common misconception if you earn the extra money today you need to pay estimated taxes as you earn it.
https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxesTaxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. If the amount of income tax withheld from your salary or pension is not enough, or if you receive income such as interest, dividends, alimony, self-employment income, capital gains, prizes and awards, you may have to make estimated tax payments. If you are in business for yourself, you generally need to make estimated tax payments. Estimated tax is used to pay not only income tax, but other taxes such as self-employment tax and alternative minimum tax.
If you don’t pay enough tax through withholding and estimated tax payments, you may have to pay a penalty. You also may have to pay a penalty if your estimated tax payments are late, even if you are due a refund when you file your tax return.
trust me a person that scored bigly on this say 10 coins lost at 6500 now worth 650000 would be an idiot to not pay 20% or 130k the day he gets the coins
well next estimated payment is due 9/16/2024
Now I simply have zero idea how this will be treated by usa.
but they are scum and may not say what they should which would be we will consider that you held them from 2014 to 2024 and as long as you keep them as BTC no tax is due.
My guess is they will say it is income of 650,000 - 6,500 = 635,000 which is 127,000 tax which will be due by 9/16/2024
so a 10 coins coin living in the USA should sell 2 and pay the tax.
BTW if you get the coins at 650,000 don't pay the tax and the coins drop to 30,000 each or 300,000 guess what you tax bill based will be in April 2025 650,000 not 300,000
So any USA guy or girl needs to talk to a tax expert idk they had 5 or 10 or more coins maybe even if they have 1 or 2 coins.
The IRS will not give a snap ruling on this I am explaining the worst the USA can do as of today. So I see smart USA people selling at least enough to pay the tax . which is 20% if it is big or 15% if it is small enough
I am not a tax specialist and in all likelihood this is how it would be taxed, but think of the logic (or maybe the lack of it in our 1040).
Say, I had 100 coins on MtGox (I didn't have any, just a theoretical number).
They are sending me back 25 and telling me that 75 were "lost" due to the business failure.
Let's say, i get the coins today, July 17.
OK, I got the "income" of 25X65 (roughly for simplification)=$1.625 mil
In addition, I also got a claim of a capital loss of 75X65=$4.875 mil. It is real, but I am not sure how to best document it in the return-a question to CPA.
Yes, I can use only $3K per year in "pure" loss in US, but I can subtract this loss from ANY OTHER cap gains I would make...forever (if needed).
Basically,
no tax on the first 4.875 mil of gains going forward.
So, if someone was smart and managed to 'substitute' for lost coins in 2014-2015 (like Tim Draper did who lost 30K coins to MtGox, then bought the same amount from marshals), then you can sell a substantial amount and have NO cap gains.