Bitcoin/CashApp a tax Forms

[lestatgear]

Have you guys gotten these and are you using them in your filings? I only use BTC and. AshApp for transactions based off of what we do here. The money goes in and then out immediately. Doesn’t make sense to me to add this to my filing. Guess I could just give the 1099 form to my accountant and let them figure it out, just curious to see what others are doing.

 

[ALPHALIFEFITNESS]

Have you guys gotten these and are you using them in your filings? I only use BTC and. AshApp for transactions based off of what we do here. The money goes in and then out immediately. Doesn’t make sense to me to add this to my filing. Guess I could just give the 1099 form to my accountant and let them figure it out, just curious to see what others are doing.

As long as you don't have a capital gain over a certain amount you don't have to disclose from what I'm told. Also when sending with cash app or venmo never send as purchasing a product, cause then the recipient gets a fee and does have to file that. Had a few send to me as a purchase. I had to message cashapp to cancel transaction. They were trying to be slick incase the source F'ed me they could get their money back from me.

 

[SlickNJ]

No reason to file that unless you made some good Nj eat and withdrew it. Like if you bought 10k Bitcoin then pulled out 40k. Especially not if you buy on cashapp then send it out to buy shoes.

 

[weedle]

Are you talking about sending cash or BTC through cash app?

 

[SlickNJ]

Sorry my last post had horrible typos. I mean if you purchase btc through cashapp to buy stuff. As opposed to buying let’s say 10k of crypto then cashing out with 50k. Like if it grows a lot they might send that to the IRS and they might want the capital gains.

 

[qbkilla]

Are you talking about sending cash or BTC through cash app?

This is what I'm wondering.

When I order my trt I use cashapp to get Bitcoin. Then send to my electrum wallet. Then to my friend to get trt

Since I am not receiving $600 from anyone, big brother should not require I do anything with taxes, correct?

I am just buying and spending BTC.

 

[lestatgear]

Are you talking about sending cash or BTC through cash app?

BTC.

 

[lestatgear]

This is what I'm wondering.

When I order my trt I use cashapp to get Bitcoin. Then send to my electrum wallet. Then to my friend to get trt

Since I am not receiving $600 from anyone, big brother should not require I do anything with taxes, correct?

I am just buying and spending BTC.

Same here bro. Sounds like we don’t need to do anything for taxes. I got a 1099B from CashApp, which kind of freaked me out and prompted the question.

 

[buck]

Crypto is treated like any other property. If you made money on it you probably owe taxes. If you got a 1099 form then the government already knows what you made.

Frequently Asked Questions on Virtual Currency Transactions | Internal Revenue Service

Frequently asked questions and answers about Virtual Currency transactions.

www.irs.gov

 

[qbkilla]

Crypto is treated like any other property. If you made money on it you probably owe taxes. If you got a 1099 form then the government already knows what you made.

Frequently Asked Questions on Virtual Currency Transactions | Internal Revenue Service

Frequently asked questions and answers about Virtual Currency transactions.

www.irs.gov

But if you buy Bitcoin then spend them, I assume you have no extra work for taxes? See above for reference.

 

[weedle]

This is what I'm wondering.

When I order my trt I use cashapp to get Bitcoin. Then send to my electrum wallet. Then to my friend to get trt

Since I am not receiving $600 from anyone, big brother should not require I do anything with taxes, correct?

I am just buying and spending BTC.

Can you explain to me why you send the Bitcoin you purchase from cashapp to an outside wallet and then send it from there?
Why not just send the Bitcoin to your friend from the cashapp wallet?
I know a lot of people do what you do but I can’t wrap my head around why it’s done this way.

 

[buck]

But if you buy Bitcoin theIf you spend them, I assume you have no extra work for taxes? See above for reference.

From my reading if you bought $100 of BTC and it increases in value to where you
buy $150 dollars worth of product then you would owe taxes on the difference of $50. Same as stocks or other property.

 

[MasteroniPepperoni]

This is what I'm wondering.

When I order my trt I use cashapp to get Bitcoin. Then send to my electrum wallet. Then to my friend to get trt

Since I am not receiving $600 from anyone, big brother should not require I do anything with taxes, correct?

I am just buying and spending BTC.

This is my question . They ask me if I have invested in bitcoin , but I never made any money. Just bought and sent

 

[qbkilla]

From my reading if you bought $100 of BTC and it increases in value to where you
buy $150 dollars worth of product then you would owe taxes on the difference of $50. Same as stocks or other property.

How would they know If they increased if you immediately sent to an anonymous electrum wallet? Even if they did, the amount would be so neglible.

 

[qbkilla]

Can you explain to me why you send the Bitcoin you purchase from cashapp to an outside wallet and then send it from there?
Why not just send the Bitcoin to your friend from the cashapp wallet?
I know a lot of people do what you do but I can’t wrap my head around why it’s done this way.

This is just what I was advised to do on forums and always did it this way. I'd assume if a supplier got in trouble, an extra layer of anonymity

 

[buck]

How would they know If they increased if you immediately sent to an anonymous electrum wallet? Even if they did, the amount would be so neglible.

True. Those that really don't have much net worth do not need to worry about audits from the government. Those that have more then most are going to be scrutinized more during such times.

 

[qbkilla]

Revisiting this. On TurboTax they asked me about crypto, has anyone used them to file?

Say in 2021 I bought 500$ worth of BTC. Then sent them to an electrum wallet then sent them immediately for metformin or berberine, do I report I bought them sent 500$? How do they know the dates, If it went up a few cents between the time I bought and sold?

I guess all they see is I used cashapp to buy then sent to an anonymous wallet. I don't think an electrum wallet is associated with you, so for all they know you saved it?

This shit is confusing.

 

[MasteroniPepperoni]

I used h and r block. Told the lady I used bitcoin to purchase and she’s basically like “nah, only if you made money off them or traded for other crypto” lol

 

[qbkilla]

I used h and r block. Told the lady I used bitcoin to purchase and she’s basically like “nah, only if you made money off them or traded for other crypto” lol

Nice, good to hear a professional say that, I'm worried they will audit for some minor thing although it's obvious I didn't make more than a few cents since I just bought n sent

 

[MasteroniPepperoni]

Nice, good to hear a professional say that, I'm worried they will audit for some minor thing although it's obvious I didn't make more than a few cents since I just bought n sent

Yep. That’s kinda why I just pay to have someone else do it lol. Avoid issues entirely and easier when face to face