4 ms·

I wonder if there's an aspect of being in too deep already. I'm not sure I would have thought about reporting Bitcoin gains years ago when it was more of a tec

I wonder if there's an aspect of being in too deep already. I'm not sure I would have thought about reporting Bitcoin gains years ago when it was more of a technical interest. Now that it has skyrocketed, I can imagine scenarios where people wouldn't have enough USD to cover the taxes so instead of selling their Bitcoin they just keep quiet. Oklahoma had a similar thing on their state tax forms for internet sales tax, everyone just checked the "I didn't shop online" box to the tune of about 90%.

tathougies 8y ago
You aren't taxed on the estimated value of your bitcoin. If you bought bitcoin at $2 (for example) five years ago, and now it's worth $5000, you owe no taxes. However, if you sell the bitcoin for a gain of $4998 USD, now you owe tax on the $4998 you realized in gain. Unless, you sell your bitcoin and just spend all the money, you should be fine just keeping your money in bitcoin.