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bitcoins

Entoptic said:
Go on....



Great info AMF. Thanks for sharing. Please don't feel like you shouldn't post in here. I actually look forward to reading your posts.

Daniel Winters in NJ is a great crypto tax guy. He is doing all my taxes this year. If anyone wants info please PM me.
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:thumbup
 
Sucks about getting taxed on transactions when you have to convert to one coin just to move to another rxchsngecto buy a different coin. It's like paying taxes on top of exchange rates while traveling and using an ATM.
 
If I had a kid I would give them a few hundred bucks and an exchange account. Would be a great lesson in markets and how the system works. It's like video game trading since everything is so fast and the movements so huge.

Might also convince them that slow and steady really is the way to go.
 
phocup said:
No, sorry I wasn't clear. I meant a physical location that can support the massive power draw from multiple mining rigs.

15AMP 120v circuit found in most houses would be able to only support 1 full rig before breaker goes. 20AMP is a bit better but running 2 full rig is still iffy on that if you factor in the 20% overhead for safety.

Colocations does provide the needed power but its expensive.
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I had a rig drawing 575 watts, I could have run 2 of them off one 15 amp breaker without issue.

The rig had a 1000w PS, even if that was at 85% capacity, that's only 7 amps @ 120v.

What are your rigs drawing?
 
And to think for a while I felt bad about growing weed indoors with artificial light....
 
afm199 said:
There's a distinct difference. Stocks give you ownership, and often a share of earnings of a company. Bitcoins don't.
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Not true.

"Shareholders think they own the company - they are wrong"

https://www.ft.com/content/7bd1b20a-879b-11e5-90de-f44762bf9896
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Even home/land ownership is an illusion. "Real" estate really means royal estate. Common people can't own land - we can only be granted the right to rent it from the landlord State. This truth is learned the hard way when one fails to pay their property taxes.
 
afm199 said:
I said I was done here, but I think I will post up again, limiting my posts to information providing, not opinion.

This is from an accountant I have used. Pretty good one.













Cryptocurrency Traders Owe Massive Taxes For 2017

January 9, 2018 | By: Robert A. Green, CPA

I consulted dozens of cryptocurrency (coin) traders on taxes in December and confirmed what the media has been reporting: Coin traders made fortunes in 2017. Now that the 2017 tax-filing season is underway, these traders should gather online tax reports if available, use a coin trade accounting program, and review the latest guidance on tax treatment...

If you invested in cryptocurrencies and sold, exchanged, or spent it in 2017, you have to report a capital gain or loss on each transaction, including coin-to-currency sales, coin-to-coin trades, and purchases of goods or services using a coin. Deduct coin fees and other expenses appropriately...

(New information on Section 1031 like-kind exchanges and chain-splits.)
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So let's say you buy LiteCoin at $100. It goes to $200.

You then swap from LTC to BTC and then cash out.

So you get taxed on the $100 profit gain from LTC to BTC. And then income tax from BTC to USD?

If that is the case, how does anyone make any money without getting all profits eaten up by taxes?
 
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RightCoastBias said:
I had a rig drawing 575 watts, I could have run 2 of them off one 15 amp breaker without issue.

The rig had a 1000w PS, even if that was at 85% capacity, that's only 7 amps @ 120v.

What are your rigs drawing?
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My understanding is 1 watt is 1A @ 1V. That means a 15AMP outlet @ 120V outlet is 1800 watt total. Take away 20% and you're at 1440 watt total available.

Definitely enough for 2 of your 575w rig but wouldn't be able to handle mine which coincidentally just over 1000w each.

Hate to derail a bitcoin thread further with mining / hardware talk though. I'll make a new thread about that if there's interest.
 
E.HONDA said:
So let's say you buy LiteCoin at $100. It goes to $200.

You then swap from LTC to BTC and then cash out.

So you get taxed on the $100 profit gain from LTC to BTC. And then income tax from BTC to USD?

If that is the case, how does anyone make any money without getting all profits eaten up by taxes?
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right, you are taxed on conversion from ltc to btc and then again from btc to usd

they make money the same way, all profits are not eaten but it does sting...that's the long arm of the gov't for you

http://www.dummies.com/personal-finance/investing/taxing-your-income-from-day-trading/
 
E.HONDA said:
So let's say you buy LiteCoin at $100. It goes to $200.

You then swap from LTC to BTC and then cash out.

So you get taxed on the $100 profit gain from LTC to BTC. And then income tax from BTC to USD?

If that is the case, how does anyone make any money without getting all profits eaten up by taxes?
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I doubt any of that is being reported to the IRS anyway
 
Smash Allen said:
right, you are taxed on conversion from ltc to btc and then again from btc to usd

they make money the same way, all profits are not eaten but it does sting...that's the long arm of the gov't for you

http://www.dummies.com/personal-finance/investing/taxing-your-income-from-day-trading/
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Unless I am confused, you pay taxes on profits, and can write down losses. So you essentially end up paying taxes on net profits for the year just as you would for income. But the IRS wants you to report every transaction on your taxes.

In the two step conversion process you would only owe taxes if the conversion made a profit, so going from LTC to BTC to USD would only be taxed of you made money during the conversions.

If you bought LTC for $1, then bought one LTC worth of BTC and then sold the BTC for $1 you wouldn't owe tax. (and could write off the transaction costs)

Long ways from an expert though, so correct me if I am wrong.
 
can there even be a profit on a conversion? u are just buying something of the same value as the other thing. maybe if the LTC went up in value and u essentially were able to buy more BTC?
 
bpw said:
Unless I am confused, you pay taxes on profits, and can write down losses. So you essentially end up paying taxes on net profits for the year just as you would for income. But the IRS wants you to report every transaction on your taxes.

In the two step conversion process you would only owe taxes if the conversion made a profit, so going from LTC to BTC to USD would only be taxed of you made money during the conversions.

If you bought LTC for $1, then bought one LTC worth of BTC and then sold the BTC for $1 you wouldn't owe tax. (and could write off the transaction costs)

Long ways from an expert though, so correct me if I am wrong.
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This is pretty much the case. If the conversion somehow is money making, you pay tax on it. And, if you lose money, you get to write it off on your taxes. Until it is gone. If you lose $100k ( capital losses) you have $100k of write offs on capital gains, and beyond that you can write off $3000 a year of regular income. It does not expire and does not have to be used in the taxable year.
 
phocup said:
Who's getting in on Kodak coin ? Look at all that overnight gaiiins on their stock.

http://www.bbc.com/news/technology-42630136
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Wonder how their ICO will do. Their essential leasing mining rigs is interesting. They kind of announced 3 money making moves today; mining rigs for rent, coin, and that they’re going to use blockchain to protect image rights.

Wonder when their ico is?
 
TripleSeven said:
APPC has been having some nice gains. Scalped it 4 times successfully then got greedy going for a 5th, and got stuck in it high. Which negated my gains. Newbie mistake. I’m learning.

Once I get out I’ll likely go all in on XRP and ICX and hold.
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If we could invest in retrospect we'd all be rich.
 
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