Coinbase turning over customer Data to IRS

[Monkeybiz0985]

https://www.theverge.com/2018/2/26/17055264/coinbase-cryptocurrency-tax-irs-compliance-court-order

 

Quote

Coinbase told its customers on Friday that it plans to comply with a court order and hand over about 13,000 customers’ data to the IRS within 21 days. The IRS made the request back in November 2016, asking for the Coinbase records of all the people who bought bitcoin from 2013 to 2015 to seek out those who were evading cryptocurrency taxes. Anyone affected by the order should now have received an email from Coinbase to that effect.

 

Approximately 13,000 users’ information, despite Coinbase’s  vigorous objection, will be turned over to the IRS. They were informed so by e-mail.

 

It looks like the government, at least in the US, is tired of not getting is cryptocut. So maybe this will help dissuade people from mining and get graphics card prices back to normal.

[ItsMitch]

Crypto currency taxes? IRS are having a joke yeah?

[Blademaster91]

7 minutes ago, SC2Mitch said:

Crypto currency taxes? IRS are having a joke yeah?

If miners want their currency treated the same as fiat money they're going to have to pay the same taxes ofc. Like OP said hopefully this gets some to realize they can't just get 100% free money,helping the gpu market return to normal.

[Guest Generallee]

4 minutes ago, SC2Mitch said:

Crypto currency taxes? IRS are having a joke yeah?

Why shouldn't it be taxed ?

[AntiTrust]

https://support.coinbase.com/customer/portal/articles/2924446-irs-notification

 

looks like this article is legit

[MadOverclocker]

32 minutes ago, Monkeybiz0985 said:

 

It looks like the government, at least in the US, is tired of not getting is cryptocut. So maybe this will help dissuade people from mining and get graphics card prices back to normal.

We can only hope so, but even with taxes people might just still use cryptocurrency mining in an effort to make more cash.

[Monkeybiz0985]

1 minute ago, MadOverclocker said:

We can only hope so, but even with taxes people might just still use cryptocurrency mining in an effort to make more cash.

True, but it’s going to be that much less profitable. On top of equipment and power requirements, now there’s taxes. 

[Guest Generallee]

1 minute ago, Monkeybiz0985 said:

True, but it’s going to be that much less profitable. On top of equipment and power requirements, now there’s taxes. 

Exactly, so hopefully it will make gpu mining abysmally unprofitable and force newcoming miners to buy asics or f*ck off from mining altogether

[NMS]

Good! If you own crypto currency and want to trade it in the end into actual money or buy goods/services, then you should pay taxes.

 

And maybe then I'll finally afford something better than a GTX 1050:D

[MadOverclocker]

2 minutes ago, Generallee said:

Exactly, so hopefully it will make gpu mining abysmally unprofitable and force newcoming miners to buy asics or f*ck off from mining altogether

Well actually we could see a noticible percent of used GPUs because people who just use three or four GPUs might sell them because they no longer need them. I think that after this only people who mine in their house might sell the GPUs for this situation. At least that's progress for us.

[Okjoek]

Which sucks more? Miners or taxes?

[ItsMitch]

3 minutes ago, Okjoek said:

Which sucks more? Miners or taxes?

Both of them can suck everything 

[Guest Generallee]

8 minutes ago, SC2Mitch said:

Both of them can suck everything 

 

12 minutes ago, Okjoek said:

Which sucks more? Miners or taxes?

This thread is doomed, I can hear them coming, god protect us from the cryptominer-taxationistheft hybrid posters

 

r e e e e

 

 

[Cindex]

3 hours ago, SC2Mitch said:

Crypto currency taxes? IRS are having a joke yeah?

Unfortunately not.  They're taxing literally any crypto moving around.  Or trying to, at least.

3 hours ago, Blademaster91 said:

If miners want their currency treated the same as fiat money they're going to have to pay the same taxes ofc. Like OP said hopefully this gets some to realize they can't just get 100% free money,helping the gpu market return to normal.

That's not at all how fiat currency works.  If I change US money into Canadian money, it's not taxed at all.  If I trade BTC for ETH, it's taxed.  

3 hours ago, Generallee said:

Why shouldn't it be taxed ?

Because it's designed to be a currency, not a stock.  It's literally in the name.

3 hours ago, NMS said:

Good! If you own crypto currency and want to trade it in the end into actual money or buy goods/services, then you should pay taxes.

