12 replies to this topic

[12SPX]

Been listening to Cramer and the guys on CNBC and how they think its okay people have invested in bitcoin to make money over stocks.  They were comparing it to when they were young and buying stocks.  My question is at least stocks have the value of a company actually doing something whereas bitcoin is what.......nothing.  I'm not a gold guy either but at least its something, am I wrong in my thinking, can someone explain the worth of crypto's?

[LMF]

Tulip bulbs have value over at Home Depot.

[pdx5]

"can someone explain the worth of crypto's?"

 

Did you hear you can buy a Tesla with crypto coins?

Lat us a say you did a roofing job and got paid in crypto. 

Well...your earnings can not be reported as income because the tax form wants $$ numbers.

There is no place on Form 1040 to enter income in crypto currency.

 

And that may be the value of crypto...bypass taxation.

[fib_1618]

And that may be the value of crypto...bypass taxation.

https://www.irs.gov/...tual-currencies

[pdx5]

 

And that may be the value of crypto...bypass taxation.

https://www.irs.gov/...tual-currencies

 

Except brokers and banks do not report crypto transactions to IRS.

Therefor it is basically similar to an honor system among thieves.

Unless the person receiving roofing services reports to IRS, how is IRS to know how much the roofer was paid?

[fib_1618]

 

 

And that may be the value of crypto...bypass taxation.

https://www.irs.gov/...tual-currencies

 

 

Except brokers and banks do not report crypto transactions to IRS.

 

 

That’s likely because brokers and banks don’t trade or exchange cryptocurrencies...specific digital exchanges do and are required to report such transactions. PayPal has just recently included Bitcoin as a payment method 2 weeks ago...other institutions will eventually follow as this new legal tender becomes more broadly accepted as payment for goods and services (and the Treasury no longer considers it an asset as the global community continues to create their own digital currencies...including the United States).

 

Fib

Edited by fib_1618, 03 May 2021 - 08:48 PM.

[nacho]

"can someone explain the worth of crypto's?"

 

Did you hear you can buy a Tesla with crypto coins?

Lat us a say you did a roofing job and got paid in crypto. 

Well...your earnings can not be reported as income because the tax form wants $$ numbers.

There is no place on Form 1040 to enter income in crypto currency.

 

And that may be the value of crypto...bypass taxation.

You would convert the value of the BTC to USD at the time of the transaction and report that. 

[nacho]

 

 

And that may be the value of crypto...bypass taxation.

https://www.irs.gov/...tual-currencies

 

Except brokers and banks do not report crypto transactions to IRS.

Therefor it is basically similar to an honor system among thieves.

Unless the person receiving roofing services reports to IRS, how is IRS to know how much the roofer was paid?

 

Yes, it's the honor system for now. I've been dealing with crypto taxes for a few years. More work than I would like, but there are services like https://cointracking.info/ that simplify the process considerably.

Edited by nacho, 03 May 2021 - 10:40 PM.

[fib_1618]

 

 

 

And that may be the value of crypto...bypass taxation.

https://www.irs.gov/...tual-currencies

 

Except brokers and banks do not report crypto transactions to IRS.

Therefor it is basically similar to an honor system among thieves.

Unless the person receiving roofing services reports to IRS, how is IRS to know how much the roofer was paid?

 

Yes, it's the honor system for now. I've been dealing with crypto taxes for a few years. More work than I would like, but there are services like https://cointracking.info/ that simplify the process considerably.

Great link...thank you!!

Fib

[Dex]

 

 

 

 

And that may be the value of crypto...bypass taxation.

https://www.irs.gov/...tual-currencies

 

Except brokers and banks do not report crypto transactions to IRS.

Therefor it is basically similar to an honor system among thieves.

Unless the person receiving roofing services reports to IRS, how is IRS to know how much the roofer was paid?

 

Yes, it's the honor system for now. I've been dealing with crypto taxes for a few years. More work than I would like, but there are services like https://cointracking.info/ that simplify the process considerably.

Great link...thank you!!

Fib

 

Fib,

You know I love you.  

Not advising this; just an example.

 

Join Coinbase.

Transfer $US and buy BTC*

Move all BTC to cold storage

Move some of BTC from cold storage to phone wallet.

Then you can:

Give BTC to family and friends.

Buy things/services with BTC at places that accept it.no.

 

The issue arises when you need to associate your name with what you buy e.g. a car or house.  But, maybe you could use a Corp or LLC.

 

Wild idea - do the above but with all your wealth - then leave the country and live/spend in a crypto friendly country.

 

*Note - you may have to use a stable coin instead of BTC

 

In all of the above there is no reporting to the gov't about you because there is no sale and link to you.