Paying taxes on bitcoin for gambling winnings

[drenteria86]

Have any of you guys paid taxes when you have cashed out by bitcoin? if so, how does it work?

[Fishhead]

lol

[SamsNCharge99]

[RudyRuetigger]

I'm not sure why those guys are laughing

Don't some places report bit coin withdrawals, like coinbase ?

[SamsNCharge99]

I'm not sure why those guys are laughing

Don't some places report bit coin withdrawals, like coinbase ?

Coinbase sends you emails with certain verbiage making you believe that, but no they don't send you 1099's or report it.

Unless the IRS is just saving up for years to then send out audits.

[RudyRuetigger]

luckily i lose so i dont have to worry about this

https://www.forbes.com/sites/greatspeculations/2019/07/31/watch-out-cryptocurrency-owners-the-irs-is-on-the-hunt/#329e74086990

[mrpapageorgio]

Have any of you guys paid taxes when you have cashed out by bitcoin? if so, how does it work?

You a narc?

[2daBank]

We all pay every cent required by law. Nothing but straight shooters here.,, if you owe taxes the best advice is to pay them in a timely fashion along w a letter thanking the government for all they do!!

[Optional]

Have any of you guys paid taxes when you have cashed out by bitcoin? if so, how does it work?

If you are just using bitcoin for money transfers and not holding it, it's irrelevant if you are using bitcoin or cards or cash for gambling in regards to tax in most jurisdictions.

[Sam Odom]

Pay your fair share of Taxes... Sleep tight

[Roscoe_Word]

Coinbase sent me a tax-reporting form a few years ago. Can't remember what the form was (1099 or something).

On the form it only had a field for transactions. (No profit or loss indication.)

The gestapo-like tax collecting agency for my home state once sent me a warning saying I owed $64, and action would be taken if the situation was not immediately addressed. So I wasn't gonna try and get cute with the Coinbase form.

As stated, there was only a field for "transactions". Ex: $1500 goes from bank to Coinbase. $1500 in BTC is bought. $1500 is sent to intermediate wallet. According to the "transactions" field, that's $4,500 in transactions. (at least that's how it read a few years ago)

My total transactions were below the supposed $20,000 "trigger point". Yet Coinbase sent me the form anyway.

My accountant, a college grad with a degree, was completely flummoxed. Despite telling her I made no money on BTC transactions, all she saw was the "transactions" # and said she had to use that as income. I was a little pissed, but she made a counter-move somewhere which counteracted the non-existent income.

Long story short, I'm hoping Gemini doesn't follow suit, or if does, at least has a form with less ambiguity.

Considering goin back to my old local (he's still kickin) and payin 4.56% vig. The lesser of 2 evils.

[Sam Odom]

Cashed out roughly a $50k BTC gain a long time ago

Tax preparer never dealt with BTC at the time... he claimed it on Sammy's Taxes after some research - Sammy was OK with it

[jjgold]

US govt can track any bitcoin transaction with their eyes closed if they wanted

Most likely safe not reporting unless your on some watch list

[BuckyOne]

Look at income made by bit coin miners! 1099 is the key.

[Sam Odom]

Just Remember WHAT WAS IT that took Al Capone down...

[pilebuck13]

Just be ready to lawyer up if needed irs has a funny way of later down the road getting what the want which is your money.

[RudyRuetigger]

Just be ready to lawyer up if needed irs has a funny way of later down the road getting what the want which is your money.

how many years do you have to worry, i forgot

if you are a "professional" gambler...isnt it more years than if it was a recreational win?

[pilebuck13]

how many years do you have to worry, i forgot

if you are a "professional" gambler...isnt it more years than if it was a recreational win?

Idk man if you get the form you should pay the taxes if you don’t get the form then idk.....problem with this is most deposit with cards and receive with bitcoin so on paper it looks like nothing but payments streaming in.

[Okieirish]

The IRS will not care about you unless its worth their time, money wise. If you owe 100k of tax, they probably will pursue you. If you get a 1099 , you better report it, because they track that stuff. If you cash out $1000 and their is no 1099, I doubt anything would ever come up.

[RudyRuetigger]

looks like most IRS can go back is 10 years

they basically never go past 6

and im seeing max of 3 or 4 years is standard for self employed

would love to have a tax pro like Milwaukee Mike check in


BEST OF LUCK

[Shifty]

A lot of misinformation here. Crypto transactions can be separate from gambling winnings for tax purposes. Say you get a $1000 payout by Bitcoin. After fees and trading losses you cash out for $980. Your cost basis on Schedule D is $1000 so you'll have a short term capital loss of $20. If you gained on Bitcoin you would report the gain on Schedule D. If you get a 1099 from Coinbase or any exchange you should definitely report it on Schedule D. If not you'll probably get a notice from the IRS.

