Quote from: bitfools on December 08, 2017, 05:29:53 AM

Quote from: real_newguy05 on December 08, 2017, 02:35:00 AM

With bitcoin hitting all time high, like to hear what everyone is doing with their taxes for the profits. Be honest, lets have a open discussion.

I plan to file with irs and pay the capital gain tax. I think it's just a matter of time before coinbase hands over all records to irs anyway, they are fighting for the 2015 and earlier info now, but i am sure 2016/2017 will be easier to get.

I am fine paying my share of the taxes due, only real concern is irs will use it as an indicator to flag me for audit. So basically trying to do it right but end up getting screwed.

What is everyone's thoughts and plan? given it's almost tax season.

WORD on street is that if U cashed out on MORE than $20K in BTC on COINBASE then the IRS has their target bead painted on your ass.

What this means is that you have $20K undeclared income fully taxed with back taxes and penalty's owed, which can easily exceed the original $20k,

IF you mine, then burden is on U to prove your mining and equipment costs less your profit, the FULL amount on COINBASE is used to as un-reported taxable income.

MORAL of story, is NEVER use an EXCHANGE based in USA, or based on USA law, otherwise U R Fucked.

The current debate is that IRS wants ALL records for all time down to $10k, now they have all records for all time down to $20k, but standard approach, COINBASE has already proven themselves as willing to have their customers to be ass-raped by GOV.

ALL exchanges & mining-pools on USA soil to become USA-IRS tax agents.

this is why maybe you should not use an echange at all. Spend bitcoin on goods and services directly, then it will not become a taxable event, then you will be able to spend it and avoid taxes and maybe even bitcoin will grow even more before you spend it all

Or if you really want to exchange it to cash, you can do it via some other good, like gold for instance, chances are it will not be a taxable event either.