Uncle sam wants what? Don’t play yourself!
Whether you've used bitcoin as an investment or as a currency, you owe taxes on it.
As far as Uncle Sam is concerned, bitcoin is not currency. It's property. That means whenever you buy something with bitcoin, it's two transactions, not one. What you're actually doing is selling a property (bitcoin) for a cash value and then using money from that sale to buy a product. So every single purchase you make with bitcoin has to be reported on your taxes.
For many, though, bitcoin is just an investment. If you've held those bitcoins for less than a year and sell them, that cash will be taxed as income. If you've held for more than a year, it's taxed as a capital gain — which could run 20 percent. Adding on transaction and accounting fees could raise costs to 60 percent, as was the case for one early bitcoin adopter.
But here's the problem: Almost no one reports this.
From 2013 to 2015, fewer than 900 people each year reported bitcoin transactions to the IRS. That prompted the IRS in 2014 to label cyrptocurrency as property back and to recently serve a summons to Coinbase. In it, the agency called for the records of over 14,000 users who have "bought, sold, sent or received at least $20,000 worth of bitcoin in a given year."
A federal court narrowed the scope of the summons but ultimately ruled in favor of the IRS. The tax status of those transactions is still unknown.
Moving forward though, there may be some relief. A bipartisan bill, "The Cryptocurrency Tax Fairness Act," was presented to Congress in September. It's seeking to create a tax exemption for cryptotransactions under $600.
Some remain hopeful for amnesty, but it looks like Uncle Sam is still poised to get a decent cut of the bitcoin action.
They really need to get their act together with these taxes because if not it will force people to think of cashing out in other ways. We need some regulation on these taxes because 60% is ridiculous. I would love to hear what the steemit community has to say about this!
As always much LOVE & RESPECT!
#BlessUp and HODL
DDJJ KKHALEDD
This post has received gratitude of 7.20 % from @appreciator thanks to: @djkhaled.
😎UPVOTED & RESTEEMED 😎
Dont let uncle Sam take any off your money😜
Taxation is theft.
Yes it is... Taxes & Loans are killing the people..
Folks tend to forget usery, thank you for bringing that up. The borrower is servant (slave) to the lender. Well, the U.S.A. is the largest debtor in the history of the world...the most enslaved in the history of the world. But that debt belongs to the state...give the state it's chains.
Great to see that you are aware👍
To bad that the rest off the world isnt 😜
Just encourage people to accept payments in crypto and use cryptos as the new money. No reason to cash out. Forget the dollar. The dollar is dead.
Fuck the IRS. Don't give those clowns a penny you don't have to.
This guy isn't legit and that's another copy and paste article (see cheetah's comment). Save your vote next time and find someone else more worthy.
I saw the original on Reddit afterwards. Thanks for the heads up though.
Taxation is extortion
What I don't understand is how trading currencies is any different than trading something like in-game gold in WoW for example. Are they going to try to tax that too? WoW gold has actual USD value, as do items sold on the AH. Where do you draw the line?
Hodl is something that is difficult to apply seriously.
I think the ones that hodl from the beginning of 2017 are very happy now because everything is clear for everyone.
there should be a way to avoid IRS, change your location that only applies if you get few millions lool
Ok so the whole point of bitcoin was to avoid taxes. Don't play yourself move your bitcoin into other cryptos if you have to. Or just HODL. The government and taxes are unethical. Do you trust politicians to make responsible policies and not take money from special interest groups? Do you trust that your government actually wants you to be happy and prosperous? Do you trust the IRS or the central bank? Do you think the past wars have been in our best interest? If you answer yes to any of these questions you may need to take a clam look at the history of the world. The governments of the world are responsible for unspeakable amount of atrocities. The belief in their authority has caused so much damage to mankind. They have used money as a means for their control. Their goal is control every person on the planet. Bitcoin can undermind this authority and control don't give them any of it. Also it's just stupid as fuck. It's like the best thing about bitcoin not getting taxed on it.
Capital Gains Tax
$0 to $38,600 You pay 0%
$38,601 to $425,800 You Pay 15%
$425,801 or more You pay 20%
Truce
bunga kawet