Which is the best place to buy DASH directly, and Tax Implications (US)

tuppydog

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Dec 30, 2014
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XhyHv1cs4T54kD1HXVY7kYZMqo2Kg8hWu4
Hi, I usually mine all my coins and use shapeshift and directly send it to coinbase, then finally to the bank. If I BUY Dash, what exchange would you use and process would you use to turn it into dollars? Would this be all subject to taxes, and if so, what would be the best rout? Any help would be greatly appreciated. I don't make that much DASH by mining, and am thinking of becoming more of an investor, possibly a whale LOL....thanks again for any opinions or suggestions Tup...
 
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camosoul

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Sep 19, 2014
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I wish I could help you, but I don't know anyone who sells DASH. That's kind of a weird thing to do...
 

fible1

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Dash Core Team
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May 11, 2014
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If you are a U.S. citizen, it's all subject to income tax; it wouldn't even matter if you were physically in some other country when trading, the U.S. taxes everything you profit from worldwide. As far as I understand it you have to keep track of your profit and loss for your coin buys and sells and pay taxes on that only; some states have started to require other tax reporting but I don't have specific info on this.

I would suggest shapeshift as the best way to trade followed by Poloniex. Stay away from Cryptsy.

Best of luck :)

Pablo.
 
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tuppydog

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Dec 30, 2014
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Dash Address
XhyHv1cs4T54kD1HXVY7kYZMqo2Kg8hWu4
If you are a U.S. citizen, it's all subject to income tax; it wouldn't even matter if you were physically in some other country when trading, the U.S. taxes everything you profit from worldwide. As far as I understand it you have to keep track of your profit and loss for your coin buys and sells and pay taxes on that only; some states have started to require other tax reporting but I don't have specific info on this.

I would suggest shapeshift as the best way to trade followed by Poloniex. Stay away from Cryptsy.

Best of luck :)

Pablo.
Ok, I use Bittrex, but I just needed to know if I buy dash at the exchange using (bitcoin?), then say hopefully Dash rises, I then sell, turn this back into bitcoin. Then is this what I put on my taxes as capital gains? Just wondering if anyone has actually done this in the USA. I do this with my mining, and there are certain mining laws we have here in the US, that allows us to write off equipment, but I want to buy direct DASH, which, according to camosoul, that is not possible...
 
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rightaboutnow

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Jun 24, 2014
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Ok, I use Bittrex, but I just needed to know if I buy dash at the exchange using (bitcoin?), then say hopefully Dash rises, I then sell, turn this back into bitcoin. Then is this what I put on my taxes as capital gains? Just wondering if anyone has actually done this in the USA. I do this with my mining, and there are certain mining laws we have here in the US, that allows us to write off equipment, but I want to buy direct DASH, which, according to camosoul, that is not possible...
Disclaimer: I am not a lawyer or tax pro. but I did file bitcoin gains in 2014, sold at $600 moved to dark coin instead, and haven't looked back.

It works like stocks do, there is a bias price with each stock purchase, and you pay tax on just the profits. It also works the same when you mine a coin, whatever the price is when you realize the investment is the bias price. Lets say you mine 1 coin today and it's worth 2.50, then you sell that one coin Dec 30 2015 for 3.00. You would pay tax on .50 profit.

Now all of this is new for the US and tax laws haven't started to specify rules for digital currency. It could be considered intangible personal property and would not be taxed. But that is doubtful i am sure uncle sam wants his cut.
 
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TroyDASH

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Jul 31, 2015
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The tax situation could be a nightmare especially if you have multiple altcoins and frequently buy and sell. My understanding is also that cryptocurrency is currently considered to be like a stock, so you would need to pay capital gains tax if you sell for a profit. Of course, you might not even *have* records of all your past trades - depending on the exchange it may not even keep the history, and almost certainly doesn't provide you with tax documents, or the exchange may not even exist anymore at all. With cryptocurrency you can also incur permanent loss or stolen coins and have no way to prove to the government that you actually lost the coins. Also if you buy any good or service using crypto, technically that counts as a sell, so you would need to calculate capital gain/loss for everything you ever buy with a cryptocoin. So yeah, it can be messy. In the meantime I am kind of not selling any coins for fiat in the hopes that it will become clearer in the future how to handle the taxes, or that the government will start actually treating it as a currency for tax purposes.

The best I could hope to do at the moment is to obtain the history of all the bitcoins I have purchased, and then if I want to sell any crypto, I would convert it back to BTC first and then sell and then match them to a previous buy to get a cost basis.

If you're a small fish and you make an effort to not evade the tax, the IRS probably won't really have a reason to make an example out of you. But if you're a big fish and you anonymize your coins and don't report large gains, you might get away with it but you're risking probably years in prison...
 
