Quote from: cuteman on August 08, 2017, 04:57:10 PM

Quote from: Albortz on August 08, 2017, 03:11:55 PM

if they find out who you are and that you mined with the intention of profit (and we all do that) they will check if you are registered or declared the gains in your tax.

Profit arises when one sells crypto for fiat money, doesn't it? This they can't figure out, unless you show them your wallets, sales on exchanges etc.

Another point, If you just keep crypto on your wallet, it can't be considered a profit, because crypto is not considered to be money by governments, so there is no profit. Imagine you bought some game tokens for $1, and just keep them. One day these tokens' price increases to $2. Will tax authorities demand from you to pay $1 difference ?

Another example - you bought 5 years ago one ounce of gold for $1000, and now it costs $1300. Do you need to pay taxes just because it's market price increased?? Wink

Ok just for the fun.

1)

If they know you were mining. e.x. they know its your miner (your american) they will google how much the hash rate is, look up the info since when the miner is active and they can simply calculate it. The IRS person who is responsible for your account is getting paid to do exactly that.

Second they can just ask GIGA since they manage your miner and will have (or should have) every payment of every miner.

And believing that you can hide your crypto is naive since we see Silk Road vendors getting busted because of money trails years after the takedown....

2)

Crypto is considered legal tender in multiple countries. If you blindly spread informations stating its not considered money, people without knowledge will read that and get tanked.... So please try to at least structure it in a way ppl see you are talking about america.

3)

It is considered profit when you exchange it. This might be the case in america right now, won't stay like this a lot longer. The simple fact that you can buy with BTC is enough to say the newly generated coins are equal to legal tender that can be used to buy products and services in RL

After that argumentation you would not need to pay any taxes on anything you earn as long as you are payed in BTC. You are selling/renting hashing power to the network and get payed for it. Your input is electricity. Output BTC. Thats profit.

4)

Your gold example is basically right. You need to pay taxes on increase of value. You might have a rule in america like we have, that every gain is tax free as long as between buy and sell is 1 year or more. And this goes for gold only since it is considered a capital asset.

I don't know that, but as long as it would be under 1 year yes you need to pay taxes on it. When you buy a painting and it increases in value you got to pay tax on the sale also. This is not a capital asset, therefore it would be normal sales tax.

Regarding your game token, they will not come after you for 10 bucks. We are talking about more than 10 bucks here. People will be able to pull thousands of dollars out of their miners. And yes if they can collect tax, they will.

If you are not residing inside the US, they might put you on a list to pull you out of immigration check on your next holiday. But that is not my concern. Its that GIGA gets fined because they don't make sure they are safe and in the end go belly up and everyone looses their shit.

BTC-e had good people trading their and now look what happened. Money gone, Site gone the IRS and FBI are partying hard and don't give a shit that thousands of people lost money. They got their guy right Roll Eyes

Another example could be coinbase where the IRS and FBI ordered the data of every user that could be of interest