bitcoins

[Entoptic]

I believe China saw the problem of fraudulent ICO's, and wanted to put a halt to it temporarily until they had some regulations in place. I am definitely for that. They never outlawed cryptocurrency possession or mining. They explicitly said so. The American media took that as China banning bitcoin. Nothing could be farther from the truth. They didnt ban speculative trading at all just icos until now.

As far as the miners I figure I got them pretty cheap. And I just transferred btc to another wallet so I didnt incur a tax liability. I never paid with cash. The deal was done purely with bitcoin. Priced in btc not usd. Im going to keep three for myself. Theoretically they should mine me 1.09 each a year. Power will cost me about $100 a month each. Bitcoin would have to drop to about 1200 each before its no longer profitable.

Making a purchase is considered a taxable event. You will get busted for it. The irs will track your known wallet and follow it to the other wallet. Then they’ll dig info on that wallet and figure it out from there. If the wallet is of a US citizen they will audit it and start asking questions that will lead back to your wallet which the irs already has attached to your name.

Please correct me if I’m wrong.

 

[Entoptic]

They did.

LTC is at $129 and ETH is at $476.

BTC is back at $16,000

When BTC is on the rise, folks dump out of alt coins to ride the wave and sell at the top. When it starts going down, they put their money back into the Alts.

I've done this a few times and have had the rise of BTC pay for more ETH and LTC while they're lower.



LTC is at an all time high right now.

This is how I play the market.

 

[Climber]

This was said about Bitcoin in 2015...sorry that was some time ago if you don't know the date.

Instead of the poopooing you could have invested $10,000 in Bitcoin in 2015 at $333.00 and now had $510,000.

Oh, nobody is contesting the increase in value, but the potential is there for the value to go to $0.01 in a day also exists....

The value is only what it is perceived to be and that can change in minutes. There is nothing of value to hold up the price if people lose confidence, the only thing driving the perceived price up so far is greed and the expectations of personal gain. Lose that and it could lose all value.

 

[afm199]

Making a purchase is considered a taxable event. You will get busted for it. The irs will track your known wallet and follow it to the other wallet. Then they’ll dig info on that wallet and figure it out from there. If the wallet is of a US citizen they will audit it and start asking questions that will lead back to your wallet which the irs already has attached to your name.

Please correct me if I’m wrong.

Correct. Trying to cheat the IRS is not only a felony, it's punishable by up to five years in jail. Anyone who thinks they have a sure fire way to do this REALLY needs to think twice about it. Ask Wesley Snipes. Anyone who talks about it on a public forum is basically saying: "Come fuck me."

 

[afm199]

Oh, nobody is contesting the increase in value, but the potential is there for the value to go to $0.01 in a day also exists....

The value is only what it is perceived to be and that can change in minutes. There is nothing of value to hold up the price if people lose confidence, the only thing driving the perceived price up so far is greed and the expectations of personal gain. Lose that and it could lose all value.

Shh. Remember the dot com stocks? They were all going to make the purchasers very very rich.

But Bitcoin, it's a sure thing and everyone who does will get rich because belief.

 

[panthera]

Making a purchase is considered a taxable event. You will get busted for it. The irs will track your known wallet and follow it to the other wallet. Then they’ll dig info on that wallet and figure it out from there. If the wallet is of a US citizen they will audit it and start asking questions that will lead back to your wallet which the irs already has attached to your name.

Please correct me if I’m wrong.

My tax preparer is looking into it now. Initially I was told that it was priced in btc not usd so no tax liability but this is still a gray area and I am not trying to cheat anyone. I'll do whatever Is required by law.

 

[stangmx13]

after 4 days of day trading on GDAX with $50, ive made $2 . i know just about nothing about day trading, so i started small. so far, my most common mistake is getting out too early.

They did.

LTC is at $129 and ETH is at $476.

BTC is back at $16,000

When BTC is on the rise, folks dump out of alt coins to ride the wave and sell at the top. When it starts going down, they put their money back into the Alts.

I've done this a few times and have had the rise of BTC pay for more ETH and LTC while they're lower.

LTC is at an all time high right now.

good to know.

 

[Yakoo752]

Making a purchase is considered a taxable event. You will get busted for it. The irs will track your known wallet and follow it to the other wallet. Then they’ll dig info on that wallet and figure it out from there. If the wallet is of a US citizen they will audit it and start asking questions that will lead back to your wallet which the irs already has attached to your name.

Please correct me if I’m wrong.

The sale of any asset is a taxable event. Doesn’t matter the currency it is transacted in.

