Let's say I am able to mine a btc block that gets into the consensus and I want to pay all due taxes on the money I make from it. How exactly do I go about that? How do I declare I just made a pretty good amount of money out of nowhere? Do companies like Coinbase help with that?
Rofl
Let me guess. You're laughing at the fact that OP thinks he made a lot of money?
OP is bullshitting. If he really made a lot of money, he would not be asking strangers on Blind for advice on taxes.
8 bitcoins will buy you a nice studio apartment in Dubai.
I believe the simplest course of action is to immediately sell the bitcoins on coinbase and get them to produce the tax documentation. You'll report it with a basis of zero because you didn't buy them. Of course, consult with a cpa, don't trust strangers on blind to know the tax law...
Sell them on coinbase after a year and you’ll have to pay 15% of the total amount since cost basis is 0
Mining counts as regular income. They tax it on the day its mined. IRS put out a notice about it.
There is market for people to pay you in cash or as a 'gift' for mined Bitcoin. Both sides want to avoid taxation and a paper trail
Don’t do that, it’s illegal. People have been arrested by undercover officers.
That's kind of a stupid response. Nothing about trading bitcoin for cash is illegal until you do not pay your taxes. And undercover officer cannot prove you won't pay your taxes when you exchange
It looks like IRS is going after endpoints where bitcoin gets converted to USD. So yes, I believe Coinbase helps with taxes, as does any other major bitcoin marketplace.
Sure, but how do I declare where those coins I sold came from in the first place? Do I provide the block hash somehow?
Oh, for that I’m not sure. Though, it poses an interesting question. I’m going to ask around.