Bitcoin was classified as an asset Jan 1 of 2014, the IRS started treating it as commodities under the U.S. Commodity Exchange Act.
I know because I temporarily moved to Ireland in 2014 for business and the IRS sent me a letter saying that they were going to tally up my personal property and make me pay taxes on it like I sold everything. I had to send them proof that I was retaining my citizenship.
They sent me line items of my major property holdings and assets. One of them was a line item for my bitcoin I'd bought on a whim a while before when it cost almost nothing.
They wanted to tax me the value in 2014 for the 250 bitcoin I owned. They valued it at around $80-90k and wanted me to pay 30% on that in tax.
No, but I asked that question very early in the process and they said they could provide that information, but since I didn't give up citizenship I didn't have to go down that route.
Bitcoin was classified as an asset Jan 1 of 2014, the IRS started treating it as commodities under the U.S. Commodity Exchange Act.
I know because I temporarily moved to Ireland in 2014 for business and the IRS sent me a letter saying that they were going to tally up my personal property and make me pay taxes on it like I sold everything. I had to send them proof that I was retaining my citizenship.
They sent me line items of my major property holdings and assets. One of them was a line item for my bitcoin I'd bought on a whim a while before when it cost almost nothing.
They wanted to tax me the value in 2014 for the 250 bitcoin I owned. They valued it at around $80-90k and wanted me to pay 30% on that in tax.
Understanding that you proved citizenship and didn't have to fight every line item, but did they ever provide backup for their valuation?
No, but I asked that question very early in the process and they said they could provide that information, but since I didn't give up citizenship I didn't have to go down that route.
Thanks for clarifying.
Glad you didn't end up having to pay the taxes on everything they claimed you owed.