71–80 of 115 posts
I made a whole $50 on Coinbase. I expected some tax form to arrive, and it never came. Honestly I completely forgot about it until I saw this. I wonder if that $50 will end up being hundreds owed in some kind of late fees/etc.
No. Penalties are proportionate.
Earlier quoted context omitted.
SARs only apply to suspicious activity. CTRs are what your bank has to file for every transaction over $10000. Also, it's all the Dept. of Treasury. The IRS is essentially the collection agency of the Dept. of Treasury. It's listed as a bureau on the U.S. Treasury's website. https://www.treasury.gov/about/organizational-structure/bure...
>SARs only apply to suspicious activity. CTRs are what your bank has to file for every transaction over $10000. For every currency transaction, not every transaction. (if you deposit a check for $50,000, that doesn't get reported unless the bank thinks something about the transaction is suspicious) Are bitcoins classified as currency for the purposes of CTR reports?
Earlier quoted context omitted.
> do you know how many of them could readily provide carbon copy receipts for every single deduction they claimed in the last X years? So on what basis did they take those deductions in the first place, if they didn't have the documentation to figure out what their deduction was in the first place? Did they just guess? Or are you saying they had it for one tax season and then destroyed it?
Either they had it and destroyed it, lost it or did what lots of small businesses do and had a credit card or checking account only used for business, then referred against the statements to determine deductions (sans receipts)
In my experience bank/cc statements have been sufficient documentation for smaller or recurring expenses.
Earlier quoted context omitted.
This, absolutely. I'm actually surprised the government showed their hand so soon. There must be a lot of money in Bitcoin already. The government WANTS people to go 100% digital with their capital. It is infinitely easier to track digital money. Bitcoin is something they're against because the anonymity factor. I won't be surprised if we see some legislation to block or inhibit anonymous digital currency. Let's not…
> This, absolutely. I'm actually surprised the government showed their hand so soon. Does this have anything to do with Trump coming into power?
I buy a small amount (about $20 worth) every paycheck, so I'm really not sure how to even report that reasonably. With such a volatile price, I don't really know how much it's gone up or down without some serious calculations. I'm not really sure what to do about that. I was just about to sell some of it too, to help cover some recent expenses.
I am not an accountant or tax advisor. Lots of little transactions are a pain, but I do believe you are required to track them in order to report your capital gains correctly. You only have capital gains when you sell, but you need to know your purchase prices and dates in order to compute it. I used this website to analyze my CoinBase transactions: https://bitcoin.tax/ The site imports the transactions and computes…
I buy a small amount (about $20 worth) every paycheck, so I'm really not sure how to even report that reasonably. With such a volatile price, I don't really know how much it's gone up or down without some serious calculations. I'm not really sure what to do about that. I was just about to sell some of it too, to help cover some recent expenses.
I am not an accountant or tax advisor. Lots of little transactions are a pain, but I do believe you are required to track them in order to report your capital gains correctly. You only have capital gains when you sell, but you need to know your purchase prices and dates in order to compute it. I used this website to analyze my CoinBase transactions: https://bitcoin.tax/ The site imports the transactions and computes…
Do the IRS and say Turkey's tax office tracks these as well? Assuming that you don't try to deposit the exchanged for bills in a bank.
Couldn't someone offer Bitcoin exchange in existing currency shops or the same service via Bitcoin ATMs? How would the IRS and its equivalents track that without requiring identification and registration before use? I suppose a small amount would be allowed for the tourist aspect but then you could use a group of friends or employees to wash small amounts. If you require ID for that, including tourists, then you can track it.
This was just a matter of time. Welcome to the reality of being involved in the money business in the USA. Coinbase is concerned with the breadth of the request. That is actually kind of cute considering that your bank has to report any transaction over $10000 to the US Dept of Treasury and people are actively prosecuted on suspicion of making transactions under this threshold to avoid reporting requirements [1]. Whe…
- coinbase is and has been a licensed MSB for several years, this means that it has already had to comply with all of the same BSA rules as every other bank. [1]
- Banks don't have to report ANY transaction over $10,000. They have to report every CASH transaction (or aggregate of transactions) over $10,000 and any Suspicious transaction (or aggregate of transactions) over $2,000 [2]
- coinbase is rightfully concerned about the breadth of the subpoena because it's a giant fishing expedition. In order to request records, the federal government SHOULD have to provide reasonable proof of suspected criminal activity. [3]
- finally, this has absolutely nothing to do with anonymity. This has everything to do with another drastically over-reaching request by the federal government for personal information even when there is no evidence of any specific crime.
[1] https://www.coinbase.com/legal/licenses?locale=en
[2] https://www.ffiec.gov/bsa_aml_infobase/pages_manual/OLM_015....
[3] See the Constitution.
This was just a matter of time. Welcome to the reality of being involved in the money business in the USA. Coinbase is concerned with the breadth of the request. That is actually kind of cute considering that your bank has to report any transaction over $10000 to the US Dept of Treasury and people are actively prosecuted on suspicion of making transactions under this threshold to avoid reporting requirements [1]. Whe…
Respectfully, you are incorrect or misinformed on many points. - coinbase is and has been a licensed MSB for several years, this means that it has already had to comply with all of the same BSA rules as every other bank. [1] - Banks don't have to report ANY transaction over $10,000. They have to report every CASH transaction (or aggregate of transactions) over $10,000 and any Suspicious transaction (or aggregate of t…
Earlier quoted context omitted.
The note from the IRS about Bitcoin I read on CoinBase's site said it's similar to a security. So until you trade it out (sell it) you don't realize a gain. When you do your gains are considered similar to capital gains / capital losses (if you held for more than 1 year). Otherwise considered income.
Well again, I was about to sell some, and figuring out exactly how much I 'gained' from so many tiny buy transactions I imagine would be difficult (but might not be, I'm not sure).
What's interesting here is that bitcoin is both an "investment" and "currency" (since you can pay for [some] goods and services with btc directly). From the "currency" point of view - exchange rate (FX) gains/losses technically only apply to officially recognized foreign currencies. So that is an interesting can of worms. If I buy bitcoin at price point X, it goes up to X+Y, but instead of selling it I use that Y to…