Quote from: Ron~Popeil on June 11, 2014, 09:18:22 AM

Quote from: Searing on June 11, 2014, 08:35:00 AM

Quote from: Ron~Popeil on June 10, 2014, 10:52:39 PM

Quote from: Fatpony on June 10, 2014, 07:03:16 PM

Pardon my French, but IRS can go down on their knees and well, you get it right?

Seconded. They have no way to verify how much bit coin I hold. I don't plan to cash any out but if I did I would use local bit coins to do it.

'

If you are in USA and did wire xfers (and your bank messes up on them) and they are over 10k and you sign the following disclaimer....."i am not
using wire xfers internationally to hide taxes" .....your bank then calls you up says you are 'suspicious' and they are gonna freeze your account
and they are gonna report you to IRS/SEC
etc for money laundering (they messed up 6x on a money order looked like 60k to the computer somewhere up the line at the bank..that red flag'd such) and
you need to come to the bank with your business tax forms for bitcoin mining and/other proof you are not a 'drug lord' i guess

yep happened to me...but i got to thinking that with 10 attempted wire xfers (me having to sign the form each time) and only 4 of them going thru
(of which 3 were refunded adding to the problem) ...that maybe just maybe in that 2013 was my first year mining I should file a tax return 2013
be a home business and eventually depreciate my equip purchases and pay the nice IRS people 25% on what I mine because I just KNEW this was
not gonna end well..getting the stink eye at the bank..weird looks ....too much paper on me..boy was i right!

and yep I was correct being paranoid paid off big time....took my tax forms to the bank .pointed out on my statement (which they never bothered to
look at) that 6 wire xfers were their fault and canceled the same day...much yelling at people by higher ups on wasted time etc

so yeah w/o the tax home biz stuff on virtual mining I'd be in a world of hurt with the IRS right now...(I think it is mandatory 1yr prison and up to 5 yrs
if deliberate tax evasion ..er gee IRS I don't know where them 40 coin came from ...yep I'd be toast now ..in a loving relations ship with 'bubba' in prision!)

So..with equip depreciation playing the deduction game I likely will get around the 25% tax on anything i mine or close to such and likely the rules will
be changed to something more sensible in 2015 (i hear both parties in gov't are not happy with the IRS calling it land/property etc)

So my point is IF YOU DID A WIRE XFER OR USED A BTC EXCHANGE the IRS CAN find you...make sure you know how 'vulnerable' you are on such
miner purchases...also coinbase/btc exhcange/ etc are all 'bank legal' now in the USA ....in order for them to work they now have all the info on you
a bank does...so random audit/mistakes/whatever....unless you buy with BTC outside of exchanges ...miners with cash etc you could find yourself
in my boat

(alas...they got me boys.....don't look back legally 'supposed' to get taxed on 25% of stuff I mine (do get equip depreciation of 100% 5yrs thou) ....so
far have not legally have to paid last year any tax and thru 'legit deductions' same is likely this year..but it is a lot of dodging about and ducking around with the
CPA don't ya know

so yeah...keep the above in mind imho and if it does 'smell fishy' and gets weird at your bank....yep pays to be paranoid ...sometimes they really are out to get you!

needless to say i have a new bank

hope this helps save someone else alas I be lost now... 'legal' shudder

Searing

That sucks man. Thanks for sharing the information though. Hopefully people heed the warning.

Admitedly...if the bank had not messed up etc...i likely would have just sat on coin and waited till 2015 when likely congress will improve on or replace
the current tax guidelines of 2013....and then I would have announced if I wanted to be legal on a better setup 'eureka i had a good year in 2015' and
jumped on the parade then

it is not all bad I'm allowed 50% deduction on equip first year. usually it is 20% for 5 years (btc miners at this point are considered computer equip by my CPA
.other stuff last year as a new biz etc....so on 16k i made thought i'd have to pay 4K
only paid like 550 usd and that was to show a profit (need to show a profit for at least 3 of 5yrs I think?)..this year likely I also won't pay taxes...will start to taper it off
into the last few years here...so the way it works is even at 20% deduction the remaining years and 25% on gross mining if i keep things sensible I'll be very
close to NO taxes...maybe a bit of a loss..but then again considering the alternative i tripped into could be worse

Ideal situation is congress gets involved after fall elections say spring 2015 and gets rid of the IRS land/etc issues and maybe goes back to 20% if you spend the
coin and you equip purchases are NOT deductable ie your risk ...the way I was informally told in summer of 2013 it would shake out...asked CPA about bitcoin...
did you sell any? i said nope ..she said no problem

if that was to come to pass my CPA says it is LIKELY I'd be able to deduct the remaining equip from 2013 to 2015 and yet benifit from hopefully the more
sensible regulations imho say in 2015...if that happens I'll look like a bloody genius...if not well I'll probably muck on thru and jump thru some hoops and pay little
or no taxes anyway

big advantage is btc goes to 10k a coin i buy a house boat and IRS comes by ..how did you get the income...i can laugh ...i'm so squeaky legal clean now I smell
of pinecones and peppermint heh....ie "can't touch this'

the alternative of an alternate choice and ignoring the bank issues warning signs still gives me the 'heebie geebies"

I know others who are also legal ..pawn shop owner ..guys who sell gold/silver as a biz...they are all looked at closely...so they play by the rules

but yeah...if you can stay anon sit on coin till 2015 when hopefully rules are made better by congress on taxes.it is likely then you can 'come out' and go legal
and say "by golly to the IRS I had a great year in person to person trading!" heh

so could be a lot worse don't ya know but them wire xfers to knc and others for miners over 10k are gonna get some of us in trouble imho

Searing