question regarding bitcoin...

mrpapageorgio · 03-13-18, 12:42 AM

If you're a US resident, you can sell at Coinbase which is the most well known (and infamous one) and have the money direct deposited into your bank account. There's also Gemini, CEX.io, itBit, etc that offer a similar service. If you'd rather do a Craigslist type of sale, LocalBitcoins is the most commonly used site, but urge caution as there's a lot of scams so only accept payment that can't be reversed like Eastern Union and Dinero Gram.

Optional · 03-13-18, 03:12 AM

Originally posted by stackz125

okay so i have some funds at blockchain....
question is how to get into my bank account now. what are some sites I can transfer from blockchain

thanks!

Simplest way is to open an account at Gemini.com and verify your bank account. Once that is done you just send your bitcoin to your Gemini wallet then sell it to them for US$ and then withdraw it your linked bank account.

magaman · 03-13-18, 03:50 AM

Originally posted by Optional

Simplest way is to open an account at Gemini.com and verify your bank account. Once that is done you just send your bitcoin to your Gemini wallet then sell it to them for US$ and then withdraw it your linked bank account.

Why Gemini over Coinbase? I have a coinbase account but I want to know if there is a real reason to switch

Optional · 03-13-18, 04:29 AM

Originally posted by magaman

Why Gemini over Coinbase? I have a coinbase account but I want to know if there is a real reason to switch

I don't think you need to switch but unless a new user wants to buy with a card then I usually suggest Gemini first. It's slightly cheaper for fees, covers the miners fees for sends and seems to be easier to get support from.

Also a couple of people who just don't seem to be able to get anything, especially Coinbase, have managed to use Gemini. So I think it's probably easier to learn for newbies too.

jjgold · 03-13-18, 05:46 AM

I might try Gemini

Seems easier

TheMoneyShot · 03-13-18, 06:07 AM

Originally posted by magaman

Why Gemini over Coinbase? I have a coinbase account but I want to know if there is a real reason to switch

Gemini doesn't rat you out like Coinbase when you sell.

Coinbase will send you a 1099 for the smallest sale to the IRS.

magaman · 03-13-18, 06:08 AM

Originally posted by TheMoneyShot

Gemini doesn't rat you out like Coinbase when you sell.

Coinbase will send you a 1099 for the smallest sale to the IRS.

That is what I was thinking... no need for that.

But I think the best solution is bitpay... or has that ship left ?

TheMoneyShot · 03-13-18, 06:17 AM

Originally posted by magaman

That is what I was thinking... no need for that.

But I think the best solution is bitpay... or has that ship left ?

If you read the TOS over at Gemini... it 100% states in the fine print... do not use your acct for gambling purposes. Acct will be closed immediately. I've had Gemini for over a year now... probably 20-25 transactions to and from books directly. No emails from Gemini... or warnings. I always kept large $ in my acct for 3 months... but it did worry me... so I took it all out. Trying not to use Gemini... really no need for it at this time.

Gemini is a huge advantage to move funds quickly... when the Bitcoin network was clogged. Every Gemini acct holder gets 30 free Bitcoin network transactions every calendar month. When the fee was $28.00 for Bitcoin networking fees.... Gemini paid 100%. What's cool about Gemini... any transaction is confirmed on the next block. But since Bitcoin networking fees are low now... really no need for it.

I still like Bitpay... no issues with them.

Hman · 03-13-18, 07:07 AM

In the beginning my first 3-4 withdrawals from Coinbase caused them to warn me that their company was/is not to be used to move money around.

But since then & many transactions later, I've had no problems whatsoever.

So Gemini has more reasonable fees?

Optional · 03-13-18, 07:36 AM

Originally posted by Hman

In the beginning my first 3-4 withdrawals from Coinbase caused them to warn me that their company was/is not to be used to move money around.

But since then & many transactions later, I've had no problems whatsoever.

So Gemini has more reasonable fees?

They charge 0.25% per exchange and Coinbase charge 1.49%

But they use different spot rates so it's not as simple as saying Coinbase cost 1.24% more.

They are generally a bit cheaper though.

Plus the miner fees being covered by them. That's another 2 or 3 bucks each transfer out.

Bsims · 03-13-18, 10:59 AM

Originally posted by TheMoneyShot

Gemini doesn't rat you out like Coinbase when you sell.

Coinbase will send you a 1099 for the smallest sale to the IRS.

