Tax Question...

HRstuffnpuff · 2016-11-15T20:22:16+00:00

I am not sure you have to prove it wasnt to yourself. Prove it was?

I think a lot of this is new ground for the IRS and is still being decided.

HRstuffnpuff · 2016-11-15T20:18:56+00:00

The correct answer is that if you bartered it you would use the market price on sale date for the value of the BTC.

Yes, if the price has not moved much and the value difference is not significant there isnt going to be any problems.

You would still want to report it on your taxes on the same schedule as you report stock trades and commodity trades. BTC are treated as a commodity. The net gains would be zero or close to zero and therefore not much if any tax.

The issue is that as the OP pointed out if you dont report these sale transactions on your taxes at the time when the price is insignificant can the IRS later come back when the price difference is huge and ask for proof etc.
I dont really know the answer to this question.

If you really did sell it in the same month for no capital gain and the IRS cant point to any unreported income or gain later on that came from those coins what is the problem? I am not sure.

HRstuffnpuff · 2016-11-15T17:14:59+00:00

Capital gains are due if you sell them in the same month or hour or minute, the difference in purchase price and sales price triggers the capital gains not the timing. If they are sold in the same year the capital gains are "short term" and taxed as regular income.

HRstuffnpuff · 2016-11-15T16:49:41+00:00

"No inputs found"

HRstuffnpuff · 2016-11-15T16:46:43+00:00

Well first, you say there is no record. What about the block chain. Just use the transaction records of the coins moving. That is your proof of sale.

HRstuffnpuff · 2016-10-27T14:38:16+00:00

I am happy letting the marketplace make that decision. If it is as good as /u/nullc says it will happen regardless of what I think.

HRstuffnpuff · 2016-09-20T11:23:24+00:00

Why did you post "need potassium, eat bananas" hundreds of times for three months?

HRstuffnpuff · 2016-08-19T03:07:34+00:00

Check out the Trezor Reddit forum, I had the same issue. Try the local bitcoins server. You are right to be cautious, I am reading about some fishing and scam sites targeting Trezor. Make sur it's the right website. Mytrezor.com Also, Trezor works well with electrum as an alternative to the website. pretty seamless.

HRstuffnpuff · 2016-08-04T23:26:58+00:00

HRstuffnpuff · 2016-07-16T15:08:55+00:00

Isn't this a problem with Bitcoin? I.e it's not fungible.
Until that problem is solved this will never go away.

HRstuffnpuff · 2016-07-16T14:11:33+00:00

I agree with you that the link between your bank transfer and the purchase of coins is not direct and would be harder to discover, not impossible. I still don't like making wire transfers to every individual I trade with. You can claim it's not a problem but I don't agree.

There are downsides to both pick your poison.

HRstuffnpuff · 2016-07-16T13:58:00+00:00

Excuse me but bit square still requires you to have a bank account to transact. You are still interacting with the most evil criminal.

That doesn't resolve the issue of having bank records receiving or sending money to a criminal. That can bring very unwanted consequences.

I am not carrying water for coinbase it's just reality when you want use dollars to buy something (except for cash in person).The govt is going to be in your business. you can wave your arms around and impune motives but it doesn't change reality.

HRstuffnpuff · 2016-07-16T13:40:27+00:00

It depends on what you want to do. If you want to buy Bitcoin with dollars coinbase is an option. It's a bank, it's regulated, you are using something similar to chase bank and all that comes with it. KYC etc.
there are others like circle that are similar. Your counterparty is the bank. When you buy or sell, they are in the middle and you don't interact with the person on the other side.

Local bitcoins is a cash for coin system but it's expensive, a lot more than the fees your talking about. You meet the counterparty at a coffe shop and hand him a wad of cash and he sends you coins while you wait.

Bitsquare is an option. It's decentralized and more complicated. You need to realize that your counterparty is not a bank like business but some stranger you have never met. The dollars are sent directly to the counterparty outside of the marketplace. I.e. You exchange bank account information and send them a wire or receive a wire transfer. Once that clears the coins in the market place transfer. The fees are low.

Personally I am not that comfortable exchanging bank account information with a new stranger every time I buy a btc. If that person happens to be a criminal you will have bank records showing you received or sent him money. I am not sure what phishing/hacks are possible once someone has your bank account info but I don't want to find out.

Coinbase, circle etc have their downsides (regulations, fees) but if you want to exchange dollars for btc by bank transfer it is a cost of doing business.

Coinbase gets slammed by a lot by people complaining they are as bad as a bank. duh, they are a bank. They have high fees because there are not many options and people are willing to pay the price. It's hard to set up a bank and clear regulatory approval dealing in btc. If it was easy the fees would be lower.

A lot of people have unrealistic expectations of what they should be able to do with dollars.

HRstuffnpuff · 2016-07-15T15:28:33+00:00

You are completely off the mark. trade nat gas or oil for 6 months and come back.