[RudyRuetigger]

A lot of misinformation here. Crypto transactions can be separate from gambling winnings for tax purposes. Say you get a $1000 payout by Bitcoin. After fees and trading losses you cash out for $980. Your cost basis on Schedule D is $1000 so you'll have a short term capital loss of $20. If you gained on Bitcoin you would report the gain on Schedule D. If you get a 1099 from Coinbase or any exchange you should definitely report it on Schedule D. If not you'll probably get a notice from the IRS.

where is that misinformation in here?

[stackz125]

Does of this apply to Canadians?

[Optional]

A lot of misinformation here. Crypto transactions can be separate from gambling winnings for tax purposes. Say you get a $1000 payout by Bitcoin. After fees and trading losses you cash out for $980. Your cost basis on Schedule D is $1000 so you'll have a short term capital loss of $20. If you gained on Bitcoin you would report the gain on Schedule D. If you get a 1099 from Coinbase or any exchange you should definitely report it on Schedule D. If not you'll probably get a notice from the IRS.

What mis-information you are talking about in particular?

This is a gambling forum. Not a bitcoin investor forum.

The OP is asking about tax as it relates to gambling usage.

And of course if he is sent a 1099-B form he should declare it. That's kind of obvious. But the worst advice in the world would be for him to start filling in details of bitcoin transfer gains/losses as part of his gambling taxation thinking if he is just a money transfer user and has not been holding it at all.

[Krashman]

...

[sourtwist]

Fukk the IRS

End the Fed too

Worst thieves mankind has ever known

[thechaoz]

Yeah no

[Big Bear]

You a narc?

sure sounds like it

[Big Bear]

Does of this apply to Canadians?

no idea

do they have taxes up there?

[im over here now]

looks like most IRS can go back is 10 years

they basically never go past 6

and im seeing max of 3 or 4 years is standard for self employed

would love to have a tax pro like Milwaukee Mike check in


BEST OF LUCK

IRS can go back 3 years.. That’s it.. Assuming you haven’t under reported income of more then 25%.. No obvious fraud and such..

i use bitcoin atm just for the IRS.. Always buy at 4-6% higher then market, cash out anywhere from 2-4% below market.. Even if they audited and claim each transaction is taxable, I will be at a lost never ahead by their math..
Getting harder with this method.. Lost 2 burner phones because black frog flagged them..

[Shifty]

looks like most IRS can go back is 10 years

they basically never go past 6

and im seeing max of 3 or 4 years is standard for self employed

would love to have a tax pro like Milwaukee Mike check in


BEST OF LUCK

Concur with @im over here now. I should have said some misinformation. This is incorrect. An IRS audit can only go back 3 years. If they find fraud, they can go back longer.

[RudyRuetigger]

Concur with @im over here now. I should have said some misinformation. This is incorrect. An IRS audit can only go back 3 years. If they find fraud, they can go back longer.

i was asking, i wasnt stating it as a fact

thanks


is that for personal or businesses as well?

i was always told to keep business taxes for 7 years

[Fishhead]

JIM buys 4k BTC from JJGOLD

JIM deposits 4K via BTC into BETONLINE

JIM runs balance to 8k and requests 8k BTC payout

JIM sells 8k BTC to poster LAKERBOY for cash in hand.

----------------------------------------------------------------------
Is JIM obligated to report anything to IRS from a BITCOIN PERSPECTIVE ONLY?(yes, has 4k GAMBLING WINNINGS that is technically supposed to be reported)

[RudyRuetigger]

JIM buys 4k BTC from JJGOLD

JIM deposits 4K via BTC into BETONLINE

JIM runs balance to 8k and requests 8k BTC payout

JIM sells 8k BTC to poster LAKERBOY for cash in hand.

----------------------------------------------------------------------
Is JIM obligated to report anything to IRS?

obligated?

[JIBBBY]

Pay your fair share I say..

You enjoy your paved streets, law enforcement, fire department, schools, military and Country safety, etc. and so on. Your taxes pay for all that. If everyone didn't pay we'd have no Country. I look at that way when paying my taxes. I don't like to pay taxes though don't get me wrong but it's the right thing to do.