IRS sends warning letters to more than 10k cryptocurrency holders

Post by ISL » Fri, Jul 26, 2019, 11:24 PM UTC

quickthrower2 wrote: post #263

umvi wrote: post #45

Earlier quoted context omitted.

I hate that people treat currencies as an "investment". In my mind, crypto concurrency is the perfect value-store (like gold used to be), not an appreciating asset. Yet because people treat it like stocks, it behaves like stocks.

I’m not sure there can ever be a perfect value store. Because such a store is a future promise to “look after you”, but the world is so damn unpredictable! Food prices could soar, land prices too, etc. How does the perfect value store keep up or know what will happen? The impression I get is you need to invest in things that are short term risky and long term safeish like stocks to even attempt to store value. If you…

Post by paxys » Fri, Jul 26, 2019, 11:25 PM UTC

blhack wrote: post #317

To highlight how nuts this could be: I travel to India every year, and I always carry with me a few hundred USD worth of rupees (the local currency). It would be insane for me to try and track the value of the rupees (in USD) for every time I bought something, and calculate the deltas between that and what I originally gave to the money changer. It is completely impractical to do that, and while I'm not an accountant…

Post by somebodythere » Fri, Jul 26, 2019, 11:36 PM UTC

BeetleB wrote: post #336

tracker1 wrote: post #286

Earlier quoted context omitted.

IANAL, I'm not a tax expert, but I believe you can deduct losses when converting to/from fiat currency (US dollars). Which is where taxation would take effect. If you invested $10k in crypto mining equipment, you can deduct that investment (over 5 years or something similar), you then successfully mine 5 coins. These coins are/were worth whatever exchange rate you could get. Until you use/exchange them, you aren't ta…

The IRS treats BTC as commodities like stocks, not as foreign currencies. If you mine any coins, that is income you have to pay taxes on. Just like when my RSU stocks vest, I pay (regular income) taxes on the vested amount. It's treated as if my company gave me the money to buy these stocks I now have. Later when I sell them, I'll pay capital gains tax on the gain/loss. Now if I buy coins, then I will only be taxed o…

Post by rphlx » Fri, Jul 26, 2019, 11:38 PM UTC

matt-attack wrote: post #216

> The Coinbase customers whose information was turned over bought, sold, sent or received digital currency worth $20,000 or more between 2013 and 2015. Is that in today's value or at the time?

Post by ianamartin » Fri, Jul 26, 2019, 11:49 PM UTC

bduerst wrote: post #342

logfromblammo wrote: post #296

Earlier quoted context omitted.

The problem there is that meat doesn't come in dollars; it comes in kilograms. If you are paid in meat, you get something like 100 kg of pre-formed frozen ground beef patties. That doesn't have a dollar value unless you can find a buyer for it. Which is pretty easy to do if it's a commodity. So let's try a more broken example. You get paid in sandstone triangular prisms machined to be 31 mm on the two longer sides, 1…

Whether the unit of measure is kg or bits or unicorns doesn't make a difference since the value at the time of the transaction is what is taxed. Also your example is very convoluted, and with all due respect, I can't tell if it's satire or not.