What counts here as a digital asset? World of Warcraft coins? Steam collectible cards?
Senators move to exempt Bitcoin, crypto miners from proposed U.S. tax rules
71–80 of 247 posts
Re: Senators move to exempt Bitcoin, crypto miners from proposed U.S. tax rules
#72Earlier quoted context omitted.
Venmo's core value right now is that it's ubiquitous. Everyone has a Venmo account and everyone trusts it. I paid an electrician through it yesterday -- no new Fed tech is going to replace it overnight, just like Zelle didn't kill it either.
https://www.forbes.com/sites/ronshevlin/2019/02/11/venmo-ver... (According to company reports, Zelle processed $35 billion in P2P (person-to-person) payments in Q4 2018 versus $19 billion for Venmo. For the full year, Zelle's total was $122 billion, almost double Venmo's $62 billion.) (2019) https://www.zellepay.com/press-releases/zeller-closes-2020-r... (Zelle® Closes 2020 with Record $307 Billion Sent on 1.2 Billio…
Zelle is useless to me because my credit union (like many other banking organization) doesn't support it.
Really looking forward to a governmental, ubiquitous solution.
Re: Senators move to exempt Bitcoin, crypto miners from proposed U.S. tax rules
#73It seems rather unprecedented that there are currently US citizens who are billionaires because of their crypto holdings, without the government having any insight into precisely who these people are. It seems like eventually the government is going to push for more onerous reporting laws to return to the usual equilibrium, where the government has at least some basic idea regarding who owns what (which I think they…
It's not a big deal. It isn't that different than finding a significant amount of oil/precious metals on your land. As soon as you try to extract the value of the resource/crypto, the government will know. If you just sell it, the crypto exchange will report it to the IRS. If you try to trade/buy goods with it directly, any assets you get will create a paper trail that the IRS will eventually discover. Consider the f…
> Also, if you made a significant amount of money on any crypto, you probably held it for more then a year at which point to capital gains tax is probably at most only 15% (Ownership of other assets tends to have legal documents of when it was purchased though. How does anyone know how long you've held it? You could prove it if it's been in the same wallet the whole time, with the transaction ID, and proof of ownership of the wallet. But what if you transferred it between wallets, and lost the first?
Re: Senators move to exempt Bitcoin, crypto miners from proposed U.S. tax rules
#74They want to exempt miners who are making Bitcoin from paying taxes on it? Why? They are making revenue from this activity. Of course they should pay taxes on that revenue. This makes no sense at all.
Did you read the article? This is just about exempting non-exchanges from “broker” status i.e. keeping track of users’ personal information, transaction history, and data. The representatives said they agree people not paying taxes on crypto is a problem, but classifying them as brokers is not the solution.
Why isn’t it part of the solution? It seems like keeping track of who buys mining equipment (at least at large scale) would be a pretty important component in making sure that they pay taxes? Just like it’s important that brokerages report your stock transactions to the IRS.
Re: Senators move to exempt Bitcoin, crypto miners from proposed U.S. tax rules
#75It seems rather unprecedented that there are currently US citizens who are billionaires because of their crypto holdings, without the government having any insight into precisely who these people are. It seems like eventually the government is going to push for more onerous reporting laws to return to the usual equilibrium, where the government has at least some basic idea regarding who owns what (which I think they…
It's not a big deal. It isn't that different than finding a significant amount of oil/precious metals on your land. As soon as you try to extract the value of the resource/crypto, the government will know. If you just sell it, the crypto exchange will report it to the IRS. If you try to trade/buy goods with it directly, any assets you get will create a paper trail that the IRS will eventually discover. Consider the f…
The problem is, you can't transfer the oil to others with the click of a button for other things.
Tax evasion is very easy when you have crypto. You couldn't just sell it all at an exchange tax-free, but you can convert it into foreign currencies, goods, and services all without any oversight.
Re: Senators move to exempt Bitcoin, crypto miners from proposed U.S. tax rules
#76> That means that the IRS will not be able to require that miners, stakers and companies that sell hardware or software for storing digital assets report the activities of their customers or crypto users whose transactions they verify.
> In a statement, Wyden said that “investors failing to pay tax they owe through cryptocurrency is a real problem,” but that the law as previously written was too broad and would have applied to actors who would not have been able to fulfill its mandates.
> The changes will lead to the bill raising $5.2 billion less than the $28 billion envisaged by the initial legislation, according to a Politico report citing the Joint Committee on Taxation.
To me, a layman, it seems that they are trying to allow more loopholes for tax evasion through buying and selling bitcoin in certain ways? Or am I completely off base?
EDIT: Here [0] is the actual ammendment, so it seems maybe it's just protecting people doing development work on cryptocurrency software/hardware from having to pay taxes.. I think
Re: Senators move to exempt Bitcoin, crypto miners from proposed U.S. tax rules
#77Earlier quoted context omitted.
https://www.forbes.com/sites/ronshevlin/2019/02/11/venmo-ver... (According to company reports, Zelle processed $35 billion in P2P (person-to-person) payments in Q4 2018 versus $19 billion for Venmo. For the full year, Zelle's total was $122 billion, almost double Venmo's $62 billion.) (2019) https://www.zellepay.com/press-releases/zeller-closes-2020-r... (Zelle® Closes 2020 with Record $307 Billion Sent on 1.2 Billio…
Zelle is useless to me because my credit union (like many other banking organization) doesn't support it. Really looking forward to a governmental, ubiquitous solution.
[deleted]
Re: Senators move to exempt Bitcoin, crypto miners from proposed U.S. tax rules
#78This means that people with deep pockets, with money which came from who knows where and was laundered through Bitcoin, just bought the US Senate.
No, it just means that there are three people in the Senate who recognize that labelling wallet devs -- or anyone other than actual exchanges -- as "brokers" is impractical and serves no purpose.
Re: Senators move to exempt Bitcoin, crypto miners from proposed U.S. tax rules
#79Obviously HN community is down on crypto. This exemption is a sign that Bitcoin is getting closer to the mainstream of finance. Like most flanker-moves, Governments should be incorporating it in to their tax policies rather than shunning it. Cannabis is a good proxy, states can keep it illegal and not make tax revenue or they can legalize it, control it and tax it. The feds should do the same. Same for crypto, keepin…
Isn't crypto a direct threat to their power? If finance can't be tracked it can't be taxed. If it's mainstream more and more people could potentially switch to crypto, which would reduce their tax collections. Just theorizing. I have no idea if this would happen.
No more than Pork Futures are a threat to their power. This is plain old fashioned finance guys paying off senators to make tax loopholes for them.
Re: Senators move to exempt Bitcoin, crypto miners from proposed U.S. tax rules
#80They want to exempt miners who are making Bitcoin from paying taxes on it? Why? They are making revenue from this activity. Of course they should pay taxes on that revenue. This makes no sense at all.
The proposal does not exempt anybody from paying taxes; it exempts people and organizations who are not actually brokers from reporting on their customers' activity.