CryptoCoinsInfoClub.com

Bitcoin To Altcoin Tax

Bitcoin Taxes: What You Need To Know In 2018

Bitcoin Taxes: What You Need To Know In 2018

Bitcoin Taxes: What You Need To Know in 2018 If youve traded Bitcoin or another cryptocurrency, you need to pay taxes. In this guide Ill lay out everything you need to know about your cryptocurrency taxes this year. This stuff is best understood with examples. Below Ill lay out theoretical examples like: What happens if I purchase Bitcoin from USD and sell it 3 months later for a 25% profit? Then Ill go over what would happen in that specific scenario. If theres a scenario that you want me to cover, post in the comments and Ill try to address it! Disclaimer: this is not tax advice. You must consult a licensed tax professional regarding your personal tax situation. This article is simply based on what Ive learned about cryptocurrency taxes. Any statements here should be confirmed with your tax advisor. There are some essential things you need to know before I get into the tax scenarios. You can jump to any section that interests you. Im making several trades every day. How do I track it all? Companies like Coinbase are sending your trades to the IRS. Dont think you can avoid taxes. Even if you arent based in the US, its likely that the tax authority in your country can find out about your cryptocurrency purchases. Again, if you are buying and selling cryptocurrency, just pay your taxes. As Im going to show you in this guide, its really not as difficult as it seems. Is Bitcoin a Currency? And Why It Matters As of now Bitcoin is treated as a property . That means that rules which govern property transactions, like buying/selling a house or car, apply to Bitcoin and other cryptocurrencies. Correct. Bitcoin is a property. And that makes all the difference. Heres how: Imagine you are purchasing a computer on Amazon for $700. You send Amazon $700 and they send you the compute Continue reading >>

Us Tax Considerations Crypto To Crypto Trades: Trading Bitcoin And Altcoins

Us Tax Considerations Crypto To Crypto Trades: Trading Bitcoin And Altcoins

Swansong Crypto Trading Tax Questions #3 Quite a bit to unpack in all that, but a common question lives in the root of it all. If Im actively trading alternative cryptocurrencies on exchanges such as Poloniex and Bitrex, do I owe capital gains tax after each trade or is the capital gains tax delayed until I convert to fiat? Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor is it a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. According to the Internal Revenue Service guidance issued on March 25, 2014 Internal Revenue Notice IR-2014-36 IRS Virtual Currency Guidance , the IRS issued guidance which unequivocally states Bitcoin and all other convertible digital currencies (read altcoins) are taxed as property for United States income tax purposes. Transactions Exchanging Property Covered by Barter Rules Imagine we are trading Bitcoin and other convertible digital currencies on an exchange such a Poloniex or Bitrex. With the guidance issued under IR-2014-36, the IRS has effectively classified the exchange of convertible virtual currencies as a trade of one property for another property. This exchange would be viewed as a barter of one fairly valued property for another fairly valued property and would be subject to barter rules. As a general rule, any time property is either sold for USD or exchanged for another property in a barter transaction (such as Bitcoin for other convertible digital currency in this case), a tax event has occurred. It requires and individual to compute the quantity (USD value) and the nature (long term or short term) of the capital gain or loss at the point of sale or exchange of Continue reading >>

