Re:Things cryptocurrency enthusiasts probably won't tell you
by JumpCrisscross on Saturday September 23, 2017 @09:45AM
(#15319687)
> It is not; you only have a tax liability when you cash out, not when you hold
It depends [1]. If you receive the Bitcoins for goods or services, they are taxed as income. If you hold them as capital assets, the IRS won't tax you for holding, though your state or local jurisdiction may. Either way, not reporting those holdings is tax fraud.
[1] https://turbotax.intuit.com/tax-tools/tax-tips/Taxes-101/Tax...
Disclaimer: I am not a lawyer nor a CPA. This is not legal nor tax advice.
Re:Things cryptocurrency enthusiasts probably won't tell you
by AlexCoventry on Sunday September 24, 2017 @10:41AM
(#15324881)
You are mistaken, and your advice has the potential to severely harm people who take it. The IRS has been very explicit that, as with all barter, they want their slice and are entitled to it under law. The details are in their 2014 guidance, which you should read carefully if you're messing with cryptocurrency without
competent legal or tax advice. https://www.irs.gov/pub/irs-drop/n-14-21.pdf
>>This is tax fraud.
It is not; you only have a tax liability when you cash out, not when you hold, you could cash out and have a gain or have a loss and you need to reflect that on your income tax for that year.