2018 Taxes on Trades - Boooo

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MitchellMint
Posts: 18
Joined: Thu Dec 28, 2017 8:03 am

2018 Taxes on Trades - Boooo

Post by MitchellMint » Thu Dec 28, 2017 8:17 am

Morning All,

I have never met any of you before, but I do have some questions. I have been mining off and on for a couple years and I must say it is an accomplishment in itself to stay around as a pool this long and at this level. Great Job to you and everyone helping.

I have Tax Concerns since I am a Citizen of USA and have been mining as a corporation for some time. We have been playing with our own pool but soon discovered your pool is doing better than ours. The problem, trading coins for one payout puts us in a tax liability. I see the TxIDs and can extrapolate the trades taxes owed for 2018 but, is there a way we can chose what coins to HODL? :) I know it adds a kink but it could reduce my tax liabilities.

Travis

PS, I have SHA256 as well if you'll have it.
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AppleMiner
Posts: 739
Joined: Sat Sep 30, 2017 1:44 pm

Re: 2018 Taxes on Trades - Boooo

Post by AppleMiner » Thu Dec 28, 2017 12:27 pm

You can always choose what coins to HODL, but the pool will not HODL them for you. The pool is not designed to be a bank so they still need moved once they are more than $5 over the default threshold limit.

If im not mistaken you have to pay taxes on the coins the moment they are created. Not when they are traded, or sold into your bank.
You then pay the difference once they are sold from what you paid when they were created.
That way, even if you misplace, lose, have the exchange steal them, or get jacked....Uncle Sam still gets his taxes money.
If you never sell the coins or use them in the meantime without reporting they were used/sold....you should have still paid taxes on them when they were made. Unless you aren't reporting that(withouting tax info=federal offense) But I mean if you are running a legit company shouldnt be any issues.
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Steve Sokolowski
Posts: 3732
Joined: Wed Aug 27, 2014 3:27 pm
Location: State College, PA

Re: 2018 Taxes on Trades - Boooo

Post by Steve Sokolowski » Thu Dec 28, 2017 12:42 pm

MitchellMint wrote:Morning All,

I have never met any of you before, but I do have some questions. I have been mining off and on for a couple years and I must say it is an accomplishment in itself to stay around as a pool this long and at this level. Great Job to you and everyone helping.

I have Tax Concerns since I am a Citizen of USA and have been mining as a corporation for some time. We have been playing with our own pool but soon discovered your pool is doing better than ours. The problem, trading coins for one payout puts us in a tax liability. I see the TxIDs and can extrapolate the trades taxes owed for 2018 but, is there a way we can chose what coins to HODL? :) I know it adds a kink but it could reduce my tax liabilities.

Travis

PS, I have SHA256 as well if you'll have it.
You won't have to worry about tracking how much you earned because we'll be doing it for you in 2018. You'll get all the forms provided to you that you need to do your taxes. No need to manually record txids.
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MitchellMint
Posts: 18
Joined: Thu Dec 28, 2017 8:03 am

Re: 2018 Taxes on Trades - Boooo

Post by MitchellMint » Thu Dec 28, 2017 6:55 pm

Steve Sokolowski wrote:
MitchellMint wrote:Morning All,

I have never met any of you before, but I do have some questions. I have been mining off and on for a couple years and I must say it is an accomplishment in itself to stay around as a pool this long and at this level. Great Job to you and everyone helping.

I have Tax Concerns since I am a Citizen of USA and have been mining as a corporation for some time. We have been playing with our own pool but soon discovered your pool is doing better than ours. The problem, trading coins for one payout puts us in a tax liability. I see the TxIDs and can extrapolate the trades taxes owed for 2018 but, is there a way we can chose what coins to HODL? :) I know it adds a kink but it could reduce my tax liabilities.

Travis

PS, I have SHA256 as well if you'll have it.
You won't have to worry about tracking how much you earned because we'll be doing it for you in 2018. You'll get all the forms provided to you that you need to do your taxes. No need to manually record txids.
Oh that is great news!
TrustPlus Dev
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MitchellMint
Posts: 18
Joined: Thu Dec 28, 2017 8:03 am

Re: 2018 Taxes on Trades - Boooo

Post by MitchellMint » Thu Dec 28, 2017 7:04 pm

AppleMiner wrote:You can always choose what coins to HODL, but the pool will not HODL them for you. The pool is not designed to be a bank so they still need moved once they are more than $5 over the default threshold limit.

