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My only concern is that I bought Bitcoin for a friend because he had trouble setting his account up. Now that tax time is coming up, this has me worried that I'
by eximius 9y ago
My only concern is that I bought Bitcoin for a friend because he had trouble setting his account up. Now that tax time is coming up, this has me worried that I'll get singled out because what I claim doesn't match my account. He's filing for his portion of things, so it should all work out in the end, but I don't want to be audited to have to explain that.
- toomuchtodo 9y agoTalk to a tax accountant. My gut would tell me you should file to match your account transactions, and your friend should write you a check to cover the incurred tax liability.
- wheelerwj 9y agoI am not a lawyer or cpa but it sounds like a similar case when someone may have invested in bitcoin and immediately realized they were over extended. So they decided to reduce their position for a small transaction fee. Unfortunately this was enough to make the trade a small loss and ultimately I don’t know many people who pay taxes on losses.
- tlrobinson 9y agoAm I missing something? You pay taxes on gains, not losses.
- jjeaff 9y agoIt won't matter if it's a small amount. But you will simply need to show it on your tax calculations. Your 1099k will only have gross numbers. You will do the profit calculations. So the Bitcoin you sent to a friend will be deducted when you make your calculations.