New Congressional bill seeks de minimis tax exemption for smaller crypto transactions. It addresses an issue that arose from the IRS's determination in 2014 that bitcoin and other cryptocurrencies constitute a form of property
Just discovered I never paid taxes on my bitcoin from 2013/2014 after filing my 2017 taxes. Am I screwed/should I be worried ?
As a frame of reference, I'm currently 23 years old so this was done was I was a dumb freshman in college and had no idea about tax law or taxes in general. While filing my taxes for trades I made last year (2017) and consolidating all of my trades via Cointracking.info, I discovered that I had a marginal amount of bitcoin that I had purchased and spent/sold back in 2013/early 2014 on Coinbase. After not trading or doing anything crypto related for the later 3/4ths of 2014 - early 2017, I came back to it in 2017 after my coworker brought it back to my attention. In 2013, I bought 0.13 bitcoin for $130 and sold them off for roughly $144 after losing interest, essentially meaning a capital gain of $14. In 2014, I bought 0.08 bitcoin for ~$54 and ended up using them to buy a belt a a few weeks later for $45. Essentially meaning I had a loss for -$9. I've made a sizable gain off of my investments last year and while I'm still holding them, I'm worried about what might happen if I get audited when I do decide to cash them out and they somehow find out I didn't pay taxes on the gains/losses from those prior years as there are records of them in coinbase. I'm 100% going to be paying taxes on my trades for last year, but do I need to be worried that about the taxes on bitcoin I didn't pay from 2013/2014? Since I believe I missed the amendment deadline, what should I do? I've read online that these might be considered de minimis since the values were so small? Thanks in advance!
"On Bitcoins, Tulips And IRS Tax Compliance." Actual tax accountant is less than impressed with the bits-coin. "The guidance in Notice 2014-21 told us, not unsurprisingly that bitcoins are not tax fairy dust allowing us to earn and spend without paying any taxes."
@HolmdahlFLASH: Seriously I hate 21 Pilots as much as Road construction, paying taxes, STDs, Milo Yiannopoulos, the 2014 Nfc championship game, condoms, Anthony Barr, when someone tries to explain Bitcoin, slow internet speeds, and radio Jewlery commercials...
Tax season has arrived (in the US). Maybe you didn't do things "right" in 2013. If you want to in 2014, I've made a small tool that will help you do so. [x-post /r/bitcoin]
Most of you will remember this thread by a tax attorney where he gave lots of helpful advice. The most important for the average consumer, I think, is keeping track of your basis. In order to do so, you need to know how much they were worth when you got them. This is where my tool steps in.
Here you can input any date1 and time and find out what the price of bitcoin was at that time at bitstamp, coinbase, mtgox, and btce (want more added? Let me know). You can even get historic data in a computer-friendly format for your automated tools like this, or like this if you'd rather. For quick manual checks, you can input the date/time/timezone information at the url above. Or if you'd like help automating the process, see the end of this post.
Here the process is much simplier. If you'd only like to see the current value at any of the four exchanges listed above (and for some reason you don't want to pole them directly or look at pretty graphs and such), then simply choose the exchange(s) you'd like and the format you'd like the data in. Please post any questions or comments. Hate is also accepted in the form of private messages, though comments are cool too.  any date. Data collection started January 7th, 2014 07:06:01 UTC. Therefore, I unfortunately cannot help you with prices during all of 2013 and the first week of 2014. EDIT: I've added data from at least 2011 for mtgox, bitstamp, and btce.
Automatically getting data
Current data is easy. Simply put the format and the exchange in the url, like so
Have a small amount of unaccounted capital gains/losses from 2013/2014, what do I need to do tax wise to amend them? (X-Post /r/bitcoin)
I bought a small amount of bitcoin back in 2013 through Coinbase (~$100 worth) along with a absurdly small amount that I received via some bitcoin faucets (something like $0.31 after cashing out) and ended up buying some items off of Massdrop for roughly ~$110. In early 2014, I bought $55.21 worth off of coinbase, only to sell it when it started falling for a conversion of what ended up being $45.78, resulting in a capital loss of $9.43 These losses/gains were populated from Libra Tax's tool. At the time, I believe (although I'm probably wrong) that Bitcoin's place in tax regulations wasn't defined, which is why I never thought about accounting for gains/losses I currently don't have any money involved with Bitcoin, but after reading in the news that Coinbase is involved with a legal case with the IRS that might end up with Coinbase handing over all of their customer transaction histories over, I'm starting to get concerned. What should be my course of action here? Especially given the fact that I'm accounting for what is essentially $11 in capital gains in 2013 and $9 in losses in 2014? Thanks in advance!
Bitcoin-Workers.com/Asic Online Shop in EU Union no VAT or import duty taxes for EU Customers, Fast shipping. Great prices. 10% Discount for all orders paid with bitcoin until 31.09.2014. Discount code #bitcoin. Antminer S3 - 259.99$ DRKCoin accepted here.
[uncensored-r/Bitcoin] US tax: Should I amend BTC gain in 2013 and loss in 2014 (net loss = $4000)
The following post by somalo1 is being replicated because some comments within the post(but not the post itself) have been silently removed. The original post can be found(in censored form) at this link: np.reddit.com/ Bitcoin/comments/80kcej The original post's content was as follows:
Coinbase emailed me that my data will be sent to IRS. I have checked my record in Coinbase. I gained $11000 in 2013. And lost $15000 in 2014. I did not trade afterward. Unfortunately, I did not report these gain and loss in my returns because I was young and stupid. Now it is 2018, which of the following plans is better? A. Wait for IRS to come to me. And show IRS the Coinbase spreadsheet that I actually lose money (lost $4000). So that I don't owe IRS. B. Before IRS found out, I go ahead and amend forms 1040x and Schedule D for 2013 and 2014 to tell IRS that I can claim a net capital loss. It seems that plan B is better because I can deduct my loss in my 2017 tax. And amending a return before getting caught might avoid some fines and penalties? Secondly, can IRS come to me to ask for my capital gain tax in 2013 and evilly pretend that he did not see my loss in 2014? If IRS can do this, I should go with Plan B, right? Lastly, I have searched and did not see discussions on how to amend capital gain/loss in BTC in the past years. Any insights/experience is appreciated. Many thanks. Have a good day.
Bitcoin-Workers.com/Asic Online Shop in EU Union no VAT or import duty taxes for EU Customers, Fast shipping. Great prices. 10% Discount for all orders paid with bitcoin until 31.09.2014. Discount code #bitcoin. Antminer S3 - 259.99$
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