Are There Taxes on Bitcoins? - Investopedia

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Selling Bitcoin: Taxes

I think I read around here that, if you're a US citizen and purchase BTC at a US-based exchange and generate a gain, you should move the BTC to another exchange, and sell it there.
The thought being that the original exchange can't track what happened to that BTC and, therefore, report it as a gain/loss.
I have a small amount of BTC - 3 BTC - that I'd like to sell soon. I bought it at Coinbase, but am thinking of selling it at Mt Gox.
Any thoughts?
submitted by myBitcoinQuestions to Bitcoin [link] [comments]

Selling bitcoin tax strategy

So I would like some opinions on this. I am not looking to do anything illegal but have a good amount of bitcoin i will one day cash out and have a strategy that could be tax efficient.
Understand that capital gains tax needs to be paid on earnings/profit from bitcoin however if you buy something with bitcoin it is my understanding that no CGT has to be paid.
Bitgled.com is a website that can be used to buy gold with bitcoin. My plan is to buy physical gold with bitcoin and then in 6 months or a year sell that cold for GBP.
Does anyone know if any of these transactions are taxable? It seems to me a way to turn bitcoin to GBP without the need to pay tax. Am I missing something? My assumption is that the gold price will remain relatively stable and so profits between buying and selling the gold should be minimal if any.
Thoughts?
submitted by timetobecomeaman to BitcoinUK [link] [comments]

Selling Bitcoin tax?

Question from a noob Planning on making money by buying and selling bitcoins. Would be selling through coinbase. What is the legal side/taxes? In other words, by selling through coinbase, money would be transefered directly to bank. How is this declared and taxed?
submitted by albviv to Bitcoin [link] [comments]

Selling Bitcoin tax? /r/Bitcoin

Selling Bitcoin tax? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

I bought and sold crypto in 2017/18 on multiple exchanges. There is no way that I can match up all of my transactions to prove capital losses. Can I sell my leftover crypto and still claim a loss or at least pay ordinary income taxes to avoid getting penalized? (x-post from /r/Bitcoin)

submitted by ASICmachine to CryptoCurrencyClassic [link] [comments]

In the US, lost your job, and selling long held Bitcoin to pay your bills? Watch out for estimated taxes and underpayment penalties.

Some people here are in the unfortunate position of having been furloughed or recently lost their jobs due to the pandemic, but are in the highly fortunate position of having well appreciated Bitcoin holdings that can be sold to pay your living expenses. In the US this situation presents a minor tax risk in that you might not be expecting.
The IRS (and many states) require that you make payments through the year which total either 90% of your tax obligations or 100%* of last years taxes (* 110% if your AGI is over 150k). If you don't meet these requirements and owe $1000 or more in taxes there is an underpayment penalty of roughly 0.5% per month under paid plus interest (recently around 5% but it may drop to 3.25% due to the federal funds rate changing). When you have an ordinary job payroll tax deductions mostly take care of meeting your obligations, or at least getting close to them.
However, if you lose your job and start living off selling Bitcoin you'll owe taxes on your capital gains and you won't have payroll withholdings. Any time you have large capital gains the same sort of risk exists but the combination of gains plus having lost your payroll withholding create an increased risk of large penalties.
To address this you're supposed to make quarterly tax payments.
Perhaps you're unable to do so. A tax penalty isn't the end of the world. Maybe because of the pandemic they'll wave or lower penalties (they have done so in the past when changes in taxes left many people under-withheld)-- I wouldn't count on it, it's better. Regardless, better to be forewarned so you can incorporate it in your planning!
submitted by nullc to Bitcoin [link] [comments]

Bitcoin May Plunge in Q4 Due to a Tax-Induced Selling Frenzy

submitted by Ranzware to BitNewsLive [link] [comments]

[Florida] I make $146,000/yr purchasing digital product keys with bitcoin in bulk - and selling for massive profits. Do I need a tax attorney?

I started this "side hustle" about a month ago and it has turned into something massive. I want to pay my taxes properly. However, upon further research, H&R Block preparation services are not equipped to properly file this type of crypto tax.
I purchase the digital software key (which I am authorized to sell by the software developer) in bulk for $15 a piece with bitcoin ($4,500 worth at a time). I then sell each key for $26 USD. I made $400 today and around that amount every day now.
$400/d x 365d = $146,000/yr
Do I need a tax attorney?
submitted by BIG_MONEY_BITCOIN to Ask_Lawyers [link] [comments]

Considering selling my bitcoin at a profit. I have questions about income tax logistics.

