Quote from: whoismoses on March 03, 2018, 03:46:01 AM

Quote from: BaNgTHai on March 02, 2018, 09:39:15 PM

Nice this Is very helpful. Should i record how much I made in USD every month or keep the amount of coins that I made and convert to USD at a certain time frame. I believe it is the time that I actaully convert it right? What if i never cash out.

Technically you are supposed to recognize the revenue when the transaction is logged in the block chain. I dont do that as it would be too hard. I recognize my revenue every month on the 28th. It doesnt matter if you convert to fiat or not.

You are doing it wrong then and could possibly end up paying taxes on something you took a loss on. You are only taxed when you convert to fiat. Just to illustrate my point, lets say last March I somehow solo mined a bitcoin block and received 12.5 bitcoins. And this was when it was at $1250. By your reasoning I take a capitol gains taxation for $15,625. Now lets say I hold the bitcoin and decide to sell it all this month netting $137,500. You think the IRS will let this slide since I paid tax on it last year? No. Its really no different than buying a stock. You pay capital gains when you sell it, not when you receive it.