Calculate Bitcoin and Crypto Taxes for Capital Gains and Income

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Bitcoin have emerged as popular crypto currency in the developed countries. With its increasing proliferation in global commercial arena, the country specific governments have laid out various legislations for regulating bitcoin circulation. Consequently, the Americans that hold bitcoin or other crypto revenues are made to comply with taxation rules provided by the specific governmental offices. Several digital currencies such as ripple, dogecoin and ethereum have also garnered public attention.

With the rising governmental supervision over these forms of currencies, there is negligible chance for you to avoid filing of taxes. However, the entire cumbersome calculation process deters the digital currency users to comply with tax rules. On the brighter side, various crypto tax calculating online platforms have emerged for obtaining capital gain and incomes for you within a tax year.

In order to acquaint the crypto currency users with complicated calculative procedure, this article will elucidate the steps to follow while tax filing. Apart from giving out a bitcoin specific calculation guidance process, an overall procedure to calculate other crypto-taxes using a cryto tax calculator will also be provided.

How do you calculate Bitcoin taxes?

Bitcoin Tax

Part1. Sorting out your personal information is the first step for tax calculating for bitcoin. You are required to enter some personal data and these are as follow:
● Selecting the year for which you want to calculate taxes
● Selecting the filing of taxes status
● Insert taxable incomes, leaving out profits earned from the Bitcoin sale
● Provide the tax rate of your state

Part2. After having filling in all the information, thereafter you have to obtain the year specific crypto currency tax pertaining to the bitcoins. In order to arrive at the desirable result, follow the steps elaborated below.

Step1. Firstly, enter purchasing date and the price. The date could be any month or time till 31st December for the selected tax year.

Step2. For the second step, you are required to enter the price and the date of bitcoin sale. Always ensure beforehand that the date of sale is confined in the selected year of tax filing.

Step3. Replicate the above steps for every bitcoin sale for the specifically selected financial year. It will generate automated tax calculated result for your entire year’s bitcoin transactions.

However, when it comes to capital gain taxes on your bitcoin transactions, procedure you have to follow is not much difficult. With a clear conceptual understanding, you can easily obtain the tax and income amounts.

Short-term capital gains

If you have held bitcoins for less than a year, then your earning on those held crypto currencies is subject to short term capital gains. For deriving this tax, simply subtract the cost basis from the net proceed. You are not even required to put in manual handling of calculations. Opt for any efficient crypto-tax software for determining the taxes.

Long-term capital gains

In case the bitcoins have been held by you for more than a year, then you will have to pay the long-term capital gain taxes. Subtraction of the cost basis from the overall net proceeds will give you the taxed amount for you.

Note: Remember to add the trading transaction costs. Include them with the cost basis thereafter you can subtract the resultant value from the net proceed.

Same as the short term taxes, you can resort to reliable software for getting an entire calculation of your longer term capital gain and the remnant income.

On prima facie, the above calculation process might seem to you a laborious task. However, upon diligent following of the steps mentioned. You can visit the best bitcoin tax software to experience a hassle free tax derivation.

How can you calculate crypto tax for deriving capital gain and income?

Since digital currencies are conceived as the properties, capital gain taxes are imposed on them. So, at the end of a financial year, you are subjected to this tax and there is no escape. Steps to follow while calculating your crypto taxes are listed below.

Step1. Firstly, you have to derive the cost basis. It consists of purchasing prices and every other miscellaneous cost. Basically, the calculation process you need to determine the cost basis is: (Purchasing price of crypto currencies + extra fees)/Holding Amount = Cost Basis for each crypto coin held.

Step2. The second step for obtaining the capital gains is to derive the Fair Market Value (FMV). It stands for the value that is entailed in the sold or traded crypto currencies. For an instance, if you have held three Litecoins for three months at $ 200, then for calculating your gain you are required to do the following: Holding price – (Cost Basis x Number of coins held) = capital gains.

With the advent of several taxes calculating crypto software, you can derive the capital gain and incomes for a certain financial year. Remember to choose the tool that has received positive public lauding for their user convenient features.

