4 ms·

I bet the IRS data is wrong. After all, it's not as if Schedule D [0] or Form 8949 [1] has a standardized way to report it. There's no official ticker symbol,

I bet the IRS data is wrong. After all, it's not as if Schedule D [0] or Form 8949 [1] has a standardized way to report it. There's no official ticker symbol, so you just write in a description. I paid capital gains taxes on trading in 2015, and I wrote in something like "gain on sale of digital currency". I can't believe I'm one of just 802 people to have paid taxes on these transactions. [0] https://www.irs.gov/pub/irs-pdf/f1040sd.pdf https://www.irs.gov/pub/irs-pdf/f1040sd.pdf (pdf) [1] https://www.irs.gov/pub/irs-pdf/f8949.pdf https://www.irs.gov/pub/irs-pdf/f8949.pdf (pdf)

SilasX 9y ago
I'm trying to do this legit, and I have some gains this year, but the attorney I consulted assured me that a) I wouldn't have to pay early estimated taxes, and b) I should likewise make the 8949 inconvenient to use (in my case, by mailing them a printout).
kingnothing 9y ago
Absolutely this. I made some money in the first bitcoin bubble and paid taxes on it, but there certainly wasn't a "Bitcoin trading" option. I think my accountant set it up more or less as a misc capital gain.
the_evacuator 9y ago
Yeah, my taxes always just summarize capital gains as "various" on Sched. D.
3327 9y ago
I believe in President Trump's words you are a "Sucka".
nwatson 9y ago
I paid capital gains on my sale of 325 BTC and used the profits to buy a Butterfly Labs Monarch mining machine. I was unlucky ... BFL never got their engineering straight and the machine never appeared. I was lucky ... I demanded a refund early and got back a full cash refund. I was unlucky ... 325 BTC today would be worth US$1.35 million had I just held on instead of buying a BFL machine. I was lucky ... my 325 BTC was held at Mt Gox and we know those BTC all vanished. So ... I'm glad I made some decent gains back in the day, but I sure wish I still had the 325 BTC in a legitimate and safe form.
- hossbeast 9y ago
  Thanks for sharing (it's genuinely interesting) but seems unrelated to GP's post.
- otp124 9y ago
  So, did you pay taxes on the BTC sale? I appreciate your story, but it's not really relevant. Did you comment on the wrong post?
  - lathiat 9y ago
    > I paid capital gains on my sale of 325 BTC and used the profits to buy a Butterfly Labs Monarch mining machine. Did I miss something?
fapjacks 9y ago
But but that doesn't fit the narrative the IRS is peddling.
ringaroundthetx 9y ago
Hm I definitely reported and I wonder if that is counted, I just checked my tax filings, I have 2014 and 2015 available with Find "8949", as I was unsure of what document that was, I see that I reported a sell of BTC in 2014. I wonder if that was counted. In 2015 I see a sell reported of Ether, because of the crowdsale selling. (Yes, and this is why I'm not rich). I wonder if that was counted > Here is a paragraph from Utzke's affidavit that states only 802 individuals filed a bitcoin-related Form 8949 in 2015 Oops they only looked for bitcoin.

SilasX 9y ago

I'm trying to do this legit, and I have some gains this year, but the attorney I consulted assured me that a) I wouldn't have to pay early estimated taxes, and b) I should likewise make the 8949 inconvenient to use (in my case, by mailing them a printout).

kingnothing 9y ago

Absolutely this. I made some money in the first bitcoin bubble and paid taxes on it, but there certainly wasn't a "Bitcoin trading" option. I think my accountant set it up more or less as a misc capital gain.

the_evacuator 9y ago

Yeah, my taxes always just summarize capital gains as "various" on Sched. D.

3327 9y ago

I believe in President Trump's words you are a "Sucka".

nwatson 9y ago

I paid capital gains on my sale of 325 BTC and used the profits to buy a Butterfly Labs Monarch mining machine. I was unlucky ... BFL never got their engineering straight and the machine never appeared. I was lucky ... I demanded a refund early and got back a full cash refund. I was unlucky ... 325 BTC today would be worth US$1.35 million had I just held on instead of buying a BFL machine. I was lucky ... my 325 BTC was held at Mt Gox and we know those BTC all vanished. So ... I'm glad I made some decent gains back in the day, but I sure wish I still had the 325 BTC in a legitimate and safe form.

hossbeast 9y ago
Thanks for sharing (it's genuinely interesting) but seems unrelated to GP's post.
otp124 9y ago
So, did you pay taxes on the BTC sale? I appreciate your story, but it's not really relevant. Did you comment on the wrong post?
- lathiat 9y ago
  > I paid capital gains on my sale of 325 BTC and used the profits to buy a Butterfly Labs Monarch mining machine. Did I miss something?

fapjacks 9y ago

But but that doesn't fit the narrative the IRS is peddling.

ringaroundthetx 9y ago

Hm I definitely reported and I wonder if that is counted, I just checked my tax filings, I have 2014 and 2015 available with Find "8949", as I was unsure of what document that was, I see that I reported a sell of BTC in 2014. I wonder if that was counted. In 2015 I see a sell reported of Ether, because of the crowdsale selling. (Yes, and this is why I'm not rich). I wonder if that was counted > Here is a paragraph from Utzke's affidavit that states only 802 individuals filed a bitcoin-related Form 8949 in 2015 Oops they only looked for bitcoin.