Hardly Anyone Is Paying Taxes on Their Bitcoin Gains as Filing Deadline Nears

Discussion in '[H]ard|OCP Front Page News' started by Megalith, Apr 15, 2018.

  1. Burticus

    Burticus 2[H]4U

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    OK, so it's just whatever money is made as "profit" after cost of tools, materials, electricity... I wonder if "labor" counts in there too. Probably not.

    But applying that to the taxes on crypto... then one should be able to deduct the cost of the equipment (in this case, GPU's + computer parts) and electricity right, then pay taxes on the remainder?

    And I guess buying and selling is a totally different topic which probably falls into the same kind of capital gains methods like stock/bond/precious metals/etc etc?
     
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  2. lollerwaffle

    lollerwaffle Gawd

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    It does not cost anything. The IRS does not charge to receive your electronic return. And as a matter of fact, the IRS provides free e-filing forms. They don't hold your hand as much as a TurboTax does, but they work for most scenarios. There are some (very few) forms the IRS does not have on that forms list, again for most filers they work well.

    TurboTax, TaxACT etc charge you because you use their services to hold your hand. You don't have to read forms instructions, or the forms instructions are made easier to read, and they may propagate some data for you, like importing W-2's. That's what you are paying for.

    While I'm here, I also suggest checking our your state's e-filing pages. State filing is often easier than federal, and the tax filing vendors charge quite a bit to file state returns. Sometimes you can save a few bucks to use the vendor for federal (if you must) but then use the state portal/site.
     
  3. kju1

    kju1 2[H]4U

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    This thread is making me wish the IRS had a bounty program....
     
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  4. griff30

    griff30 I Lower the Boom!

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    I'm thinking the "only 100 people" who paid taxes on cryptocurrency is bullshit.
    If true then I hope the IRS uses the rest of the tax evaders as hand puppets in an example with audits and fines.
    Massive fines.


    Might be a record tax pull for the government.
     
  5. sfsuphysics

    sfsuphysics I don't get it

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    Labor is absolutely deductible if you paid, but you can't do it yourself and then arbitrarily (or even following a given formula) assign a cost to your labor.
     
  6. sfsuphysics

    sfsuphysics I don't get it

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    Yeah, I realized that and found there was some online link to efile. I'll see if I can do that in all of 2 minutes this morning after my caffeine IV drip, and if not off to the post office. Here's hoping it's something as simple as uploading a PDF, if not then no thanks my taxes are a tad more complicated then filling out a 1040 due to my investments.
     
  7. katanaD

    katanaD [H]ard|Gawd

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  8. kju1

    kju1 2[H]4U

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  9. nutzo

    nutzo [H]ardness Supreme

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    You forgot to include paying for high 6 figure pensions, handouts to foreign governments, the massive freedom killing bureaucracies, welfare queens, Obama phones, trains/bridges to nowhere, tenured Marxist professors who teach 1 class a week, etc.
     
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  10. cjcox

    cjcox Gawd

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    Perhaps, if you had coin prior to this year. But "new coin" mined is always a "gain", unless already reported with value established. That is to say, going from $0 to $1,000,000 then watching it go to $50, still means a $50 gain.

    It's a bit different from stock, in that when you "mine" you are "finding"... where with stock, you're usually "buying" the into it.

    Obviously, there can be "trading" in crypto coin... I'm talking mainly about mining. With that said there are also tax considerations for mining equipment (my guess).

    Actually, I'm not really sure our tax code covers crypto minining operations sufficiently. We'll see.

    Let me add, I know many are making "free money" just doing verification.... of course, that's just taxable income. If it's really large, make sure you do your more frequent filings.
     
  11. Aireoth

    Aireoth [H]ard|Gawd

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    Yes you can pay yourself a salary for labor and deduct it from the business income (in Canada at least), however you'll pay income tax on your salary. Depending on state/Provincial/federal tax legislation it could be worth splitting a % of the income between yourself as an individual and your corporation.

    Of course this means you need an incorporated company selling birdhouses.
     
  12. lollerwaffle

    lollerwaffle Gawd

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    If you sold stock or whatever, you're probably going to need more than 2 minutes. I had to deal with that this year and it's a PITA because my wife sold a bunch of different investments and they all have to be listed separately. Ugh. It took me a while to do, and I do my taxes every year.
     
  13. Makaveli@BETA

    Makaveli@BETA 2[H]4U

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    yup alot of people who think they are sticking it to the man will be getting a visit by the IRS.

