cdn, Taxes on bitcoin?

[Holyghost23]

 ive been mining a bunch of different alt coins for months with my vega rig.. lets just say i have enough coins that if i  turn it into cash and put it near any of my bank accounts. the govt will think i made a large drug deal.. i asked my lawyer about bitcoin and taxes, and he replied wtf is a bitcoin?..

if or when i decide to convert my btc to CDN. do I treat it like I would any other stock investment?

#papaLinus.. help a Canadian brother out.

also need a new lawyer.. so if you can recommend one in Canada pm me his number, he has to know wtf a bitcoin is and have a degree in both business management and criminal law

[Mira Yurizaki]

4 minutes ago, Holyghost23 said:

 ive been mining a bunch of different alt coins for months with my vega rig.. lets just say i have enough coins that if i  turn it into cash and put it near any of my bank accounts. the govt will think i made a large drug deal.. i asked my lawyer about bitcoin and taxes, and he replied wtf is a bitcoin?..

if or when i decide to convert my btc to CDN. do I treat it like I would any other stock investment?

#papaLinus.. help a Canadian brother out.

also need a new lawyer.. so if you can recommend one in Canada pm me his number, he has to know wtf a bitcoin is and have a degree in both business management and criminal law

Look up what your tax revenue agency considers "digital currency" to be. In the US, the IRS considers all forms of digital currency as property.

 

If anything, if you cash out your digital currency to real currency, you have to report it as income. Probably under the "other" section. You should also have a record of the transaction so you can prove to your tax agency the amount you converted.

[vanished]

I'm surprised he wouldn't be aware of this.  The popularity has gotten so high that even "the normies" have heard of bitcoin now

[Holyghost23]

2 minutes ago, M.Yurizaki said:

Look up what your tax revenue agency considers "digital currency" to be. In the US, the IRS considers all forms of digital currency as property.

 

If anything, if you cash out your digital currency to real currency, you have to report it as income. Probably under the "other" section. You should also have a record of the transaction so you can prove to your tax agency the amount you converted.

there tax laws are bit loopy for bitcoin.. it says if i earn any cryptocurrancy I have to declare the amount I earned based on trade value for that day.... well i mine like 3 different coins and they pay out all at different times and the markets go up and down like a rollor caster, so I have no idea the exact dollar value of every single crypto transaction my pools make to my wallets.

then they have a different option for people that buy and sell it on market.. they say to treat it just like a capital gain/loss..
Ive just been holding on to them wanting to cash out . but scared of the tax man.. i just want to know if i declair it as a capital gain and pay what ever tax that is.. if im not gonna get a phone call from CRA down the road because when i was mining it, it may have been worth more at that time.

[Mira Yurizaki]

1 minute ago, Holyghost23 said:

there tax laws are bit loopy for bitcoin.. it says if i earn any cryptocurrancy I have to declare the amount I earned based on trade value for that day.... well i mine like 3 different coins and they pay out all at different times and the markets go up and down like a rollor caster, so I have no idea the exact dollar value of every single crypto transaction my pools make to my wallets.

You'll just have to dig in for either a "closing time" or use the final value at 23:59:59.

1 minute ago, Holyghost23 said:

then they have a different option for people that buy and sell it on market.. they say to treat it just like a capital gain/loss..
Ive just been holding on to them wanting to cash out . but scared of the tax man.. i just want to know if i declair it as a capital gain and pay what ever tax that is.. if im not gonna get a phone call from CRA down the road because when i was mining it, it may have been worth more at that time.

If anything, you should read up on how to fill out the tax forms. Half the problem of filling them out is knowing what category your income falls in and filling in the appropriate boxes and using the appropriate tables for rates if a flat system is not used.

 

I guess the other half is knowing what you can deduct.

[Holyghost23]

15 minutes ago, M.Yurizaki said:

You'll just have to dig in for either a "closing time" or use the final value at 23:59:59.

If anything, you should read up on how to fill out the tax forms. Half the problem of filling them out is knowing what category your income falls in and filling in the appropriate boxes and using the appropriate tables for rates if a flat system is not used.

 

I guess the other half is knowing what you can deduct.

I have the tax stuff figured out for capital gains/losses.. its pretty simple you just declare total gain/loss made for the year and use the price of cdn dollars you got from selling or buying the btc... its the whole mining part itself that i find a bit stupid. if they had to audit me it would take a few years for them or me to go through and price every deposit made.. some of the pools make a deposit every few seconds depending on the coin.

[BluJay614]

26 minutes ago, M.Yurizaki said:

Look up what your tax revenue agency considers "digital currency" to be. In the US, the IRS considers all forms of digital currency as property.

 

If anything, if you cash out your digital currency to real currency, you have to report it as income. Probably under the "other" section. You should also have a record of the transaction so you can prove to your tax agency the amount you converted.

I'd be surprised if miners in the US will actually claim their income on their taxes. If they do, I hope they know that self employment taxes are significantly higher~. Of course, not to claim it is Tax Fraud.

[Holyghost23]

is there a single Canadian miner that has cashed out on this forum?. can you explain what you did for taxes..
#papaLinus.. what did you do for taxes with your mining adventure.. if you did nothing. call your lawyer/tax guy right now... any tax guy i have access to doesn't know the exact answer for the mining part of taxes as income..
the trading part is very simple. capital gains/losses
Im not going to go through 5.8 million transactions and price each one for the moment they happened.. im fairly sure an auditor wouldn't want to either... can someone please explain the laws to me a bit better?

i don't wanna lose my house because i bought it with dollars i mined with my gpu.

[FlatBrokeRacing]

https://turbotax.intuit.ca/tips/how-bitcoins-might-impact-your-income-taxes-333

 

https://www.canada.ca/en/financial-consumer-agency/services/payment/digital-currency.html

 

Yes its taxable, but IMHO unless you have a business in which you are writing off expenses and/or converting into FIAT currency then this is a moot point, if you cash out to fiat currency, you need to claim it as income, in which you can write off expenses if you are a sole proprietor.

 

If you are trading currency, and gaining money 10 fold, then you are liable for capitol gains, and need to record purchased price, vs % gained.

 

so basically if you have mined a bunch of coins, convert it to fiat, you really only need to add that into your yearly income and pay income taxes on that, unless you are mining for a business and writing off expenses such as rent, power, cost of parts, etc etc.