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bitcoins

Yakoo752 said:
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.
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So, if somebody wanted to avoid paying taxes or wanted to buy things with money they weren't supposed to have, they would be able to do so if they went through the trouble?
 
Yes very likely possible

But it’s a little more complicated then this obviously

What good is a bitcoin if you can’t spend it? So bitcoin to bitcoin transactions (buying with bitcoins) are the only method to spend it. But you can’t use a digital wallet to spend because those are connected to your identity. So you have to use a physical wallet. Now you have to find someone that is willing to accept your physical wallet and convert that to USD...
 
E.HONDA said:
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?
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Use bitcoin.tax and connect the API to the exchange that you trade on. Import the history and bitcoin.tax will do the rest.
 
Climber said:
So, if somebody wanted to avoid paying taxes or wanted to buy things with money they weren't supposed to have, they would be able to do so if they went through the trouble?
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It's super easy to do. Use a VPN on the machine that connects to the exchange. Open an account on a exchange banning USA citizens, use fake info. Dump money into said exchange via prepaid disposable cards paid in cash. There are also others ways to transfer money into the exchange.

Do your thing on the exchange.

Cash out by transferring to a wallet and then there are several avenues that come to mind to transfer btc to fiat. Bitcoinlocal.com comes to mind, so does a foreign bank account.

I don't condone this type of behavior, just wanted to show you how easy it is.
 
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Entoptic said:
It's super easy to do. Use a VPN on the machine that connects to the exchange. Open an account on a exchange banning USA citizens, use fake info. Dump money into said exchange via prepaid disposable cards paid in cash. There are also others ways to transfer money into the exchange.

Do your thing on the exchange.

Cash out by transferring to a wallet and then there are several avenues that come to mind to transfer btc to fiat. Bitcoinlocal.com comes to mind, so does a foreign bank account.

I don't condone this type of behavior, just wanted to show you how easy it is.
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A VPN isn’t anonymous. The service is always 1 subpoenae away from turning on you.
 
jiffy said:
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...
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a safer investment would probably be VOO or any one of a dozen tracking ETF's.

But bet all your money on one horse. You're sure to win that way. :thumbup
 
RightCoastBias said:
If you're not using a US based VPN, they likely won't respond to subpoenas.
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Yeah... Manafort thought he had that all figured out too (yes, he hasn’t been convicted but today’s reports from the courthouse suggest there is a mountain of evidence #FakeNews ) ;)

The IRS is the 1 US dept you don’t fuck with
 
When coinbase sends out the “Please Invest Resposibly” the Friday before it gets listed on the option market

:laughing

Maybe it was Thursday? I’m behind on emails.
 
Well with litecoin launching into space the last few days I've doubled up my initial input. Granted, that was small, only bought five coins 2.5 weeks ago. But dang, think I might put a little bit more in on the next dip and try to wring a nice family vacation out of this crypto thing.
 
CABilly said:
Well with litecoin launching into space the last few days I've doubled up my initial input. Granted, that was small, only bought five coins 2.5 weeks ago. But dang, think I might put a little bit more in on the next dip and try to wring a nice family vacation out of this crypto thing.
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LTC is funding my BTC obsession right now. Scalping 2 - 5 dollars here and there around the 160-170 mark.
 
So lets say Alice bought bunch of bitcoins for 10 bucks a piece.
They appreciated to 10k, and she decided to buy a motorcycle for 10k and use one of her bit coins.
She uses something like bitpay. Which as I understand takes her bitcoin sells it on exchange and transfers money to Bobs account.
As I understand it there needs to be
1) sales tax paid
2) capital gains tax paid

Correct?
 
I do not think sales tax would be paid

Capital gains would be paid

Virtual currency is treated as property would be. You would treat it similar to stocks

It also means every time you spend some bitcoins, you should be document the gain on the disposition. Buy bubblegum with bitcoin, pay capital gains on it.
 
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How many people properly estimated their taxes this year and submitted quarterly payments?

:laughing. Enjoy your penalty
 
IRS recommendation for bitcoin users (not investors)

Establish a record-keeping system.
Keep track of when you acquire and when you dispose of bitcoins.
Record dispositions of bitcoins on Schedule D and Form 8949.
Each purchase using bitcoin is two transactions in one: an implied disposition and an expense.
 
Yakoo752 said:
I do not think sales tax would be paid

Capital gains would be paid

Virtual currency is treated as property would be. You would treat it similar to stocks

It also means every time you spend some bitcoins, you should be document the gain on the disposition. Buy bubblegum with bitcoin, pay capital gains on it.
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Why not, you are buying something? It will be collected on merchant side.
 
UDRider said:
Why not, you are buying something? It will be collected on merchant side.
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It's actually dependent on the situation.

With a private seller, there's no sales tax paid. You buy a moto for $10,000, it's $10,000. When you register it, you pay the sales tax. If you don't register, there's no tax.

With a dealer, they estimate the tax and charge it at time of sale.
 
UDRider said:
Why not, you are buying something? It will be collected on merchant side.
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Income tax, not sales tax. I believe that when you transact in currency other than the dollar, you are required to recognize any appreciation of that currency from the time you acquired it as income. Foreign currency (i.e., not dollars) are regarded as property by the IRS.
 
Ouch. I'd guess you'd have to value it at the time of the theft.
 
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