> t buy things in crypto only because of the reporting burden.
You should.
And then report every cup of coffe on your tax return.
And file on actual physical paper, preferably printed with a font that's hard to machine-read.
Re:Bitcoin is a disaster
by imtringued on Thursday December 31, 2020 @07:43PM
(#25599253)
That makes no sense unless you are converting the bitcoin to dollars but then it's not being used as a currency. If it was a currency the business would accept bitcoin directly and thus there would be no need to report it on your tax returns.
That’s incorrect. When you buy something with bitcoin, even if it is priced in bitcoin, the IRS considers it a sale or exchange of a capital asset and you have to report the transaction on your return.
Re:Bitcoin is a disaster
by christiansakai on Thursday December 31, 2020 @06:42PM
(#25598649)
I didn’t know this is the case. Source?
Re:Bitcoin is a disaster
by freeone3000 on Thursday December 31, 2020 @06:48PM
(#25598707)
https://www.irs.gov/irb/2014-16_IRB#NOT-2014-21
It's reported as a security - other, which is laid out like the stock trades 1099. Your taxable amount is the difference in price between what you paid for the currency and what you "sold" it for (both in USD).
[deleted by user]
> I've been advised that there's an income tax exemption for "hobby income" ... up to 10k USD per year
If you're talking about the US, I think you're wrong: you need to declare all your hobby income, and since 2018, you can't deduct hobby expenses.
See e.g. https://www.creditkarma.com/tax/i/hobby-income-taxed https://turbotax.intuit.com/tax-tips/self-employment-taxes/4...
Nope. I don't buy things in crypto only because of the reporting burden. Every cup of coffee bought with crypto has to be reported on a tax return.