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> No one treats Bitcoin as a currency. ... And the reason behind that is obvious. Something whose value may double in a month or whose value may halve within we

by yunesj 6y ago

> No one treats Bitcoin as a currency. ... And the reason behind that is obvious. Something whose value may double in a month or whose value may halve within weeks is a terrible currency. Nope. I don't buy things in crypto only because of the reporting burden. Every cup of coffee bought with crypto has to be reported on a tax return.

deleted 6y ago
[deleted]
christiansakai 6y ago
I didn’t know this is the case. Source?
- freeone3000 6y ago
  https://www.irs.gov/irb/2014-16_IRB#NOT-2014-21 https://www.irs.gov/irb/2014-16_IRB#NOT-2014-21 It's reported as a security - other, which is laid out like the stock trades 1099. Your taxable amount is the difference in price between what you paid for the currency and what you "sold" it for (both in USD).
px43 6y ago
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- kens 6y ago
  > I've been advised that there's an income tax exemption for "hobby income" ... up to 10k USD per year If you're talking about the US, I think you're wrong: you need to declare all your hobby income, and since 2018, you can't deduct hobby expenses. See e.g. https://www.creditkarma.com/tax/i/hobby-income-taxed https://www.creditkarma.com/tax/i/hobby-income-taxed https://turbotax.intuit.com/tax-tips/self-employment-taxes/4-tax-tips-for-money-making-hobbies/L89qz1GNj https://turbotax.intuit.com/tax-tips/self-employment-taxes/4...
  - px43 6y ago
    Ah yeah, looks like things might have changed since I got that guidance. That's annoying. Would be nice if they didn't keep changing things around all the time.
ur-whale 6y ago
> t buy things in crypto only because of the reporting burden. You should. And then report every cup of coffe on your tax return. And file on actual physical paper, preferably printed with a font that's hard to machine-read.
imtringued 6y ago
That makes no sense unless you are converting the bitcoin to dollars but then it's not being used as a currency. If it was a currency the business would accept bitcoin directly and thus there would be no need to report it on your tax returns.
- yunesj 6y ago
  That’s incorrect. When you buy something with bitcoin, even if it is priced in bitcoin, the IRS considers it a sale or exchange of a capital asset and you have to report the transaction on your return.

by yunesj 6y ago

deleted 6y ago

[deleted]

christiansakai 6y ago

I didn’t know this is the case. Source?

freeone3000 6y ago
https://www.irs.gov/irb/2014-16_IRB#NOT-2014-21 https://www.irs.gov/irb/2014-16_IRB#NOT-2014-21 It's reported as a security - other, which is laid out like the stock trades 1099. Your taxable amount is the difference in price between what you paid for the currency and what you "sold" it for (both in USD).

px43 6y ago

[deleted by user]

kens 6y ago
> I've been advised that there's an income tax exemption for "hobby income" ... up to 10k USD per year If you're talking about the US, I think you're wrong: you need to declare all your hobby income, and since 2018, you can't deduct hobby expenses. See e.g. https://www.creditkarma.com/tax/i/hobby-income-taxed https://www.creditkarma.com/tax/i/hobby-income-taxed https://turbotax.intuit.com/tax-tips/self-employment-taxes/4-tax-tips-for-money-making-hobbies/L89qz1GNj https://turbotax.intuit.com/tax-tips/self-employment-taxes/4...
- px43 6y ago
  Ah yeah, looks like things might have changed since I got that guidance. That's annoying. Would be nice if they didn't keep changing things around all the time.

ur-whale 6y ago

> t buy things in crypto only because of the reporting burden. You should. And then report every cup of coffe on your tax return. And file on actual physical paper, preferably printed with a font that's hard to machine-read.

imtringued 6y ago

That makes no sense unless you are converting the bitcoin to dollars but then it's not being used as a currency. If it was a currency the business would accept bitcoin directly and thus there would be no need to report it on your tax returns.

yunesj 6y ago
That’s incorrect. When you buy something with bitcoin, even if it is priced in bitcoin, the IRS considers it a sale or exchange of a capital asset and you have to report the transaction on your return.