Cryptocurrency Traders Owe Massive Taxes On Fat 2017 Gains

Cryptocurrency Traders Owe Massive Taxes On Fat 2017 Gains

Cryptocurrency Traders Owe Massive Taxes On Fat 2017 Gains I consulted dozens of cryptocurrency (coin) traders on taxes in December and confirmed that coin traders made fortunes in 2017. Now that the 2017 tax-filing season is underway, these traders should gather online tax reports if available, use a coin trade accounting program, and review the latest guidance on tax treatment. On July 6, 2017, the IRS narrowed its summons against Coinbase, the most substantial U.S.-based coin exchange, to retrieve larger customers trades and other transactions to find unreported income. In late-December 2017, Coinbase added tax reporting of capital gains and losses using first in first out (FIFO). This move should undoubtedly please the IRS since there is no 1099-B issuance on coin trades. If you invested in cryptocurrencies and sold, exchanged, or spent it in 2017, you have to report a capital gain or loss on each transaction, including coin-to-currency sales, coin-to-coin trades, and purchases of goods or services using a coin. Deduct coin fees and other expenses appropriately. Some coin deals naturally generate taxable income, including coin-to-currency trades and mining income. For example, Bitcoin sold for U.S. dollars is a noticeable capital gain or loss reportable on Form 8949. Or, when a coin miner receives a coin for his work, he or she naturally recognizes business revenue based on the value of the coin. The big problem for the IRS is that most other coin transactions are not evident for tax reporting, including coin-to-coin trades, hard forks (chain splits), and using a coin to purchase goods and services. The coin investor should impute a sales or exchange transaction to report a capital gain or loss on coin-to-coin trades and using a coin to purchase items. Many coin in Continue reading >>

Countries With 0% Tax On Bitcoin/cryptos: Tax Free Life

Countries With 0% Tax On Bitcoin/cryptos: Tax Free Life

Countries With 0% Tax On Bitcoin/Cryptos: Tax Free Life By: Sudhir Khatwani In: Cryptocurrency Last Updated: Lets talk about Bitcoin /crypto taxation today. I have seen many millennialsanxiously talking about tax-free crypto countries and taxation laws of their countries. These millennials, just like you and me, are also Bitcoin/crypto investors and HODL ers. <br /> Can't load widget<br /> In my opinion, Bitcoin/cryptos should not be taxed because we already buy cryptos with our hard-earned money which is already taxed in our respective countries. So I think after the original Capital Gains Tax, there should be no taxation, otherwise it will be like taxing the same money twice. Encouraged by this discussion, today I am doing this post to talk a little abouttax-free crypto countries. The first obvious question that might come to mind is: Are there any countries in the worldwhere Bitcoin/other cryptos are not taxed? And the answer to this is YES! There are! But some countries are really confused on whether to consider Bitcoin/cryptos as a commodity, currency, or an asset. So until that confusion gets resolved, Im going to talk about some tax haven countries for Bitcoin/cryptos that can benefit you. Note: There are all sorts of Bitcoin taxes in different countries (like GST, VAT, Service Tax, CGT (Capital Gains Tax), etc .) But in this article, we will talk only aboutCGT (Capital Gains Tax) because thats the only one that matters to end users or investors like us. In Germany, Bitcoin and other cryptos are not considered as a commodity, a stock, or any kind of currency. Instead, these things are considered as private moneyin a way thats similar to foreign currency. Trading bitcoins/altcoins are considered as a private sale under the rule 23 EStG Continue reading >>

Loophole Allows Tax-free Bitcoin Exchanges Into 2018

Loophole Allows Tax-free Bitcoin Exchanges Into 2018

Loophole Allows Tax-Free Bitcoin Exchanges Into 2018 Opinions expressed by Forbes Contributors are their own. After December 31, 2017, it is clear that only real estate can be the subject of a tax-free 1031 exchange. A 1031 exchange is a swap of one like kind business or investment asset for another. The IRS treats most swaps are taxable as sales , so 1031 is an exception to the normal rule.The IRS says cryptocurrency is property not currency. So, many investors assumed that meant you could swap them tax-free under section 1031. Butwhether 1031 applied to cryptocurrency until year end is debatable.Some tax advisers say no,while others yes, provided that you did it all carefully. That carefully part turned out to be important. Some crypto investors bought and sold without trying toimprove the exchange optics. Whichever side of this debate you are on, the massive tax bill that was just passed limits 1031 exchanges to real estate. Yet even that new tax law is having a curious impact among crypto investors, who want to keep debating. Sure, the law now says 1031 is only for real estate. But does that change in the law strengthen or weaken the argument that 1031 can apply to crypto deals done in say 2016 or 2017? Some say the fact that Congress changed the law (prospectively) makes it clear that before the change in the law, crypto swaps were OK. Others say the reverse. It is not clear what the IRS will say. Whats more, there are at least some indications that theres a last ditch effort to do crypto deals before the end of 2017, including some that might be extended into 2018. The new law (saying 1031 is only for real estate) goes into effect for deals after December 31, 2017. However, the law says that, [A]n exception is provided for any exchange if the property disposed of Continue reading >>

