Cryptos and Taxes, April 15 Is Just Two Months Away

in bitcoin •  7 years ago 

Today is February 15, which is just two months away from when taxes are due, assuming you’re an American citizen of course.

Actually, this year April 15 falls on a Sunday so you get an extra day.

But is anyone paying?

According to this timely CoinTelegraph article just 0.004% of filers have reported crypto gains in 2017.

The information came from Credit Karma and for people that had reported as of this last Tuesday.

I think you have to take those numbers with a grain of salt. The people who file the quickest are generally looking to get that refund. I doubt many are crypto traders.

By the end of the tax season we’ll likely see the number grow a lot bigger and it will be a sizable jump from 2016. It’s no secret the IRS is going after crypto tax evaders. I think most people are sensible enough not to mess around with the IRS.

Speaking of taxes, the Arizona Senate just passed a bill to accept tax payments in bitcoin. That’s pretty big news. Keep in mind though it still has to be reviewed by the House of Representatives and won’t go into effect until 2020. But it’s a step in the right direction.

The ironic part is that pay taxes in bitcoin would likely lead to another taxable event, as this article details.

That’s the problem with cryptos and taxes right now. The IRS considers cryptos property and each exchange is a taxable event. And it makes for onerous tax reporting requirements.

I’m hoping the IRS discovers it will be a huge burden on their end as well and make changes for a more reasonable crypto tax structure.

Until then, pay your crypto taxes.


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Thanks for sharing this @g-dubs. I actually met with a person from the tax office in my country today to discuss taxes and cryptos.. I imagine it will prove problematic for a lot of people who don't pay taxes on what they earn.

I think the laws will eventually change to be more sensible. Until then the prudent move is to file and pay based on the current framework. Even if there's mistakes the tax authorities will generally work with you if you made an honest attempt to do it right in the first place. But if you just evade taxes you could end up w a big problem down the road. I don't want to take that chance!

Yikes crypto taxes are coming huh... I don't get it, at what price point they charge taxes on?

Essentially every trade back and forth between cryptos is reportable... anytime you convert back to USD is reportable... if you use crypto debit cards, etc. It's a real pain the way they have it set up now.

Yeah the crypto to crypto being a taxable event is so onerous, it just seems ridiculous.

But on the flip side, that rule creates so much paperwork on their side, it can’t be feasible long term unless the IRS goes on a huge recruitment drive.

Anyway BTC is above $10k so happy Thursday!

Yes! Best strategy is likely to just hodl lol

It’s certainly not the worst strategy. Btw I haven’t upvoted because my voting power is recharging and atm my steem power is not enough to even add $0.01 as a curation reward. However you are on my follow list and I will be able to support in the future!

That is a massive pain..... I have many different exchanges and I have to print out all that and take it... ugh.

I feel your pain, been doing the same.

The way bitcoin is being Endorsed these days I'd say by 2025 most countries would also endorse it as a legal tender.
Big news indeed buddy

Agreed, of course between now and then we still have to deal w the nonsense.

The Wyoming House Bill 70 (HB0070) passed the third reading by all 60 house members on February 19. The bill states:

AN ACT relating to securities; providing that a person who develops, sells or facilitates the exchange of an open blockchain token is not subject to specified securities and money transmission laws; making conforming amendments and providing for an effective date.

Wyoming has a few other pending bills which are related to blockchain and cryptocurrency including Wyoming House Bill 19 (HB0019) and Wyoming Senate Bill 111 (SF0111).
More details: Wyoming Is On A Roll: New Bill Exempts Tokens From Securities Law

I saw that, big news. Thank god for Wyoming!

can you teach me slowly?

  ·  7 years ago Reveal Comment

Cheers!

Thanks for your Cryptocurrency news

Want to track gain/loss to help file your taxes - check out https://hubwallet.io for all your portfolio tracking needs! Btw, great post!

Will do, thanks!

How can I track gain/loss? How to create responsible tax preparation and filing?

You can hire someone or get some software that does the tracking. Someone else suggested hubwallet.io but I haven't tried out yet.
It's a big pain so I hired someone.

evelations about how few are paying the taxes due on their crypto profits continued this week, as a credit monitoring service released its findings on the issue

Saw that, I think we need to take those numbers w a grain of salt. Anyone w/ a lot of trades will need more time to prepare.

essential information about cryptocurrency.
thanks for sharing.
carry on

There is a reason Arizona accepts tax payments in bitcoin. Something big is cooking up to the federal state to dry out profits from bitcoin (IMHO)

If the govt had any sense they'd be mining BTC already, imo.

thank you for information

Cheers!

Thanks for info @g-dubs

They say with more power there's more responsibility

Yea like mo money mo problems lol ;-p

It's a nice article about crypto

Thanks!

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Only two things are certain in life: death and taxes. - Benjamin Franklin.
Thanks for posting this. For those of us in US of A it will come in handy.

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