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Paying with Cryptocurrency and US Taxes

kasterborus

You're Saying I Can Sell?
25/6/19
42
10
8
I just completed my personal taxes and one of the questions was did you trade crypto. I did pay a TD in crypto for 3 watches last year, but these transactions were through my business, not my personal accounts. Officially the goods are now assets of my business, and I am custodian.

So I did not declare crypto on my personal taxes, as I received no personal income from the transactions. But I fully intend to declare this on my business taxes.

Do you think it would be easier just to declare this as personal? I bought crypto, held them for less than minute then transferred ownership. The gains are a couple of dollars at most.

Anyone else faced with this tax issue? All advice appreciated.
 

rabl253

Active Member
Supporter
Certified
1/2/19
251
200
43
Isn't there a rule where if you make less than 600 dollars you don't have to report it as income? I would think that would apply here, but I am not a tax specialist.

I do report them on my taxes, https://bitcoin.tax has a section for spending. I am not sure how they report it, I think they only report the gain or loss the same way you described in your post, (Price_when_sent - Price_when_purchased_with_USD)
 

ssouthall6

Put Some Respect On My Name
10/10/13
3,539
1,562
113
I hope this isn't introduced in the UK. It's been a tidy little earner for me these last few years


Sent from my iPhone using Tapatalk
 

kasterborus

You're Saying I Can Sell?
25/6/19
42
10
8
So I totaled up all the buy -> send transactions for 2019 and had a net $ loss of $55.
I used the requests from the watch dealer as a representation of the $ amount of a send., making it the equivalent of a sell.
Turbotax then told me I owed over $600 in taxes. :crazy::wacko:

I think I'm going to exclude all that from my personal taxes, which technically is correct, and hire an accountant for the business taxes this year.
 

kasterborus

You're Saying I Can Sell?
25/6/19
42
10
8
Pro Tip : Login to https://bitcoin.tax , connect to Coinbase (or whatever you use) and enter the Capital Gains statement produced into TurboTax.

I got a massive $1 on my $49 loss.

...and as a bonus I actually understand how the taxes are supposed to work now. :woo:

...

I think. :confused: