Sportsbook.ag payouts - Bitcoin advice needed

[skut316]

Sorry to hear what you are going through. Gambling is not an easy thing to keep in control.

Did you send the money to blockchain, or did you send the money to coinbase and withdraw it? It makes a big difference. If you just used cards and sent bitcoin to blockchain and to other sites you didn't have any taxable events to record. If you had deposited $50k with cards, withdrew the $32k into your coinbase/bank account then you would have some problems because Coinbase would probably show you has having $32k of withdrawals and $0 of deposits and would record it as such.

Wishing you the best going forward.

This is how it would go...

I would deposit money on the site, when I won, I would withdrawal to Blockchain. Once on Blockchain, I would send to Coinbase from Blockchain, this would usually take an hour or so. As soon as the money was on Coinbase, I sold it for cash and withdrew to my bank account, the Bitcoin rates never even changed I withdrew the money so fast. Does that matter?

If I owe taxes on this "income," what kind of ballpark are we talking here? I'm kinda freaking out right now. I lost a lot of money and now the money I cashed out is gonna be taxed? If I knew that, I would have just received payment by check and waited the 6-8 weeks.

So if someone sent me $10K on Bitcoin as a personal transfer and I cash it out, that gets taxed? That's ridiculous, it was a personal transfer from an external account (my Blockchain account), it wasn't a purchase.

So confused, any further help you can provide would be appreciated. Thanks for the quick reply.

[ace7550]

This is how it would go...

I would deposit money on the site, when I won, I would withdrawal to Blockchain. Once on Blockchain, I would send to Coinbase from Blockchain, this would usually take an hour or so. As soon as the money was on Coinbase, I sold it for cash and withdrew to my bank account, the Bitcoin rates never even changed I withdrew the money so fast. Does that matter?

If I owe taxes on this "income," what kind of ballpark are we talking here? I'm kinda freaking out right now. I lost a lot of money and now the money I cashed out is gonna be taxed? If I knew that, I would have just received payment by check and waited the 6-8 weeks.

So if someone sent me $10K on Bitcoin as a personal transfer and I cash it out, that gets taxed? That's ridiculous, it was a personal transfer from an external account (my Blockchain account), it wasn't a purchase.

So confused, any further help you can provide would be appreciated. Thanks for the quick reply.

I had to deal with this tax stuff on my 2018 return. I think I can help clarify.
The BTC exchanges report to the IRS anytime you sell BTC and have the USD sent to your bank account. Itbit and Coinbase definitely do this. Not sure about others.
I got a letter a few months back saying I owed $13,000 because I withdrew around $50,000 from Itbit in 2018. Itbit reported all my withdrawals to the IRS. What they didn't report is that I also deposited about $40,000 to Itbit in 2018 to buy BTC. The IRS just assumed I got my BTC for nothing and taxed me as though it was all profit.
I had to have my CPA write a letter detailing the deposits and withdrawals to Itbit. I still had to pay a couple grand in taxes but not $13,000.
Skut, I think you have 2 options here:
1. Claim that the credit card charges were to buy bitcoin. This way you can show a net loss. If the IRS wants to see proof that you bought bitcoin with the credit card you could run into some issues though.
2. I know this probably isn't something you want to do but...you could redeposit all the bitcoin into an offshore book and then have them send you a check. This will look much more straightforward on your taxes. But obviously a huge hassle.
If you cash out your bitcoin from an exchange and have them send you USD to your bank account you are going to get a letter from the IRS at some point saying you owe them a bunch of money.

[skut316]

I had to deal with this tax stuff on my 2018 return. I think I can help clarify.
The BTC exchanges report to the IRS anytime you sell BTC and have the USD sent to your bank account. Itbit and Coinbase definitely do this. Not sure about others.
I got a letter a few months back saying I owed $13,000 because I withdrew around $50,000 from Itbit in 2018. Itbit reported all my withdrawals to the IRS. What they didn't report is that I also deposited about $40,000 to Itbit in 2018 to buy BTC. The IRS just assumed I got my BTC for nothing and taxed me as though it was all profit.
I had to have my CPA write a letter detailing the deposits and withdrawals to Itbit. I still had to pay a couple grand in taxes but not $13,000.
Skut, I think you have 2 options here:
1. Claim that the credit card charges were to buy bitcoin. This way you can show a net loss. If the IRS wants to see proof that you bought bitcoin with the credit card you could run into some issues though.
2. I know this probably isn't something you want to do but...you could redeposit all the bitcoin into an offshore book and then have them send you a check. This will look much more straightforward on your taxes. But obviously a huge hassle.
If you cash out your bitcoin from an exchange and have them send you USD to your bank account you are going to get a letter from the IRS at some point saying you owe them a bunch of money.