 

[Entoptic]

My tax preparer is looking into it now. Initially I was told that it was priced in btc not usd so no tax liability but this is still a gray area and I am not trying to cheat anyone. I'll do whatever Is required by law.

Glad you're looking into it. I don't want to come off as calling you a fraud cause it's pretty clear you're not. I just want to ensure you don't get fucked by the IRS and it appears that you're taking the proper steps not to get screwed,

 

[afm199]

The sale of any asset is a taxable event. Doesn’t matter the currency it is transacted in.

Yes and no. There are exceptions but Bitcoin isn't one of them.

If you sell a car it's not a taxable event. (Well there is use tax, but the buyer pays that.)

 

[Entoptic]

The sale of any asset is a taxable event. Doesn’t matter the currency it is transacted in.

Just like his sandwiches that he buys daily at a 40% tax. Like I said, I don't want him to get screwed but it seems as though the IRS will go after that 40%.

 

[Smash Allen]

Just like his sandwiches that he buys daily at a 40% tax. Like I said, I don't want him to get screwed but it seems as though the IRS will go after that 40%.

they will also want the 40% on the BTC gains sold to buy ETH or LTC

Six types of property are not eligible for a like-kind exchange: (1) stock in trade or other property held primarily for sale; (2) stock, bonds, or notes; (3) other securities or evidences of indebtedness or interest;​

https://en.wikipedia.org/wiki/Like-kind_exchange

 

[Yakoo752]

Yes and no. There are exceptions but Bitcoin isn't one of them.

If you sell a car it's not a taxable event. (Well there is use tax, but the buyer pays that.)

If you sell a car for a profit (more then you paid) it’s a taxable event

The IRS only really cares about gains.

 

[E.HONDA]

tax question. With alts, you usually buy and sell them with BTC.

I am looking at my trading history and it has the BTC value, not the USD value. Do I need to go into the BTC history for the exact time I bought/sold these positions to declare these during taxes?

 

[Yakoo752]

Hmmm. Interesting one.

 

[Climber]

Isn't one of the attractions to bitcoins being that large transactions could be made anonymously?

Wouldn't they be less attractive, to some buyers, if that it didn't work that way?

 

[jiffy]

Oh, nobody is contesting the increase in value, but the potential is there for the value to go to $0.01 in a day also exists....

The value is only what it is perceived to be and that can change in minutes. There is nothing of value to hold up the price if people lose confidence, the only thing driving the perceived price up so far is greed and the expectations of personal gain. Lose that and it could lose all value.

There are use cases for Bitcoin, ease of transactions, speed of transactions, no bank needed, etc. There is also value based on the cost to "mine" Bitcoin. The difficulty to do so increases, costing the "miners" more, which increased the value over time.

https://www.wired.com/story/bitcoin-has-no-intrinsic-value-neither-does-a-dollar1-bill/


From an article on intrinsic value of Bitcoin.
"What bitcoin does have in its—still largely theoretical—favor is ease, speed, security, and a final benefit less evident to denizens of the developed world: its users don’t need a bank account and don’t need to trust their government. For hundreds of millions in the emerging worldwide middle class, those are not givens, and bitcoin and its digital brethren offer alternatives to too few banks and erratic financial systems managed by unreliable governments. It is perhaps not surprising that Casares hails from Argentina, whose governments over the past decades have shown a ruthless disregard for the value of the peso and have manipulated the currency to maintain power at the expense of public and private savings and livelihoods."

 

[jiffy]

Shh. Remember the dot com stocks? They were all going to make the purchasers very very rich.

But Bitcoin, it's a sure thing and everyone who does will get rich because belief.

I don't remember the dot.com stocks ever granting anyone guaranteed riches. Nor did anyone in this thread refer to Bitcoin as a guarantee for riches. All investments have volatility and the chance to hit 0.

People would say a safer investment is GM in 2000, not a dot.com. But after 101 years in the industry GM files chapter 11 and leaves stock holders with nothing in 2009...

 

[RightCoastBias]

I don't remember the dot.com stocks ever granting anyone guaranteed riches. Nor did anyone in this thread refer to Bitcoin as a guarantee for riches. All investments have volatility and the chance to hit 0.

People would say a safer investment is GM in 2000, not a dot.com. But after 101 years in the industry GM files chapter 11 and leaves stock holders with nothing in 2009...

So, are you trying to say investment is risky?


Who knew?

 

[Yakoo752]

Isn't one of the attractions to bitcoins being that large transactions could be made anonymously?

Wouldn't they be less attractive, to some buyers, if that it didn't work that way?

Yes and no

You have to do quite a bit to make your transactions truly anonymous.

Those willing to put in the effort value it.