U.S. Treasury calls for stricter cryptocurrency compliance with IRS • Hacker News Board

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#111

Post by toss1 » Fri, May 21, 2021, 3:54 PM UTC

freeAgent wrote: post #98

toss1 wrote: post #62

Earlier quoted context omitted.

GP could likely do it next week if he formed a business entity (Corp, LLC, etc.), which could properly take deductions from the first dollar of expense, as (s)he described. Form the company, fund it with initial capital, then spend on rigs, utilities, & currencies. Your costs are expense-able, profits are taxable, and it all goes on a Schedule C, K, or whatever, depending on your corp type. You can probably take loss…

Unless you actually make money doing this, the IRS will consider it a hobby rather than a profession, and will not allow you any preferential tax treatment related to business expense deductions, etc. Just a heads up.

Yes, that is a risk that my accountant warned me about.

But he also pointed out that it is not required to make money from Day One, and there are other criteria. IIRC, they don't have a problem until 3+ years out, and other criteria are considered, such as following business formalities (meetings, minutes, filings), segregation of funds, accounting (&yes, filing via an accountant helps), having a storefront, business cards, website, etc. Consult a qualified accountant.

I'm also presuming the GP poster is intending to make money, so that would eliminate the issue.

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#112

Post by toss1 » Fri, May 21, 2021, 3:55 PM UTC

xur17 wrote: post #85

toss1 wrote: post #62

Earlier quoted context omitted.

GP could likely do it next week if he formed a business entity (Corp, LLC, etc.), which could properly take deductions from the first dollar of expense, as (s)he described. Form the company, fund it with initial capital, then spend on rigs, utilities, & currencies. Your costs are expense-able, profits are taxable, and it all goes on a Schedule C, K, or whatever, depending on your corp type. You can probably take loss…

You don't have to form a business entity. You can file as a sole proprietorship, which just means filling out a schedule c. There are some rules that you have to meet to qualify, but besides that it's just another form you fill out on your taxes.

good point, especially if you are making money so don't have to worry about the hobby issue, and aren't engaging in any activities for which you want the protection of a corporate structure.

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#113

Post by drummer » Fri, May 21, 2021, 7:09 PM UTC

dred_prte_rbrts wrote: post #88

drummer wrote: post #73

Ah yes, the government mafia wants a bigger cut. A reminder: taxation is theft and slavery. The Crypto movement was created by people who recognize that.

A response completely bereft of any logical argument about why taxation is "theft and slavery". Do you have any arguments that would support this assertion?

Check out the book "The most dangerous superstition" by Larken Rose. You should be able to find a PDF version online for free.

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#114

Post by garmaine » Sat, May 22, 2021, 1:04 AM UTC

dclaw wrote: post #28

garmaine wrote: post #25

Earlier quoted context omitted.

If I have a stock certificate for AAPL, and you have a TSLA stock certificate (I’m talking about actual paper certificates), we can trade them and it is a taxable event.

Ahh man, you are indeed right. But I seriously haven't seen a paper stock certificate in person this century.

Doesn't even have to be paper shares. You can call up your broker and ask them to transfer X shares of ABC company into someone else's account. It is useful and essential to be able to transfer shares from one person to another without having to hit the open market. Like, imaging transferring 10% of a publicly traded company you own to the account of your family office.

Re: U.S. Treasury calls for stricter cryptocurrency compliance with IRS

#115

Post by DonHopkins » Tue, Jun 01, 2021, 8:51 AM UTC

RichardHeart wrote: post #13

With something that averages 200% a year growth, you really can just deposit your gains in your bank and pay your taxes with a smile.

Seriously, SPAM KING Richard J Schueler, did you pay taxes on all the money you made with all the Viagra spamming you did from Panama, and all your shitcoin shilling and lying about HEX being a CD, when you should have called it HOAX? And did you do it with a smile, just like you lie so easily to all your victims with a smile?

As the winner of the "Golden Pump Award" for "Best New Scam" for "HEX", and as one of the first people in the world to be successfully sued for online spam, specifically the Viagra spam scheme that you ran from Panama (which you lost, under your previous name "Richard J Schueler"), you could personally solve scams by ceasing and desisting your shilling of HEX, and your recruiting of unsuspecting developers to work on it, and your illegal false claims of providing CDs (certificates of deposit).