Filing taxes the first time when you have sold or spent Bitcoins can be a confusing, sometimes daunting, experience.Suddenly you aren't quite sure what goes where.This is an interesting write-up in going through this process with 2015 taxes, by the author of the Incorporating Bitcoin website.A mixture of mining, trading and spending transactions were imported to create the income and capital gains reports to be imported into TurboTax.However, as the author discovered, the online version TurboTax does not import capital gains records (unlike their offline/CD version).This is still a peculilar situation, since it would be a useful service and one that is available from their competitors, like TaxACT.If you are filing your taxes for the first time this year, perhaps this will provide some insights into the process.You can also read our three-part series on Filing your Bitcoin Taxes and our popular summary of the Ten Things to Remember when Filing Bitcoin Taxes.If you need help calculating your mining income or capital gains for Bitcoin, Ethereum or any other digial currency, then sign up with Bitcoin Taxes.

It is everything you need and completely FREE for up to 100 transactions.In the United States, yes.In March of 2014, the IRS issued guidelines on how Bitcoin was to be treated.You can read the full explanation here.If you are given Bitcoin as payment, as a miner or through other means, you are taxed on the USD value at the time of receipt.So if you received 1 BTC in March of 2017, you mark that as income of roughly $1200, regardless of the price when your report your income.In addition, Bitcoin is treated as a capital asset, which means that it’s subject to capital gains taxes.The IRS does not view Cryptocurrency as a currency today, as it’s not tied to a nation state.EDUCATIONALConsider Your Tax Obligations Before You Sell (self.ethtrader)submitted by It seems to me that very few people consider the tax consequences when selling your crypto, whether it is ETH, BTC or something else.In the United States, every time you sell, you are creating a taxable event.Moreover, if you sell something within a year of when you bought it, you are subject to a higher tax than if you held it.

Think the IRS won't find out?Why do you think they are trying to get Coinbase to turn over their customer trade records?free bitcoin faucet botThe rules are also different if you are truly a trader vs an investor.bitcoin rental miningYou can research the difference according to the IRS.bitcoin faucet usaYou probably could act totally anonymous by taking your money off the exchange but that doesn't change your liability.bitcoin orbIt just means you are cheating on your taxes if you don't report the gain.bitcoin calculator soloThat is a strategy I don't wish to follow.raspberry pi bitcoin mining software

I'm not trying to rain on people's parade.I have a lot of ETH and I'm rooting for it like all of you.I'm just saying you should consider the tax consequences before you decide to hit the sell button.And, of course, the rules are different in different countries.π Rendered by PID 11914 on app-404 at 2017-06-24 10:30:32.060772+00:00 running 3522178 country code: SG.You can head back to our homepage, or check out some great posts.The advent of Bitcoin and blockchain technology has made government taxation obsolete, given how difficult cryptocurrency can be to identify and trace.Throughout modern history, governments have survived through taxation, or the involuntary acquisition of the product of their citizens’ labor.The advent of government-controlled money made this process vastly simpler.However, with the rise of Bitcoin and other cryptocurrencies based on blockchain technology, state power to tax income is slipping, and may at some point become a thing of the past entirely.At its root, taxation is based on compliance of the taxed.

Now by no means does that mean that citizens would pay taxes if they could choose otherwise, but rather that they do so rather than face repercussions.It would be logistically impossible for a governing body to collect funds from the entire citizenry without any meaningful compliance from the taxed.As it stands in the United States, the current taxation system is broken and ineffective.With the likelihood of an audit very small for the average citizen, many are able to cut corners on reporting income with very few consequences.The advent of blockchain technology further complicates tax collection.Cryptocurrency is extremely impractical to trace.To begin with, while all Bitcoin transactions are public and viewable by anyone, the ownership or control over wallets and addresses are not.Simply use different addresses, and financial investigation is effectively obfuscated from a superficial investigation.Employ a VPN for extra privacy, and use a coin-mixing service to thoroughly mix up which transactions represent legitimate economic activity and which were simply diversionary nonsense.

To take it a step further, use alternative cryptocurrencies like Dash (which has its own mixed “darksend” feature) or Monero (which, among many other features, uses ring signatures to hide legitimate cryptographic signatures amongst a host of decoys).For extra fun, use all of the above to weave an intricate puzzle nearly impossible to decipher, and absolutely not worth the trouble for all but the biggest targets.Finally, the very definition of income is fast becoming a moving target.To begin with, a new cryptocurrency can be minted almost instantly, rendering obsolete and inapplicable all laws that specifically name a particular cryptocurrency.Even if all cryptocurrency were to be legally classified as taxable income, blockchain-based crypto-tokens could narrowly escape the definition of currency by semantics, and yet still be a viable form of trade.If all else fails, determined tax evaders can simply adopt a gifting economy, using a blockchain system to keep track of who had given what to whom.