I'm going to ask my Accountant about all of this but I guess I'm basically f'ed? I lost close to $20K this year and since there is only proof of the winnings, I'm going to get taxed on my losses? That doesn't seem right or fair? All the credit card transactions come up as some BS like "Bookstore LTD" or something made up. How much am I looking at owing here? Is there anyone out there who knows any way around this? I'd gladly pay the tax if it were all profit but it isn't.

[skut316]

I had to deal with this tax stuff on my 2018 return. I think I can help clarify.
The BTC exchanges report to the IRS anytime you sell BTC and have the USD sent to your bank account. Itbit and Coinbase definitely do this. Not sure about others.
I got a letter a few months back saying I owed $13,000 because I withdrew around $50,000 from Itbit in 2018. Itbit reported all my withdrawals to the IRS. What they didn't report is that I also deposited about $40,000 to Itbit in 2018 to buy BTC. The IRS just assumed I got my BTC for nothing and taxed me as though it was all profit.
I had to have my CPA write a letter detailing the deposits and withdrawals to Itbit. I still had to pay a couple grand in taxes but not $13,000.
Skut, I think you have 2 options here:
1. Claim that the credit card charges were to buy bitcoin. This way you can show a net loss. If the IRS wants to see proof that you bought bitcoin with the credit card you could run into some issues though.
2. I know this probably isn't something you want to do but...you could redeposit all the bitcoin into an offshore book and then have them send you a check. This will look much more straightforward on your taxes. But obviously a huge hassle.
If you cash out your bitcoin from an exchange and have them send you USD to your bank account you are going to get a letter from the IRS at some point saying you owe them a bunch of money.

Ace, my Bitcoin says I bought $32K worth of BTC and sold about $31.3K of BTC for a loss of -676.76 (these are all the fees I had to pay), so is "receiving Bitcoin" from another wallet considered a buy? My gain/loss report generated by Coinbase says -676.76. If that's the case, I should be OK, right?

[ace7550]

I'm going to ask my Accountant about all of this but I guess I'm basically f'ed? I lost close to $20K this year and since there is only proof of the winnings, I'm going to get taxed on my losses? That doesn't seem right or fair? All the credit card transactions come up as some BS like "Bookstore LTD" or something made up. How much am I looking at owing here? Is there anyone out there who knows any way around this? I'd gladly pay the tax if it were all profit but it isn't.

I would still report those credit card charges as bitcoin purchases. Let the IRS push back if they want. You are in the right here because you lost money. Talk to your accountant. I don't think you are f'ed. You just need to be careful how you report all of this.

[ace7550]

Ace, my Bitcoin says I bought $32K worth of BTC and sold about $31.3K of BTC for a loss of -676.76 (these are all the fees I had to pay), so is "receiving Bitcoin" from another wallet considered a buy? My gain/loss report generated by Coinbase says -676.76. If that's the case, I should be OK, right?

It depends on how Coinbase reports it. They will definitely let the IRS know if you cash out 32k btc and transfer 32k USD to your bank account.

[skut316]

It depends on how Coinbase reports it. They will definitely let the IRS know if you cash out 32k btc and transfer 32k USD to your bank account.

This is what my Gains/Loss report says

Year 2019

Bitcoin (BTC) Buys $32000
Bitcoin (BTC) Sells $31424

Gain/Loss -$676

If this is what their report says, I feel like I should be OK as they're reporting $32K in buys and $31.3 in sells which would be correct because I never profited off of Bitcoin. I received/bought some and then sold it right away.

Sorry for all the questions bud. I'm a little worried and it's just been an awful awful year. I haven't bet in 3 months and I'm really trying to get better and this would kill me.

[raiders72001]

This is what my Gains/Loss report says

Year 2019

Bitcoin (BTC) Buys $32000
Bitcoin (BTC) Sells $31424

Gain/Loss -$676

If this is what their report says, I feel like I should be OK as they're reporting $32K in buys and $31.3 in sells which would be correct because I never profited off of Bitcoin. I received/bought some and then sold it right away.

Sorry for all the questions bud. I'm a little worried and it's just been an awful awful year. I haven't bet in 3 months and I'm really trying to get better and this would kill me.

