ETH - United States Taxes

bluelogicbluelogic Member Posts: 86
So I'm looking at some advise. Against the whiners, doom and groomers I bought $25,000 in ETH when it was $10. So I have 2,500 ETH, plus I have some over mining operations in 2016 which I guess I was supposed to file taxes on. So I'm not looking to run away from the country I guess I need to amend my return for 2016 for the mined coins. Someone mentioned I should use : https://bitcoin.tax/ for this. Coinbase lets me withdraw $15,000 per week I know that is going to show up on a CTR and for 2017 Coinbase will provide the tax form. I was wondering if anyone else has any additional advise on doing this right, or best practices I should know.
Post edited by bluelogic on

Comments

  • botarnoldbotarnold Member Posts: 16
    localbtc is your way to go
  • ForceliteForcelite Member Posts: 23
    First let me say way to go, second I have thought of this as well. Just know that since coinbase is a USA firm, they will report your cash outs and gains to the IRS. I would feel more comfortable moving over seas if it was me.
    Good luck blue,
    Force
  • KellenstarKellenstar Member Posts: 1
    The bitcoin.tax site works well.
    As for the rest, a lot of research is in order!
    Good luck
  • cidmocidmo Member Posts: 332 ✭✭
    edited May 31
    ur best bet is to try and not pull any money till u go over 365 days from the purchase of the eth
    that way u can enter into long term capital gains tax which is far lower than short term
    this is assuming that u have another source of income u claim as ur job
    if u pull more than i think 1/3rd or 1/4th of ur main income within a year taxes change as well
    as u pay a regular income tax vs capitol gains
    other than that with the money u made hire an accountant it will make life incredibly easier
  • bluelogicbluelogic Member Posts: 86
    Thank you all for the advice. Like I said I intend to pay the taxes and wasn't looking to avoid them. It seems the best thing for me to do is follow @cidmo advice and sell my ETH that I purchased and/or mine as they matured (365 days). With the recent IRS audits into Coinbase there is no way I can cash out into a Coinbase USD wallet and just hold for a year. I know a lot of people don't like Coinbase. I went with them because their Coinbase USD Wallet is covered by FDIC insurance, up to a maximum of $250,000.

    I got royally screwed by Cryptsy.
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