posted Thu, 12/03/2020 - 11:56
1470
Bitcoin in the US
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Just seeing these reports about crypto currency questions being on next years tax forms. The only thing I’ve used Bitcoin on the past year is gear. I’m just guessing probably somewhere between $1-2K in US dollars. Anyone have any insight on if they should claim it? Right now I wasn’t planning on bringing it up. I know this isn’t the place to be seeking legal or financial advice, but I’m sure other people in this community are going to have the same question soon. Thanks
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I really don’t think your gear purchase will come to question.. if you were spending thousands upon thousands of dollars, then maybe. All they want is to tax the guys who are trading or selling big amounts of Bitcoin. IRS only cares about making money. Your 1k will not do anything for the IRS. (IMO).
You start making purchases over 10k you might draw some attention but even then BTC requires a lot of effort so I doubt it.
^^ well said
Bitcoin is property as far as the IRS is concerned.
if you bought the property (any property) for $10 USD and over the years the asset goes up in price, you only need to report the gain when you sell the property. i.e., If you bought bitcoin for $10 USD, sold it for $100 USD, you'd report $90 USD.
I wouldn't get into the weeds about how you spend bitcoin or how much is in your crypto wallet... Just worry about how many USD you buy with it and if it's more than what you spent on it.
Claim it. Print out and save your Gear order purchase history to the tax preparer. Big tax credit in 2021.
Good point. Once they down schedule it like all the other drugs I should be able to write it off as necessary treatment
They are referring to the capital gains from investing in coin (as is done with stocks, commodities, real estate, etc) not using it for purchase of goods and services.
Exactly. If you didn’t earn income from it your ok.
That’s my story anyway..