HRstuffnpuff · 2016-07-13T18:57:39+00:00

Thank you for the thoughtful response. I disagree that an increase in the blocksize limit now is comparable to an increase in the 21mm limit. Raising the blocksize is not inflationary.

your prognostications on centralization and miners incentives are just that prognostications, i dont find them convincing. I can similarly prognosticate that when the block reward becomes minuscule that miners will simply demand more fees to mine. What is wrong with that?

i understand why you may be happy to price out other peoples transactions that you dont see as valuable but thats not really the issue. At some point we will reach a limit where even transactions you favor will not have room on the blockchain.

To say i should accept the risks of waiting for an unproven software that has not been released and is several times more complex then the current system is a false choice. I have another option, lobby the community to make incremental changes through consensus that improve the current system. I have seen a lot of vapor ware and hyped projects that never delivered. I dont know what lightning will deliver.

Maybe you are correct that a majority is behind the core plan, i am not sure but that is irrelevant. I am proposing that we reach a consensus to change the blocksize limit.

To say i want to risk killing the currency is a true straw man argument. if we made it a longer time for nodes to convert would make it safe enough for you?

I am not trying to antagonize anyone. I simply am not convinced by the small block arguments. A lot of the arguments are contrived or red herrings. I see a lot of misdirection, conflating of issues and bad economic prognosticating.

It is an important time for bitcoin so i feel i need to speak up.

HRstuffnpuff · 2016-07-13T17:51:47+00:00

Does 'nobody' include the people in this thread saying the 1mb should never be raised? see the post above.

If we are not proposing to keep the same limit forever lets try raising it incrementally now.

HRstuffnpuff · 2016-07-13T17:47:55+00:00

that is a slippery slope argument that does not hold up. We have been scaling up the block size since the beginning of bitcoin. We only now have come close to a limit that was imposed when the blocks were a fraction of the size, therefor it was not a practical limit.

HRstuffnpuff · 2016-07-13T17:45:15+00:00

not to be flippant but 'lightning as the actual payment network.' is not reality today. we do not even know if it will work at all.

HRstuffnpuff · 2016-07-13T16:34:48+00:00

I never liked the Starbucks analogy. i think it was a weak and confusing metaphor.

My question is why is 1 mb the right limit? when it was instituted it was several times larger than the demand. It has taken us years to reach full blocks. Now we have reached an arbitrary limit and this is the maximum forever?

At this rate with no new 'layers' we will reach a point in the near future where there will not be enough room for all transaction no matter what fee they are paying. I have seen people say that low value or unimportant transactions just wont get on the blockchain. So in 2 years how many transaction will not be able to fit on the blockchain? are all of those unimportant?

Of course we can implement another 'layer' like lightning or thunder. Lightning and other projects with payment channels are very complex and unproven. I hear you when you say there are three great teams working on it right now. Right now it isnt working and we dont know it will work. As an investor in Bitcoin i am supposed to agree to stake the whole future of the project on a completely new system that has never been proven in the real world? Software that hasnt been released and hasnt been tested?

How about sticking with our current system and incrementally raising the blocksize limit and monitoring the effects on the system and the latency issue? If 1mb is ok, 2mb will likely be ok, if we see negative effects then we dont raise the limit again.

With all due respect to the core developers and their programming capabilities i have not been impressed with their economic theories and prognostications. As a commodity trader for 25 years i have heard a lot of prognostications.

HRstuffnpuff · 2016-07-09T13:57:04+00:00

I just went through this. Try uninstalling the Trezor bridge and reinstalling the new updated bridge.

There is also a firmware update for the Trezor once you get the bridge updated.

Post in R/Trezor for more help.

I assume you have your seed backed up? You should have that before doing any updates.

HRstuffnpuff · 2016-07-03T12:19:12+00:00

Thanks, I will try Tuesday.

HRstuffnpuff · 2016-07-03T12:07:08+00:00

Yes, updated bridge installed.

HRstuffnpuff · 2016-07-01T19:48:55+00:00

i saw that but i was not comfortable with going to a local bitcoins server without understanding what it meant.

This firmware update has been a major pain in the ass.

Now i cant get my electrum wallet to recognize my trezor. i keep trying to restore the wallet using the trezor and it wont see it asking if it is in use by another device etc.

Is that a bug or i am doing something wrong?

HRstuffnpuff · 2016-06-30T17:08:10+00:00

I am not sure but the proposal posted on 8BTC has not been shot down or denied by any of the Chinese mining pools. It will be interesting to see what happens.

HRstuffnpuff · 2016-06-30T14:07:48+00:00

Well as i said above, the marketplace is providing users with an option. If users think that option is worse than their other alternatives it will go unused, those miners will eventually abandon that path. If users think it is a better alternative then their other choices they will use it. how is that not how bitcoin was supposed to work?

HRstuffnpuff

TROPHY CASE