Bitcoin IRS?

So I've only used bitcoin to purchase through this site. Do I need to say yes to the crypto question on my taxes? Last year I used coinmama and cash app to buy bitcoin. Are they able to track these transactions?

Comments

  • I think as long as you didnt buy or sell $10,000 or more your ok.dont hold me to that though

  • Was wondering about this also ... I was planning to say "no" , kinda hoping that what @Kayla said is true .. I think they are more worried about ppl with large amounts, investing, etc etc.

    But I would love to hear others chime in with their thoughts on this .. I kinda figured it would be best to point as much activity away from my bitcoin activities as possible 🤫📦

  • edited January 30

    Not a taxman but I’d say almost if not all of us don’t need to declare anything.

    Way I buy coin is transfer cash to cashapp from my checking account. Then buy coin to my wallet. All in bites under $1K per transaction. And I have never sold coin back.

    The government is trolling for bigger fish who could be at risk if they don’t declare. Not me that’s for sure. With that said, who knows? This is the first year for this, it’s kinda on the honor system and unless i get a tax form from where i buy coin (see below) I’m not going to worry.

    This way, if you bought some Ethereum and then sell it or if you swap it for something else, you've incurred a capital gain or a capital loss. If you captured a gain, then you're responsible for taxes.

    Here's where things can get confusing: Major cryptocurrency exchanges may provide taxpayers with a Form 1099-K with these details – if they've had gross payments exceeding $20,000 and they've made more than 200 transactions.

    https://cnbc.com/amp/2020/11/20/heres-what-you-need-to-know-when-reporting-virtual-currency-to-the-irs.html

  • edited January 30

    Yes and as long as you're not holding $3,000 or more you won't be on the hook for fincen reporting

  • @MikeyC i can imagine the nightmare the irs would have if they halve the current reportable amount. $10G sitting in a software wallet isn’t unheard of nowadays.

  • They want 3,000 though. That was the original amount. This isn't the IRS either- fincen is global anti money laundering

  • @MikeyC dang bro, $3k is hardly any coin at all. Seems a lot of regulators don’t like Crypto, it got a tarnished underground rep early on that may be difficult to let go.

  • Pretty sure if you buy bitcoin then spend bitcoin (like on here) it's not a gain, it's a transaction. And if you buy and gain interest but don't sell, you also have not gained, not yet.

  • I honestly have no idea how you'd have to report anything ever if you do not convert bitcoin to cash. That's the only way to have a capital gain. Even if you buy and hold, then spend less than you might have had to. There is no gain in the eyes of the IRS unless you invest cash, then sell for cash.

  • Sixwaychili- there's no like kind exchange with crypto. Exchanging it for this should be fine though.

  • Until I can get some tax break for all the cash I spend on medicine, I won't be declaring anything bitcoin-related.

  • edited February 9

    I don't pay taxes myself (I sell weed & mushrooms locally & I also work for a company called Agero dispatching roadside assistance to folks located in the United States.) I'm able to avoid the tax implications because the money that I make goes into an account located in the Cayman Islands. The amount of money required to open the account was 1,000 bucks American & as much as I wanted to actually go to the Cayman Islands there was no need to I was able to open the account from the comfort by apartment. I simply transfer the money from the account in the Caymans to one of my few US accounts all of which never have in them more than $1,300.

  • @PCT90 My man! We're going off-grid, possibly before the end of the year. Growing food and pot out there, plan to have enough btc to subside off of the inflation 😎 thanks for the cayman info

  • edited February 9

    @Five12Man Easily one of the best choices I've made. My ex neighbor who was in a lot of people mind's a grade A dick, & another neighbor convinced me to come with them to a construction site to steal wood for a bike ramp...ahh simpler times...got me drunk at 14, handcuffed me to a dumpster at aforementioned construction site & cut off my clothes & left. The first neighbor now sells coke in Honolulu. Owns 2 7k sq foot mansions & at least 4 high end cars. I'm talking worth several $100,000 each. Anyway I was always jealous of that when I found out about it. He spent his childhood treating me like shit and then gets to live the good life. My idea of a higher class of living is a 170 acre farm in Vermont, plenty of horses, cannabis crop, mushroom crop, fishing lake, shooting range, a few deer stands, a clawfoot tub & a bedroom with a fireplace & a california king.

    By the way...

    https://www.caymannational.com/personal-banking/accounts-savings.html

  • @Five12Man look into blockfi.com. If you have BTC you won't touch for a while they'll pay you up to 8.6% in interest. That's where my $1400 is going minus an early rent payment of $475.00.

  • edited February 10

    fuck yeah better HODl that BC @PCT90

  • @groundscreeper did you mean to say hold that bitcoin or am I overlooking something?

  • I was wondering the same thing I bought a few aave last year and it went way up this year I haven’t figured out what to do about it tax wise yet

  • Very good topic and one worthy of deep investigation.

    Fuck the IRS. They're getting dismantled anyway along with the Fed Reserve in the near future so don't even worry about it.

    Did you know that the IRS is the only organization in America that can "legally" clear out your bank account without a court order?

    IRS is simply a private collection agency that serves the interests of the Fed Reserve...a private bank owned by You Know Who that issues our currency and lends it with interest attached. Fed Reserve is no more federal than FedEx.

    I suspect a lot of people in this country, especially the youngsters don't know this, nor do they even contemplate such topics.

  • @PCT90 HODL means hold on for dear life

  • @Slapjack Yeah. I looked it up. Some drunk cryptocurrency enthusiast misspelled hold & it just stuck

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