Bitcoin payouts

Anyone ever received Bitcoin as a payout method? Did you use a wallet?

just curious if I send a Bitcoin payment to a wallet and then to my bank account if that will show up for tax.

Advice appreciated.

To my knowledge,  you can't send bitcoin to your bank. Set up an account with an exchange, like Coinbase. Then set up 3rd party wallet using something like Blockchain. Send the money from the book to your wallet. Then send it from your wallet to the exchange. You can then sell the bitcoin on the exchange for USD. Then transfer the USD from the exchange to your bank account.

You'll still have to pay taxes, but only on the amount of USD you deposit into your bank. If you keep some of the BTC, either in the 3rd party wallet or on the exchange, you shouldn't have to pay taxes, because the IRS won't know about it.

The reason for having a 3rd party wallet is because you don't want direct "illegal" transfers from the book to the exchange (Coinbase views inflows from an offshore book as illegal and they don't want to be associated with that activity, especially since going public).

Hope this helps. I've been doing this for several years now.

blockchain>coinbase>bank acct

https://www.jmbullion.com/cart/

Easiest way to convert crypto to a hard currency gold. Gold to a pawn shop.... cash 

Tax purposes yes pay it or include it in the return. 

You only have to pay taxes on bitcoin if the price of bitcoin increases while holding it 

If you receive 1 bitcoin at $36,000 and the price of bitcoin increased to $50,000 ... and then you converted it to USD ... you would have to pay capital gains taxes on the $14,000 ... if the price went down while holding it you can claim the loss on your taxes  

If you’re just getting the bitcoin sent to your Coinbase wallet and then converting it to USD before withdrawing to your bank account I think you should be good 

@I_Need_A_Detox

Would anyone question where the Bitcoin was coming from? 

I have $0.00 in my Coinbase wallet at the moment.  Let’s say my book sends me $5000.00 in Bitcoin. Do I have to pay taxes on the $5000.00 I received or just on the amount if it goes up in value?

Thanks!

Just the amount it goes up in value 

Keep each withdrawal transaction from Coinbase to your bank under $10k and you should stay off the radar 

I am using an Internet wallet to withdraw my BTC. Also, I am using the bitcoin tumbler to stay anonymous. It uses unique code to make sure you do not get the same coins in other transactions. So mixing cryptocurrency breaks all connections with your personal addresses and deletes all the information about you in the transaction. This permits you to withdraw your Bitcoin. Also, no one can know who withdrew that amount of cryptocurrency. This allows us not to pay different fees or taxes. This is a good method of saving some money.

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https://mycryptomixer.com/