The growing popularity of bitcoins and other crypto currencies have necessitated the governments to keep a watch on their transactions. This governmental supervision is desirable since miscreants do take unfair advantage of these digital deals to carry out illegitimate activities. Therefore, tax regulations are imperative to regulate the financial activities taking place in the digital currencies realm. The detailed step by step tax calculation guidance provided in this article is aimed at helping you to keep abreast of latest software for digital currency tax derivation.…

Bitcoin Businesses – Eye $40 Trillion FX Margin Trading

The government made bitcoin a legal payment system on 1 April 2017. After that, it continued to boom in Japan. As it became very popular and trending, now there is a rush for bitcoin business to register with the FSA Japan. Retail investors currently favor the $40 trillion foreign exchange margin trading market.

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On May 17th, 2017 in Zug, Switzerland Monaco Technology GMBH revealed its revolutionary Monaco VISA card and app.

Not only traditional sources, but, Monaco can also be funded with Bitcoin, Ethereum, and other ERC20 tokens. Monaco allows users to spend and send money worldwide at absolutely perfect interbank exchange rates, saving EUR30-40 on every EUR500 equivalent spent. Ethereum Futures on the delta.exchange can be found here.

Kris Marszalek, Founder of Monaco Technology, said: “The team worked incredibly hard over the last year to bring the Monaco VISA Card & App to the market.

It’s a beautifully simple product that allows users to avoid all the bank charges and currency exchanges impose on them.

We believe that every single person who holds Ether or Bitcoin needs one. It brings amazing value, transparency and peace of mind.

You will never have to worry about exchange rates again, always getting the best deal physically possible. It’s an incredible feeling!”

Indian bank Kotak Mahindra implements blockchain in trade finance:

Kotak Mahindra Bank Blockchain

Kotak Mahindra bank which is India’s one of the largest private banks has completed an end-to-end trade finance transaction with a client over a blockchain.

In the Indian context, experiments with blockchain applications are going on in various areas of transaction journey and processes. It also includes paper-intensive processes of Trade Finance and Supply Chain financing segments.

Some other banks also like Yes bank has completed a blockchain trial to digitalize vendor finance with the help of technology sourced from the Linux Foundation-led open-source blockchain project, Hyperledger.

ICICI bank has also started dealing with blockchain pilots.

Bored with Banking, this former Citi trader went full crypto:

In the year 2013, Arthur Hayes was utilizing his time as an equities trader for Citigroup Inc., in Hong Kong.

Six years earlier, he had an interface with something like a golden age in banking when he worked in the “snake pit”. At that time, the markets were on fire. Traders were taking helicopter trips to the casinos of Macau to celebrate their triumphs.

He liked the crowd and rush of the trading floor. After a few years, there was a financial crisis at Citi. At that time, Hayes was about to lose his job in one of the periodic culls, but, he discovered bitcoins.

Today, he is the co-founder and chief executive officer of BitMEX. BitMEX is a cryptocurrency exchange that operates out of Hong Kong.

Goldman says it may trade more than just digital currency futures; Cryptos prices rebound:

While the lack of enough security might play an important role in the exchange of hacks, the transitional processes make bitcoin and other cryptocurrencies main target for hackers.

The main disadvantage of bitcoin is immutability. Once a transaction takes place, it can never be undone. This can be one of the most probable reason for hackers to target cryptocurrencies.

Final words:

So, this was all about Bitcoin Businesses Eye. We tried our best to share all the necessary details about Bitcoin Businesses Eye, Bitcoin trading and Bitcoin analysis. We also shared a story so that you can get to know about the Bitcoin experience. If you still have any doubts or queries, just feel free to contact and ask us. If you have some other information and details about Bitcoin Businesses, must share with us. It will be good to have a two-way conversation.…

Young Africans Move to Crypto, Join ‘the Gospel of Bitcoin’ With Early Adoptees

As unemployment troubles African youth, many professionals are now moving to Bitcoin to find earnings in the volatile currency. A small community of young professionals is now teaching others the ‘gospel of bitcoin’, narrating their success stories and encouraging others to adopt cryptos.

Uganda’s gospel of truth

After suffering for years under the dictatorship, the nation’s youth are opening up to digital currencies. Richard M. Bagorogo, one of the lecturers in these meetings said, “What I have earned in one-and-a-half years from bitcoin is more than I earned in 10 years as a teacher. I am living on bitcoin because getting a job in this country is not easy.”