Kind of a newcomer here and don't really feel like I know what I'm doing. Hoping you all can help. I’m 29 years old and in grad school. I bought ~1 bitcoin in 2016 for about $600. Considering selling part or all of it at a current price of ~$11-12k. Here's what I’m thinking: I’m in grad school right now with no income, graduating soon. In 2021 I will be employed, making a ~50-60k salary. If I sell bitcoin now, income tax in 2020 will be much less than if I sell in the future when I’m employed. Am I thinking about this correctly?
Also I should mention that I am hopeful that bitcoin will continue to increase in value with time. If I were interested in buying back later or immediately, is there any advantage to selling it all first, paying the income tax on it, and then buying back in (likely for less than the 11-12k I have now, that seems like too much to keep in such a volatile holding)? Would that keep me from paying a heftier income tax on it later?
Also I don’t really know anything about how bitcoin or cryptocurrency profits are taxed, so even some basic introductory info in that regard would be super helpful. Thank you so much in advance.
Last thing: I am on Medicaid and plan to stay on medicaid in 2021 until I get insurance through work. I would like to only sell enough bitcoin to make neaunder the minimum to keep my Medicaid benefits.
submitted by treboryot to personalfinance [link] [comments]

If I make less than 100$ from selling bitcoin/stocks, do I need to report it on my taxes?

Title really. I sold some bitcoin and stocks from 2 different companies. The bitcoin had a gain of less than 100$ and the stock had a gain of less than 50$.
Do I need to report these on my taxes?
Is there a minimum you have to make to report on taxes?
submitted by JacksonDeth to personalfinance [link] [comments]

Can someone explain what caused the crash now ?

Now that we are seeing signs of a bull run again, is there any real concrete proof of what caused that 3 month bear market ? We were convinced that it was because of the new year and then it was because of the chinese new year, korean fud, wallstreet whales trying to lower the prices for their bonuses, mt.gox selling bitcoin, tax season... etc
Is there any real reason out of all of those ? or are we just puppets in this whole game and just hope that it goes up ?
submitted by randellfarrugia to CryptoCurrency [link] [comments]

What % do you pay for taxes on selling bitcoin?

Just wondering when I eventually sell.
submitted by CrazyNSchizoOlderBro to BitcoinCA [link] [comments]

If I buy Bitcoin in the UK and sell it in Australia (or vice versa) how does that complicate tax?

I'm a dual citizen but reside in AU - My initial plan is to buy with my UK tax-free inheritance using £GBP, probably wait for a short time for the value to increase to cover the fees, and sell partially for AUD$, while holding the rest as a Bitcoin investment for more than a year, or until the peak of the next bull run.
In Australia if you hold for more than a year there's a 50% discount in capital gains tax, but what if I didn't buy it in Aus?
I'm unsure how to pay the least tax when I sell Bitcoin. The UK tax-free exemption yearly limit for all investments is £11,700 so perhaps I can sell this much worth for £ each year. Then if I spend it with my UK debit card in AU does that have tax implications in AU?
Thanks!
submitted by aceventura33 to Bitcoin [link] [comments]

Are Whales Selling Bitcoin to Put Down a Loss on Their 2019 Taxes?

Are Whales Selling Bitcoin to Put Down a Loss on Their 2019 Taxes? submitted by zuugzwang to CryptoMarkets [link] [comments]

Are Whales Selling Bitcoin to Put Down a Loss on Their 2019 Taxes?

Are Whales Selling Bitcoin to Put Down a Loss on Their 2019 Taxes? submitted by zuugzwang to CryptoCurrencies [link] [comments]

Are Whales Selling Bitcoin to Put Down a Loss on Their 2019 Taxes?