Trading Bitcoin For An Altcoin Wont Shield You From The Irs Anymore

Trading Bitcoin For An Altcoin Wont Shield You From The Irs Anymore

Trading Bitcoin for an Altcoin Wont Shield You From the IRS Anymore Any American bitcoin investors who were hoping to avoid paying taxes for their profits this year by trading them for altcoins are in for an unpleasant surprise. New regulations have been tailored specifically to make sure U.S. taxpayers cant use this method to avoid giving the IRS their cut. Also Read: South Africa Wants to Track and Tax Bitcoin Trading Bitcoin to Altcoin is Not a Like Kind Exchange Until today a crafty tax attorney or accountant could have tried claiming that trading bitcoin for another cryptocurrency is not a taxable event, but U.S. authorities are now moving in fast to plug this loophole. The latest tax bill contains clarifications which make this a non-valid tax-minimizing strategy going forward. The issue arises from the IRS categorizing bitcoin as property, which can be argued makes crypto to crypto tradeslike kind exchanges under Section 1031 of the Internal Revenue Code. The new tax bill defines like kind exchanges to pertain only to real estate deals. To make things as clear as possible, this means that if you trade bitcoin for tether (USDT) for example, that is a taxable event. Some people think, Im taking my bitcoin, which the IRS has deemed to be property, swapping it for another property and doing it for investment reasons, so it sounds like it could be a 1031 exchange, Evan Fox, tax manager at New York accounting firm Berdon, told CNBC . I think its a stretch. According to the current tax framework, Americans need to self report their bitcoin trading profits and calculate their dues according to their tax brackets. Selling after holding the asset for less than a year qualifies as a short term investment and is taxed between 10% to 39.6%. Selling bitcoin after holding for Continue reading >>

Cryptocurrency Investors Lose Major Tax Break Under New U.s. Tax Code

Cryptocurrency Investors Lose Major Tax Break Under New U.s. Tax Code

Cryptocurrency Investors Lose Major Tax Break Under New U.S. Tax Code Matthew Neuteboom December 25, 2017 3:30 pm The new U.S. tax code amends IRC Section 1031 (a)(1) regardinglike kind exchanges, excluding all cryptocurrencies from a previous legal loophole and making all cryptocurrency trades a taxable event. On Friday morning, U.S. President Donald Trump signed a new tax bill into law, signalling the first major tax overhaul in the U.S. in over 30 years. And while you may or may not have high praise for the bill, one thing is certain: the new tax code is bad news for cryptocurrency investors . Starting Jan. 1st, 2018, all cryptocurrency trades will be a taxable event, including swapping one cryptocurrency for another. The recent overhaul amends a part of the tax code regarding exemptions for like kind exchanges, allowing investors to swap similar assets without triggering a tax event. These so-called 1031 exchanges have long been used by traders to exchange property, such as art or real estate, without having to pay taxes on it. Since March 2014, the IRS has treated Bitcoin and other digital currencies as property for tax purposes. This makes them subject to capital gains tax, requiring taxes be paid whenever crypto is exchanged for fiat currency (ie. cash). Coins held for less than a year are subject to regular income tax, which can range anywhere from 10 to 37 percent, depending upon personal income levels. Coins held for longer than one year are subject to long-term capital gains tax, which caps at around 24 percent. However, it has never been clear whether a trade between two different cryptocurrencies qualifies as a like kind exchange. Up until this point, cryptocurrency trades have typically resided in this legal gray area, granting most traders a loophole for Continue reading >>