I have a Coinbase account and made dozens of purchases and sales in 2017 and did not get a 1099. I suspect they only sent them to people with fairly high activity or those living in states that require them to. I would wager that this will change in 2018 after the IRS clarifies its stance on crypto currencies.

I also suspect that Gemini and all othe U.S. based exchanges will have to do the same. I hope not, but we all need to be prepared for that.

stackz125 · 03-13-18, 01:21 PM

I'm Canadian..... does that make a difference on where I should or can open an account with?

Thank you

Optional · 03-13-18, 01:25 PM

Originally posted by stackz125

I'm Canadian..... does that make a difference on where I should or can open an account with?

Thank you

Yes. You should use quadrigacx.com instead of Coinbase or Gemini.

TheMoneyShot · 03-13-18, 04:14 PM

Originally posted by Bsims

I have a Coinbase account and made dozens of purchases and sales in 2017 and did not get a 1099. I suspect they only sent them to people with fairly high activity or those living in states that require them to. I would wager that this will change in 2018 after the IRS clarifies its stance on crypto currencies.

I also suspect that Gemini and all othe U.S. based exchanges will have to do the same. I hope not, but we all need to be prepared for that.

You didn't read the post about Roscoe_Word? Only did 1 sale at Coinbase for around $1,200 and was sent a 1099. Consider yourself lucky.

Bsims · 03-13-18, 05:01 PM

Originally posted by TheMoneyShot

You didn't read the post about Roscoe_Word? Only did 1 sale at Coinbase for around $1,200 and was sent a 1099. Consider yourself lucky.

I thought he got a 1099-K because he lives in Massachusetts.

TheMoneyShot · 03-13-18, 05:18 PM

Originally posted by Bsims

I thought he got a 1099-K because he lives in Massachusetts.

You could be right.

I was under the assumption that this was a Federal Law. I didn't know Massachusetts (had a State Law) would override Federal guidelines?

biggie12 · 03-13-18, 05:51 PM

Originally posted by stackz125

I'm Canadian..... does that make a difference on where I should or can open an account with?

Thank you

Quadrigacx.com is your best bet.

mrpapageorgio · 03-13-18, 07:51 PM

Originally posted by TheMoneyShot

You could be right.

I was under the assumption that this was a Federal Law. I didn't know Massachusetts (had a State Law) would override Federal guidelines?

It doesn't, but if MA is requiring a 1099-K be issued in order to deal with MA customers, then they'll have to use that form to report the income to report on his state taxes. The 1099-K rule doesn't say they can't report it if it isn't above the threshold. I can issue a 1099-K for $1 if I wanted to, but it would be ridiculous to do so unless I'm forced to.

Arky · 03-13-18, 09:01 PM

Originally posted by mrpapageorgio

It doesn't, but if MA is requiring a 1099-K be issued in order to deal with MA customers, then they'll have to use that form to report the income to report on his state taxes. The 1099-K rule doesn't say they can't report it if it isn't above the threshold. I can issue a 1099-K for $1 if I wanted to, but it would be ridiculous to do so unless I'm forced to.

Ya, I think it is MA and Vermont that are different from everyone else - require the 1099K.

My understanding is that Coinbase was arm-twisted into sending out the 1099K for 200 transactions and/or withdrawals totalling over 20k. They didn't want to issue them at all but conceded (to the IRS) those levels....

Last I looked, Gemini's policy was somewhat better:

Just a moment...

https://gemini24.zendesk.com/hc/en-us/articles/360000032643-Will-Gemini-send-out-1099-B-tax-reporting-

Currently, Gemini is not required to issue Forms 1099-B because bitcoin and ether sales appear to be regarded as sales of personal property under current IRS guidance. Forms 1099-B are not required to be issued for sales of personal property, and therefore, while we are still evaluating this issue, we do not believe that Gemini has a filing requirement at this time.

With that said, our account reports do provide information related to 3 of the 4 pieces of information related to determining gain/loss of your bitcoin or ether activity on Gemini:

Date acquired (if your bitcoin or ether were purchased on Gemini)
Date sold
Proceeds
...........................
Please note that we do not have any way of knowing the cost basis for bitcoin or ether deposited into your account (one of the necessary pieces of information to complete a Form 1099-B). As a result, we recommend that for tax preparation, especially related to any sale of bitcoin or ether on Gemini that were acquired elsewhere, you consult with your personal tax advisor.