|
|
Joined: Oct 2021
Posts: 10,772 Likes: 1
Campfire Outfitter
|
OP
Campfire Outfitter
Joined: Oct 2021
Posts: 10,772 Likes: 1 |
As I understand it, crypto is treated like an asset disposition for income tax purposes when you use it to buy something or to pay a debt, unlike using money. So, it seems like an accounting nightmare to use it for minor transactions. Bitcoin does have numerous ATM’s scattered around the country. All transactions are Blockchain so everything is visible.
|
|
|
|
|
Joined: Jun 2003
Posts: 10,595
Campfire Outfitter
|
|
Campfire Outfitter
Joined: Jun 2003
Posts: 10,595 |
As I understand it, crypto is treated like an asset disposition for income tax purposes when you use it to buy something or to pay a debt, unlike using money. So, it seems like an accounting nightmare to use it for minor transactions. Bitcoin does have numerous ATM’s scattered around the country. All transactions are Blockchain so everything is visible. OK. But as I understand it, each transaction for which you use it to acquire something or to pay something can result in a loss or a taxable gain depending on how much you paid for the crypto you are using for that transaction. So, you have to be able to account for it all at the end of each tax year. If somebody buys a $100,000 car with crypto for which they paid $1,000, they have to recognize the $99,000 capital gain and pay income tax on it. It's like selling stock to buy the car. Figuring that out for a bunch of trivial transactions has got to be a real pain. I don't see how being visible on the blockchain makes the accounting easier. But, I am not an expert on that. I know that we have some of those here.
"Don't believe everything you see on the Internet" - Abraham Lincoln
|
|
|
|
|
Joined: Mar 2010
Posts: 24,249 Likes: 4
Campfire Ranger
|
|
Campfire Ranger
Joined: Mar 2010
Posts: 24,249 Likes: 4 |
As I understand it, crypto is treated like an asset disposition for income tax purposes when you use it to buy something or to pay a debt, unlike using money. So, it seems like an accounting nightmare to use it for minor transactions. Bitcoin does have numerous ATM’s scattered around the country. All transactions are Blockchain so everything is visible. Can you repeat that so I can write it down and send to my financial advisor ol toot? You mind is amazing. I guess the deadly Covid made an expert in all fields now. lol
|
|
|
|
|
Joined: Mar 2020
Posts: 4,813
Campfire Tracker
|
|
Campfire Tracker
Joined: Mar 2020
Posts: 4,813 |
As I understand it, crypto is treated like an asset disposition for income tax purposes when you use it to buy something or to pay a debt, unlike using money. So, it seems like an accounting nightmare to use it for minor transactions. Bitcoin does have numerous ATM’s scattered around the country. All transactions are Blockchain so everything is visible. Can you repeat that so I can write it down and send to my financial advisor ol toot? You mind is amazing. I guess the deadly Covid made an expert in all fields now. lol Silence howler monkey!!!
|
|
|
|
|
Joined: Mar 2010
Posts: 24,249 Likes: 4
Campfire Ranger
|
|
Campfire Ranger
Joined: Mar 2010
Posts: 24,249 Likes: 4 |
Yep, gonna get whacked in capital gains taxes and might bump up into another tax bracket As I understand it, crypto is treated like an asset disposition for income tax purposes when you use it to buy something or to pay a debt, unlike using money. So, it seems like an accounting nightmare to use it for minor transactions. Bitcoin does have numerous ATM’s scattered around the country. All transactions are Blockchain so everything is visible. OK. But as I understand it, each transaction for which you use it to acquire something or to pay something can result in a loss or a taxable gain depending on how much you paid for the crypto you are using for that transaction. So, you have to be able to account for it all at the end of each tax year. If somebody buys a $100,000 car with crypto for which they paid $1,000, they have to recognize the $99,000 capital gain and pay income tax on it. It's like selling stock to buy the car. Figuring that out for a bunch of trivial transactions has got to be a real pain. I don't see how being visible on the blockchain makes the accounting easier. But, I am not an expert on that. I know that we have some of those here.
|
|
|
|
|
Joined: Oct 2021
Posts: 10,772 Likes: 1
Campfire Outfitter
|
|
OP
Campfire Outfitter
Joined: Oct 2021
Posts: 10,772 Likes: 1 |
As I understand it, crypto is treated like an asset disposition for income tax purposes when you use it to buy something or to pay a debt, unlike using money. So, it seems like an accounting nightmare to use it for minor transactions. Bitcoin does have numerous ATM’s scattered around the country. All transactions are Blockchain so everything is visible. OK. But as I understand it, each transaction for which you use it to acquire something or to pay something can result in a loss or a taxable gain depending on how much you paid for the crypto you are using for that transaction. So, you have to be able to account for it all at the end of each tax year. If somebody buys a $100,000 car with crypto for which they paid $1,000, they have to recognize the $99,000 capital gain and pay income tax on it. It's like selling stock to buy the car. Figuring that out for a bunch of trivial transactions has got to be a real pain. I don't see how being visible on the blockchain makes the accounting easier. But, I am not an expert on that. I know that we have some of those here. The SEC is to rule on crypto value exchanges the first of the month or possibly before. What I have read is that Bitcoin, e.g., will be handled more like a commodity as opposed to being handled like and considered as a stock or shares of stock would be. Yep you’d owe tax on the exchange that you mentioned. ^^ The 2021 IRS tax forms will have questions regarding crypto at the very beginning, page 1. That might tell us how closely they will begin eyeballing crypto in the immediate future.
|
|
|
|
|
Joined: Jan 2001
Posts: 59,161 Likes: 2
Campfire Kahuna
|
Campfire Kahuna
Joined: Jan 2001
Posts: 59,161 Likes: 2 |
I'll stick to cash - ponzi schemes don't interest me......at all.
Ex- USN (SS) '66-'69
Pro-Constitution.
LET'S GO BRANDON!!!
|
|
|
|
|
Joined: Aug 2007
Posts: 115,424 Likes: 13
Campfire Sage
|
|
Campfire Sage
Joined: Aug 2007
Posts: 115,424 Likes: 13 |
Houston 2 will suck dick for AIDS medication.
-County Sheriff
Trump being classless,tasteless and clueless as usual. Sorry, trump is a no tax payin pile of shiit. My young wife decided to play the field and had moved several dudes into my house
|
|
|
|
|
Joined: Sep 2013
Posts: 17,901 Likes: 7
Campfire Ranger
|
|
Campfire Ranger
Joined: Sep 2013
Posts: 17,901 Likes: 7 |
Houston 2 will suck dick for AIDS medication.
-County Sheriff Also accept Bitcoin - old tootster
|
|
|
|
|
549 members (1Longbow, 1beaver_shooter, 160user, 10gaugemag, 01Foreman400, 007FJ, 66 invisible),
2,354
guests, and
1,441
robots. |
|
Key:
Admin,
Global Mod,
Mod
|
|
|
Forums81
Topics1,192,167
Posts18,484,520
Members73,966
| |
Most Online11,491
Jul 7th, 2023
|
|
|
|
