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> Few people pay taxes on [their Bitcoin holdings] >>This is tax fraud. It is not; you only have a tax liability when you cash out, not when you hold, you cou
by kwelstr 9y ago
> Few people pay taxes on [their Bitcoin holdings]
>>This is tax fraud.
It is not; you only have a tax liability when you cash out, not when you hold, you could cash out and have a gain or have a loss and you need to reflect that on your income tax for that year.
- JumpCrisscross 9y ago> It is not; you only have a tax liability when you cash out, not when you hold It depends [1]. If you receive the Bitcoins for goods or services, they are taxed as income. If you hold them as capital assets, the IRS won't tax you for holding, though your state or local jurisdiction may. Either way, not reporting those holdings is tax fraud. [1] https://turbotax.intuit.com/tax-tools/tax-tips/Taxes-101/Tax-Tips-for-Bitcoin-and-Virtual-Currency/INF29402.html https://turbotax.intuit.com/tax-tools/tax-tips/Taxes-101/Tax... Disclaimer: I am not a lawyer nor a CPA. This is not legal nor tax advice.
- freeloop2 9y agoAnytime you trade one cryptocurrency for another, you also are taxed
- AlexCoventry 9y agoYou are mistaken, and your advice has the potential to severely harm people who take it. The IRS has been very explicit that, as with all barter, they want their slice and are entitled to it under law. The details are in their 2014 guidance, which you should read carefully if you're messing with cryptocurrency without competent legal or tax advice. https://www.irs.gov/pub/irs-drop/n-14-21.pdf https://www.irs.gov/pub/irs-drop/n-14-21.pdf