I understand that Bitcoin is the "new wave" and easiest selection in sending funds to an offshore book. The issue I am struggling with is the following:
The way to "Buy Bitcoin" means going through an exchange, such as Coinbase or Gemini for instance. Since they will now be tracking user information and trades, possibly sending to the IRS, this makes taxable/reporting issues a concern.
So If I buy on Coinbase, and transfer to bitcoin to another wallet, then transfer to a sportsbook. Will that transfer OUT of Coinbase or Gemini be deemed a "taxable event" which is then going to be reported to the IRS?
I'm really struggling with this at the moment, because I'd prefer to transfer to sportsbooks using Bitcoin, instead of using a traditional credit card. However I do not want to have IRS come back to me some 3 or 4 years later, with Coinbase Transfer records and then owe some tax for transfering funds out of Coinbase.
Could someone like Vanzack, or anyone else who has experience in this area provide some clarification on this issue please?
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To remove first post, remove entire topic.
Hello,
I understand that Bitcoin is the "new wave" and easiest selection in sending funds to an offshore book. The issue I am struggling with is the following:
The way to "Buy Bitcoin" means going through an exchange, such as Coinbase or Gemini for instance. Since they will now be tracking user information and trades, possibly sending to the IRS, this makes taxable/reporting issues a concern.
So If I buy on Coinbase, and transfer to bitcoin to another wallet, then transfer to a sportsbook. Will that transfer OUT of Coinbase or Gemini be deemed a "taxable event" which is then going to be reported to the IRS?
I'm really struggling with this at the moment, because I'd prefer to transfer to sportsbooks using Bitcoin, instead of using a traditional credit card. However I do not want to have IRS come back to me some 3 or 4 years later, with Coinbase Transfer records and then owe some tax for transfering funds out of Coinbase.
Could someone like Vanzack, or anyone else who has experience in this area provide some clarification on this issue please?
Only instances I believe it will trigger a taxable event is if you transfer out anything over $10,000, and if you make a profit from the inflation of bitcoin price. For example if you buy into bitcoin on Coinbase w $10,000 n you leave it in there for three weeks n now your btc is worth $10,300. When you sell that the $300 extra is taxable income. I could be wrong on this but I think it’s the same kinda platform as etrade or trade king for stocks.
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Only instances I believe it will trigger a taxable event is if you transfer out anything over $10,000, and if you make a profit from the inflation of bitcoin price. For example if you buy into bitcoin on Coinbase w $10,000 n you leave it in there for three weeks n now your btc is worth $10,300. When you sell that the $300 extra is taxable income. I could be wrong on this but I think it’s the same kinda platform as etrade or trade king for stocks.
Posted: an hour ago "Quote" Only instances I believe it will trigger a taxable event is if you transfer out anything over $10,000, and if you make a profit from the inflation of bitcoin price. For example if you buy into bitcoin on Coinbase w $10,000 n you leave it in there for three weeks n now your btc is worth $10,300. When you sell that the $300 extra is taxable income. I could be wrong on this but I think it’s the same kinda platform as etrade or trade king for stocks.
Thanks for your response. I think that if you transfer $10,000 or more, then this certainly triggers a reporting by Coinbase or others on a Form that will be sent to the IRS, I think that much is true. Perhaps I am wrong though, it may only be when you "Sell" your bitcoin in Coinbase to cash, then it's recorded as a "Sale".
That said, each time then, I convert $ into bitcoin, via Coinbase and I'm holding it, it's fine. The question is when you transfer bitcoin out of Coinbase (not selling it per say) but to a different wallet - which ultimately gets sent to a sportsbook. Are we going to have to explain somehow, the transfer of money out of Coinbase to another wallet, since Coinbase may "track this" as a Bitcoin Sale. Or, even if not a sale, then a transfer of bitcoin which ultimately would be a taxable event?
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Quote Originally Posted by jerzmade:
Posted: an hour ago "Quote" Only instances I believe it will trigger a taxable event is if you transfer out anything over $10,000, and if you make a profit from the inflation of bitcoin price. For example if you buy into bitcoin on Coinbase w $10,000 n you leave it in there for three weeks n now your btc is worth $10,300. When you sell that the $300 extra is taxable income. I could be wrong on this but I think it’s the same kinda platform as etrade or trade king for stocks.
Thanks for your response. I think that if you transfer $10,000 or more, then this certainly triggers a reporting by Coinbase or others on a Form that will be sent to the IRS, I think that much is true. Perhaps I am wrong though, it may only be when you "Sell" your bitcoin in Coinbase to cash, then it's recorded as a "Sale".
That said, each time then, I convert $ into bitcoin, via Coinbase and I'm holding it, it's fine. The question is when you transfer bitcoin out of Coinbase (not selling it per say) but to a different wallet - which ultimately gets sent to a sportsbook. Are we going to have to explain somehow, the transfer of money out of Coinbase to another wallet, since Coinbase may "track this" as a Bitcoin Sale. Or, even if not a sale, then a transfer of bitcoin which ultimately would be a taxable event?
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