Young Africans Move to Crypto, Join ‘the Gospel of Bitcoin’ With Early Adoptees

Bagorogo is a star of these events which are being held everywhere in the Ugandan capital, Kampala. He meets young professionals and other tech-savvy youth of the country to encourage them and enter the crypto space. A huge number of these adoptees are millennials looking for jobs. Considering the high unemployment rates, earning through bitcoin trades could be a way to earn a primary income.

There are several stories of bitcoin success like him that are now being taught to other young minds, who are educated but jobless. Bagorogo describes his struggles with early adoption of the currency in great detail. He tells the story of how he could not afford education for his children in the school he taught and how bitcoin helped him holiday in Dubai.

“When I tried to bring my cousins on board, they called my father in the village and said, ‘Your son has gone mad,’” said Bagorogo. He says that he is fascinated with the blockchain concept. Now, he is asking other people to adopt more than two dozen top currencies and start trading.

He added, “For me, I was fascinated by the mathematics behind blockchain technology. But the local man is interested in money, not the mathematics, so I normally sit with them and show them how I get and withdraw my money. Once they see how easy it is, they also want bitcoin.”

Governments are not thrilled

While many people are trying to move the masses with small savings to trade or invest in cryptocurrencies, governments in Africa aren’t thrilled with the idea. They have previously shown grave concerns about money laundering and the use of the digital coins for illicit activities, given then anonymity. The central bank of Uganda has warned investors that plunging in cryptos “is taking a risk in the financial space where there is neither investor protection nor regulatory purview.”

The volatility of these currencies could be another financial hazard for the investors. Bitcoin, for example, rose by 1700% in the last quarter of 2017 to reach a valuation of $19,000. However, since then, its value has come down to only $9,000. By far, there is no sign of a similar upsurge even though experts predict the value to quadruple this year.

In Africa, there is a marked difference in the approach of different economies. While Kenya, Nigeria, Uganda, and Namibia are clearly against the use of digital currencies, countries like South Africa and Tunisia are exploring their options and have a generally favorable view.…

Hackers of Atlanta Government Computers Seek Ransom in the Form of Bitcoin

It is the turn of cryptocurrency as a form of ransom being sought by hackers. Though it could surprise some people due to high volatility in the digital currency sector, the hackers’ demand strengthened the argument that there was lack of identity in trading the instrument. The move would also provide enough tools for those who are opposing the virtual currency. The hacking incident in America comes on the heels of a Cryptocurrency exchange being hacked in Japan in January end that saw a loss of over half a billion American dollar.

US City

Hackers have managed to hack key computer systems in the American City, Atlanta, Georgia, cointelegraph reported. Fortune reported that they were demanding bitcoin worth $51,000 so that they could re-enable the affected computers. Atlanta Mayor, Keisha Lance Bottoms, told the media that officials could not estimate the extent of the attack. She also feigned ignorance whether any bank accounts or personal data was stolen in the hacking and said that every one of them was subject to the attack.

Hackers of Atlanta Government Computers Seek Ransom in the Form of Bitcoin

On March 22, Atlanta City discovered the attack first at 5 a.m. Some customers have found that there were some outages that affected their systems. These customers were trying to pay bills and access court-related information. A press note from the City of Atlanta indicated that its ATL_AIM team was working diligently to resolve this issue.

The hacking has forced the government officials to seek the help of the Department of Homeland Security, FBI and even Microsoft Corporation to find out the extent of the breach. They were also concerned as to how to resolve the outages. On Friday, officials sought the cooperation from its citizens to check their accounts and personal information and see whether anything was compromised in the hack. At the current rate of approximately $8,500 per bitcoin, the ransom demand is for six bitcoins.

The latest incident was not the first one in the recent past. There were previous incidences too that held back municipal computer systems as hostages in exchange of a digital currency. For instance, a hacker hacked the Regional Transit System in November 2017. The hacker sought a ransom of about one bitcoin. At that point in time, it was worth approximately $8,000.

Bitcoin Remains In Limelight

It is not clear why the hackers are going after the Bitcoin. However, there is no doubt that the virtual currency enjoys the biggest market capitalization. The price and the percentage of growth in 2017 were also astonishing making everyone to hold the digital currency just for prestige if not for value of it. This was evident when hackers seek a small fraction of bitcoins.

