What is going on with the insane bitcoin transaction fees?

[player72]

Right, but then you have to show a trail of where they were obtained, at least that’s what I thought? And depending on how you obtained that crypto, you might just want to pay the taxes instead of having accountants asking questions. Thoughts?

JJ

You only have to show how obtained if you are audited. Granted that's playing the odds a little but unless you're laundering huge amounts of money through BTC (which wouldn't be a great way to launder from what I understand) and you didn't earn it vending drugs, I'd file with the actual cost basis and let them challenge me on it if they want. Worst case is you can't (or choose not to) prove what you paid for the BTC then you pay the original tax plus a penalty.

 

[KimHarmony]

Yes. I just received my 1099-B for 2023 from CashApp. Every time I sold BTC, CashApp considered the amount you sold in BTC as capital gains. So yes, you will owe federal taxes each and every time you sell BTC for USD because they recognize this as income.

It kind of sucks because they are taxing me on the entire amount of BTC I sold in 2023. (I’m just going to use round numbers to explain the 1099-B form CashApp sent me.)

In 2023, I sold $5,000 worth of Bitcoin through CashApp to receive 5,000 USD to deposit into my Chase checking account. CashApp then sent me a 1099-B form for the year of 2023. They are considering the entire $5,000 worth of BTC that was sold as “capital gains,” regardless of where the BTC originated from or how you obtained it. To make a long story short, you will have to pay federal taxes on ANY Bitcoin you sell through CashApp.

JJ

NO F***ING WAY!!!

Well, I hope you did well for yourself trading-wise to offset the taxes.
You know what they say: MO' MONEY = MO' PROBLEMS

 

[jb1655]

Yes. I just received my 1099-B for 2023 from CashApp. Every time I sold BTC, CashApp considered the amount you sold in BTC as capital gains. So yes, you will owe federal taxes each and every time you sell BTC for USD because they recognize this as income.

It kind of sucks because they are taxing me on the entire amount of BTC I sold in 2023. (I’m just going to use round numbers to explain the 1099-B form CashApp sent me.)

In 2023, I sold $5,000 worth of Bitcoin through CashApp to receive 5,000 USD to deposit into my Chase checking account. CashApp then sent me a 1099-B form for the year of 2023. They are considering the entire $5,000 worth of BTC that was sold as “capital gains,” regardless of where the BTC originated from or how you obtained it. To make a long story short, you will have to pay federal taxes on ANY Bitcoin you sell through CashApp.

JJ

Same here. Will never use bitcoin again. It's not private anymore if the irs sends you a tax form.

 

[KimHarmony]

Same here. Will never use bitcoin again. It's not private anymore if the irs sends you a tax form.

BTC is "publicly" traded now, remember? Unfortunately, it's no longer the Wild Wild West like it was 10 years ago

MY DUMBASS SAID NO TO SHARES WHEN THEY WERE LESS THAN $100 (from a hippy, suuuuuuuuper White Whole Foods co-worker).

Back then, it was SUPER sketchy and it sounded like just another pyramid scheme, you know? It was "private" P2P only.... similar to the original NAPSTER music. All signs indicated SCAM........

DAMN!!! I f***ed up on that one in 2013