posted Thu, 04/07/2022 - 02:32
1604
+ 1 Bitcoin and paying taxes
ad
Ok I have a serious question for anyone that might know the answer. Are we going to have to pay taxes on transactions when we use bitcoin for payment? I was reading about how all the transactions we make while using bitcoin we are going to have to keep up with them and pay the taxes at the end of the year on our taxes. Can anyone confirm this?
- Bookmark
- 1
- 0
Guess I need to ditch coinbase
it's complicated. You get taxes on gains with crypto. If you make an order and pay with crypto 1 in 1 out, it's 0. If you buy crypto at 1 and it becomes valued at 2, you have to pay on the additional gains of 1.
In reality, crypto is tracked a few ways and there's plenty of ways to keep it away from Uncle Sam I am.
1. Use decentralized crypto services like Kucoin
2. Don't use or verify on coinbase, coinbase does report which means you have to report.
3. Keep your coins on a ledger or similar device and never tell anyone you have them.
If you have coins that have been bought legally, you are at a loss until you trade or sell them, of course you have to report your trades or losses if they're moved to a decentralized or key held wallet...chance of someone coming to ask about your crypto? close to 0, if they do, people lose crypto all the time..
Tumble your coins, move them to monero, etc.
My accountant asked me this question a couple weeks ago. If you made a certain amount of profit off of bitcoin you have to claim it as income. I just told her i have none. They regulate and tax anything they can make a penny off of.
Ok in other words you can send it and not be taxed on it. I only put what I need in there for what I’m getting and send it right away. It is never collecting any interest or making a profit on it. I pretty much send it FIFO(First In First Out). Have made no money off of bitcoin. So I guess I’m in the clear then. Yes!
Yes
No they tax you on what you sent
But also its 2022 everyone should own some bitcoin for the future when it hits 120,000 a coin
Btc is not anonymous, if you are experienced in tracking transactions. Any time you sell or convert your making a taxable event. If you profit then you will need to pay taxes on said profit, or write off the loss if that was the case.
Bitcoin is not 100% anonymous, but there are ways to…Mix it up… that will make it way more difficult to track your transactions.
The amount of time and resources it would take to put a name on a wallet address is significant however.
Yukon_JackThat goes for any & everything. Even ur mortgage if u never intend on selling ur house. U will eventually pay capital gains on everything u own till u don’t own it anymore. The FED just raised rates Tuesday & they said they’re gonna raise rates each time they meet this year(6 times).
The “Great Reset”. Inflation is at a record high. Hasn’t been this high in 40yrs.
National debt is also the highest.
The more money they print the less the dollar is worth. Oh I could keep going. This country has gone to absolute shit.
PropheticWookieThis country is heading for the abyss. With such a prized clown. Which confuses and forgets. And it will get worse and worse.
It's usually only if you sell Bitcoin and you make a profit you have to pay taxes, you don't pay taxes for buying Bitcoin. I'm not 100% positive, but I don't think you pay for sending. But it also depends on what wallet/provider you use for taxes. It's better to use non mainstream wallets where you don't have to verify your identity.
I use cash app so is there a non mainstream wallet out there?
Cash app just had a major security breach
There's alot of them out there, off the top of my head I don't know one to recommend. Just do some research on Google.
i thought the whole point of BC was to be anonymous.
PropheticWookieYes, that is right. after all, you can make transfers directly from wallet to wallet, without various exchanges where you need kyc
It is no where near as anonymous as people think it is and is very easily tracked unless you really know what you are doing.
It is anonymous. But the goverment see’s you sent it somewhere. They assune you send it to an off sure bank account. So they charge you as if you sold it
In America, the short answer is yes. The government sees this transaction as the same as converting your btc to usd...both a taxable transactions.
What bitcoin company do you use
Cash app, is there a better one that is non mainstream?
I use a main stream and get banged in taxes
Only if you're an idiot.
Sent ya a fr please. I got screwed this year
I would like to hear the answer to that