Bitcoin Tax Guide: Trading Gains And Losses - Alt-currencies

Bitcoin Tax Guide: Trading Gains And Losses - Alt-currencies

Bitcoin Tax Guide: Trading Gains And Losses - Alt-Currencies Bitcoin Tax Guide: Lost Or Stolen Bitcoins Years ago, the IRSs vague definition of taxable virtual currencies likely helped some investors and miners avoid reporting certain required transactions. From the 2015 tax year, only 802 people involved with bitcoin trades through Coinbase reported gains and losses; during the period from 2013 to 2015, though, the cryptocurrency rose from $13 per coin to more than $1,100 each ( the IRS subsequently announced a large-scale investigation into Coinbase customer accounts, but then later scaled back the investigation to only focus on large transactions of $20,000 or more . The IRS initially made use of a distinction from the Financial Crimes Enforcement Networks guidance in order to separate out common convertible digital currencies like bitcoin from other cryptocurrencies. This meant that only convertible digital currencies (those with an equivalent value in real currency, or [which act] as a substitute for real currency would be considered taxable. So what makes a digital currency convertible? By one approach, a virtual currency which (in the language of the IRS) is listed on an exchange and the exchange rate is established by market supply and demand would be considered convertible to a real currency such as the U.S. dollar. What about those digital currencies which may only be available on offshore exchanges (and thus only convertible to other digital currencies like bitcoin) would qualify as taxable. The IRS has suggested that it will tax gains on successful convertible virtual currencies retroactively, so our example investor may be able to bypass tax reporting for now, only to find that he must report transactions in the future, once the U.S. government decides tho Continue reading >>

Do I Need To Pay Tax If Exchange Bitcoins To Altcoins? : Bitcoin

Do I Need To Pay Tax If Exchange Bitcoins To Altcoins? : Bitcoin

Do not use URL shortening services: always submit the real link. Begging/asking for bitcoins is absolutely not allowed, no matter how badly you need the bitcoins. Only requests for donations to large, recognized charities are allowed, and only if there is good reason to believe that the person accepting bitcoins on behalf of the charity is trustworthy. News articles that do not contain the word "Bitcoin" are usually off-topic. This subreddit is not about general financial news. Submissions that are mostly about some other cryptocurrency belong elsewhere. For example, /r/CryptoCurrency is a good place to discuss all cryptocurrencies. Promotion of client software which attempts to alter the Bitcoin protocol without overwhelming consensus is not permitted. Trades should usually not be advertised here. For example, submissions like "Buying 100 BTC" or "Selling my computer for bitcoins" do not belong here. /r/Bitcoin is primarily for news and discussion. Please avoid repetition /r/bitcoin is a subreddit devoted to new information and discussion about Bitcoin and its ecosystem. New merchants are welcome to announce their services for Bitcoin, but after those have been announced they are no longer news and should not be re-posted. Aside from new merchant announcements, those interested in advertising to our audience should consider Reddit's self-serve advertising system . Do not post your Bitcoin address unless someone explicitly asks you to. Be aware that Twitter, etc. is full of impersonation. Continue reading >>

How To File Your Income Taxes On Bitcoin In 2018

How To File Your Income Taxes On Bitcoin In 2018

How to file your income taxes on bitcoin in 2018 Tips, tricks, and hacks for the tech in your life. Its been a turbulent year for bitcoin, and now its time to talk about taxes. Most people who held on to bitcoin over the past year made money off of it, and as Americans prepare for income tax season, the IRS wants its cut of the profits. Amid unprecedented gains and unprecedented enforcement efforts this looks to be the year that tax collectors get serious about bitcoin earnings, which means its a very good time to make sure youre doing everything right. So lets get into what youre reporting and how to report it. To simplify things, were only talking about bitcoin here, but note that these general guidelines apply to other cryptocurrencies as well. Also, none of this is legal advice, so if you have specific questions, its best to consult with a tax lawyer or accountant. Were talking about income tax, so your goal is to figure out your income from bitcoin in 2017. For the purposes of the IRS, that means bitcoin assets that were converted into non-bitcoin assets like cash or goods and services. Your bitcoin holdings arent taxable (at least not yet), but any time you sold bitcoin or used it to buy something, you were accruing taxable income. Youve already got records of most of those transactions, either on the blockchain or from your wallet provider, but converting it to dollars can be a real hassle since youll need to run the bitcoin value against the price of bitcoin at the time of the transaction. (You can look up the historical price of bitcoin here .) First, youll want to download all transaction data from the exchanges you use, usually available as CSV files, suggests Vincenzo Villamena, managing partner at Online Taxman , an accounting firm that specializes in cryp Continue reading >>