 

And maybe then I'll finally afford something better than a GTX 1050:D

That's the part I don't have a problem with as much.  But still, what kind of currency gets extra tax just for being used at all?  

2 hours ago, Generallee said:

 

This thread is doomed, I can hear them coming, god protect us from the cryptominer-taxationistheft hybrid posters

 

r e e e e

 

 

Hello there.  You summoned me?

 

 

In any case, I don't really mine much of anything, a little Monero on CPU, so I'm just a touch biased. However, the levels they want to tax it at are insane.  If I mine & dump, 15% tax.  If I mine Monero and exchange it for BTC, 15% tax.  Sell the BTC?  15% more tax.  On everything.  It's utterly ridiculous how much they want to charge.

 

Solution?  Mine Monero, only spend it instead of sell it, and hope the government doesn't catch you

 

Disclaimer:  No taxes if you make/mine less than $500 in a year.  So I don't actually have to do that.

[Tieox]

Glorious news.  

 

 

[ChineseChef]

41 minutes ago, Cindex said:

-snip-

Disclaimer:  No taxes if you make/mine less than $500 in a year.  So I don't actually have to do that.

That $500 is total income, not crypto income.  So if you have a regular job, you have to add the crypto amount to your total.  Unless the tax code specifically states otherwise, which would surprise me.  But that is how the US tax code works with "if you make less than" kind of stuff.  It isn't about the individual things, but total income.

[vorticalbox]

5 hours ago, Blademaster91 said:

If miners want their currency treated the same as fiat money they're going to have to pay the same taxes ofc. Like OP said hopefully this gets some to realize they can't just get 100% free money,helping the gpu market return to normal.

Do you pay taxes on investment returns? Because that's pretty much what mining is. Pay for hardware and power and get a return later.

[Guest The Viking]

1 hour ago, Cindex said:

That's not at all how fiat currency works.  If I change US money into Canadian money, it's not taxed at all.  If I trade BTC for ETH, it's taxed.  

you still have to pay something called an "exchange rate" which counts as revenue for the bank which usually, unless there's some kind of exception, is taxed.

[AshleyAshes]

1 hour ago, Cindex said:

Unfortunately not.  They're taxing literally any crypto moving around.  Or trying to, at least.

That's not at all how fiat currency works.  If I change US money into Canadian money, it's not taxed at all.  If I trade BTC for ETH, it's taxed.  

Because it's designed to be a currency, not a stock.  It's literally in the name.

That's the part I don't have a problem with as much.  But still, what kind of currency gets extra tax just for being used at all?  

Actually, you can totally get taxed for buying and selling currency as an INVESTMENT.  It's called a capital gains tax.  Simply converting one currency to another for a purchase has no capital gain.  However let's say that me, here in Canada, bought $100 000 in USD, then the United States found a huge wealth in MacGuffintainium deposits, causing a new financial golden age in the United States and the value of it's currency skyrocketed, then yes, I would have to pay a capital gains tax in Canada on the huge increase of value of my pile of USD.

[Eaglerino]

5 hours ago, SC2Mitch said:

Crypto currency taxes? IRS are having a joke yeah?

If you sell it for money then you have to report that as income

If you report it as income, it'll be taxed

In America these are the laws, crypto was under the tax radar for a while but it was never going to last

[HarryNyquist]

1 minute ago, Eaglerino said:

In America these are the laws, crypto was under the tax radar for a while but it was never going to last

Especially not with everyone and their brother thinking it's a get-rich-quick scheme and investing their life's savings into it.

 

A lot of people are gonna be in for a hugely rude awakening.

[Eduard the weeb]

this is why you keep your coins on you not with some shitty .com imo also the irs is pretty shit also.

[Energycore]

As far as I understand, you are required by US law to pay taxes for any capital gains, and money made with crypto assets is no exception. If you want to evade taxes, using a big, centralized exchange for your crypto was never a good idea in my eyes. These platforms are easy to use and practical, but they do work against the concept of decentralization to an extent.

[Energycore]

5 hours ago, Okjoek said:

Which sucks more? Miners or taxes?

What sucks more, doing compute work to ensure that transactions are secure, or governments getting a stream of funds so that they can actually do their job of benefitting the people? :thinking:

[bcredeur97]

decentralized exchanges like https://bisq.network/ are going to take off