Are Whales Selling Bitcoin to Put Down a Loss on Their 2019 Taxes? submitted by zuugzwang to CryptoCurrencyTrading [link] [comments]

Cryptocurrency tax Q: If you buy Bitcoin, then sell it and do it FIFO wouldn't you have to do an insane amount of record keeping about which coins are which ones, how do people deal with that?

submitted by MattPilkerson to tax [link] [comments]

If you use Bitcoin as a payment solution, it is tax free in Denmark. If you sell for fiat (speculation) you pay 53-65% of your profit in tax.

submitted by Martin_Gormsen to Bitcoin [link] [comments]

03-11 02:54 - 'Legally sell your crypto tax free (IRA)' (self.Bitcoin) by /u/Kudozzz removed from /r/Bitcoin within 35-45min

'''
Hey all - Last time I posted I had just bought my first bitcoin with my IRA, making my future sales tax free and legal! I wanted to offer this service to some of my clients and wanted more experience so I partnered up with some of you to do just that! The experience has been so eye opening that I have since started a bespoke BTC IRA practice and am looking for 6 new clients to jump start my testimonials. Competitors charge anywhere from $1400-$6000 for a lower value service. I will be providing a 20% discount on my $888 package, for a total price of $710 in exchange for an honest testimonial. To avoid making this post too much of a sales pitch, I’ll keep it at that. You know if you’ve been interested in tax free bitcoin through an IRA already. If you are, DM me and I can walk you through the process, go through what is offered, and talk next steps. Also, if you’re interested in learning more, shoot me a DM and I can share with you my ebook when it gets published this month.
'''
Legally sell your crypto tax free (IRA)
Go1dfish undelete link
unreddit undelete link
Author: Kudozzz
submitted by removalbot to removalbot [link] [comments]

For all the HODLers out there: If Bitcoin goes to $50,000 or $100,000 in the next 12-24 months, will you just sell it and eat the tax consequences? Because if Bitcoin is going to function similar to physical Gold (i.e. it is not a legal tender), is there any other choice?

Part B to that question: What needs to happen in order for the US government to accept Bitcoin as legal tender?
submitted by Simontanner610 to Bitcoin [link] [comments]

Ask /r/Bitcoin: how should I account for selling BCC on my taxes

In many areas, someone who sells or spends bitcoins has to pay capital gains taxes on any increase in value in those bitcoins between the time they were bought or received and the time when they were sold or spent.
This seems mathematically simple provided you keep good records: using first-in-first-out (FIFO) or last-in-first-out (LIFO), you compute the difference in prices and, if positive, declare it on your taxes as income from investments.
But how should one compute investment income from selling the BCC portion of a split bitcoin? For example, if I bought 1 BTC at $1,000, sell 1 BCC at $100, and keep the remaining 1 BTC at any price, what is my gain?
The simple answer seems to be that it's $100 gained from selling the BC, but I'm worried that by selling my BCC, I'm actually legally entangling the market prices for both my BTC and BCC---so if the BTC price is $2,900, my total gain is actually $2,000 ($2,900 + $100 - $1,000). For anyone who bought bitcoins more than a couple months ago, having to pay paper gains on the current BTC price could make taxes next year rather painful.
Friendly advice (not professionally binding) is appreciated.
submitted by harda to Bitcoin [link] [comments]

If you've bought over 20k in Bitcoin do you need to report it on taxes, or not until you finally sell it?

Edit: over 20k in 1 year(USA). And I don't plan on selling
submitted by 2016z06 to Bitcoin [link] [comments]

How to sell Bitcoin on paxful - YouTube How To Buy And Sell Bitcoin On Paxful - YouTube Crypto & Bitcoin Taxes Explained - Everything You Need To ... Should You Pay TAXES On Your Bitcoins?? How to Detect Scams When Selling Bitcoin on Paxful - YouTube

For federal taxes, that means you pay a 15% tax on any gains, unless you make a lot of money (more than $479,000 (for married couples) or $425,800 (for individuals)), in which case you pay 20%. We get it — paying bitcoin taxes and other crypto taxes can be confusing. While we can’t give tax advice, we want to make crypto easier to buy, sell, and use. This guide is our way of helping you better understand your 2019 crypto tax obligations. There’s a lot of conflicting content out there, but make no mistake: you are required to report gains and losses on each cryptocurrency ... In the U.S., long-term capital gains tax rates are 0% for people with taxable incomes less than $78,750, 15% for single tax filers with taxable incomes between $78,750 and $434,550 ($488,850 for ... Selling Bitcoin at a loss will generate short or long term capital losses which can be used to offset capital gains. But buying any Bitcoin within 30 days before or after selling Bitcoin for a ... This article is all about how to cash out your Bitcoins without paying taxes and which countries have the best cryptocurrency tax in general, and specifically for Bitcoin. From moving to a tax haven to moving a country and getting married. Spoiler alert - you do have to pay your taxes whether you want it or not.

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How to sell Bitcoin on paxful - YouTube

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