Do I need to pay taxes if I sit on (do not use) bitcoins?

Do I need to pay taxes if I sit on (do not use) bitcoins?

I've done some reading on the IRS bitcoin guidelines and I'm a bit confused how the capital gains taxes works. If I buy some bitcoins in Jan, the value of the bitcoins double by the of the year but I still keep them, do I need to pay a tax on those? Or do I only need to pay tax if I buy something with them/convert them to fiat?

I'm in the USA by the way.

http://ift.tt/2ETmvQF

Comments

Post a Comment

Popular posts from this blog

Need help to recover blpckchain.info wallet, my wife forgot her password and the brute force with btcrecover is not catching the password

Need help to recover blpckchain.info wallet, my wife forgot her password and the brute force with btcrecover is not catching the password I used btcrecover to extract the wallet file (wallet.aes.json) from a blockchain account and I have been running btcrecover with dictionaries of my making but it has been going on for weeks and I am running out of ideas on how to permutate what my wife and I think the password could have been. Is there a way to just manually transfer the btc from the old wallet into a new wallet we do have access to or is there any way to extract the password or private keys directly from the wallet file? We have: the phone with the original wallet app installed, the wallet file pulled using btcrecover, access to the email to allow authorization to access, the wallet identifier that was sent to her email when she first signed up, the phone which has the wallet, the pin that was used for the wallet, and we know how much btc is in the account. We do not have: The pri...
Read more

When downloading the blockchain my application is become unusable, is there an issue with my code or am I using the BitcoinJ library incorrectly?

When downloading the blockchain my application is become unusable, is there an issue with my code or am I using the BitcoinJ library incorrectly? I am building a Bitcoin wallet with the BitcoinJ Library, after looking at the example of fetching a transaction that they have shown on their github it shows that you need to download the blockchain however. When attempting to download the blockchain to view the balance of my wallet, it begins to lock up and become unusable. I have even tried downloading the blockchain in an async task like so, but still the app becomes completely unusable and the UI doesn't even load. What am I missing? I thought that the download wouldn't be that large as I am attempting to create an SPV wallet which from what I understand doesn't download the entire blockchain, or is this something I need to configure seperately? class MainActivity : AppCompatActivity() { override fun onCreate(savedInstanceState: Bundle?) { DownloadBlockchain(...
Read more

Mistakenly sent BTC from my personal wallet back to one of the exchange wallet addresses that I had received BTC from before - help recovering!

Mistakenly sent BTC from my personal wallet back to one of the exchange wallet addresses that I had received BTC from before - help recovering! TDLR: I sent BTC from an exchange to a personal wallet. Several months later I mistakenly sent BTC from my personal wallet back to one of the exchange wallet addresses that I had received BTC from. The exchange is saying that they do not own the wallet ID. Can someone please look at this sequence of events and help me clarify the situation or more effectively communicate this situation to the exchange? Here's a chronological order of events Exchange Transaction (sent from Exchange to personal wallet) Jul 23, 2017 https://blockchain.info/tx/8541cdf82b99f9ff87092cbf6109b972c520f59087471d58ff4e171e130f5ff1 I transfer 0.0072780 BTC to wallet ID 12QWuHYViDzaW3R4ksrTYR9xuhDhgJc9nK (lets call this wallet-A) Jul 25, 2017 https://blockchain.info/tx/73ef9cdd28e2a22a81d28421b4f9b44afd364813df85a4404226261c555c754d I transfer 2.13505777 BTC to wa...
Read more