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Author Topic: Digital Currency - Is it Income?  (Read 2444 times)

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Offline ipaint

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Digital Currency - Is it Income?
« on: December 08, 2013, 01:13:55 AM »
Anyone good with the Laws about digital currency. By that I mean, Say someone mines a bunch of GoldCoins and sells them for BTC and then cashes out. What laws are there, Taxes etc. this is for people in the US of course. We know at some point in time Uncle Sam will want something from everyone that mines or gets any digital currency.

This is something I don't see many people talking about. What Laws do we need to follow, are there taxes that people need to pay? All that good stuff that no one likes to talk about. I know at some point it is going to be something everyone will need to know about.

Lets say you mined a boat load of GoldCoin it's worth so much $xxxx.xx so you need to pay so much in taxes.
Are you mining as a business? Pay taxes etc. on mining income?
When do you claim it as income when you turn into US Dollars?

Theses are things I've been thinking about from a business point of view. Right now is a digital currency really income? Or is it income only when you turn it into cash?  Because I was thinking any digital currency isn't income until you cash it in. But on the other hand you can buy products and services with it. So when is it income? All this just makes your head spin. ::)

Another thought: Is it income? I mean how can one say it's income when all you did was turn you PC or Rig on? No one gave you a job and no one is paying you to do a job. So is it income?

Just some random thoughts, as you can tell.
I'm not responsible if you get a headache thinking about this stuff  :o
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Offline CryptoFreedom4Me

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Re: Digital Currency - Is it Income?
« Reply #1 on: December 08, 2013, 08:33:07 AM »
Read this
Tax compliance https://en.bitcoin.it/wiki/Tax_compliance

Promoting a Clear Regulatory Environment for Cryptocurrencies http://theclag.org/
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Offline ipaint

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Re: Digital Currency - Is it Income?
« Reply #2 on: December 08, 2013, 09:46:48 AM »
Thanks for the links, Don't know why I never found the https://en.bitcoin.it/wiki/Tax_compliance

Now I'll see if I can write a spreadsheet for it with income, expenses etc. and post it for everyone to review or use if they want. Unless someone has one set up that I can review or use as a sample. Could turn out to be a pain, because I'm sure people mine or trade a few coins. I'll see what I can come up with.

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