Taxes?

I've got a question about bitcoin and taxes. as i'm aware in ny there is no sales tax on bitcoin but if you exchange goods or services you must pay a tax for each transaction. but possibly not if you exchange bitcoins for us currency. also theres a capital gains tax if you make a profit off the fluctuation in price. but usually bitcoins are exchanged immediately after buying them from an exchange so there is nearly zero price fluctuation. so if a person who has spent about 5k on bitcoin in a year, while only making around 15k on paper, should they attempt to pay taxes they bought throughout the year? can you potentially avoid paying taxes on the 5k in bitcoin, or how likely is it to come up again? I'm not sure what I should do about it since I haven't kept good records of those btc transactions...


Comments


[3 Points] throwathrowanz:

Fuck tax bro


[2 Points] coffeencreme:

You may get betters answers to this question on the bitcoin sub tbh


[1 Points] realmenlovecats01:

I wouldn't bother unless you had a net gain from all the transactions


[1 Points] vendorthrowaway2222:

The tax code is incredibly hard to actually be enforced, especially with the small amounts you're talking about. You can pay your taxes, but you'll most likely be fine if you won't.


[0 Points] agorathrow8080:

You would have to be hard core audited to get in trouble imho.

Like you make 15k on paper but you have spent 100k in cash. Most likely.less extreme but you get the point. If you think you need to, im pretty sure you can just put it as btc gains on the market, doubt you would get audited that hard if you willing pay taxes on it.

Who knows the IRS agents are a collective bag of dicks. Source: been hit 3x in 20 yeats filling 2x they screwed up, and once i paid wm.back 3x took me 4 months to get the money they auto stole from my returns after i paid them, but they "dont keep track that well, sorry"


[0 Points] stonedcheese420:

the EU just decided that Bitcoin has to be treated like any other currensy. So there is no tax in changing them or earning money by buying selling them. Also the ammount of the money shouldn't make a difference. But I don't know exactly about america.

You can make millions at the stock market without paying one single cent tax. It's the working people that should pay taxes not the ones that earn millions a year anyway ;)