IRS Ruling

So what does the IRS ruling of bitcoin as property mean for buying goods on the darknet. If I bought $200 of bitcoin on coinbase through my bank account and send it to sr2 and spend it all, what do I do? Do I report it on my taxes? Will I be in legal trouble for not saying what happened to the coins?


Comments


[19 Points] StuffyKnows2Much:

For the love of Christ, please do not report to the IRS that you transferred $200 of bitcoins to SR2. They will laugh and laugh because even they know that SR2 is defunct.

On a serious note: no, you do not have to report your illegal activity to the IRS. Unless you are Al Capone, in which case you should have known better.


[7 Points] bafflesaurus:

Do I report it on my taxes?

The only thing you report on your taxes is how much you've made from realized gains due to selling off bitcoins.


[6 Points] the_armory:

IRS cannot determine when the coins were in your wallet vs the previous wallet/owner, there is no clear method of how you are to claim it since it is more akin to a stock, and you won't get in trouble for not claiming $200 in bitcoins (legal or otherwise) as property.


[6 Points] lynen:

It's meant to target the people who have substantial money (100k+) wrapped up in bitcoin for a long term gain/loss.


[1 Points] None:

LOL you don't need to worry about it. It was always property. No one every seriously considered it to be currency for tax purposes. You don't need to report anything unless you have investments in bitcoin and when you sell a large amount up bitcoin for a gain or loss. Spending them need not be reported.