Bitcoin and Taxes

How do you guys deal with taxes when you have bitcoin or other cryptocurrency on the exchanges?

I think all of the major exchanges like coinbase, binance, bittrex, etc are all based in the US now and could be risky to not report the trading activity.

Taxation is theft, and bitcoin is “anonymous”
Whats the worry?

Well, it’s not totally anonymous, but you don’t have to register your name to create a wallet. It’s best to avoid the exchanges if you can. Particularly if you are doing a lot of stuff in crypto. It’s not so much the taxes (taxation is theft though), but the risk of being audited and the insanity of the system you should be concerned about. Anybody with $20k or more in purchases should be more concerned. They’re probably not going to audit you simply for having crypto. They are however making a list of people who have crypto. I think that there are far too many people for them to audit and the IRS appears to only even be getting the names (at least in the one case we have to look at) of those who have purchased more than $20k (and during a certain time period). What you shouldn’t do is let them scare you away from using cryptocurrencies. Instead don’t purchase crypto through an exchange. Create wallets and don’t connect them to an exchange where you’ve provided a name let alone a social security number.

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What scares me about using crypto is when I see the Central Banks preparing their own cryptos. I don’t want ANYTHING they offer (i gotta believe you understand why). And I highly doubt they will allow competing cryptos. (remember gold and silver)

I believe that right now they allowing bitcoin (&alt coins) to exist, simply so we can build their digital economy (our electronic control grid) for them.

Personally, I think the anarchists/libertarians/or anyone else who wants to be FREE, should be supporting BLOCKCHAIN (or similar technology), NOT Cryptocurrencies

A must watch if your into cryptos.

Dear Hermano “Penguin”! This reply is simply to thank you for all the thoughtful posts I’ve found from you. Every time I’m checking any chat, your posts give me a lot of ideas to understand the bigger picture and complement my thoughts.

Thanks for spreading your wise opinion. Talking about cryptos, there’s one crypto project I’m studying, its name is PI Network. I’m not 100% sure about the whole project, but I like certain philosophy of this project so far. Please, let me know if you have any insight about this project so I can complement my research.

Again Thanks a lot for your knowledge!

Dear Hermano!

I like your radicalism. I think that the big changes that our society needs could only come from different (almost oposite) ways to see things.

At the same time, I know that “big changes” don’t occur from one day to another. There must be a process to go from “one point” to “another”.

Cryptocurrencies and Blockhain seem to be one part of those seeds that need to be planted and nurture to harvest the fruits of finantial freedom from centralized institutions.

I can feel that the big change is coming as smoothly as time passes and as unstopable as Future will arrive…

Decentralized, honest, free market, open, blockchain (hash graph,etc.), Yes.

Cryptocurrencies, NO.

They are the scam to get us to build THEIR electronic control grid (the digital economy) future for US. Greed is easily exploitable.

I like your radicalism. I think that the big changes that our society needs could only come from different (almost oposite) ways to see things.

Fully agree, which is why I cringe when I see central banks talking about implementing cryptos.

At the same time, I know that “big changes” don’t occur from one day to another. There must be a process to go from “one point” to “another”.

What if that process is being steered?

If we are going to make big changes. How about a future with NO currencies?

I got to believe that if you want to be a truly FREE individual, that you would not be willing to bind yourself to something like a cellphone just to live in the “world”.

Dear Hermano!

Hope you’re having a great day, enjoying every particle of time in your existance. Fortunately, enjoying life is still a descentralize idea/feeling… that we all can take advantage of while we´re exploring this existance, specially our innerworld :wink:

I came to thank you for sharing your wisdom with us. I see a lot of power in your insights, they seem almost “imposible” to imagine.I feel very fortunate to hear about “imposible” scenarios because we already know a lot about “possible” things. Our data base is oversaturated with the SAME COSMOVISION written in different versions.

Also I want to answer your questions with all the attention and respect that it deserves from me:

  • What if that process is being steered?
    How many processes are not steered completely?

  • How about a future with NO currencies?
    This question is very exciting, it sounds almost like a prophecy. We’re moving towards that reality where currencies will probably mutate, or even disappear. Does it mean that greed, violence, slavery, etc. will desapear? Are currencies means or Ends?

Anyways I believe your prophecy (future with NO currencies) will happend. What would be the process to get there then?

Greetings from the Land of Love :slight_smile:

Thank you, yes, having a good day. Getting ready for maple season, its just a little cold outside. Hope you are doing well too.

Not impossible at all. Everything is in plain sight.

If its not your own process that you control, you should always assume its steered.

Not really a “prophecy”. Expected, if you watch how they are destroying the currencies. The result of the destruction of fiat currencies would not be anything really new as long as the central banks don’t get to stay in charge. It would about going back to real money and barter and trade. Back to a real free market.

No, not at all. But it would stop governments (by FAR the biggest offender) from committing violence, slavery, war.

Currencies are a means, for governments to destroy the world. Sound (honest) money is the end of that.

I am on the exchanges right now because of the ease of buying and selling…

I’ve also heard that the IRS tends to not take notice until there are big changes in what you report. So maybe if you just don’t ever report the crypto on your taxes they’ll never pay attention hahaha. But like you said if you’re buying large mounts 20k+ that may not apply.

I do know there is a site called for buying/selling locally but I’ve been out of the loop in that regard for a while so maybe there some other really popular sites to buy and sell locally, wallet to wallet. Thoughts?

If you are interested in buying and selling in New Hampshire, let me know.

Buy local bitcoins?
OK, Now Im really confused. I thought bitcoin was breaking down borders.

Local gold, I could understand. Its a real item that you actually exchange.

It makes sense to buy crypto locally, but spend globally. A local seller isn’t going to care about any reporting requirements in most instances so you get the benefit of anonymity. If I want to buy something from outside the US or from someone just outside the local area and don’t want others to be able to stop me then crypto is definitely the way to go. Nobody should be able to stop you from spending your money and the government can’t stop you from spending your crypto at a gambling site (one example). The banks will not wire money for you to gambling sites and they won’t let you use a credit card either. This is one way the government tries to control people. There are plenty of other bad things besides restricting who you can spend your money with that they do too. Like stealing a percentage of your labor should you stand out (taxes).

The easy path is provided by evil.

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Here is some good info that I found regarding taxes/reporting… It seems that the exchanges will generally send out a 1099 if you have more than $20k in the account.

So one strategy would be to stay below 20k, and keep you assets divided among different exchanges and/or in wallet.