/biz/ - Business & Finance

Anyone?

Only if you sold it so if the fork was 1 BTC to 1 BCC and you sold the BCC then it would be see pic

The one benefit of starting trading in January of this year is when I file my 2018 taxes in 2019 I can look at what people did in 2017 as a frame of reference.

>>8905891
My accountant totaled up the amount on field 21 (Other income) of 1040, and to the left of the total wrote (See statement 1) and attached this to it.

>>8906221
>paying your tribute to israel

Good goy

>>8905891
Burgers are fucked. Non burgers just refuse to use any exchange that is a burger exchange or burger connected and for the foreseeable future the tax man can swivvle. Chink and asian exchanges are good as they are less likely to comply with the money lenders demands for now.

>>8906160
this but unironically

>>8906221
Seems like a decent solution. Thanks.

>>8906678

The cost basis of the coins are added to the coins in bitcoin.tax and applied to the proceeds when the coins are sold, so the capital gain is accounted in the 8949 statement.

So your accountant wasn't really helping you out too much if you traded the BCH for other coins. In that case the basis wouldn't apply to the purchased coin. Which means down the road you'll eventually owe zero cost basis on equivalent trades.

For example, you trade 42 BCH for 42 BTC and then for 42 BTC worth of shitcoins.

Your 42 BCH sell was all gains ($42k)... eventually that basis ends up in the shitcoins and subsequent trades. (Unless you claim the $42k worth of shitcoins came from nowhere.

So eventually you pay the zero-basis gains twice which is $12,600. If you sold the BCH for $42k fiat, then you are OK.

Maybe you should fire yourself an accountant and just include all the basis in the 8949

>>8906874
>Your 42 BCH sell was all gains ($42k)... eventually that basis ends up in the shitcoins and subsequent trades. (Unless you claim the $42k worth of shitcoins came from nowhere.

No, that doesn't happen. It calculates from the cost basis from when you received the coins, it doesn't set the cost basis for when you trade it for a shitcoin as 0 dollars, so you don't end up paying on $42k twice. When you use the "income" tab of bitcoin.tax you have to report that section as income.

Airdrop is like drp it is assailed you purchased it at the cost it was when you got. So find out the value when it was airdropped and thats your cost base. Not taxable until you sell.

>>8905891
Am I required to pay estimated tax for 2018 trades by tomorrow?

>>8906874
I'm not counting staking income for low volume coins. I have way too many and most are worth nothing.
I will count any trades made (some of those records are lost so I'll make my best guess..)
I have no idea how to count nicehash, I'll probably just count it as a trade.

I think they will be completely overwhelmed and reporting the high value trades will probably be better than what most do and safer than just reporting cashout to fiat.

>>8907394
The 17th is the due date this year to either pay your taxes or file an extension. I believe you will have to pay estimated taxes to avoid later fees.

*late fees

>>8907589
why the 17th and not the 16th?

>>8906221
Why would you need to report ARK staking? It's unrealized gain as it's not an asset disposition, like when you trade crypto for other crypto...

>t. CPA

>>8907610
>This year’s tax filing deadline is April 17, two days after the usual date of April 15 because that falls on a Sunday and the following day is Emancipation Day, a Washington, D.C. holiday.

http://www.newsweek.com/when-are-2018-taxes-due-how-file-time-request-extension-882555

>>8906221
Same with the forked coins, it should be unrealized gain and $0 cost basis unless you traded those, and thus not needed to be reported. Granted I'm not a tax-focus CPA.

>>8907640
When you are gifted an asset, you inherit the cost basis. I am wondering if you can just count free shit like forks or airdrops as gifts, that way, you wait until you actually trade them before it's counted as a tax event, and you use the value at the time you received them as your cost basis. Any flaws with this plan?

>>8905891
They're considered income plus whatever capital gains apply when you cash out.

>xcoin forks
>you get one ycoin
>ycoin is worth $1 at time of fork
>you sell at $10
>you pay taxes on $1 as income
>you also pay capital gains taxes on the $9 difference from when you sold

>>8907632
Here is what the IRS says about mining:
>Q-8: Does a taxpayer who “mines” virtual currency (for example, uses computer resources to validate Bitcoin transactions and maintain the public Bitcoin transaction ledger) realize gross income upon receipt of the virtual currency resulting from those activities
>A-8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income. See Publication 525, Taxable and Nontaxable Income, for more information on taxable income.
Source:
https://www.irs.gov/pub/irs-drop/n-14-21.pdf

I assume the same applies to staking.

>>8907754
Why couldn't you just count it as a gift, and use $1 as your cost basis when you sell it. Literally anyone can fork a coin, it's not like most people have any direct involvement in the forked project. What if a coin gets 20 forks? Are you really going to report all 20 forks as income? That's just unreasonable.

>>8905891
just send this in

>>8907853
*when you sell it?
(It is a question)

>>8907632
Yeah this:
>>8907803

>>8907640
https://www.bitcointaxsolutions.com/yes-bitcoin-hardford-is-taxable-income-heres-why/

>>8907860
genuninely loled at the thought of a middle aged IRS desk jockey opening an envelope to find this.

>>8907918
I understand mining and staking being counted as income, but I feel it's really unfair to count forks as income. You should just inherit the cost basis (using average value on the day of the fork) and pay taxes on gains when you actually trade it. How am I wrong?

>>8907960
>You should just inherit the cost basis (using average value on the day of the fork) and pay taxes on gains when you actually trade it. How am I wrong?

If you just inherited the cost basis, you wouldn't be paying taxes on it, you would only be paying taxes on the change of value between the day you gained access to the coin and when you traded or sold them. In order to pay taxes on the full value of those forked coins you either have to report their original value of income, then let future trades inherit the cost basis, OR report your BCH trade with a cost basis of 0. Because then you'll be paying on the full value. Taxes are FMV - Cost Basis.

>>8906214
They all went to jail.

>>8907960
To illustrate if you got $50,000 worth of BCH on 8/1 through the hardfork. Then you immediately trade it for $50,000 worth of BTC, and you inherit the cost basis of $50,000. The FMV would cancel out the cost basis making the tax on that trade 0. Even if you sold for cash at that moment, the cost basis would still carry forward and your tax would still be 0. You have to report that $50,000 gain somewhere though, so most accountants say report it as income. Or if when you traded it for BTC and you didn't inherit the cost basis, you just let the cost basis be 0, then you would be paying tax on it as capital gain. Either way it would be the same.

>>8907860
lmao holy shit

>>8905891
does anyone else see a cloaked reaper holding a scale?

>>8907853
Yes, this is what you have to do to be in line with current US tax law.

>>8909104
I never received a 1099 so all I see is gainz.