5 ms·
The IRS's decision, if actually enforced, is going to make legitimate transactions with bitcoin almost impossible. Filling out a 1099 is a pain in the ass, eve
by mynameishere 13y ago
The IRS's decision, if actually enforced, is going to make legitimate transactions with bitcoin almost impossible. Filling out a 1099 is a pain in the ass, even with relatively light trading, in which you might buy a block of 1000 shares at 55 dollars, and sell two blocks, one of 600 at 57.568 and another 400 at 57.569. Try doing that with the fluctuations in currency markets. If you buy 10,000 dollars worth of bitcoins, you'll need a new entry for every time you spend them, with a different price for each.
And, if they enforce wash sale laws, you could be liable for totally innocent trades. That probably won't happen though.
- loopdoend 13y agoI'm pretty sure a company like Coinkite or Coinbase could track and automate this and give you something you can print off each year. It might discourage users from using their own wallets for transactions, but that's all.
- sliverstorm 13y agoYou just need a 1099 for every transaction you make, how hard is that?
- shakethemonkey 13y agoNo, only those transactions over $600. And you don't have to do it at all for payments tendered for merchandise, or almost any payment to corporations. http://www.irs.gov/instructions/i1099msc/ar02.html http://www.irs.gov/instructions/i1099msc/ar02.html
- 2arrs2ells 13y agoCalculating capital gains is done with the Schedule D form (http://www.irs.gov/pub/irs-pdf/f1040sd.pdf http://www.irs.gov/pub/irs-pdf/f1040sd.pdf) - not a 1099.