Initially, I was just going to say F*%K You Uncle Sam
With regards to paying taxes on my Bitcoin that is...
I pay my normal taxes and just liked having this *untaxed bitcoin deal on the side, where the U.S. tax mob didn't get to dip there fingers into my supplementary income because well...
I Am Not Rich
Then I decided I should probably pay you F&%Kin' Son of a B&TCH
But My-God, WTF!
This is a Tax preparation nightmare!
I'm working off guidance from 2014, where no-matter-what I do I'm pretty sure I will get it wrong. It also seems that the government doesn't really understand cryptocurrencies or how to treat them. I surely don't really know how to treat my situation!
- I haven't bought a bitcoin nor sold bitcoin I have bought
- I provide "Services" for cryptocurrencies
- I exchange those crypto at exchanges and then sell on coinbase
- Sometimes I hold, Sometimes I sell and Re-Invest in Like-Wise investments like Steemit
- I have mining contracts
- I have Steemit Blogging payouts/ power-up investments
- I don't have a 1099 and no solid proof of trading history
_ I have been preparing my taxes using self employment taxes and using only my total cash out amount from coinbase-bank account as my earned income_
The issue is that most of what I do with my cryptocurrencies is just move into other investments or hold for the long term. I would consider much of that Like-Wise trading unless I take proceeds and cash out into real USD through coinbase?
I don't plan on including some really intense trading history that would require a team of accountants to determine my trading netted only a few thousand dollars...
Then again, I really feel I'm setting myself up for an audit simply by including "Bitcoin" on my Tax form
It also seems that I will ultimately be putting myself on their Crypto-Radar for future harassment
It's hard to want to put a serious effort into paying taxes on when the government itself hasn't put the effort into clarifying the tax implications. But I do want to pay and I want it to be enough so they leave me alone or at least determine that they owe me something. Think about that - Uncle Sam breaking down your door to pay you! Sounds good to me... lol, that would be the day but quite doubtful.
If anyone has Tax advice I would love to hear some
What you did or how you did them. Did you use any firm? Should I consider utilizing an accounting service?
or should I even worry since I'm trying to be legit paying bitcoin taxes?
