison/ethereum-difficulty.html
https://coinmarketcap.com/currencies/ethereum/
Any mining before July 2017 was a huge money making time.
 

cdabc123

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Jun 21, 2016
Messages
3,508
Eth is a better measure for GPU mining. You could look at other coins that went up exponentially but that assumes he got really lucky.
https://bitinfocharts.com/comparison/ethereum-difficulty.html
https://coinmarketcap.com/currencies/ethereum/
Any mining before July 2017 was a huge money making time.

there were a few points of massive profitability (double normal) the reacent price jump brought another one of those periods and if i remember right there was one begining of summer and another one around jan last year. of course if you hold your coin and only sell @ highs its like you were mining at that profitability the whole time :p
 

atp1916

[H]ard|DCoTM x1
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download.png
 

AliceCooper

[H]ard|Gawd
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IRS also would accept an average basis for the day (Lowest + Highest) / 2.

Your approach is even safer as you're going by the highest of the day however, depending on the price swing on that day, you may want to reconsider that but it's extremely viable and a safe approach to take until things get much more clearer and the structure is more formidable in the near future.

It is my approach for now, I can always go back and redo it at a later time once the mud clears in the water and get back any losses I may have incurred due to paying more taxes than I should have. At least I remember my dad being able to do that for some things while I was going to college, hopefully I would be able to do the same.

Edit: Also yall can't blame me for GPU prices since the coin I'm mining is more CPU friendly than GPU :p.
 

cdabc123

2[H]4U
Joined
Jun 21, 2016
Messages
3,508
It is my approach for now, I can always go back and redo it at a later time once the mud clears in the water and get back any losses I may have incurred due to paying more taxes than I should have. At least I remember my dad being able to do that for some things while I was going to college, hopefully I would be able to do the same.

Edit: Also yall can't blame me for GPU prices since the coin I'm mining is more CPU friendly than GPU :p.

Just curious. What coin? I have abunch of 256 thread Intel phi systems mining etn and am curious on if there is something more profitable
 

AliceCooper

[H]ard|Gawd
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1,476
Just curious. What coin? I have abunch of 256 thread Intel phi systems mining etn and am curious on if there is something more profitable

AEON. It's Monero's little brother. The rebase (update) is in testing right now, the only thing it doesn't include is RingCT, otherwise will have all features of Monero. GUI wallet is also being actively developed. The goal is to have a mobile secure currency. When it's "done" it will be able to run a full node on a phone. I have high hopes for it :). Idk if it's more profitable, but I think it has way more potential than ETN. I mined ETN upon launch and solid it all at 16c each to reinvest back into Aeon.
 

cdabc123

2[H]4U
Joined
Jun 21, 2016
Messages
3,508
AEON. It's Monero's little brother. The rebase (update) is in testing right now, the only thing it doesn't include is RingCT, otherwise will have all features of Monero. GUI wallet is also being actively developed. The goal is to have a mobile secure currency. When it's "done" it will be able to run a full node on a phone. I have high hopes for it :). Idk if it's more profitable, but I think it has way more potential than ETN. I mined ETN upon launch and solid it all at 16c each to reinvest back into Aeon.

just did the math and on my gear aeon is ~ %46 less profitable then etn
 
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