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.
your plan is very good, of course you live in USA where bitcoin has been legal right.
this becomes important where every investment advantage you make you should pay taxes for it.
in my country bitcoin transactions are prohibited, so transactions including investments are illegal, this is true also in some other countries so I have no plan to pay taxes. To plan ahead, of course I hope to change my bitcoin investment into a real investment that I can pay taxes for her so it does not against the law.