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Sub-Ether

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Mar 31, 2014
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Hi, I usually mine all my coins and use shapeshift and directly send it to coinbase, then finally to the bank. If I BUY Dash, what exchange would you use and process would you use to turn it into dollars? Would this be all subject to taxes, and if so, what would be the best rout? Any help would be greatly appreciated. I don't make that much DASH by mining, and am thinking of becoming more of an investor, possibly a whale LOL....thanks again for any opinions or suggestions Tup...
Keep it simple, renounce your US citizenship, get a Caribbean/Panana passport and move to appropiate beach, tax problems sorted - no more forms to fill in, I hear its very popular in the US at the moment :D
 
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tuppydog

Member
Dec 30, 2014
251
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Dash Address
XhyHv1cs4T54kD1HXVY7kYZMqo2Kg8hWu4
I may just do this hahahah!


Keep it simple, renounce your US citizenship, get a Caribbean/Panana passport and move to appropiate beach, tax problems sorted - no more forms to fill in, I hear its very popular in the US at the moment :D
 

tuppydog

Member
Dec 30, 2014
251
72
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NC
Dash Address
XhyHv1cs4T54kD1HXVY7kYZMqo2Kg8hWu4
I though this was going to turn into the mess you described, thanks for the info, very good synopsis of the situation.... sigh..!!


The tax situation could be a nightmare especially if you have multiple altcoins and frequently buy and sell. My understanding is also that cryptocurrency is currently considered to be like a stock, so you would need to pay capital gains tax if you sell for a profit. Of course, you might not even *have* records of all your past trades - depending on the exchange it may not even keep the history, and almost certainly doesn't provide you with tax documents, or the exchange may not even exist anymore at all. With cryptocurrency you can also incur permanent loss or stolen coins and have no way to prove to the government that you actually lost the coins. Also if you buy any good or service using crypto, technically that counts as a sell, so you would need to calculate capital gain/loss for everything you ever buy with a cryptocoin. So yeah, it can be messy. In the meantime I am kind of not selling any coins for fiat in the hopes that it will become clearer in the future how to handle the taxes, or that the government will start actually treating it as a currency for tax purposes.

The best I could hope to do at the moment is to obtain the history of all the bitcoins I have purchased, and then if I want to sell any crypto, I would convert it back to BTC first and then sell and then match them to a previous buy to get a cost basis.

If you're a small fish and you make an effort to not evade the tax, the IRS probably won't really have a reason to make an example out of you. But if you're a big fish and you anonymize your coins and don't report large gains, you might get away with it but you're risking probably years in prison...
 

rightaboutnow

New Member
Jun 24, 2014
27
16
3
The best I could hope to do at the moment is to obtain the history of all the bitcoins I have purchased, and then if I want to sell any crypto, I would convert it back to BTC first and then sell and then match them to a previous buy to get a cost basis.
This is what I am doing now is tracking BTC purchase and if time comes i use this as bias price for any exchange to fiat, i am considering cashing out what i spend as bias each year after year until i retire and cash all crypto to local fiat and pay just one time tax hopefully something large enough to buy one of these islands in caribbean
 

TanteStefana

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Mar 9, 2014
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Renouncing your US citizenship does not absolve you of your tax obligations. FYI :) I'm hoping that what a deposited into Coinbase, and what I withdrew in fiat are clear enough as that's what I'm planing on putting in my taxes. Anything more complex, I can't handle and they'll just have to throw me in jail, at least I'll get food and a place to sleep.
 

tuppydog

Member
Dec 30, 2014
251
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Dash Address
XhyHv1cs4T54kD1HXVY7kYZMqo2Kg8hWu4
That's pretty much what I'm going to do now, just report everything off of coinbase for now, (the mining earnings and any btc buy/sell). Hey I know you from bct! I'm a born troller, I have to stay away from that site, the temptation is just too easy, I think half my posts get deleted within 24 hrs!

Renouncing your US citizenship does not absolve you of your tax obligations. FYI :) I'm hoping that what a deposited into Coinbase, and what I withdrew in fiat are clear enough as that's what I'm planing on putting in my taxes. Anything more complex, I can't handle and they'll just have to throw me in jail, at least I'll get food and a place to sleep.
 

TanteStefana

Grizzled Member
Foundation Member
Mar 9, 2014
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That's pretty much what I'm going to do now, just report everything off of coinbase for now, (the mining earnings and any btc buy/sell). Hey I know you from bct! I'm a born troller, I have to stay away from that site, the temptation is just too easy, I think half my posts get deleted within 24 hrs!
LOL, then I might have you on ignore, LOL. I can't take it, it gets my blood pressure up, and at my age, it's not a good idea, LOL
 

tuppydog

Member
Dec 30, 2014
251
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88
NC
Dash Address
XhyHv1cs4T54kD1HXVY7kYZMqo2Kg8hWu4
You probably do have me on ignore, no one except monero trolls talk to me haha!
 

TanteStefana

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Foundation Member
Mar 9, 2014
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OT, but I finally got windows 10 to install, well it's 19% at the moment :D. Seems it was my linux dual boot that caused the trouble :p

I had to get rid of grub, now all is good

I hope (fingers crossed!!!)