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How much did you buy them for? That is your reportable loss.
by chime 13y ago
How much did you buy them for? That is your reportable loss.
- Xcelerate 13y agoWell crap. I bought them for about $50 in Feb 2013. EDIT: Now I don't know what to do. This is kind of confusing. I bought 1.82 BTC in Feb 2013, traded, played around with them, and lost some. Then I sold what I had left to Gox USD about 5 months ago ($500) and repurchased 2 BTC during the "withdraws are disabled" period a few weeks ago. I'm going have to read more about this I think.
- dragontamer 13y agoI'm not a lawyer or a tax advisor... but I'll tell you what I think so that you can kick-off your research. You spent $50 and then sold them for $500. That is a $450 short-term capital gains tax. If you held onto them for more than a year, then it'd be a long-term capital gains tax. (But since you were actively trading, its definitely going to be taxxed at the higher short-term rate) You then re-bought the 2BTC and totally lost them. That would be a capital loss (which if reported, will lower the amount that you are taxed)
- genwin 13y agoDon't take my advice: Forget about it. Don't spend many hours trying to report a relatively small loss the IRS presumably doesn't know about, especially of a new type of property the IRS might be very interested to know (if only via an audit) how much more you have possession of.