I know a lot us use bitcoin to fund sportsbook and there is a new line item when filing taxes. Something along the line of "did you purchase or pay for goods using bitcoin" Any thoughts on if and how to accurately report this and consequences if not reported and audited?
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Depends on your situation. Did you realize profits? Get a 1099 or some other tax form in the mail?
The question itself is a bit intrusive. Where is the "none of your fkn business" check box? ;-) I'm a buyer and hodler of crypto - there is no correct way to answer. Yes, I bought crypto. No, I didn't make any money. I went to a tax professional and he advised (rightly or wrongly) that since I didn't have any gains, to answer "no". Because if I answered "yes", they would want to see all the data I had in which no gains were made. Not worth it (he said).
Also, note that if you're used to using free Turbo Tax to do your taxes, a "yes" answer will force you into upgrading to pay Turbo Tax....Comment -
Poster Bsims has some good threads and info on this topic..Comment -
Unless it's hundreds of thousands of dollars of bitcoin I wouldn't even bother.Comment -
Unless your regular taxable income puts you in a higher than normal random audit category (greater than $280k) or there's another reason your return might receive higher than normal scrutiny, like a massive increase in taxable income from last year's filing, then my recommendation would be not to bother reporting your BTC or other crypto transactions/profits.
Why? Because while it's true the government has cracked BTC's blanket anonymity, the process for tracing bitcoin is difficult, time consuming and expensive so it doesn't make economic sense for the IRS to trace bitcoin unless their potential gain is very significant. If you're an "abundance of caution" person, DM me and I'd be happy to walk you through anonymous wallet hopping, Tails and crypto swapping, especially into and out of the ultra anons like Zcash, Monero, etc.Comment -
I said no, and with everything going on. I doubt they will really look into it. I only bought some here and there and sent them to a book nothing big.Comment -
When was the first year that the USA IRS started tracking and asking about btc on tax forms? I haven't done my taxes yet this year for 2019 but I don't remember seeing anything about btc on taxes in previous years. Is this something new for 2019 and on?Comment -
Mean is right, this is there cost-benefit analysis. I'm curious though --- at what income levels would it start to be worth their while? What if the dollar is inflated by the time people take it out? The genius of crypto potentially is that you can make the payments are it is extraordinarily hard for them unless they are already watching you. For most people, I would assume, this is just not the case.Comment