However, there was also one big ransom in Germany. A parcel bomber wanted Euro 10 million ransom to be paid in Bitcoin in December last year. The package had a QR code for depositing the virtual currency apart from explosive materials received from nails and fireworks though it failed to detonate. Before the latest incident, most of the big hackers appear to have happened in cryptocurrency exchanges.…

America Includes Bitcoin Hacker in Iranian Sanctions

The justice department of the United States has included Game of Thrones (GOT) bitcoin hacker, Behzad Mesri, on its sanctions list. The sanctions involved an Iranian firm and nine nationals from the country for their involvement in global hacking schemes against private companies, energy concerns, universities and government outlets.

Half-A-Dozen Hackers

The United States has named more than half-a-dozen hackers who were allegedly involved in perpetrating the Home Box Office (HBO) compromise formula. That also led to a bitcoin ransom. The HBO drama, Game of Thrones, which was more popular, was scooped up in 1.5 terabytes of stolen data. The hackers threatened with pre-season leaks and demanded millions of dollars through the digital currency. During the last summer, HBO disclosed that it was hacked by miscreants.

America Includes Bitcoin Hacker in Iranian Sanctions

In one of the biggest media hack of this kind, terabytes of data were stolen. That included Emmy-award winning fantasy drama, Game of Thrones. The Creator held it close to the unaired episodes. This reminded about the biggest media hack of the notorious Sony data compromise in 2014 as the latest is said to be seven times of that hacking, news.bitcoin.com reported. Once the partial leaks were allowed to make their way around, ransom demands increased to six million dollars, which should be by way of bitcoin. If the demand was not meant, there was a threat of the complete GOT season being allowed to go online.

The American authorities indicted Behzad Mesri in November last year for the GOT hacking. He was directly linked to the hacks of HBO as his relations with the Iranian government were termed as loose. There were rumors that he was part of the Revolutionary Guard as he was accused of engaging himself in the Iranian military’s Turk Black Hat Security division. Incidentally, the division was given particular importance on the cyber attack with a focus on Israel.

Despite these engagements, reports suggested that Mesri would unlikely to visit the United States in the near future. Therefore, the latest action of the Justice Department was termed as a campaign of name and shame. A poster of “Wanted” for Mesri was given and the lead agent disclosed in GOT as to how winter has come for the Iranian national.

Unaired HBO Shows

The American alleged that Mesri was preventing from stealing episodes of a number of unaired shows in the HBO. This included GOT scripts. As a result, he started teasing the firm with clunky messages like “Beware of heart attacks, “HBO is hacked..” and “Hi to all losers!”. The messages came as Skote Vahshat.

As the frustration level increased, his demand for ransom also grew. Initially, he demanded 5.5 million dollars of bitcoin as ransom. This was increased to over six million. HBO reacted to clarify that hackers were trying to release bits and pieces of stolen information aiming to turn the media attention. The company disclosed that it was not ready to play a game with the hacker. The current threat is that if Mesri owns any asset in the United States, it would be either frozen or confiscated.…

Cboe Dodges Sec, Recommends the Launch of Bitcoin Etf

CBOE Global Markets is unhappy with SEC interference in the launch of bitcoin ETF. It has urged the regulator to allow the launch of the ETF, as a regular marketable security. In a recent letter to the Securities and Exchange Commission, CBOE President Chris Concannon addressed the regulator’s concerns, recommending them not to interfere in the development of the new fund.

CBOE’s rebuttal

Per the exchange operator, a bitcoin ETF will be similar to other ETFs in the market. An exchange-traded fund is designed as marketable security that tracks, bonds, a basket of assets, an index or a commodity. They have lower fees than mutual funds, and their liquidity remains higher than common stock.

In response to an SEC letter expressing concerns about liquidity and manipulation risks of the cryptocurrency market, Concannon wrote this letter asking the regular to avoid interfering in the process.

Cboe Dodges Sec, Recommends the Launch of Bitcoin Etf

Dalia Blass, Director of the Division of Investment Management, wrote in the letter, “Until the questions identified above can be addressed satisfactorily, we do not believe that it is appropriate for fund sponsors to initiate registration of funds that intend to invest substantially in cryptocurrency and related products.?