If im not mistaken you have to pay taxes on the coins the moment they are created. Not when they are traded, or sold into your bank.
You then pay the difference once they are sold from what you paid when they were created.
That way, even if you misplace, lose, have the exchange steal them, or get jacked....Uncle Sam still gets his taxes money.
If you never sell the coins or use them in the meantime without reporting they were used/sold....you should have still paid taxes on them when they were made. Unless you aren't reporting that(withouting tax info=federal offense) But I mean if you are running a legit company shouldnt be any issues.
Im no tax lawyer but my lawyer said, "Any Trade for one coin to the next will require reporting and is subject to taxes" The amount Percentage is still up in the air. Also each transaction will be taxed separately. So, if you make $10 on one trade and lose -$20 on another, you still owe a percentage on the $10. Nothing is cumulative anymore. Sucks right? ProHashing multipool presents a problem since I am mining 100 different coins a day thanks to PH programming, and get a payout for BCH... the shared mining of VERT received a value, then was traded for BCH... The Trade is subject to Taxes. And if I HODL BCH, no other taxes will occur. If I mine VERT, LTC, XVG, NYAN... etc --> its traded to BCH, daily that's more paperwork.
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CryptoDamon
Posts: 16
Joined: Mon Aug 28, 2017 3:45 am

Re: 2018 Taxes on Trades - Boooo

Post by CryptoDamon » Thu Dec 28, 2017 9:38 pm

I think the problem we have the taxes is that the IRS has no idea what it's doing and no tax attorney or CPA has a clue what to do either. It will be interesting to see what the actually come up with. Until then, everything we're told is just to CYA.
Jamin
Posts: 23
Joined: Fri Dec 15, 2017 9:45 am
Location: United Kingdom

Re: 2018 Taxes on Trades - Boooo

Post by Jamin » Fri Dec 29, 2017 5:19 pm

I think the USA is going to see an exodus of people involved in crypto over the tax laws.
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AppleMiner
Posts: 739
Joined: Sat Sep 30, 2017 1:44 pm

Re: 2018 Taxes on Trades - Boooo

Post by AppleMiner » Fri Dec 29, 2017 9:46 pm

Jamin wrote:I think the USA is going to see an exodus of people involved in crypto over the tax laws.
Same thing was said over TRUMP being elected. Of all the people who know..how many left for Canada?
Jamin
Posts: 23
Joined: Fri Dec 15, 2017 9:45 am
Location: United Kingdom

Re: 2018 Taxes on Trades - Boooo

Post by Jamin » Sat Dec 30, 2017 4:52 am

AppleMiner wrote:
Jamin wrote:I think the USA is going to see an exodus of people involved in crypto over the tax laws.
Same thing was said over TRUMP being elected. Of all the people who know..how many left for Canada?
A lot of those people were the liberal elite that need Hollywood etc to work. For those making dollar on crypto you can do that from anywhere in the world. Well maybe not Ukraine... https://www.rt.com/business/414336-kiev ... idnapping/

But we will see the ecosystem either move underground (or to untrackable currency) or develop in countries that are willing to let it happen.
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Aura89
Posts: 211
Joined: Mon Oct 02, 2017 12:12 am

Re: 2018 Taxes on Trades - Boooo

Post by Aura89 » Sat Dec 30, 2017 10:26 pm

AppleMiner wrote:
Jamin wrote:I think the USA is going to see an exodus of people involved in crypto over the tax laws.
Same thing was said over TRUMP being elected. Of all the people who know..how many left for Canada?
Well, the canadian immigration did crash due to too much traffic the day after election day.....

:P
MitchellMint wrote:
AppleMiner wrote:You can always choose what coins to HODL, but the pool will not HODL them for you. The pool is not designed to be a bank so they still need moved once they are more than $5 over the default threshold limit.

If im not mistaken you have to pay taxes on the coins the moment they are created. Not when they are traded, or sold into your bank.
You then pay the difference once they are sold from what you paid when they were created.
That way, even if you misplace, lose, have the exchange steal them, or get jacked....Uncle Sam still gets his taxes money.
If you never sell the coins or use them in the meantime without reporting they were used/sold....you should have still paid taxes on them when they were made. Unless you aren't reporting that(withouting tax info=federal offense) But I mean if you are running a legit company shouldnt be any issues.
Im no tax lawyer but my lawyer said, "Any Trade for one coin to the next will require reporting and is subject to taxes" The amount Percentage is still up in the air. Also each transaction will be taxed separately. So, if you make $10 on one trade and lose -$20 on another, you still owe a percentage on the $10. Nothing is cumulative anymore. Sucks right? ProHashing multipool presents a problem since I am mining 100 different coins a day thanks to PH programming, and get a payout for BCH... the shared mining of VERT received a value, then was traded for BCH... The Trade is subject to Taxes. And if I HODL BCH, no other taxes will occur. If I mine VERT, LTC, XVG, NYAN... etc --> its traded to BCH, daily that's more paperwork.
I may be incorrect, but i don't think we, the users at prohashing would be subject to tax on the random coins we mine in a multi-pool, as i never see those coins, i never had possession of those coins. Those coins went directly to Prohashing, they did the trades, and i received payment for my miners work in my chosen currency.
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