You are fine. Coinbase has 12 million users. Unless you are a trader, you have nothing to worry about.

[ace7550]

This is what my Gains/Loss report says

Year 2019

Bitcoin (BTC) Buys $32000
Bitcoin (BTC) Sells $31424

Gain/Loss -$676

If this is what their report says, I feel like I should be OK as they're reporting $32K in buys and $31.3 in sells which would be correct because I never profited off of Bitcoin. I received/bought some and then sold it right away.

Sorry for all the questions bud. I'm a little worried and it's just been an awful awful year. I haven't bet in 3 months and I'm really trying to get better and this would kill me.

So what coinbase is reporting to you is how much you have gained/lost with your bitcoin trades. I assume the book sent you 32k in BTC and then you sold it for 31.3k. Right? So you now have 31.3k in USD in your coinbase account. If you do nothing then you have nothing to worry about. But the moment you transfer that 31.3k to your bank account you're going to have to report it. Either Coinbase or your bank or both are going to let the IRS know about it. It's better to deal with it now then wait around for a letter from the IRS saying you owe a bunch of capital gains. Don't be a dummy like me.
Talk to an accountant, but I'm pretty sure the move is to report your credit card charges as a BTC investment, then report the 31.3k as your BTC sale. It'll be a net loss. IE a write off. Use it to your advantage.

[ace7550]

Here's what it'll look like:
I had a lot of various transactions, 7 pages of them, so mine will be different from yours in that way. But at the bottom they added it all up and showed it being transferred to my bank account.

[Arky]

If you get a 1099 from an exchange (i.e. Coinbase), you definitely have to deal with that. No 1099? Maybe not so much - everyone's situation is different....

One thing - try to hold onto Bitcoin for at least a year to qualify for long term gains. It is so much better than cashing out right away.....

https://www.investopedia.com/articles/personal-finance/101515/comparing-longterm-vs-shortterm-capital-gain-tax-rates.asp

[skut316]

So what coinbase is reporting to you is how much you have gained/lost with your bitcoin trades. I assume the book sent you 32k in BTC and then you sold it for 31.3k. Right? So you now have 31.3k in USD in your coinbase account. If you do nothing then you have nothing to worry about. But the moment you transfer that 31.3k to your bank account you're going to have to report it. Either Coinbase or your bank or both are going to let the IRS know about it. It's better to deal with it now then wait around for a letter from the IRS saying you owe a bunch of capital gains. Don't be a dummy like me.
Talk to an accountant, but I'm pretty sure the move is to report your credit card charges as a BTC investment, then report the 31.3k as your BTC sale. It'll be a net loss. IE a write off. Use it to your advantage.

I'm going to report everything but I think I'm going to be OK based on the fact I had net losses. For example, if someone put $5K on Coinbase and then regretted it and cashed out for $4900 the next day, they're not taxed on that $4900 because they lost $100, I'm in the same boat. I'm going to report everything but since I had a net loss, I won't owe anything.

Thanks to everyone for the replies!

[the_situation]

Bitcoin is the farthest thing from a scam. Do some reading

[FrogMeta]

Sportsbook.ag has been great to me. They have always paid me within 5-7 days. Really good web interface. Great live betting experience. Good bonuses.

[icon]

Sportsbook.ag has been great to me. They have always paid me within 5-7 days. Really good web interface. Great live betting experience. Good bonuses.

5-7 days? Many books pay in less than a couple of hours, sometimes faster. Bitcoin only books pay instantly to a few minutes.

5 days is unacceptable.

[Crusherrr]

5-7 days? Many books pay in less than a couple of hours, sometimes faster. Bitcoin only books pay instantly to a few minutes.

5 days is unacceptable.

I agree that it's unacceptable when compared to other sites. BetOnline and Bookmaker have paid me $10k+ in a few hours or less. However, Sportsbook and the other skins give unlimited cash bonuses. 30% 1x per week, 20% unlimited and they do 100% and 50% from time to time. I think that players put up with the 5-7 day payouts because they give such great bonuses. It may not be for everyone but I'm willing to put up with it for the tens of thousands in bonus dollars I take there every year.

[DontTailMe]

5-7 days? Many books pay in less than a couple of hours, sometimes faster. Bitcoin only books pay instantly to a few minutes.

5 days is unacceptable.

Everything's a cost/benefit decision. You're correct that the market has improved far beyond 5-7 days, but that might be acceptable if they're offering something else you want. The most important thing to me is that a book reliably pays out.