BTC on taxes?

[Gtborder]

Hey guys, hoping this isn’t THAT dumb of a question, but how does everyone negotiate their taxes when it comes to BTC? I’ve spent a decent amount of BTC on gear last year and I’m curious how I should go about reporting it (or not) to the IRS. I typically bought with Coinbase, sent to GDAX, then to a separate wallet, then to source. Coinbase is telling me I had a net loss last year.

Is it best to get professional guidance? Is it something I can handle on my own using turbo tax or something similar?

I’m based in the US, so hopefully y’all can help me navigate this.

Thanks!

 

[alphaproject]

I don’t think you need to report it. I believe it’s like buying a used car then is depreciates and you instantly lose 4K in 6 months. I think they care if you MAKE money. I had a business once back in the day and my business lost money, never made a dime and when it came time to get taxed since it was a business I showed them I lost money and it did get me out of owing a $200 tax bill but it was business specific not just general items like buying bitcoins or art/cars… Hope that makes sense.

 

[Janoshik]

You don’t tax a loss.

 

[Tony_Parks]

Gtborder" pid='47199' dateline='1554178278:

Hey guys, hoping this isn’t THAT dumb of a question, but how does everyone negotiate their taxes when it comes to BTC? I’ve spent a decent amount of BTC on gear last year and I’m curious how I should go about reporting it (or not) to the IRS. I typically bought with Coinbase, sent to GDAX, then to a separate wallet, then to source. Coinbase is telling me I had a net loss last year.

Is it best to get professional guidance? Is it something I can handle on my own using turbo tax or something similar?

I’m based in the US, so hopefully y’all can help me navigate this.

Thanks!

It’s called an “unrealized loss.” You don’t need to report it. If you converted it to cash and had other investment income, you’d want to report it to reduce your other investment income. But shockingly, the IRS doesn’t track your losses or care if you report them like it does with gains.

 

[Gtborder]

Thanks for the responses guys. I was freaking out about it for a little haha

 

[emez]

Just gotta report them gains brother! Maybe you can send them photos…

 

[swollerblader]

emez" pid='47405' dateline='1554323778:

Just gotta report them gains brother! Maybe you can send them photos…

Haha… I just choked on my food reading that shit.