    Which they will then pay because the IRS will gladly show them you are not bigger than the system and are in fact still plugged into the matrix.
     
    Last edited: Apr 17, 2018
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  14. sfsuphysics

    sfsuphysics I don't get it

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    Yeah kind of what I was thinking, I think spending less than $1 on postage, and standing in a line at the post office for a few minutes is well worth the hassle.

    Was actually surprised I manged to get all the tax forms (and of course a copy of the federal forms too because... California) in a standard envelope with a triple fold. I think it was like 15 pages, so 45 page thickness, definitely paying more for that at the post office :D I have found though it's actually significantly cheaper than a manilla envelope though.
     
  15. Makaveli@BETA

    Makaveli@BETA 2[H]4U

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    Nobody likes a snitch!

    The IRS has enough people on their payroll they don't need your help.
     
    Last edited: Apr 16, 2018
  16. kju1

    kju1 2[H]4U

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    Nobody likes me now, so I might as well get paid for it ;)
     
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  17. riot8ap

    riot8ap [H]ardness Supreme

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    They do. But like everyone else talking about taxes and BTC you haven't done any research.
     
  18. kju1

    kju1 2[H]4U

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    Never heard of a joke? <joke> Next time I will add joke tags just for you. </joke>
     
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  19. geniekid

    geniekid n00bie

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    Hopefully there will be more support in 2019 for filing taxes on cryptocurrency gains/losses made in 2018. I'm not looking forward to filling out a 1040 D manually, even with Coinbase's gain/loss tax calculator.
     
  20. IcePickFreak

    IcePickFreak [H]ard|Gawd

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  21. DocNo

    DocNo Limp Gawd

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    http://jpelectron.com/stopcrypto

    He details how to use FSRM file extension monitoring to detect a malware attack and if one starts to trigger a script that deletes all shares preventing the entire file server from getting hosed.

    Pretty cool stuff - it works; I implemented it on one server and a few months later everyone complained they couldn't access any network drives. I forgot about it initially but the script did it's job. After I realized why all the shares were suddenly gone from the server I found the infected machine, nuked it then restored the shares.

    I hope that link still works; it wouldn't for me tonight but I've had some DNS weirdness lately...
     
    Last edited: Apr 16, 2018
  22. sfsuphysics

    sfsuphysics I don't get it

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    Well the thing is you do your own trades (somehow) you have to figure out your own taxes, if you use a site like Etrade, or go through a bank, they mail you a form come tax time with all the pertinent info. Now I know squat about crypto mining, but if you go through any sort of company that supports your sales/trades/whatever then you really need to bitch at them for not give you the proper forms. This is akin to your employer not giving you a W2 and telling you to figure it out yourself.
     
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  23. nutzo

    nutzo [H]ardness Supreme

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    I'm ok with syncing my backup every 2 hours, and normal security that stops the users from changing anything they don't need read/write access to.
    The security limits what damage can be done, 2 weeks of snapshots (and another 2 weeks on tape) makes it easy to fall back to a point before the problem happened.

    Just need to upgrade my server links to 10GB to speed up the backup/restore process.
    We have a lot more data than we did 10 years ago when I originally built out network.
     
  24. theBrownLlama

    theBrownLlama Limp Gawd

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    you don't have to report anything to the IRB until you sell it. Like having art assets which has gains of a few hundred % per year. (yep, more than Bitcoins. But you need to be rich already to be in the game. And it is even harder to get real data on this. Billionaires and their affairs and all that....)
     
    Last edited: Apr 17, 2018
  25. geniekid

    geniekid n00bie

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    That's what I'm hoping for - Coinbase to provide 1040-Ds (or whatever tax form is applicable). I'm sure there are a hundred complications that have held them back from already doing so, but the fact that they have a gain/loss calculator makes me think they know legislation/regulation is just beyond the horizon.
     
  26. NickJames

    NickJames Viagra Required

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    I'm doing the smart thing and holding on until they become worthless.
     
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  27. sfsuphysics

    sfsuphysics I don't get it

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    here's the thing, if they're providing forms to customers that means they're also reporting forms to the government, so all of these "It's my money, you can't have it" people might get a rude awakening.
     
  28. geniekid

    geniekid n00bie

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    I don't mind screwing those people so it's easier for me to file my taxes correctly. :p

    Lol. That will certainly make filing taxes easier. Although, if you bought the crypto instead of mining it you would still want to report the capital loss to deduct it from your taxable income. It's going to be funny when the IRS sees that the only people reporting their crypto positions are doing so to show capital loss.