Bitcointaxes :: Calculate Bitcoin Taxes For Capital Gains And Income

Bitcointaxes :: Calculate Bitcoin Taxes For Capital Gains And Income

Simply import details of any Bitcoins or alt-coins you have bought or sold from one of our supported trading exchanges, add any spending or donations you might have made from your wallets, any mined coins or income you have received, and we'll work your tax position for you. You can compare using different cost-basis methodologies, including FIFO, LIFO, and average costing, as well as comparing like-kind treatment. We'll show your Capital Gains Report detailing every transaction's cost basis, sale proceeds and gain. An Income Report with all the calculated mined values. A Donation Report with cost basis information for gifts and tips. And your Closing Report with your net profit and loss and cost basis going forward. Your Capital Gains are also ready to import directly into tax software, such as TurboTax and TaxACT, attach as a statement to your tax return or even print as a PDF. If you are looking for a Tax Professional You can visit our new Directory of Bitcoin Tax Professionals to help find Bitcoin knowledgeable tax accountants and attorneys for tax advice, tax planning or other tax services . Imports trade histories from these, and more, exchanges: Coinbase, Gemini, Circle, Bitstamp, BTC-e, Bitfinex, Kraken, or CSV Import spending from Coinbase, Core Wallets, Blockchain.Info and CSV Import income from Coinbase, BitPay, CEX.IO, or CSV Import mining income directly from addresses or CSV Review and monitor individual addresses * FIFO, LIFO, average costing or specific identification Download attachable statement or IRS Form 8949 PDF, import into TurboTax** and TaxACT Major world currencies: USD, GBP, EUR, CAD, AUD, SEK, NOK, BRL, SGD, CNY, JPY, CHF, HKD, RUB, ILS, KRW Bitcoin, Ethereum, Dogecoin, and other alt-coins *** Reports balances and remaining cost basis Calcul Continue reading >>

Cryptocurrency And Taxes: What You Need To Know

Cryptocurrency And Taxes: What You Need To Know

Cryptocurrency and taxes: What you need to know It looks like 2018 will be a landmark year when it comes to the IRS and taxing cryptocurrency gains. The IRS treats cryptocurrency as property, so there are capital gain implications. The best way to minimize is to buy and hold for more than a year. Vincenzo Villamena, founder and CEO of Online Taxman Bitcoin had its coming-out party in 2017. With all the excitement and opportunities around cryptcurrency, it might be easy to forget about crypto taxation. Almost every bitcoin or other "altcoin" transaction mining, spending, trading, exchanging, air drops, etc. will likely be a taxable event for U.S. tax purposes. Without a doubt, 2018 will be a landmark year for Internal Revenue Service enforcement of cryptocurrency gains. Taxpayers should stay ahead of the game rather than be reactionary. The IRS is always more lenient with taxpayers who come forward on their own accord rather than those that get discovered. Coming forward now actually could be the difference between criminal penalties and simply paying interest. With only several hundred people reporting their crypto gains each year since bitcoin's launch, the IRS suspects that many crypto users have been evading taxes by not reporting crypto transactions on their tax returns. Don't put all your financial eggs in one investment basket Unfortunately, the IRS has provided very little guidance with regard to bitcoin taxation. One thing, however, is clear: Although both the public and the crypto community refer to bitcoin and altcoins as virtual currencies, the IRS treats them as property for tax purposes. Therefore, selling, spending and even exchanging crypto for other tokens all likely have capital gain implications. Likewise, receiving it as compensation or by other mean Continue reading >>

