TL,DR If you cash out and earn money selling your market earned BTC(obviously not from Market>,LBC, would tumble and such first) for cash do you have to pay tax on it?
So let's say I had bitcoin I wanted sell for cash through lbc(not a large amount of btc). Since I am going to be profiting just by the mark up for cash deals. Would this technically be required on income and therefore be taxed? Same way stock exchange stuff works right? I'm just confused on how much cash you would have to make from selling btc to be legally required to pay taxes on. Anyone know?
Yes you are technically supposed to pay taxes on BTC sold through localbitcoin. People have gotten in trouble for not doing so in the past. If you are just doing this once, or very infrequently, there's a very high likelihood you have nothing to worry about.