Did anyone get a text msg from cashapp regarding taxes?

ThaWoj · 02-12-20, 07:45 PM

I got an email too, I opened it on desktop and it worked. It's a 1099b. Shows all the transactions that I cashed out saying each one is taxable...it's not even that big of a dollar amount (less than 2k total).

So I have to report this even though I may have bought several thousand more than what I sold and at a higher btc price?

Arky · 02-12-20, 10:35 PM

Are you in one of these states?

Arkansas (AR) - $2,500
District of Columbia (DC) - $600
Massachusetts (MA) - $600
Mississippi (MS) - $600
New Jersey (NJ) - $1,000
Vermont (VT) - $600

If so, blame your state. Most states have $20K limit before law forces an exchange/payment service to issue the 1099.

You'll probably have to track down all the buys, sells, wins, losses for the year and figure out which is a gambling gain/loss and which is a crypto gain/loss. Most reputable exchanges should have that data available for download.... Might need to pay a good CPA/tax guy to sort it out...

Pinoy-T-X · 02-12-20, 10:47 PM

mrpapageorgio · 02-12-20, 11:31 PM

I got one too......for the measly $9 in total I sold off after making deposits and having leftover change. Just entered it into the software and because they didn't report the basis to the IRS, they're going to make me mail documents showing the basis if I try to declare it a wash (which it basically was since it was the leftover Bitcoin sold within 5 minutes of purchasing). I'll just report it as a gain and pay the $1 tax at worst rather than waste the postage to mail in the paperwork showing it was just a wash.

And no, I don't live in one of those states, it looks like they're sending it to everyone. https://cash.app/help/us/en-us/3104-bitcoin-taxes

Moral of the story: only use Cash App to buy and make sure you withdraw all of the bitcoin instead of selling off the change.

Arky · 02-13-20, 12:42 AM

Originally posted by mrpapageorgio

And no, I don't live in one of those states, it looks like they're sending it to everyone. https://cash.app/help/us/en-us/3104-bitcoin-taxes

Well, that sucks. Don't think I would do business with them. I'm not sure they have to do that but all these exchanges and payment services might be a little freaked out by AML/KYC/IRS/FATCA and getting busted. KYC everyone and everything to CYA.....

ThaWoj · 02-13-20, 01:15 AM

No I don't live in one of those states either

Crusherrr · 02-13-20, 01:16 AM

I got it too for like 14k. I have no idea my cost basis but Ill probably claim a small gain on that bitcoin and be done with cashapp.

Optional · 02-13-20, 01:21 AM

I'm going to sound like I'm saying I told you so here.

But it was recommended to only use CashApp for purchases many times on here.

They made it obvious from day one they were overly paranoid about sellers using them.

ThaWoj · 02-13-20, 01:49 AM

So now back to the bitpay card?

mrpapageorgio · 02-13-20, 01:58 AM

Originally posted by Optional

I'm going to sound like I'm saying I told you so here.

But it was recommended to only use CashApp for purchases many times on here.

They made it obvious from day one they were overly paranoid about sellers using them.

Not surprised they're issuing 1099-B's, just surprised they're issuing it to every person that sold so much as a penny in Bitcoin. If they did it for $600 or more (or something like that) it wouldn't surprise me, but they're that paranoid about regulations they're gonna report you for selling the equivalent of a Domino's pizza?

Optional · 02-13-20, 02:03 AM

Originally posted by mrpapageorgio

Not surprised they're issuing 1099-B's, just surprised they're issuing it to every person that sold so much as a penny in Bitcoin. If they did it for $600 or more (or something like that) it wouldn't surprise me, but they're that paranoid about regulations they're gonna report you for selling the equivalent of a Domino's pizza?

It would be interesting to know how this decision effects their business ongoing.