Concannon responded by saying, “As the volumes continue to grow, especially on regulated US markets, the overall spot Bitcoin market looks more and more like a traditional commodity market and CBOE continues to believe that the spot market is sufficiently liquid to support a Bitcoin ETP.?

He also talked about arbitrage opportunities in ETF, writing “CBOE believes that the arbitrage mechanism would function identically to other commodity-related ETPs… thereby keeping the price of the ETP in line with the price of Bitcoin and limiting the risk of manipulation shares of the ETP.?

While the SEC still isn’t convinced about the role of cryptocurrencies in traditional markets and their regulation, Concannon supported the statements made by regulatory experts in a recent congressional hearing. They stated that the current set of regulations are enough to manage some aspects of digital currencies.

He added, “While CBOE shares many of the concerns raised in the Staff Letter, we believe that the vast majority of these concerns can be addressed within the existing framework for commodity-related funds related to valuation, liquidity, custody, arbitrage, and manipulation.?

The SEC has launched dozens of probes into digital currency companies and issued subpoenas to several firms offering ICOs to investors. This week, the SEC has launched a fresh investigation into 100 hedge funds that have holdings in cryptocurrencies. The regulator wants to know whether the investors are aware that their money is being used in crypto markets or not. Financial advisors to private individuals and businesses could also come under the purview of this probe.

CBOE and its rival CME Group Inc. have already launched bitcoin futures contracts, overlooked by the CFTC. The SEC, however, has already denied dozens of proposals to start funds with bitcoin holdings or futures contracts. Four of these proposals were submitted by CBOE, including one for the Winklevoss Bitcoin Trust.…

Intel Releases Patent for New Cryptocurrency Mining Accelerator

Intel has come up with a bitcoin mining chip accelerator and is trying to patent the innovation. World’s largest semiconductor company has filed a patent which was it acknowledged in September 2016. The recently released chip is titled – “Bitcoin Mining Hardware Accelerator with Optimized Message Digest and Message Scheduler Datapath.

Cryptocurrency has often been accused of using a tremendous amount of energy to function. Iceland confirms that mining bitcoin consumes more energy than powering its residence. To combat the situation, bitcoin-friendly cities like New York and Plattsburgh have imposed strict rules to decrease energy consumption and demands of bitcoin miners.

According to a report in bitcoinmagazine.com Intel has claimed to find a solution to the problem. The new bitcoin mining chip is efficient in reducing energy consumption and costs in bitcoin production. It also says that up to 35 percent energy would be saved while mining more number of bitcoins in the same process.

Intel releases patent for new cryptocurrency mining accelerator

The document states, “Because the software and hardware utilized in Bitcoin mining uses brute force to repeatedly and endlessly perform SHA-256 functions, the process of Bitcoin mining can be very power-intensive and utilize large amounts of hardware space. The embodiments described herein optimize Bitcoin mining operations by reducing the space utilized and power consumed by Bitcoin mining hardware.”

As per Intel finding the 32-bit field is the most expensive and burdensome step in creating a bitcoin. Block hash contains a solid set of zeros or a nonce under a fixed value. After computation, these zeros are tied to the hash of the transaction hashes in the blockchain”. Numerous 32-bit additions and 32-bit words are pushed to work together by the message digest and message scheduler blocks which trims the energy use.

On the one hand, energy costs are getting out of control in the US while China is clamping down bitcoin production by limiting their energy supply on the other. Due to bitcoin’s underperformance in the last week experts do not see it as profitable anymore. Most of the miners are not able to stretch the gap between their investment and earnings.

Intel is not the only company developing mining chips.

Coindesk.com earlier reported that Samsung is creating specialized cryptocurrency mining chips. Samsung now provides application-specific integrated circuits (ASIC) to a Chinese mining company.

The problems for Intel have increased with the rise of BDPL, Blockchain Defensive Patent Licence. It orders bitcoin-based companies to submit their patents with other license holding members of the group. BDPL has laid down strict rules that prevent blockchain companies from having particular rights over specific products and patents. It also holds the power to penalize licensees who charge against patents licensed by other members.

If Intel can create value for bitcoin miners while working under BDPL’s guidelines, it will undoubtedly change the crypto market forever. It should also be noted that rival companies are also trying to mold the cryptocurrency in their favor. There are many chances of different chips being used by various miners in future.

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