Quote from: Joe200 on December 27, 2013, 09:34:30 PM

Quote from: btcprice on December 27, 2013, 07:16:52 PM

I'm guessing a lot of people are waiting until after the 1st of the year to sell their coins in order to cash out and realize a profit. Cashing out after the 1st of the year allows them one whole year to find tax havens such as mortgage interest and Roth IRAs.

My understanding of tax law in the US is that, for forex (and bitcoin), you pay taxes on a marked to market basis. You calculate dollars out (or dollar value of bitcoins) minus dollars in, and pay taxes on that. It does not matter whether you "cash out" or not -- the tax is the same.

Well, sorta.

The rules for gold and collectibles are mostly about the rate. They don't want you using the 15-20% rate.

You recognize (report) the gain in value every year, but you don't owe the tax on that gain until you realize the gain (i.e. sell).

Quote from: TERA on December 28, 2013, 12:32:23 AM

In fact I lost money from BitFloor - can I deduct that?

Very likely. You should probably have a tax professional do it.

Quote from: freethink2013 on December 28, 2013, 12:35:29 AM

I presume we can deduct silk road loses?

There is a line-item for income (or loss) from illegal activities. I shit you not.

Quote from: bitcon on December 28, 2013, 05:05:31 AM

if you have to pay taxes on capital gains shouldnt the IRS have to pay me for capital losses if i lose my investment?

They do, but they don't pay you in dollars; they pay you in tax credits you can carry forward into the future.