RE: What are the tax implications of investing in Bitcoin and other cyber currencies? (United States Tax Code)

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What are the tax implications of investing in Bitcoin and other cyber currencies? (United States Tax Code)

in bitcoin •  7 years ago 

Nice post! I was just having a discussion with an acquaintance that said he was going to trade on behalf of others and not report the income. I asked him what happens if one of his clients gets busted for some other scheme they are in and flips on you because you've become worth more? Now you have tax and trading violations.

Keep these up. This is definitely something the community needs to be thinking about. Followed.

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I would definitely caution him against doing that. He is taking on all of the tax liability if he does their trading in his account. I think the IRS is going to come down hard on people that have not reported this stuff. They used the same techniques to track down foreign bank account that were being used for tax avoidance. At best, he should help his friends set up their accounts and even manage them for them if he wants but the activity occurs under their names so they hold the tax liability.

Makes complete sense. Thanks for the thoughtful post and comments.