Crypto Tax Tips To Start 2018 Right

Crypto Tax Tips To Start 2018 Right

Cryptocurrencies as property, interest for crypto loans and more from our expert tax lawyer. Even though cryptocurrencies are getting more and more exposure, their legislation seems to be a grey area for most governments, especially when it comes to declaring your income in digital currencies. The Internal Revenue Service , the US tax collection agency, has issued Notice 2014-21 stating that Bitcoin and altcoins are subjects to federal income and payroll taxes. So what to do with your crypto money and how to declare your taxes right? Lets start with the dreary subject of records . Yes, that applies to crypto investors too. Youd better have some if you are thinking about taxes. If youve ever tried to tell the IRS I lost my receipt, you dont want to do it a second time. The IRS has heard every excuse in the book. While it is not without sympathy, youll find it far easier not having to go to the additional effort of proving something by another means. Periodically, the IRS issues reminders to taxpayers regarding the importance of safeguarding your tax records. Thats especially true in cases of natural disasters that make traditional record-keeping go haywire. But think of it year-round wherever you are. The IRS suggests creating a backup set of records stored away from the originals. It is good advice for crypto investors. If you are sitting on some big gains, you might consider how your tax picture will look for the entire year. It isnt too soon to start thinking this way. In fact, try to do it long before year-end so you can make adjustments. You might want to sell or hedge some, even if you think the market is still headed up. There is a lot more than taxes involved in such decisions. But it can be wise to at least think about it. For example, what if your tax year alr Continue reading >>

Tax On Trading Altcoins With Bitcoins?

Tax On Trading Altcoins With Bitcoins?

Hi, when bitcoin are realized from buying other altcoins. do i have to pay tax? for instance, I use one bitcoin on altcoins. i have the pay the "x"percentage for the flat value of one bitcoin? also, by paying for the profits you made from bitcoins.. does it mean....if i spend 100usd on bitcoin...the value raised to 150USD. do i have to pay the tax for the 50usd profit. or is it including the capital 100usd? in total "x" percentage of the 150usd? sorry for my English. hope you are keen on helping me Paying taxes depends on which country you are purchasing Bitcoin in. In the United States, Bitcoin is considered a property, so you're legally obligated to report your bitcoin as a property investment, and pay capital gains taxes on it if the value appreciates. If you're talking about an exchange tax, most exchanges take a small (usually very small) percentage of the overall value of the transaction when making an exchange. If you're asking about general taxes, it might help to know which country you're from before you'll find the answer you're looking for. Quote from: BTCforJoe on January 04, 2018, 03:06:00 AM Paying taxes depends on which country you are purchasing Bitcoin in. In the United States, Bitcoin is considered a property, so you're legally obligated to report your bitcoin as a property investment, and pay capital gains taxes on it if the value appreciates. If you're talking about an exchange tax, most exchanges take a small (usually very small) percentage of the overall value of the transaction when making an exchange. If you're asking about general taxes, it might help to know which country you're from before you'll find the answer you're looking for. do all the normal people have to know about the tax system? i am 100% ignorant about this kind of things. it can Continue reading >>

Bitcoin Taxes: A Terrifying Story About The Basics

Bitcoin Taxes: A Terrifying Story About The Basics

Bitcoin taxes: A terrifying story about the basics For tax collectors at the IRS, bitcoin season is upon us. Today were taking a peek at the most basic elements the need-to-know parts of taxes in the United States when it comes to bitcoins and other cryptocurrencies. As one Redditor found out recently, taxes on crypto could be simple or they could be absolutely terrifyingly bad to behold. OF NOTE: None of what we present here should be taken as financial advice, as we are not accountants all users should seek professional help (especially if theyre frequent readers of articles here on SlashGear.) A throwaway account on Reddit told a story this week about investments they made in bitcoins and altcoins over the past couple of years. They suggest that a $7200 investment in bitcoin in early 2017 ramped up to an intense amount over the next year. In late 2017, this user traded around $120k worth of bitcoin for altcoins. Fast forward to now, and his investment is worth closer to around $30k Turning $120k into $30k is a bummer in and of itself, but theres an additional bummer in the mix. When this user traded bitcoins for altcoins, they suggest they did not know they were making a transaction that could be taxed. Now, apparently, they owe around $50k. Most sales of bitcoins and cryptocurrencies of many sorts are considered taxable as sales. The IRS currently considers cryptocurrency to be property, not currency, despite the name. Before December 31st, 2017, a like kind exchange under IRC Code Code Section 1031 was technically possible for some cryptocurrencies. BUT youd have had to have found a tax professional willing to sign your tax forms with such a position. With the newest tax law signed into law quite recently, section 1031 began only working with real estate. Because, Continue reading >>

More in ethereum